Oil - Service, Equipment, Pipelines etc

Re: Oil - Service, Equipment, Pipelines etc

Postby behappyalways » Wed Mar 28, 2018 10:00 am

OSV YTD Scrapping Rates Increase by 153%
https://www.hellenicshippingnews.com/os ... se-by-153/
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Sat Aug 18, 2018 9:42 pm

Bullish on oil

Prices could go up a lot—even if it is temporary—because there are bottlenecks emerging in pipeline infrastructure in the shale Permian Basin. That could last 12 to 18 months.

We like the shale-fracking companies like EOG Resources [EOG] and Pioneer Natural Resources [PXD].

We also own Schlumberger [SLB], which is losing the battle to win the war. The stock has been a dog and has lagged behind the oil rally; it’s a late-cycle story, and investors want something much more immediate. There are a lot of projects, and once that goes back up, Schlumberger benefits. In the meantime, it pays a 3% dividend yield and has a new management team that is fundamentally overhauling the business, improving productivity.

There’s nothing like a bear market to focus your attention on costs and processes.

Source: Barron's

https://www.barrons.com/articles/the-tw ... 20Magazine
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Sun Mar 03, 2019 4:09 pm

Malaysia

Petronas MCM (Maintenance, Construction and Modification) Contractors

Starting 5 Years (Sep 2017)

1. Dayang
2. Carimin
3. Deleum
4. Petra
5. Sapura Fabrication
6. Borneo Seaoffshore
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Tue Mar 05, 2019 8:02 am

Malaysia: O&G sector on track for cyclical recovery this year

26 Feb 2019

by Ganeshwaran Kana

“Despite the brighter outlook for the O&G sector, the full impact of an earnings recovery will come in much later due to the time-lag effect. Perhaps, by financial year 2020,” Liaw told StarBiz.

PETALING JAYA: The oil and gas (O&G) sector is on course for a cyclical recovery in 2019, with the crude oil price expected to be conducive for stronger investments in the sector.

According to Maybank Investment Bank Research (Maybank IB) associate director of research Liaw Thong Jung, the sentiment in the O&G sector has improved and the industry players are entering a new growth cycle.

Liaw said that the O&G companies could likely spend more on capital expenditure (capex) beginning from 2019, in tandem with the cyclical recovery.

“We are positive on the Malaysian O&G sector, given the improved sentiment and the expected increase in the activities of Petroliam Nasional Bhd (Petronas) over the next three years.

Maybank IB’s top-five stock picks in the O&G sector are Dialog Group Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, Sapura Energy Bhd, Velesto Energy Bhd and Yinson Holdings Bhd.

“We are selective on our stock picks, with balance sheet strength being our key criterion,” said the research house.

Petronas had previously indicated that the majority of domestic O&G activities across the service value chain would be on the rise between 2019 and 2021.

This was premised on the Petronas Activity Outlook (PAO) 2019-2021 compared to the PAO 2018-2020 issued a year ago.

Liaw said the floating production, storage and offloading (FPSO) facilities would benefit the most from the rise in O&G activities. “The number of job awards for the FPSOs is rising. About 10 to 13 new awards are up for grabs for 2019.

“The capex size is US$400mil to RM1.5bil each. Companies with a strong balance sheet would benefit and Yinson is our key pick for this,” he said.

He also added that companies in the offshore fabrication, offshore drilling and offshore support vessel (OSV) segments would benefit from the O&G sector’s cyclical recovery.

The offshore fabrication market is expected to see a progressive rise in projects for the year 2019.

This was partly due to the delay in the execution of several projects that would be carried forward to 2019-2021

For the offshore drilling segment, Liaw pointed out that enquiries and tenders have improved, with the utilisation level on the rise.

Meanwhile, as for the OSV players, Liaw said that they were now operationally lean to compete at the US$40-US$50 per barrel oil price level, following the cost cutbacks previously.

On the crude oil price forecast, Liaw said he expects the international benchmark Brent oil price to average at US$65 per barrel in 2019.

“While the oil market is improving, volatility would continue to persist.

“The three key factors shaping 2019’s oil price direction is the policy direction and compliance or execution from Opec, geopolitical risks and global demand growth,” he said.

Source: The Star

https://www.thestar.com.my/business/bus ... EUvG2S7.99
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Tue Mar 05, 2019 8:09 am

Kenanga still ‘neutral’ on oil and gas sector from brownfield space

4 Jan 2019

by Ganeshwaran Kana

PETALING JAYA: Kenanga Research expects oil and gas (O&G) contracts in 2019 to come primarily from the brownfield space as new greenfield projects could become less economically attractive this year.

