UPDATE 1-Malaysia’s Petronas posts 61 pct growth in quarterly profit

April 22, 2018

Dateline 2018-03-02, Kitko:

Malaysian state energy firm Petroliam Nasional Berhad , or Petronas, posted a 61 percent jump in quarterly profit on Friday and pledged to boost its dividend payout and capital spending this year. Petronas, like other oil majors, had taken a hit from lower oil prices, but sharp cost cuts – along with some recent stability in oil prices – helped the company post higher profits and margins. Net profit for the fourth quarter ended December rose to 18.2 billion ringgit ($4.65 billion) from 11.3 billion ringgit in the same quarter last year, while revenue rose 13.8 percent to 61.8 billion ringgit.

The quarterly result helped push full-year profit up 91 percent to 45.5 billion ringgit – marking a second year of profit growth for the sole manager of Malaysia’s oil and gas reserves following a two-year profit slump. “Petronas is now in stronger position to execute its long term growth agenda,” Chief Executive Wan Zulkiflee Wan Ariffin said. “Petronas will explore new business areas, including speciality chemicals and new energy.” Petronas will focus on the ASEAN region, the Indian subcontinent, the Middle East and the Americas for growth, he said, adding that the company will assess opportunities in solar energy. Wan Zulkiflee said the company will continue its focus on costs. Petronas, a major contributor to Malaysia’s budget and one of the country’s biggest employers, said in 2016 that it would reduce expenses by $12 billion over a four-year period and cut thousands of jobs.

Big oil and gas players may continue asset buys this year: Hibiscus

April 20, 2018

Dateline 2018-03-01, NST:

Asset acquisitions in the oil and gas industry may continue this year as big players seek to increase their capital expenditure while oil prices are rebounding.

This will also benefit smaller players like Hibiscus Petroleum Bhd in the hunt for potential new brownfield assets as rationalisation by the big players continue.

Since oil price plummeted in 2014, the global oil and gas industry saw high number of mergers and acquisition (M&As) deals where big players carried out their rationalisation plans, cut down costs and capital deployment, as well as sold assets to smaller players.

Bloomberg data showed M&As in the industry picked up since 2013 to reach its highest volume level of 428.2 billion in 2017.

According to Financial Times, quoting Mergermarket, M&As had risen by 40 per cent to US$270 billion in the first nine months of last year, compared with US$192 billion in the same period in 2016.

Hibiscus – the story of a successful SPAC

April 5, 2018

Dateline 2018-02-24, The Star:

THE story of Hibiscus Petroleum Bhd’s growth is an interesting one, considering its funding needs have virtually all come from private investors. The debt-free independent exploration and production company has achieved a few notable milestones.

Not only has it survived making expensive acquisitions before the oil price crash (when it lived as a special-purpose acquisition company or SPAC), it also went through the oil crash and has come out smiling, by being cashflow positive.

No doubt, there have been investors who lost money along the Hibiscus journey, but there have been a number of investors who have rode its recovery well and are sitting pretty.


Strive to remain competitive: MPRC

March 15, 2018

Dateline 2018-01-29, NST:

With the current temporary rise in the crude oil prices – strengthening since the start of 2018, it will be unlikely for the prices to revert to the heady days of USD$100 per barrel, evident from the cautious response of global oil companies.

As such, Malaysian Petroleum Resources Corporation (MPRC) chief executive officer Datuk Shahrol Halmi said Malaysia oil and gas services and equipment (OGSE) companies should not slow their momentum or lose focus on raising their competitiveness.

“To be more competitive, local OGSE companies should focus on providing economies of scale and integrated solutions,own technologies, employ quality talent, and possess export capabilities,” he said in media briefing recently.

The media briefing was held to share the latest MPRC100 rankings and industry analysis for the financial year ended 2016.

Southeast Asia set for gas boom

March 10, 2018

Did I miss the boom? Crash is what I am still hearing.

Dateline 2018-01-25, ENB:

SOUTHEAST Asia is set for a gas boom from now through to 2020, according to Rystad Energy, with a collective four billion barrels of oil equivalent resources from 50 fields likely to be developed, requiring a US$28 billion capital expenditure from final investment decision to first production.

MPRC’s Shahrol Halmi: Don’t be ‘overexcited’ about oil topping US$70

March 9, 2018

Yeah, pay us little fish at higher rates, then we can get excited together. And don’t swallow.

Dateline 2017-01-23,  The Edge:

Malaysia Petroleum Resources Corp Bhd (MPRC) said oil and gas (O&G) support service providers should not be “overexcited” about the recent rise in crude oil prices above US$70 a barrel. This is because prices of the commodity are still expected to be volatile.

MPRC, an agency reporting to the Prime Minister’s Department, was established to develop the O&G services and equipment (OGSE) industry in Malaysia. MPRC president Datuk Shahrol Halmi said OGSE companies should continue keeping an eye on efficiency in order to address cost while protecting profit margin through implementation of new technologies or integrated solutions.

“The interest in O&G companies is [returning] quite a bit, especially after the Petronas Activity Outlook (2018-2020 report) came out, and after Petronas contract awards recently. [But] the key point to note here is that one swallow does not make a spring.

Petronas dishes out MCM contracts to Malaysian contractors

March 8, 2018

Dateline 2018-01-17, Seatrade Maritimes News:

Petronas E&P unit Petronas Carigali has awarded a slew of contracts to provide maintenance, construction and modification (MCM) services at its offshore facilities in Peninsular Malaysia, Sabah and Sarawak to five local Malaysian contractors.

Carimin Engineering Services, Dayang Enterprise, Deleum Primera, Petra Resources, Sapura Fabrication and its joint venture partner Borneo Seaoffshore Engineering were selected for a five-year contract each with an option to extend another year, effective last September, local media reported.

“Under the terms of the contract, the engineering and maintenance services will include topside major maintenance and facilities improvement projects,” Petronas Carigali said.