Oil & gas: All quiet on the consolidation front

June 7, 2016

Does no one want to buy me out? And DESB owns Perdana?

Dateline 2016-05-06, The Sun:

While talk of consolidation in the oil and gas (O&G) industry has been around since the plunge in global oil prices last year, analysts opine that the process, if it indeed happens, will be on a small scale, as its positive effect is limited.

An analyst who declined to be named said consolidation won’t change the cost structure for O&G firms, thus it is not expected to happen “in a big way”.

“If you consolidate all the assets, it won’t change your cost structure much. So the synergy of doing consolidation is not much. They don’t have incentives to go into M&As (mergers and acquisitions). Maybe one or two acquisitions will happen, but they won’t be big and change the industry,” he said.

“So far, we’ve seen only one consolidation, the takeover of Perdana Petroleum Bhd by Dayang Enterprise Holdings Bhd last year,” he added.

,,,

 

Leave a Comment » | Malaysia, oil and gas | Permalink
Posted by Wata

Saturday Star 2016-06-04– Job Opportunities

June 6, 2016

Ramadhan Kareem.

Donate to your favorite charity (me), buy my recommendations, or through my Amazon store. Or get the Young Turks series (3 books until I can get YTP republished). Where are those corporate sponsors? Or throw donations at me, my camera dive case flooded, and I need a new replacement. Heck, if you want to send me a Canon 5D Mk III plus dive case, I will not say no.

  • A mate of mine is looking for a MD/EngMan type person to help run his engineering company (the main business is skid manufacturing). He can’t handle the work volume, so you know that his oil & gas company is bucking the trend, and has a bright future ahead. If I know you, send your CV’s to me. If I don’t know you, send your CV along anyway, but note I will contact your references. I am not getting a commission for this ad, you know.
  • I’m looking for fresh meat-ish, to help with a peak work period.
  • Nothing in the papers today.
  • I’m looking for jobs for 3Q2016. Send me your POs.

Support your local bookshop!  Bookalicious at The Summit Subang is a good choice. I think they focus on trilogies, quadrilogies, and other ologies. Tell them I sent you, and enjoy the look of perplexity on their faces. Those of you who have dropped my name, thanks!

Food choice of the week? Any weight loss diet.

Let’s get a bit nostalgic with the book selection.

Wetter, Louder, Stickier: A Baby Blues Collection (Baby Blues Scrapbook), BBXX: Baby Blues: Decades 1 & 2, Bedlam

Leave a Comment » | Malaysia, oil and gas | Permalink
Posted by Wata

SPACs remain important for capital market

June 5, 2016

This sounds like a pump and dump sell. Wikipedia has something on SPACs. And this seems like a reasonable writeup.

Dateline 2016-04-30, NST:

Special-purpose acquisition companies (SPACs), also known as development stage companies, remain relevant in Malaysia as they are a viable capital market offering.

This is despite their mixed performance currently, according to industry observers.

They said SPAC was an instrument that enabled entrepreneurs to raise funds to build their businesses, allowing the market to have more liquidity and offering an option for investors with no risk of losing their money.

They said it was unfortunate that the first few SPACs in the oil and gas (O&G) industry were listed on Bursa Malaysia at a time when the sector and overall economy were experiencing one of the most volatile periods.

“Further, because of the SPACs’ ‘newness’, the grasp of the concept is still low, not only among investors but also regulators and certain financial industry players,” an industry specialist told Business Times.

…

 

 

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Posted by Wata

Petronas Gas: RM4.5b capex for next 5 years

June 4, 2016

Now, how would I capitalize on downstream activities?

Dateline 2016-04-27, The Sun:

Petronas Gas Bhd (PGB) has allocated RM4.5 billion in capital expenditure (capex) for the next five years, said its chairman Tan Sri Shamsul Azhar Abbas.

“We are continuously looking for growth projects…we will continue to maintain our capex kind of expense to the tune of about RM300 million a year and for the next five years, our capex is going to be in the region of RM4.5 billion, mainly to cater for the growth projects,” he told reporters after its AGM yesterday.

Shamsul said the two major growth projects that it is involved in are the LNG Regasification Terminal (RGT) and the Air Separation Unit (ASU) project, both of which are located in Pengerang.

He said the RGT project is now at 25% progress on ground and the first storage tank should be commissioned before the end of 2017 while the second tank, which will complete the whole project, will be commissioned by the first quarter of 2018.

The group also aims to enter into its final investment decision for the ASU project by the second quarter of this year. The ASU is being built to cater for the requirements of the Petronas Refinery and Petrochemical Integrated Development (Rapid) project.

“Those are the two major projects as far as growth is concerned. You may notice that in terms of capex requirement, we have undertaken a loan of US$500 million (RM1.95 billion) from Mizuho Bank earlier this year. The bulk of that loan is going to cater for these growth projects and the rest will be reserved for maintenance capex.

…

Leave a Comment » | investment, Malaysia | Tagged: , | Permalink
Posted by Wata

Challenging year for oil and gas industries

June 3, 2016

I would have added a few more swear words in the title, but hey.

