Dialog Group Bhd shares fell 2 sen or 1% to RM1.98 as of 2.50pm today, with 3.61 million shares traded.
The stock opened at RM2.00 and moved between RM1.97 and RM2.01 during the session. Its last traded price was below the previous close of RM2.00.
The decline comes a day after MBSB Investment Bank said Dialog’s development of the RAJA Cluster oil field could lift the group’s net earnings by 5% to 10% once commercial production begins.
Dialog has secured PETRONAS approval to proceed with the US$81 million (approximately RM330 million) RAJA Cluster development following the final investment decision.
MBSB said the project has about 6.1 million stock tank barrels of proved and probable reserves, with commercial production expected after a two-year development phase.
The research house expects the project to generate no earnings contribution in FY2027, with benefits expected from FY2028 onwards during the production phase.
Assuming the reserves are produced evenly over 10 years, annual output could average around 600,000 barrels, or about 1,600 to 1,800 barrels per day.
MBSB maintained its BUY call on Dialog with an unchanged target price of RM2.57, saying the project could also increase group revenue by 3% to 5%.
Dialog is expected to use the Tarpon platform system for the shallow-water development and could leverage its existing offshore engineering and project execution capabilities.
The RAJA Cluster project is expected to provide an additional recurring income stream alongside Dialog’s existing midstream storage and downstream businesses.
