KUALA LUMPUR (April 15): Dialog Group Bhd (KL:DIALOG) said construction has begun on the expansion of Phase 3 of its Pengerang Deepwater Terminals (PDT) in Johor after meeting conditions tied to a long-term service agreement signed with BP Singapore Pte Ltd last November.
In a bourse filing on Wednesday, Dialog said the expansion is expected to be completed by mid-2028 and will add 614,000 cubic metres of storage capacity for refined petroleum products and biofuels, which brings the total capacity to about one million cubic metres across 48 tanks.
“This expansion of Phase 3 PDT is in line with Dialog's progressive development plans for Phase 3 PDT and its strategy to continue increasing long term recurring income for the group,” said Dialog.
In a previous filing, the integrated specialist technical services provider said the deal was a conditional long term-service agreement involving Dialog Terminals Pengerang (5) Sdn Bhd and Dialog Terminals Sdn Bhd.
Phase 3 of the Pengerang Deepwater Terminals was launched in 2018 and began operations in March 2021. The terminal is designed as a one-stop integrated facility offering storage tank services, deepwater marine infrastructure, shared pipelines and port operations for oil traders, refiners and petrochemical players.
AskEdge data shows Dialog currently trading at a price-to-earnings ratio of 22.9 times, which is the highest among peers where the ratio is applicable (not loss-making or insufficient data).
This PE ratio is at the lower end compared to its historical valuation in recent years.
The company's price to net asset value ratio of 2.2 multiples is the highest among peers but is below the recent years’ average.
Shares of Dialog closed down a sen or 0.4% at RM2.27 on Wednesday, valuing the company at RM12.8 billion. Over a year, the counter has been up by 78.3%.