With the Brent crude oil price projected to trade within the range of US$55-US$65 per barrel this year, Kenanga Research said greenfield O&G investments will be less viable at such low price level.

For the full-year 2019, Brent crude oil is expected to average US$60 per barrel.

The research house has maintained its “neutral” outlook on the O&G sector.

However, it added that local jobs may come in slower for fabricators, affecting players such as Sapura Energy Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE).

Citing Petroliam Nasional Bhd’s (Petronas) recent Activity Outlook 2019-2021 report, Kenanga Research said there will likely be an increase in activities within the drilling, vessel chartering, maintenance and decommissioning area.

“Overall, we believe these could benefit local names which include Velesto Energy Bhd on the back of increased drilling activities, vessel charters such as Alam Maritim Resources Bhd, Perdana Petroleum Bhd, Icon Offshore Bhd, and maintenance players such as Serba Dinamik Holdings Bhd and Dayang.

Uzma, its with track record in decommissioning, may also benefit.

“That said, we also still believe cost pressures will still persist, and thus, there is still a need for service providers to remain competitive,” it stated in a note yesterday.

In the event of an improvement in sentiment or crude oil prices, the research house believes that possible bottom-fishing opportunities may arise in several counters, namely Dayang, Sapura Energy, MMHE and Uzma.

“However, given recent volatilities and uncertainties, with many names within the sector still plagued with balance sheet concerns and earnings instability, we still prefer to stick towards fundamentally more solid counters, namely Dialog Group Bhd, Serba Dinamik and Yinson Holdings Bhd, on top of staple Petronas names,” it said.

Serba Dinamik is Kenanga Research’s favoured pick, on the back of its commendable track record of earnings growth delivery and coupled with its superior return on equity against its peers.

Source: The Star

https://www.thestar.com.my/business/bus ... uiYwiHp.99
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Wed Mar 13, 2019 9:42 am

Malaysia: 4Q18 round-up: Mixed delivery

Five KEY BUYs

MY O&G results for 4Q18 were mixed, with impairment taking the headlines.

We expect a stronger 2019, as global capex rises. That said, we remain selective on stocks.

Companies with lean balance sheet will be able to leverage on the global capex upside.

We are BUYers of Dialog, MMHE, SAPE, Velesto and Yinson.

3 key lookouts in 2019

PETRONAS Activity Outlook report for 2019-21 evokes much optimism for the services industry, in-line with its higher capex expectation of >MYR50b for 2019 (2018: MYR47b), where the upstream activities will receive a higher allocation (MYR30b) than the downstream.

Companies that have recapitalized with lean balance sheet will be able to positively leverage on this.

Others like BArmada, Barakah and OSV players (Alam & Icon) still need to address their financials and reinvent to remain relevant in this cyclical recovery.

Globally, OPEC+’s announcement on output cut in mid-2019 will be closely monitored, for it would shape the oil price direction in 2H19.

An extension on the existing output cut of 1.2m bpd up to end-2019 will ensure a price level of >USD60/bbl.


Source: Maybank

https://factsetpdf.maybank-ke.com/PDF/1 ... 1ebdea.pdf
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Thu May 23, 2019 8:14 am

Malaysia: O&G Companies

Petronas’ yearly JU rig requirement increased from six to 10 and 16 to 19 for 2019 to 2021.

Petronas, in its Activity Outlook 2019-21 report, said it would spend slightly more than RM50bil on capital expenditure (capex) in 2019, up from RM47bil last year.

The higher capex is expected to boost the earnings of local O&G companies, in line with the steady rise in crude oil prices, which have risen 34% year-to-date to US$62 per barrel currently.

Source: The Star

https://www.thestar.com.my/business/bus ... R5JwqvY.99
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Wed Jun 26, 2019 11:05 am

O&G firms may be hit sooner than expected

by Emir Zainul

KUALA LUMPUR: With growing emphasis being put upon the oil and gas (O&G) industry to ensure a low-carbon future, experts believe that O&G companies may be hit with financial pressure sooner than many have forecast.

In a panel discussion at the Asia Oil & Gas Conference 2019 yesterday, panellists pointed to disruptive forces and megatrends that continue to alter the industry landscape despite the continuing dominance of fossil fuels in the energy mix. More specifically, the panellists discussed how climate risks pose a financial risk to investors of the O&G industry.

