‘O&G industry still offers attractive trading opportunities’


Dateline 2016-12-28, Borneo Post Online:

Despite the challenges and uncertainties faced by the oil and gas (O&G) industry this year, analysts are more bullish on the prospects of the sector in 2017, driven by various promising factors.

MIDF Amanah Investment Bank Bhd’s research arm (MIDF Research) in its 2017 outlook report, opined: “All is not doom and gloom in the O&G sector as opportunities still exist, especially for asset light and niche service providers.”

All things considered, it said, the O&G industry still offers attractive trading opportunities in line with the volatile movements in the global crude oil mart.

“We are negative on asset-heavy companies with heavy reliance on upstream exploration and production activities but we remain positive with downstream related companies.

“Having said that however, we recommend investors to cherry pick stocks within niche segments of the O&G value chain,” it added.

It suggested that Dayang Enterprise Bhd (Dayang) and Deleum Bhd (Deleum) are front are frontrunners with niche expertise in the upstream maintenance, construction and modification (MCM) works for Petroliam Nasional Bhd (Petronas) and its production sharing contractors.

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