Dialog’s reported 1QFY24 core net profit grew by 19.5% YoY and 6.3% QoQ to RM137.8m, mainly driven by its international operations from the midstream Jubail Supply Base business and downstream business in Singapore and New Zealand. In Malaysia, higher production at the upstream segment mitigated lower net profit from the downstream and midstream businesses as both segments were dragged by cost overruns and financing cost respectively. Overall, Group core net profit is broadly in-line with our and consensus estimates at 28% and 26% of full-year numbers respectively. We expect cost overruns from its legacy contracts will be mitigated by its upstream segment given higher production from completed drilling programmes for its PSC field for FY24F. However, for the longer term, the Group is aggressively investing into businesses with recurring income to reduce the volatility from EPCC contracts. We retain our Neutral call and maintain TP of RM2.40 on the back of stable and diverse income across of all segments.
Source: PublicInvest Research - 15 Nov 2023
Chart | Stock Name | Last | Change | Volume |
---|
2024-05-16
DIALOG2024-05-16
DIALOG2024-05-16
DIALOG2024-05-16
DIALOG2024-05-15
DIALOG2024-05-15
DIALOG2024-05-15
DIALOG2024-05-15
DIALOG2024-05-15
DIALOG2024-05-15
DIALOG2024-05-14
DIALOG2024-05-14
DIALOG2024-05-14
DIALOG2024-05-14
DIALOG2024-05-14
DIALOG2024-05-14
DIALOG2024-05-14
DIALOG2024-05-13
DIALOG2024-05-13
DIALOG2024-05-13
DIALOG2024-05-13
DIALOG2024-05-13
DIALOG2024-05-13
DIALOG