Latest news with #OGSE
The Star
5 days ago
- Business
- The Star
O&G sector earnings weakness to persist in 2Q
PETALING JAYA: Local companies involved in the oil and gas services and equipment (OGSE) industry could see lower offshore activities and jobs. This follows the shift in Opec's policies, which may result in lower capital expenditure (capex) anticipated from oil majors. Coupled with softer outlook displayed by oil & gas (O&G) companies during the recent first quarter of 2025 (1Q25), Maybank Investment Bank (Maybank IB) Research has downgraded the sector to Neutral from Positive. "Our Brent crude oil price assumption was also lowered to US$67 per barrel for 2025, from US$70 in our earlier May 6 report," the research firm said. The research firm said most O&G companies under its coverage met expectations but it expects softer outlook ahead. "Out of six Malaysia O&G stocks under coverage, Velesto Energy Bhd 's results came in above expectations due to higher-than-expected net margins driven by lower depreciation and cost optimisation initiatives. Bumi Armada Bhd missed expectations due to a recognition of a penalty to UK-based EnQuest due to certain asset specification issues. Results for other companies came in within expectations," it added. It noted that daily rates for renting rigs have peaked due to a higher rig supply as Saudi Arabia terminated over 20 rigs amid capex rationalisation programme by oil company Saudi Aramco. According to Maybank IB this was indicated in Velesto's updated rig schedule and its recent job wins in Vietnam & Indonesia. Meanwhile, it said Keyfield International Bhd and Perdana Petroleum Bhd stated subdued offshore activity and charter projects delayed in 1Q25 as compared to a year ago. This is a signal of softer operating environment ahead, said the research firm. There could be potential cuts to Petroliam Nasional Bhd (PETRONAS) spending due to the dispute between the former and Sarawak's Petros over the role of gas aggregator in Sarawak. In addition, lower crude oil prices could deter aggressive capex spending in general. Similarly, CIMB Securities lowered its sector rating to Neutral from an Overweight. Following the earnings weakness in 1Q25, it has revised 2025 sector core net profit growth forecast to -7.8% year-on-year, from +0.9% previously. "This suggests a reset to a lower earnings base, reaching a fresh low in the sector's declining earnings trend observed since 2021. "We anticipate earnings recovery to be gradual, constrained by structural challenges and company-specific headwinds," added CIMB. Where stocks are concerned its likes MISC Bhd for its stable earnings, backed by long-term contracts across its gas, petroleum, and offshore segments, as well as full earnings contribution from FPSO Mero 3 in 2025. The other stock it favours is Dialog Group Bhd , which has strong growth potential in Pengerang, Johor. It said the group has stable recurring income from storage terminals, with utilisation rates above 90% and spot rates of around SG$6.50 per cubic metre. There is also a potential turnaround in the group's engineering, procurement, construction, and commissioning (EPCC) and maintenance segments from the first half of financial year 2026 onwards. Dialog's valuation is also attractive at 20.1 times price-to-earnings, which is about 1 standard deviation below the 10-year mean of 28.1 times.
