Dialog Group Berhad's FY24 earnings remained solid, with normalised profit after tax and minority interest (PATAMI) up by 13% year-on-year, despite some challenges in its downstream segment. The energy infrastructure and services provider saw its upstream and midstream segments perform robustly, although delays and cost overruns impacted the downstream operations.

Consequently, analysts have maintained a BUY rating on Dialog with an unchanged target price of RM2.72, reflecting confidence in the company's long-term growth potential.

The group's FY24 earnings were slightly below expectations, coming in at 95% of the full-year forecast but still showcasing steady performance across its key divisions. Dialog's upstream activities drove a notable increase in earnings, with revenue rising by 6.1% year-on-year to RM1.74 billion and profit before tax (PBT) surging by 46.7% to RM497.2 million. This growth was largely attributed to higher production levels, coupled with strong demand for onshore storage, underpinned by stable Brent crude prices.

Dialog's midstream segment also contributed significantly, with stable revenue from its terminals at Langsat and Pengerang. However, the downstream segment faced challenges, including project delays and cost overruns, leading to losses despite a busy schedule of engineering, procurement, construction, and commissioning (EPCC) activities and plant maintenance projects.

International operations presented a mixed bag, with collective revenue increasing by 3.7% year-on-year to RM1.42 billion, but PBT fell by 15.4% to RM181.9 million. Despite these setbacks, higher sales of specialist products and services, particularly in New Zealand, helped mitigate the impact of the cost overruns.