Dialog's Storage Expansion May Support Recurring Income Growth
Dialog Group plans to add 100,000 cubic meters of petroleum storage in Johor. RHB analyst Lee Yun Leon says the project should improve income visibility.
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what happened
Dialog Group is expanding its petroleum storage capacity. According to RHB Investment Bank analyst Lee Yun Leon, as reported by Market Talk, the Malaysian company plans to add 100,000 cubic meters of storage at Dialog Terminals Langsat 3 in Johor, southern Malaysia. Completion is targeted for mid-2029, and the project costs up to 200 million ringgit.
The project is expected to run on a take-or-pay basis, which should give the company more predictable income once it starts operating. The analyst also pointed to a separate expansion at Pengerang, also in Johor, that could add 135 million to 150 million ringgit in annual revenue. RHB keeps its buy rating and 2.44 ringgit target. The shares fell 1.9% to 2.10 ringgit.
why it matters
For the market, the key point is Dialog's revenue mix. Terminal utilization already exceeds 90%, and take-or-pay contracts reduce exposure to swings in throughput volumes. The new capacity reinforces the company's push to grow its recurring midstream income.
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sources
- Dialog's Storage Expansion Likely to Support Recurring Income Growth — Market Talk, 3 November 2026 at 02:31 UTC
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