Malaysia’s Oil & Gas sector downgraded

Crap. Possible replacement of PETRONAS chief?

Dateline 2014-10-15, The Star:

PETALING JAYA: Slower project rollouts and delays in new tenders are expected to translate into a cut in earnings for local oil and gas (O&G) players over the next two years, according to research house AmResearch.

It said in a report yesterday that the impact would be more significant for domestic-centric upstream players, as opposed to more globalised operators such as Bumi Armada Bhd and SapuraKencana Petroleum Bhd or downstream service providers such as Dialog Group Bhd.

“We have downgraded our sector view to neutral from overweight given the slow rollout of domestic developments, downscaled projects, declining marine charter rates, increasing competition from overseas fabrication players due to the relaxation of local content requirements and deteriorating visibility of regional prospects, especially in Australia’s mega-billion gas field developments.

“Additionally, there are concerns that the possible replacement of Petronas president and chief executive officer Tan Sri Shamsul Abbas next year may lead to further temporary delays in contract awards,” AmResearch said.


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