Petroliam Nasional Bhd’s (Petronas) weak first quarter results were expected and has revealed the difficulty the oil and gas industry is facing.
Maybank Investment Bank Research said Petronas’ results clearly expose the dire state of the industry -low oil price level, cost/ capex cuts, reduced activities, cancellations and deferments.
“However, the key positive from this is that Petronas is profitable at US$34 per barrel. We remain ‘neutral’ on the sector. A concerted cut in global oil production is key to a re-look of the sector.
“From the equity market’s perspective, volatility offers multiple trading cycles, especially on high-beta, beaten-down stocks. Our fundamental ‘buys’ are Yinson, Bumi Armada, KNM, SapuraKencara and Dialog,” the research house said.
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Maybank Investment Bank Research said Petronas’ results clearly expose the dire state of the industry -low oil price level, cost/ capex cuts, reduced activities, cancellations and deferments.
“However, the key positive from this is that Petronas is profitable at US$34 per barrel. We remain ‘neutral’ on the sector. A concerted cut in global oil production is key to a re-look of the sector.
“From the equity market’s perspective, volatility offers multiple trading cycles, especially on high-beta, beaten-down stocks. Our fundamental ‘buys’ are Yinson, Bumi Armada, KNM, SapuraKencara and Dialog,” the research house said.
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