Dialog continues upward momentum on demand for petroleum storage facility
27 Apr 2020
While oil and gas counters are trading on a choppy mode due to volatility in global oil price, the local oil and gas services company Dialog Group Bhd had bucked the trend by recording a steady upward momentum.
Dialog, a company which focuses on multinational oil majors, national oil companies as well as multinational engineering and service providers located throughout the world had recorded consistent performance despite the declining global oil price.
An analyst saidas oil prices plunge; the demand for petroleum storage facility has increased drastically, leading to Dialog’s encouraging performance.
“Dialog’s project in Pengerang which is dedicated to handling and oil storage for oil majors and traders as well as refined petroleum and petrochemical products has put its company on a steady footprint,” she said.
Pengerang Deepwater Terminal serves as a tankage facility for the handling, storage, blending and distribution of oil majors and traders while Pengerang Terminals (Two) Sdn Bhd is a dedicated industrial terminal with approximately 2 million mᵌ storage capacity for crude, refined petroleum and petrochemical products.
Phase 2 also includes the Liquefied Natural Gas (LNG) regasification facilities comprising a regasification unit and two units of 200,000 mᵌ LNG storage tanks.
Among the top investors in Dialog are Retirement Fund (Incorporated) (KWAP), Employees Provident Fund (EPF) as well as Permodalan Nasional Bhd through its funds.
Since Dialog was included on the FBM KLCI in June 2018, its share price has more than doubled to RM3.22 today with a market capitalisation of RM18.15 billion. In 2017, its share price was RM1.55.
As at 10.10 am, 261,000 of its shares were transacted, making Dialog as one of the top gainers since the market resume its trading today.
On the oil front, benchmark Brent crude was recorded at US$21.18 per barrel and WTI crude was at US$16.14.