Dateline 2016-06-14, FMT:
RAM Ratings has indicated varying fortunes for local oil and gas (O&G) players.
“Among the 31 listed domestic O&G players, more than two-thirds posted year-on-year (y-o-y) declines in pre-tax profit last year, with about a quarter incurring losses.
“However, their fortunes vary according to the sub-segment or type of services within the sector,” said RAM Ratings’ Head of Consumer and Industrial Ratings Kevin Lim, in a statement today.
Based on their performance, the aggregate drop in revenue last year came up to a moderate 18% although pre-tax profit plummeted 57%, exacerbated by the impairment of assets and intangibles.
The collapse in crude prices and persistently weak outlook led to the cancellation of USD400 billion worth of projects for the global oil and gas (O&G) sector.
RAM Ratings said Petronas, too, has been scaling back both its capital expenditure (capex) and operational expenditure (opex) since 2015, as have other international oil companies operating in Malaysia.