Dateline 2016-04-27, The Star:

HE year 2016 will be one marked with challenges for the oil and gas (O&G) industry, with slower progress in the upstream sector, according to the National Transformation Programme (NTP) annual report 2015.

The industry is no stranger to trying conditions, having gone through a similar cycle when oil prices went down below US$10 per barrel in 1998.

The difference this time around is that the industry and the players are better positioned to face uncertainties, having built competency and capacity over the years.

As an upside, the current situation creates a stronger impetus for O&G players to take measures that will inevitably strengthen their operations and help them create resilience against volatilities and unexpected industry developments.

…

 

Leave a Comment » | business opportunity, Malaysia, oil and gas | Permalink
Posted by Wata

Anniversary – Flixborough

June 1, 2016

Process Safety engineers never forget.

Leave a Comment » | Chemical | Tagged: | Permalink
Posted by Wata

Marketing Rounds – Diving 2016/02 Koh Lipe Pt 3

June 1, 2016

Leave a Comment » | engineering | Tagged: , | Permalink
Posted by Wata

Saturday Star 2016-05-28– Job Opportunities

May 31, 2016

Sorry I’m late, been offshore, lousy internet, but hey, better than no internet

Happy Visit Surabaya week. Donate to your favorite charity (me), buy my recommendations, or through my Amazon store. Or get the Young Turks series (3 books until I can get YTP republished). Where are those corporate sponsors? Or throw donations at me, my camera dive case flooded, and I need a new replacement. Heck, if you want to send me a Canon 5D Mk III plus dive case, I will not say no.

  • A mate of mine is looking for a MD/EngMan type person to help run his engineering company (the main business is skid manufacturing). He can’t handle the work volume, so you know that his oil & gas company is bucking the trend, and has a bright future ahead. If I know you, send your CV’s to me. If I don’t know you, send your CV along anyway, but note I will contact your references. I am not getting a commission for this ad, you know.
  • I’m looking for fresh meat-ish, to help with a peak work period.
  • I’m looking for jobs for 3Q2016. Send me your POs.

Support your local bookshop!  Bookalicious at The Summit Subang is a good choice. I think they focus on trilogies, quadrilogies, and other ologies. Tell them I sent you, and enjoy the look of perplexity on their faces. Those of you who have dropped my name, thanks!

Food choice of the week? Any weight loss diet.

Let’s get a bit nostalgic with the book selection.

Wetter, Louder, Stickier: A Baby Blues Collection (Baby Blues Scrapbook), BBXX: Baby Blues: Decades 1 & 2, Bedlam

2 Comments | Malaysia, oil and gas | Tagged: | Permalink
Posted by Wata

Petronas’ royalties increased 60 folds – CM

May 31, 2016

Dateline 2016-04-22, Borneo Post:

ROYALTIES paid by Petronas to Sabah has increased by 60 folds over the last four decades.

Chief Minister Datuk Seri Musa Aman in his Ministry of Finance’s winding up speech yesterday said although the rate of the royalty given to Sabah had not been revised, the revenue given back to the State had continued to increase year by year.

“The royalty received by Sabah for the oil extracted from its waters was only RM15 million in 1976 and has increased to about RM900 million in the recent years,” he told the State Assembly sitting yesterday.

However, he said the state government wanted the benefits Sabah could derive from the oil and gas industry developed on its soil to not be limited to only royalties.

He stressed that projects such the Sabah Oil and Gas Terminal (SOGT) and the Sipitang Oil and Gas Industrial Park (SOGIP) are capable of providing various employment opportunities and spillover effects that will serve as a catalyst for Sabah economic development.

…

Leave a Comment » | Malaysia, Malaysian election, oil and gas | Tagged: | Permalink
Posted by Wata

The Three Numbers That Swell Petronas Gas Berhad

May 29, 2016

Go subscribe to The Motley Fool. I read some of their past papers, and was impressed. No, I am not making any money from them.

Dateline 2016-04-21, Motley Fool:

Petroliam Nasional Berhad, or PETRONAS for short, has over 100 subsidiaries. Petronas Gas Berhad (KLCE: PETGAS; 6033.KL), which is valued at MYR43 billion, is one of them.

The company processes and transmits gas to its parent, PETRONAS, and also to its own customers. Apart from being one of Malaysia’s ten largest listed businesses, Petronas Gas also boasts one of the highest Returns on Equity (RoE) on the market.

Its RoE of 17.7% implies that the Petronas Gas generated MYR17.70 on every MYR100 of money invested in the company. The median RoE for the Malaysian market is closer to 10%.

Petronas Gas’ high Return on Equity can be traced to its impressive Net Income Margin of 44.6%. It means that the gas infrastructure company produced MYR44.60 on every MYR100 of revenues. By comparison, stablemate Petronas Chemicals Group (KLSE: PCHEM; 5183.KL) generated MYR20.50 on every MYR100 of sales.

…

Leave a Comment » | Malaysia, oil and gas | Permalink
Posted by Wata

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