SapuraKencana predicts oil price will take two years to recover


On hindsight, maybe SK needs to consider that ‘Winter has Come‘, and will be longer that forecast.

Dateline 2015-01-04, Financial Times:

One of Asia’s leading oilfield services groups has warned it expects crude prices to stay at sharply lower levels for up to two years.

Shahril Shamsuddin, chief executive of Kuala Lumpur-based SapuraKencana, also said the energy industry slump was hitting the order books of Malaysia’s fabrication yards, as new projects worth billions of dollars were shelved.

SapuraKencana supplies some of the world’s largest oil exploration and production groups, and Mr Shamsuddin said the supermajors had embarked on a relentless round of cost-cutting to protect dividend payouts, in a downturn that could prove to be worse than that of the 1980s.

 

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