Oil - Service, Equipment, Pipelines etc

[winston]

Oil & Gas - Equipment & Svs
New FSU for PLNG2: MISC & Dialog impact

MISC will convert one of its existing LNG carriers into an FSU for a 20-year time charter to a PetGas-operated regasification plant at Pengerang, Johor.

The low time charter rate would not help sentiments on MISC, in our view.

Dialog may also not have the opportunity to build a third onshore LNG tank at the plant. Reiterate Neutral on the Malaysian O&G sector.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... CA6A0023EB

[winston]

HLIB: O&G industry to benefit as oil prices stay between US$80/bbl and US$90/bbl

HLIB’s top picks for O&G players with “buy” recommendations are Bumi Armada Bhd (target price (TP): RM0.69), Hibiscus Petroleum Bhd (TP: RM3.22), and Wasco Bhd (TP: RM1.27).

Source: The Edge

https://theedgemalaysia.com/node/688933

[winston]

PETRONAS hints at sizeable capex in 2024E

Maintain POSITIVE on Malaysia O&G Sector

Our general thesis on the Malaysia Oil and Gas sector has not changed much since our previous report.

As EIA has forecasted a record-high demand for oil in 2023-2024E, we think that the elevated crude oil price environment will stay for the medium-term.

We maintain our POSITIVE stance on the sector with in-house Brent ASP assumptions of USD85/80/bbl for 2023/2024E.

Top sector BUYs are Yinson, Velesto and Wasco.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/354379.pdf

[winston]

HLIB ‘overweight’ on O&G sector; Bumi Armada, Wasco and Velesto top picks

By Syafiqah Salim

Our Brent Crude oil forecast for 2024/2025 remains at USD85/80 per barrel.

Downside risks to our projections include:-
(i) reactivation of spare capacity from Opec in the near-term
(ii) de-escalation of geopolitical conflicts
(iii) China’s slower-than-expected oil demand growth and
(iv) further deterioration of global economic conditions in 2024

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/694338

[winston]

RHB IB stays positive on upstream services players, Dialog, Yinson and Dayang top picks

By Surin Murugiah

Backed by the national oil company’s capital expenditure (capex) allocation of RM50 billion to RM60 billion (2023: RM52.8 billion).

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/704881

[winston]

Oil & Gas – Malaysia
Petronas Set To Embrace Volatilities In Net Zero Transition

Petronas’ 1Q24 results showed that no business can escape the effects of volatility, as it experienced lower averaged realised prices, but higher costs.

The local capex allocation for O&G and upstream achievements is overshadowed by the many
uncertainties of existing projects (PRefChem) and the commercial settlement agreements with East Malaysia.

Petronas remains steadfast in its target RM142b upstream capex for five years, with its focus on at least two overseas mega projects.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

Prospects for oil and gas sector still solid

From perusing Petroliam Nasional Bhd’s (PETRONAS) first quarter (1Q24) report card, we expect its capex to be maintained at RM50bil to RM60bil in 2024, with the upstream segment being the key focus in order to achieve its production target.

“Despite typically being a seasonally weak quarter, we saw five companies under our coverage – Dialog Group Bhd, Bumi Armada Bhd, Dayang Enterprise Holdings Bhd, Coastal Contracts Bhd and MISC Bhd – booking results that surprised on the upside,” RHB Research added.

PETRONAS’ net cash position improved 2% quarter-on-quarter to RM110bil as of 1Q24 as its strong operating cash flow was offset by capex and dividend payments. Capex stayed at RM10.7bil in 1Q24.

Source: The Star

https://www.thestar.com.my/business/bus ... till-solid

[winston]

not vested

Malaysia: HLIB stays overweight on oil and gas sector, names Dialog, Armada, Velesto as top picks

By Surin Murugiah

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/717522

[winston]

Petronas in a tough position; capex cuts?

Sarawak’s 1 Oct 2024F ultimatum to Petronas to conclude the transfer of its gas aggregator role to Petros will almost certainly squeeze Petronas’s profits.

If Petronas cuts its capex, Velesto could be negatively impacted; Petros may also alter the gas feedstock pricing terms for PCG’s Bintulu urea plant.

Reiterate sector Neutral on the uncertainties of Petronas capex spending ahead; Dialog (DLG MK, Add, TP: RM3.05) and Dayang are our top picks.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... A031F4C881

[winston]

Uncertainty looms for local centric upstream OGSE names?

POSITIVE sector weight maintained, but local-centric upstream OGSE players may see slower growth ahead

Over the past month, we met multiple companies (both listed and unlisted names).

We flag that there is a possibility that many local-centric upstream OGSE names may see slower growth velocity/a reset in growth expectations in 2024-2025E.

While we remain POSITIVE on the sector, we now favour:
i) defensive midstream companies which will be unaffected;
ii) OGSE names with regional exposure & capabilities.

Top BUYs are Dialog & Velesto. We also U/G Wasco to BUY (from HOLD) as value has emerged.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/398156.pdf