More challenging environment ahead for O&G sector

Heck, if it gets even more challenging, us bottom feeders will have to pay clients to execute their work.

Dateline 2016-03-04, Borneo Post:

Analysts envisage a more challenging operating environment ahead for the oil and gas (O&G) sector in Malaysia.

The research arm of Kenanga Investment Bank Bhd (Kenanga Research) affirmed that domestic outlook remains sluggish this year with Petroliam Nasional Bhd (Petronas) slashing up to a total of RM20 billion from its capital expenditure (capex) and operating expenditure (opex), indicating further slowdown in contract awards to the local services players.

“Earlier on Monday, Petronas announced its financial year 2015 (FY15) results with core net profit plunging 45 per cent year-on-year (y-o-y) and cash flow from operations contracted by 33 per cent compared to the previous year,” it said.

“On top of that, Petronas is set to lay off 1,000 staff under the group-wide transformation plan to be more cost efficient.


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