Philippe Roos, a senior reporter and analyst for Energy Intelligence, said that energy transition — where the industry is moving away from conventional fossil fuels to renewable energy — is already happening, although still in its preliminary phase.

“There are a number of signs that show it (energy transition). For example, there is the penetration of renewable energy as well as the penetration of electric vehicles in many countries in the world,” he said.

Roos predicted that by 2100, 100% of the world’s energy needs will be sourced from renewable energy, and he said that most probably, the leading energy by that time will be solar energy. “I’m pretty confident about this prediction; I just don’t know for sure how will we get there,” he said.

In parallel with the prediction, Roos said that O&G companies will start to feel the financial pressure, such as the impact on share prices, availability of capital and difficulty to obtain financial services, even before the industry’s market share is eroded.

“One could say that O&G companies will feel the financial pressure when their market share starts to get substantially smaller. And that’s after demand has peaked — say after 2040 or 2050 — until then everything’s fine financially speaking.

But that’s not how financial markets and financial institutions behave. They will probably start to revisit the perception they have of the industry not when its market share gets lower, but when its growth rate gets smaller,” he explained.

Ross said the energy sector had already seen this happening. Case in point: the coal industry in the US.

“We saw that happening in the US coal industry which still exists — coal is still mined in the US, and it is still burned in power plants — but financially, the US coal industry has collapsed. Many of the companies went through bankruptcy,” he said.

“Investors and bankers are starting to realise that climate risk is a serious financial risk, and it is also an unpriced financial risk. And they may want, at some point, to reprice their assets. They will reprice their loans accordingly to avoid being caught by surprise when all this happens,” Roos added.

Another panellist, IHS Markit Energy-Wide Perspectives vice-president Susan Farrell, said that there is a great deal of financial risk that is associated with climate change that has not been made transparent to investors.

She pointed to a report by the Task Force on Climate-related Financial Disclosures set up by the Group of Twenty’s Financial Stability Board, which revealed that companies are failing to disclose sufficient details of how exposed they are to the potential risks of climate change.

In the report, many investors called on companies to provide better communication on how climate change could impact their businesses amid concerns that assets are being mispriced because the full scale of the risk is not being factored in.

“The financial stakeholders will want more transparency because they want to understand whether the company is going to be competitive or not. They want to see growth and returns, and how does the company achieve that,” said Farrell, who is also IHS Markit’s head of Global Energy Scenarios, Energy Transition and Executive Briefing services.

“For companies that cannot self-fund, capital availability is a real concern,” she added.

“Yes, it is starting to become an issue for mostly European international financial institutions, but it is also spreading all over the world,” Roos chimed in.

Source: The Edge

https://www.theedgemarkets.com/article/ ... r-expected
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Tue Jul 02, 2019 10:25 am

Oil & Gas – Malaysia
Improving Outlook For Decommissioning Demand


Decommissioning demand may pick up from 2020, not only in Malaysia but across the region.

Petronas outlined its 2019-21 outlook for 40-60 well abandonment requirements, and several platform/facilities dismantling per year.

There are no official tenders yet, although estimates for contract sizes across the region could be up to RM6b.

Key beneficiaries are Uzma and Velesto for well abandonment works, and larger players like Sapura Energy and Dayang for facilities dismantling.

Source: UOBKH

https://research.uobkayhian.com/content ... c8c0b7dfbd
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Re: Oil - Service, Equipment, Pipelines etc

Postby winston » Thu Sep 05, 2019 8:42 am

Thematic: Malaysia O&G maintenance players
Price and volume suggesting more upside potential

Trading Catalyst

Following the announcement of contract being awarded to Dayang two days ago, we observed the O&G maintenance segment players picked up in prices and volumes.

Do note that HLIB Research’s recent O&G (8-Jul-19) strategy stated that the maintenance space is the bright spot and positive on upstream maintenance players and may register better earnings moving forward.

Moreover, Petronas is likely to award its RM4.0bn tender, I-HUC (restructured from existing HUC and Topside Major Maintenance contract) later this year.

Market participants could be banking on this information and trade into potential beneficiaries such as Dayang, Carimin and Petra Energy.

Technical view
DAYANG - Support: RM1.25-1.34 Resistance: 1.60-1.73
CARIMIN - Support: RM0.75-0.87 Resistance: RM1.00-1.15
PENERGY - Support: RM0.725-0.76 Resistance: RM0.95-1.00

Source: Bloomberg, HLIB
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