The Star
05-05-2025
- Business
- The Star
FUELLING TALENT GROWTH
FOR over three decades, Petroliam Nasional Bhd (PETRONAS) has been a catalyst for nurturing highly skilled talent within the oil and gas industry, evolving in tandem with the sector's growing complexity and innovation. As the company celebrates over 50 years of operations, it continues to champion workforce development, notably through its Vocational Institution Sponsorship and Training Assistance (VISTA) programme. Steady pipeline of talent Delivered in collaboration with key industry players, VISTA ensures technical training remains aligned to real-world needs, helping build a robust pipeline of talent equipped for the dynamic energy landscape. Launched in 1992, VISTA is now enhanced as VISTA i-Plus—a more integrated and industry-led model designed to ensure a steady flow of skilled professionals, not only for PETRONAS, but for the oil and gas ecosystem at large. 'This is not just a PETRONAS initiative, it is a collective commitment by the industry, for the industry,' said PETRONAS senior vice president and group chief human resource officer Ruslan Islahudin. 'Through VISTA i-Plus, we're creating a structured, collaborative ecosystem where industry players, government agencies and institutions work hand-in-hand to build future-ready talent.' To date, the programme has supported 35 institutions nationwide and channelled over RM90mil to train nearly 12,000 graduates in critical oil and gas skillsets. The company's long-standing partnership approach strengthens the oil and gas services and equipment (OGSE) sector by expanding access to competent talent, particularly in high-demand areas such as 6G welding, scaffolding and rigging, pipefitting and welding inspection. PETRONAS has benchmarked the enhanced model against best practices from 10 leading technical and vocational education and training (TVET) nations, including Germany, South Korea and Australia, where strong industry-education-government collaboration is the common denominator of success. 'Malaysia has more than 1,300 TVET institutions, with around 500 linked to oil and gas trades. Strengthening this ecosystem together is vital to meeting industry demands and unlocking broader economic impact,' said Ruslan. Ruslan Islahudin VISTA i-Plus Central to VISTA i-Plus is the newly established VISTA Advisory Council, comprising leaders from key industry bodies including Malaysia Petroleum Resources Corporation, Malaysian Oil, Gas and Energy Services Council, Human Resources Development Corporation, Petroleum Arrangement Contractors and PETRONAS. The council plays a pivotal role in co-shaping a unified workforce development strategy for the oil and gas industry, ensuring VISTA i-Plus is governed not by one company but by the collective voice of the sector. The programme also features two other governance platforms—the VISTA Working Committee, which oversees execution, and the VISTA Engagement Network, which provides training institutions with centralised resources and knowledge sharing. Together, these bodies form a responsive and resilient framework that keeps the model attuned to evolving industry needs. The success of the VISTA i-Plus model can be measured through several metrics, including the take-up rate of the programmes, courses and initiatives, active overall participation in supporting the model, and an increase in the employability rate to meet the talent demand in the oil and gas industry. Its effectiveness can also be gauged through in-kind support from industry players, mechanisms to leverage existing levies, the establishment of VISTA i-Plus as the preferred choice among industry stakeholders, and the capacity of learning institutions to produce a talent pool that aligns with market demands. Collaborative ecosystem Ruslan added that the 'by industry, for industry' philosophy is central to the VISTA i-Plus approach and is underpinned by the strong commitment of key stakeholders, who actively participate as council members. This commitment, he said, will ensure the model's long-term sustainability, with clear roles, responsibilities and aligned expectations for all involved. 'Other industries beyond oil and gas could benefit from adopting similar collaborative models, creating cross-industry synergy. 'For example, welders trained through specialised courses can apply their skills in both the oil and gas industry and the automotive industry, fostering a versatile workforce,' Ruslan added. Looking ahead, PETRONAS has identified three strategic priorities for VISTA i-Plus—aligning training to current industry demands, embedding practical hands-on learning and fostering strong industry participation through mentoring, career pathways and continuous development opportunities. 'Developing talent cannot be done in silos. Through VISTA i-Plus, we are reinforcing our belief that talent development is a shared responsibility, and when we do it together, we build a stronger, more sustainable industry for all,' said Ruslan.
