Updated: Wednesday July 31, 2013 MYT 4:32:29 PM By Nadya Ngui
KUALA LUMPUR: Shares of Dialog Group Bhd fell to a low of 2.79 on Wednesday on news that Petroliam Nasional Bhd (Petronas) would delay its multi billion ringgit Pengerang refinery project in Johor to late 2017.
The project was set to be the Malaysia’s largest-ever infrastructure project, spanning across 2,000ha and costing RM62.13bil.
At 3.13pm, it was down 18 sen to RM2.82 with 22.76 million shares done between RM2.79 and RM3.
The FBM KLCI fell 18.31 points to 1,776.77. Turnover was 1.3 billion valued at RM1.8bil. There were 727 losers, 91 gainers and 291 counters unchanged.
HwangDBS Vickers Research said the delay would likely have a negative impact on the local oil and gas players.
“Dialog is currently the existing player with exposure to Pengerang by virtue of its deepwater independent terminal.
“The first phase is set to be operational by first quarter 2014 but we believe that the second phase may be delayed as well as the tank capacity was dedicated for the Refinery and Petrochemical Integrated Development (Rapid) project,” it said.
Reuters said Petronas had already put back the project from late 2016 to early 2017 in June and revised the final investment decision (FID) to the first quarter next year, citing state government problems in relocating villages and graves from the 2,000ha site, five times the size of New York’s Central Park.
“As a result of the revised FID date, the Rapid refinery is scheduled to be ready for start-up in the fourth quarter of 2017 and the remaining plants within the complex is scheduled to be commissioned in 2018,” it said.
Tags / Keywords: Stocks
No comments:
Post a Comment