KUALA LUMPUR: AmInvestment Research is holding its Neutral point of view toward the oil and gas division as industrious low resource use levels could even now prompt to negative trade surges out the principal half of 2017.
It said on Wednesday that for Malaysian administrators, which work entirely seaward, oil majors' lower seaward capex desires imply that those battling with high adapting, for example, SapuraKencana Petroleum, Bumi Armada, Alam Maritim and UMW Oil and Gas will in any case confront solid headwinds.
"We favor organizations with steady and repeating income, for example, Dialog Group and Yinson. Our Hold calls are for SapuraKencana, MISC, Bumi Armada and UMW Oil and Gas while Petronas Gas is a Sell because of the up and coming execution of the motivator based administrative duty setting instrument," it said.
Remarking on Petroliam Nasional's (Petronas) 4QCY16 monetary outcomes, it said center net benefit (barring one-off debilitations for resources and wells of RM2.5bil) surged 2.1 circumstances on-quarter to RM5.1bil.
AmInvestment Research said this was generally due to a 8% expansion in Brent raw petroleum cost to US$49 a barrel, 6% ringgit devaluation versus US$, together with a 10% expansion in unrefined petroleum and gas yield.
For 2016, Petronas' center net benefit, barring disabilities of RM19.4bil, was somewhat higher by 2% on-year to RM40.1bil, upheld by a 3% expansion in raw petroleum and gas yield, 6% ringgit deterioration and 22% diminishment in working costs which were generally counterbalanced by a 17% decrease in Brent raw petroleum costs.
Petronas announced a RM4.1bil decrease in controllable expenses to RM49.1bil while profits paid to the administration dropped 38% % on-year to RM16bil in 2016.
The examination house said Petronas' 4QCY16 aggregate every day yield of raw petroleum, condensates and gas
rose 10% on-quarter to 2.4mil barrels of oil proportional (boe) with the resumption of the Sabah Sarawak Gas pipeline, higher resource use and efficiencies in Peninsular Malaysia and MLNG Train 9 in Bintulu, Sarawak together with higher yield from Indonesia and the Gladstone LNG extend in Australia.
Petronas gathering's 4QCY16 capital consumption rose 34% on-quarter to RM14bil, of which 80% was spent locally, likely on downstream ventures, for example, the US$27bil Refinery and Petrochemical Integrated Development (RAPID), which has achieved a finish phase of 60%.
The US$1.5bil Sabah Ammonia and Urea (SAMUR) venture is as of now during the time spent increase to full business operations with beginning acknowledgment in March this year.
Be that as it may, AmInvestment Research said the Malaysian upstream capex direction still faces frail prospects as Petronas' 2016 spending fell 22% to RM50bil, underscored by a sharp 90% on-year dive in new 4Q2016 requests to just RM112mil, granted to Malaysian administrators versus RM5.3bil in 3Q2016.
Perused more at http://www.thestar.com.my/business/business-news/2017/03/15/aminvestment-stays-impartial on-oil-and-gas-division inclines toward discourse and-yinson/#GYd2Ot1SZhGpgTl2.99
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