By Dialog Group’s shares saw a significant increase on Tuesday morning following the announcement of higher quarterly profit. The Malaysian energy-services provider experienced a surge of 8.6%, with shares recently trading 8.1% higher at 2.01 ringgit. Despite a 12-month loss of 18%, Dialog’s positive earnings report brought optimism to investors.
Positive Financial Performance
In the fiscal second quarter, Dialog Group’s net profit rose to MYR148.3 million from MYR127.2 million in the previous year. This growth was primarily attributed to increased production from Malaysia upstream activities and a more favorable business environment for international operations. Quarterly revenue also saw a rise of 7.8% to MYR859.2 million.
Analysts’ Perspectives
Citi analysts are optimistic about Dialog’s downstream operations, believing that it could contribute to sustained earnings growth throughout the rest of fiscal 2024. Lester Siew from Citi noted that Dialog’s share-price overhang, caused by its exclusion from Malaysia’s benchmark indices, is likely to diminish in the future.
Maybank Investment Bank highlighted the development of Malaysia’s Pengerang Integrated Petroleum Complex as a significant catalyst for Dialog’s long-term expansion. Foreign investments in this project are expected to benefit Dialog as a leading service provider in the energy sector.
Analyst Recommendations
Both Citi and Maybank have maintained buy ratings on Dialog Group, expressing confidence in the company’s future prospects and growth potential.
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