Latest news with #DialogGroup
Yahoo
30-06-2025
- Business
- Yahoo
Dialog Group Berhad (KLSE:DIALOG) Has Fared Decently But Fundamentals Look Uncertain: What Lies Ahead For The Stock?
Dialog Group Berhad's (KLSE:DIALOG) stock up by 3.3% over the past month. Given that the stock prices usually follow long-term business performance, we wonder if the company's mixed financials could have any adverse effect on its current price price movement Particularly, we will be paying attention to Dialog Group Berhad's ROE today. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dialog Group Berhad is: 4.9% = RM303m ÷ RM6.2b (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. That means that for every MYR1 worth of shareholders' equity, the company generated MYR0.05 in profit. View our latest analysis for Dialog Group Berhad So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. It is quite clear that Dialog Group Berhad's ROE is rather low. Even when compared to the industry average of 13%, the ROE figure is pretty disappointing. Therefore, it might not be wrong to say that the five year net income decline of 6.3% seen by Dialog Group Berhad was possibly a result of it having a lower ROE. However, there could also be other factors causing the earnings to decline. For example, the business has allocated capital poorly, or that the company has a very high payout ratio. That being said, we compared Dialog Group Berhad's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 33% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Dialog Group Berhad's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Looking at its three-year median payout ratio of 40% (or a retention ratio of 60%) which is pretty normal, Dialog Group Berhad's declining earnings is rather baffling as one would expect to see a fair bit of growth when a company is retaining a good portion of its profits. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline. In addition, Dialog Group Berhad has been paying dividends over a period of at least ten years suggesting that keeping up dividend payments is way more important to the management even if it comes at the cost of business growth. Upon studying the latest analysts' consensus data, we found that the company is expected to keep paying out approximately 36% of its profits over the next three years. However, Dialog Group Berhad's ROE is predicted to rise to 6.0% despite there being no anticipated change in its payout ratio. On the whole, we feel that the performance shown by Dialog Group Berhad can be open to many interpretations. While the company does have a high rate of reinvestment, the low ROE means that all that reinvestment is not reaping any benefit to its investors, and moreover, its having a negative impact on the earnings growth. Having said that, looking at current analyst estimates, we found that the company's earnings growth rate is expected to see a huge improvement. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Inicia sesión para acceder a tu portafolio
Business Times
16-06-2025
- Business
- Business Times
SGX-listed energy stocks surge, regional names mixed, as oil prices rally on Israel-Iran conflict
[SINGAPORE] Several energy counters in Asia jumped in early trade on Monday (Jun 16), on the back of global crude oil prices surging amid escalating conflict in the Middle East between Iran and Israel. Brent crude futures rose US$1.70 or 2.3 per cent to US$75.93 a barrel during Asia hours, while US West Texas Intermediate (WTI) crude futures gained US$1.62, or 2.2 per cent, to US$74.60. Oil prices had jumped 7 per cent on Friday as Israel and Iran first traded strikes. In Singapore, shares of oil and gas companies listed on the Singapore Exchange (SGX) such as Rex International and RH PetroGas rose more than 6 per cent at market open on Monday As at 9.04 am, multinational oil exploration and production company Rex International gained 9.8 per cent or S$0.02 to S$0.225, with 13.3 million securities changing hands. By 9.30 am, its share price had eased to S$0.22, though the counter was still up 7.3 per cent or S$0.015. The company's share price has had an upward trajectory since early June, following its Jun 6 update on its subsidiary Lime Petroleum's assets in Norway, Benin and Germany. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Notably, Lime Resources Germany, which was founded in late-2024, was said to have interests in four onshore exploration licences and one onshore production licence in the Rhine Valley, and one onshore production licence in Bavaria. Its share price has since increased steadily from S$0.14 on Jun 9, to S$0.18 on Jun 11 and S$0.205 on Jun 13. On Nov 7, 2023, Lime Petroleum had entered into an agreement to acquire a 17 per cent interest in PL740, an oil and gas licence for a field in the Norwegian North Sea. In addition, RH Petrogas was up 6.8 per cent or S$0.013 at S$0.205 in early trade, with 5.2 million securities changing hands. At 9.45 am, its price eased to $0.199, still up 3.7 per cent or S$0.007, before rising again to S$0.20 by 9.56 am. The company's price performance had shown regular improvement since Jun 10's price of S$0.141, before today's spike. Other maritime and energy SGX-listed stocks which had sharp increases were Mermaid Maritime , which rose more than 10 per cent to S$0.121, and CH Offshore , which gained around 21 per cent to S$0.017. As at 10.18 am, their share prices had eased to S$0.118 and S$0.016, respectively. Meanwhile, oil and gas counters in Malaysia such as Petronas Gas and Dialog Group were up 0.7 per cent at RM17.96, and 3.8 per cent at RM1.63 in early trade, respectively. Equity research analyst at Maybank Jeremie Yap has kept a 'buy' rating on Dialog Group and an unchanged target price of RM2.34, considering how the group has signed a production sharing contract with Petronas for the Mutiara Cluster small field asset, located off the coast of Sabah. 