‘Recovery in O&G industry hindered by low capex’

Dateline 2017-11-29, The Edge:

UMW Oil & Gas Corp Bhd (UMW-OG), a stock that has fallen out of favour after the meltdown of crude prices in late 2014, beat estimates with its first-ever profitable quarter in two years in the third quarter ended Sept 30, 2017.

The performance brought fresh optimism about earnings recovery for other upstream players. But is the long wait finally over? Analysts are still sceptical, with no consistent work order flow in the local upstream segment with national oil firm Petroliam Nasional Bhd (Petronas) sticking to upstream capital expenditure (capex) cuts.


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