Malay Mail
30-04-2025
- Business
- Malay Mail
‘Still much to achieve': Minister tells oil and gas sector to ramp up clean energy efforts
KUALA LUMPUR, April 30 — Oil and gas services and equipment (OGSE) companies are being urged to explore viable alternatives for operating their businesses or harnessing natural resources, which could help the country diversify its energy sources in line with the energy transition. Deputy Economy Minister Datuk Hanifah Hajar Taib highlighted Sarawak's progress in renewable energy — including the use of rivers for hydropower, the development of hydrogen for electric vehicles, and the exploration of algae for sustainable aviation fuel. She noted that Malaysia has made significant progress on most of the 17 Sustainable Development Goals (SDGs) — as of 2024, the country has achieved a projected 43 per cent of the 248 global SDG indicators, compared to the global average of just 17 per cent. 'Among these, under SDG 7: Affordable and Clean Energy, the country has achieved 99.7 per cent. Furthermore, we have reached a record high in renewable energy usage, at 19.7 per cent. 'This progress notwithstanding, we are conscious that there is still much to achieve in the battle against climate change,' she said in her officiating speech at the OGSE100 Chief Executive Officers (CEOs) Forum 2025 here yesterday, themed 'Driving Sustainable Energy Innovation Globally'. She emphasised that Malaysia must adapt to geographical challenges, particularly by elevating infrastructure, utilities and buildings to higher ground. 'I have come to realise that these extreme weather events are becoming the new normal, and we must now learn to adapt to these conditions to minimise the impact on lives and livelihoods. 'Is Mother Nature able to adapt and still provide our needs? 'This, I believe, is where private sector companies can step in, and in the case of OGSE being part of the energy transition, can identify and offer solutions to combat climate change, not only with profit in mind, but also for the benefit of people and the planet,' she said. Hanifah called the leaders of OGSE in Malaysia to take the lead, elevate their technical know-how, and continue driving innovation by offering cleaner and greener OGSE businesses, and even going beyond Malaysia for the sake of Mother Nature. — Bernama
The Star
29-04-2025
- Business
- The Star
OGSE industry must embrace tech, digitalisation, new energy sources
Malaysia Petroleum Resources Corporation president and chief executive officer Mohd Yazid Ja'afar KUALA LUMPUR: The oil and gas services and equipment (OGSE) industry must embrace tech adoption, digitalisation and new energy sources such as hydrogen, and carbon capture, utilisation and storage (CCUS) despite the challenges posed in the energy transition. Malaysia Petroleum Resources Corporation (MPRC) president and chief executive officer Mohd Yazid Ja'afar said global economic uncertainties, shifting international policy directions, and technological disruptions are reshaping energy markets in real-time. "These include new tariffs from the United States (US), in particular on solar products, including those from Malaysia (at 34 per cent), which are bound to affect global renewable markets. "Geopolitical conflicts continue to impact oil prices and global energy security. The recent gas leak incident at Putra Heights has also called attention to the importance of ensuring energy security in the face of energy transition and to the critical need for diverse and affordable energy sources to keep our energy supply secure,' he said in his welcoming address at the OGSE100 Chief Executive Officers (CEOs) Forum 2025 here today. Moreover, he said the emergence of a regional imbalance in the push for sustainability involving Europe and the US versus the rest of the world may impact the pace of sustainability and environmental, social and governance (ESG) adoption within the industry. The forum "Driving Sustainable Energy Innovation Globally' is organised by MPRC and is in its second annual edition. - Bernama
New Straits Times
23-04-2025
- Business
- New Straits Times
Petronas inks 11 MOUs to strengthen OGSE sector
KUALA LUMPUR: Petroliam Nasional Bhd (Petronas), through Malaysia Petroleum Management (MPM), has signed 11 memoranda of understanding (MoUs) aimed at strengthening Malaysia's oil and gas services and equipment (OGSE) sector. The MoUs support two key initiatives, namely yard transformation and productivity enhancement, and skilled trade champion. The agreements harness industry collaboration to modernise fabrication yards and develop a highly skilled local workforce, positioning Malaysia to meet the evolving demands of the energy sector, the company said in a statement on Tuesday. As part of the yard transformation and productivity enhancement initiative, Petronas signed five MoUs with leading local fabrication yard contractors: Brooke Holding Sdn Bhd, Ocean Might Sdn Bhd, Muhibbah Engineering (M) Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, and Sapura Fabrication Sdn Bhd. Under the skilled trade champion initiative, six MoUs were inked with key industry players, including Pan-Malaysia maintenance, construction and modification (MCM) contractors, Hook-up and Commissioning contractors, and the Malaysia Offshore Support Vessel Owners' Association. Petronas MPM senior vice president Datuk Ir Bacho Pilong said the MoUs reflect the company's continued commitment to building a robust and sustainable oil and gas sector in Malaysia. "The structured implementation, undertaken in close collaboration with homegrown OGSE players, will focus on measurable outcomes to create a conducive environment for investment and accelerated growth, in line with national aspirations," he said. -- BERNAMA