'We understand that ChemOne's development of Pengerang Energy Complex and Petronas' RM6 billion (S$1.8 billion) development of a biorefinery with Eni and Euglena could require tank terminals for storage of refined and/or crude products, which Dialog Group is well-positioned to secure,' he said in his Jun 15 report. The FBM KLCI Energy Index rose 11 points or 1.5 per cent to 751.86. On the Hong Kong stock exchange, China National Offshore Oil Corp was down nearly 1 per cent or HK$0.14 at HK$18.56 as at 11.59 am. PetroChina shares were also down 0.5 per cent or HK$0.04 at HK$7.36. Official data released on Monday showed that China's crude oil output declined by 1.8 per cent in May from a year earlier to the lowest level since August 2024, as maintenance at both state-owned and independent refineries curbed operations. Will crude oil prices jump further? UOB head of markets strategy Heng Koon How said that previous conflicts between Israel and Iran over the last year had limited impact on oil prices, on a medium-term horizon. A key reason behind this is that the US is now a major producer of crude oil. 'The US now produces more than 13 million bpd, significantly more than the current nine million bpd production from Saudi Arabia,' wrote Heng on Monday. DBS chief economist Taimur Baig and foreign exchange and credit strategist Chang Wei Liang echoed Heng's sentiment, noting that the market thus far is 'inclined to coalesce around the less-dire possibilities'. 'The fact that the Iraq-Iran war during the 1980s and associated disruptions to oil and gas supply and production did not cause a 1970s-style oil shock may well be informing the market's composure,' they wrote in their report on Monday. 'At a time when global demand softness is a greater source of worry than supply tightness, the bar for a major oil rally is high.' That said, a dangerous escalation would be for Iran to target US military assets or attack regional crude oil production, storage and shipping facilities across the Middle East, said UOB's Heng. 'The worst-case scenario would be a blockade of the Strait of Hormuz – a key shipping lane – which would disrupt crude oil supply to the rest of the world suddenly,' he added. Although near-term volatility is considered, Heng refrains from making any 'knee-jerk adjustments' to his Brent oil forecast of US$65 per barrel for the third quarter of 2025, and US$60 per barrel for the fourth quarter of this year. 'This is ultimately pending further developments in the two key variables – that of Iran's extent of retaliation and the reaction function of Saudi Arabia and Opec+ (the Organization of the Petroleum Exporting Countries and other oil-producing nations),' he noted.
The Star
16-05-2025
- Business
- The Star
Dialog to continue its focus on midstream business
The company said ongoing projects in the upstream segment will count towards its diversification strategy. PETALING JAYA: Dialog Group Bhd will continue to focus on its longer term strategy of growing its sustainable and recurring income. Dialog Group has the second largest independent terminal owner-cum-operator in South-East Asia with a current operating capacity of 5.1 million metres cube. Dialog's midstream business will continue to be its core focus and it will continue to invest in phased capacity expansions for dedicated long-term customers across its mid-stream terminals business portfolio. The group will also focus on the development of Pengerang Deepwater Terminals to transform it into one of the largest petroleum and petrochemical hubs for the wider Asia Pacific region. For new projects in the downstream segment, the group said it will conduct thorough risk assessments for new projects and strategically pursue opportunities that align with its risk management framework and strategic goals. This is due to the current geopolitical and market uncertainties. 'We will take a cautious and selective approach to bidding for engineering, procurement, construction and commissioning contracts to prioritise in-house projects,' it said. In its upstream business, Dialog said it will continue to grow its presence through the development and rejuvenation of oil and gas fields. Ongoing projects here in the upstream segment will count towards its diversification strategy, it said. In its third quarter ended Mar 31, Dialog saw a decline in both its revenue and net profits. Net profits for the third quarter declined year-on-year (y-o-y) by 13.6% to RM134.97mil while revenues dropped 17.6% y-o-y to RM578.81mil. 'The current net profit position is a recovery from the net loss of RM125.6mil in the preceding quarter. 'The performance in the current quarter was driven by contributions from both the company's Malaysia and international operations, as well as share of profits from the group's joint ventures and associates,' it said. Within Malaysia, the group said its performance was driven primarily by midstream and upstream operations. 'The midstream operation reported better performance with increased earnings from higher tank storage occupancy and increased tariff rates at our independent terminals. The upstream operation continued to deliver strong production volume from its assets,' it said. 'The revenue and profits contribution for the current financial quarter was, however, reduced slightly when compared to the same period last year due to lower realised oil prices,' it added. On the international front, Dialog said revenue and profits achieved in the current financial quarter was lower y-o-y due to reduced business activities.
