Dateline 2017-05-17, The Star:
A DAY after UMW Oil & Gas Corp Bhd (UMW-OG) announced it had won contracts for two of its rigs and expressed optimism that the company’s seven rigs would be fully utilised by the second half of the year, the stock was unchanged at 62 sen a share, which is near its all-time low, in trading yesterday.
The caveat to its announcement of full utilisation of its rigs was that its earnings would remain under pressure for some time. This scenario of which a company has its assets fully employed, but not for long, and warns of its earnings goes to show just how tough things are in the oil and gas (O&G) sector today.
Forget about the day when crude oil breaches US$100 a barrel again. Just about everyone thinks that will not happen in the short or even medium term. There are also grave concerns that the high prices of yesteryear may just be consigned to a footnote in the industry’s past.