Dialog Group Bhd fell 0.50% or one sen to RM2.00 as at 3.35 pm, with 3.41 million shares traded, as investors weighed the company’s latest progress on the RAJA Cluster oil field development.
The stock opened at RM2.01 and traded between RM1.99 and RM2.03 during the session, while its last adjusted closing price was RM2.01.
Dialog recently secured PETRONAS approval to proceed with the RAJA Cluster development following a final investment decision valued at US$81 million, or approximately RM330 million.
According to MBSB Research, the project could lift Dialog’s revenue by 3% to 5% and net earnings by 5% to 10% once commercial production begins, with earnings contributions expected from FY2028.
The RAJA Cluster is expected to have a two-year development phase followed by around 10 years of commercial production. The project has approximately 6.1 million barrels of proved and probable reserves.
MBSB maintained its BUY call on Dialog with an unchanged target price of RM2.57, while leaving its earnings forecasts unchanged pending greater certainty over the project’s production timeline and first oil.
The research house said Dialog is expected to capture 100% of production revenue from the project, providing an additional recurring income stream alongside its existing midstream and downstream businesses.
