Dialog Group Bhd has begun construction work on the Phase 3 expansion of its Pengerang Deepwater Terminals (PDT) in Johor, after meeting conditions under a long-term service agreement signed with BP Singapore Pte Ltd last November.
In a Bursa Malaysia filing on Wednesday, Dialog said the expansion is expected to be completed by mid-2028 and will add 614,000 cubic metres of storage capacity for refined petroleum products and biofuels. This will bring total capacity to about one million cubic metres across 48 storage tanks.
Dialog said the expansion is part of its long-term development strategy for Phase 3 PDT and will support its goal of generating higher recurring income for the group.
The Phase 3 development was launched in 2018 and began operations in March 2021. The terminal is designed as an integrated hub offering storage tanks, deepwater marine facilities, shared pipelines, and port operations for oil traders, refiners, and petrochemical players.
In a previous filing, Dialog said the agreement is a conditional long-term service deal involving Dialog Terminals Pengerang (5) Sdn Bhd and Dialog Terminals Sdn Bhd.
Based on AskEdge data, Dialog currently trades at a price-to-earnings ratio of 22.9 times, the highest among its peers where applicable, though still at the lower end of its historical valuation range in recent years. Its price-to-net asset value of 2.2 times is also the highest among peers but below its recent historical average.
Dialog shares closed one sen lower at RM2.27, valuing the group at RM12.8 billion, and have risen 78.3% over the past year.
