Dialog positioned for multi-year growth through FY28

Maybank IB continues to favour Dialog for its recurring income base and stable cash flow from midstream tank terminal assets, naming it as top sector pick.

KUCHING (Feb 23): Dialog Group Bhd is poised for a multi-year growth phase from financial year 2026 to 2028 (FY26–FY28), supported by a pipeline of project deliveries and upstream field developments.

Analysts at Maybank Investment Bank (Maybank IB) said the outlook is supported by progress made over the past two years, and it noted several key assets that are expected to generate maiden contributions from FY27.

Among them are a 150,000 cubic metre renewable fuel storage tank for EcoCeres in first quarter of FY27 (1QFY27) and an LNG-driven air separation unit facility with Petronas Gas Bhd (PetGas) for the regasification terminal, targeted for 2QFY27.

Additionally, first gas production from the Baram Junior Cluster is anticipated in 2HFY27, alongside increased downstream onshore plant turnaround activities in line with Petronas Activity Outlook 2026–2028.

The Baram Junior Cluster holds an estimated 137 billion cubic feet of gas reserves.

However, due to limited visibility on the production schedule, Maybank IB has not factored in any earnings contribution from the field at this stage, though it expects a positive impact on the group.

Looking ahead to FY28, Maybank IB noted that two additional tank projects are expected to be commissioned, including the PT2 expansion of a 272,000 cubic metre storage facility for Pengerang Biorefinery, a joint venture between PETRONAS, Eni and Euglena; and the PT5 expansion of a 614,000 cubic metre tank for BP Singapore.

“We believe that these 6 projects in FY27 to FY28 would position Dialog on a multi-year growth phase which should re-rate the stock,” it said.

Dialog also retains 660 acres of vacant land in Pengerang for potential future tank terminal expansion.

That said, the research house doesnt not expect new tank terminal awards in the next six months, given the current project pipeline.

“We believe the next 12 months will be key for Dialog – to prove their capability to execute and deliver these projects within the expected timeline,” it added.

The house continues to favour Dialog for its recurring income base and stable cash flow from midstream tank terminal assets, naming it as top sector pick.

It maintained its FY26 to FY28 earnings forecasts and reiterated its “buy” call on the stock.