Oil - Service, Equipment, Pipelines etc

[behappyalways]

Manchin-Backed Spending Bill Would Tax Oil Companies $25 Billion And Spend $370 Billion On Climate Change
https://www.zerohedge.com/markets/manch ... 70-billion

[winston]

Crude oil, natural gas and other energy-related companies should continue to thrive and achieve stunning earnings and sales results

In fact, FactSet recently reported that the analyst community has continued to increase their earnings estimates higher for the energy sector.

The energy sector is now anticipated to report average earnings growth of a whopping 290.3% in the second quarter, up from previous estimates for 219.8%.

The energy sector is also anticipated to report average second-quarter sales growth of 66.4%.

Source: Investor Place

[winston]

FactSet recently reported that analysts continue to increase their earnings estimates for the energy sector

The sector is now anticipated to report average earnings growth of a whopping 265.3% in the second quarter, up from previous estimates for 255.4%.

The energy sector is also anticipated to report average second-quarter sales growth of 55.9%.

Source: Investor Place

[winston]

Malaysia: Upbeat on O&G Sector

Oil prices remaining elevated at current levels, the expected recovery in investment spending and improved activity levels from oil majors for next year, as well as undemanding valuations and buying opportunities throughout the O&G space.

With PETRONAS mentioning it is expecting to utilise 26 drilling rigs in 2023, as the number of jack-up rigs is anticipated to increase from nine units to 12 and hydraulic work units (HWU) predicted to also rise to eight units from the present six, KIB Research analyst Steven Chan expects jack-up rig providers Velesto Energy Bhd and Uzma Bhd – who also operates the HWU space – to benefit.

The research outfit said Dayang Enterprise Holdings Bhd, the biggest player in the hook-up and commissioning (HUC) as well as offshore maintenance, construction and modification (MCM) segments, should also be a big beneficiary of the expected O&G crest next year.

This is because PETRONAS is expecting to see a jump to five million man-hours in 2023 from only 3.4 million this year for the HUC segment. “For the MCM segment, PETRONAS anticipates to see the number of man-hours jump to 11.9 million in 2023, from 8.7 million in 2022,” noted Chan in his report.

Other potential beneficiaries that the research house sees include Sapura Energy Bhd and Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) for the offshore fabrication segment, as well as Icon Offshore Bhd, Perdana Petroleum Bhd and Alam Maritim Resources Bhd who are providers of offshore support vessels.

KIB Research, forecasting companies such as Dayang, Velesto, Icon Offshore and Perdana Petroleum to do well, while at the same time also seeing a bullish 2023 for Petra Energy Bhd and Carimin Petroleum Bhd in the HUC and MCM segments.

Bumi Armada Bhd is among the top picks for HLIB Research and KIB Research besides the aforementioned companies, with KIB Research also picking Petronas Chemicals Group Bhd while HLIB Research sees Hibiscus Petroleum Bhd among its top buys.

Source: The Star

https://www.thestar.com.my/business/bus ... -og-sector

[winston]

Malaysia Oil & Gas
PETRONAS Activity Outlook

6th edition – A more optimistic 2023

PETRONAS generally met most of its activity expectations for 2022. Its latest 2023-25 PAO edition points to a more positive outlook, notably for its:
(i) drilling,
(ii) fabrication,
(iii) OSV for drilling support,
(iv) pipelines &
(v) maintenance ops.

Velesto, MMHE, Icon, Dialog & WSC (for which we have BUY calls on) are the main beneficiaries of this.

Our other notable key BUYs in the sector are Yinson, BArmada and Hibiscus.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/296457.pdf

[winston]

Kenanga maintains ‘overweight’ stance on oil and gas sector

by Sufi Muhamad

Top picks for the sector are Petronas Chemicals Group Bhd ("outperform"; target price or TP: RM11) and Bumi Armada Bhd ("outperform"; TP: 63 sen).

Prime beneficiaries of higher Petronas capex include the likes of Dayang Enterprise Holdings Bhd ("outperform"; TP: RM1.70), Uzma Bhd ("outperform"; TP: 67 sen), and Velesto Energy Bhd ("outperform"; TP: 16 sen).

“The floating production storage and offloading (FPSO) space is starting to see a supply squeeze. Many global FPSO players are already pre-occupied with jobs developing at hand, and hence, more recent bids have started to see very few bidders, making it very much an operator market.”

It noted that three Bursa Malaysia-listed FPSO players, namely Yinson Holdings Bhd ("outperform"; TP: RM3.15), MISC Bhd ("market perform"; TP: RM7.30), and Bumi Armada, have been actively participating in international job bids.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/650553

[winston]

Oil & Gas – Malaysia

Petronas 2022: Capex Still Needs To Play Catch-up; Opex Is A Risk

Petronas’ 2022 capex still fell short of the target by RM10b, partly due to the expensive
energy transition capex allocation.

Overall this implies >RM40b of O&G upstream/maintenance capex gap to catch up.

We remain bullish on the sector outlook, as Petronas’ 2023 capex may exceed the RM60b target. However, sector valuations have priced in this expectation, but not the risk of rising opex.

We suggest a narrower trading range, or invest in stocks with strong execution/earnings catalysts.

Source: UOBKH

https://research.uobkayhian.com/content ... 7a18211d61

[winston]

M'sia has 15yrs of petroleum reserves left, can last up to 40 with right tech, investment

By Nuradzimmah Daim, Mohamed Basyir

Malaysia's probable and proven reserves of petroleum totalled 6.9 billion barrels of oil equivalent.

Of the overall oil and gas fields in the peninsula, Sabah and Sarawak, 70 per cent had been awarded to companies for exploration and development.

Source: NST

https://www.nst.com.my/news/nation/2023 ... investment

[winston]

A surprised cut – market reacts positively

The 1.66m bpd ‘voluntary’ output cut by the OPEC+ pact is a positive surprise, for the market was expecting status quo previously.

OPEC+ continues to play its role as a formidable swing producer and remains a very much a disciplined pact, collectively.

We reiterate our USD100/bbl oil price estimate for 2023.

Our key BUYs are Dialog, Hibiscus and Yinson.
Our SMID BUYs are Icon, MMHE and WSC.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/311449.pdf

[winston]

Malaysia: Outlook for O&G stocks improves further

OPEC+ production cuts from May 2023 will likely help our top sector picks Yinson and Dialog rerate due to positive sentiment and bullish fundamentals.

Reiterate Overweight on the oil and gas sector.

Top picks: Yinson and Dialog; we are most negative on LC Titan

Our top Add calls are Yinson (TP: RM3.68) and Dialog (TP: RM2.74). We expect Yinson’s
earnings to double this year on the back of its existing and new projects, while Dialog will
likely be rid of its loss-making EPCC projects over the next 12 months.

We also believe Dialog will eventually secure higher manpower rates for its plant maintenance contracts.

Our top Reduce call is LC Titan (TP: RM1.04) due to feedstock cost pressures.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... A2518A08BA