Dialog’s 1H16 earnings came in line with our/consensus expectations, at 47%/45% respectively. Earnings this year could be driven by its EPCC contracts, as well as the expectation of a higher contribution from Pengerang Independent Terminal (2.1m cu m). We make no changes to our earnings estimate and maintain BUY with a TP of MYR1.82 (16%upside) as we believe Dialog’s long-term earnings growth remains intact.

In line. Core earnings of MYR135.2m came in line with our and consensusexpectations, helped along by revenue from its EPCC contracts as well asincreased contribution from its associate storage terminals. No dividends weredeclared this quarter.

RAPID beneficiary. Dialog is heavily involved in the Refinery andPetrochemicals Integrated Development (RAPID), with the engineeringprocurement, construction and commissioning (EPCC) of Pengerang TerminaTwo, a dedicated tank terminal for feedstock, products and by-products. It isalso in a JV with Petronas Gas (PTG MK, NEUTRAL, TP: MYR22.40) in thedevelopment of the second liquefied natural gas regasification terminal (RGT-2)for RAPID. Dialog is also seeing increased contribution from its terminaoperations in Kertih, Tanjung Langsat and Pengerang Independent Terminal.Risks. Lower orderbook wins, lower production profile for its oilfields

Maintain BUY. We maintain our BUY recommendation on Dialog with a SOPbased TP of MYR1.82. Its long-term growth plan remains intact, even in a low crude oil price environment, owing to its involvement in RAPID and the resilient tank terminal business.