KUALA LUMPUR (Feb 7): MISC Bhd was the top Malaysian oil and gas (O&G) company in 2017 based on reported revenue, said Malaysia Petroleum Resources Corporation (MPRC).
In a statement today, MPRC said MISC had topped the FY2017 rankings of the MPRC100, which is a list of top 100 oil and gas services and equipment (OGSE) companies in Malaysia that are ranked based on their annual revenues.
MISC edged last year’s top ranked company Sapura Energy Bhd to second place, while Dialog Group Bhd maintained its spot at third place.
Serba Dinamik Holdings Bhd came in at the fourth spot, while Wah Seong Corp Bhd was in fifth place.
MPRC said that the list also saw several rank climbers compared to the previous edition. This includes Nam Cheong Dockyard Sdn Bhd, ranked 29th (up from 55th spot in FY2016), Yokogawa Kontrol (Malaysia) Sdn Bhd,at 31st (from 57th) and T7 Global Bhd at 47th (from 98th), among others.
Joining the FY2017 top100 ranking for the first time were Chiyoda Malaysia Sdn Bhd, Ice Petroleum Engineering Sdn Bhd, and Helios Petroleum Sdn Bhd, on the back of a higher turnover.
Analysis from MPRC100FY17 showed that the overall Malaysian OGSE sector recorded a total revenue of RM68.1 billion against FY16’s RM68.8 billion in FY16, a marginal drop of 1.1%.
Profit before tax (PBT) of the MPRC100 companies also registered a decline at RM9.4 million, largely due to asset impairment charges undertaken by asset-heavy companies.
The FY2017 findings also demonstrated Malaysian OGSE companies fared better than their regional counterparts, due to ongoing domestic activities in the upstream and downstream segments. In a 2017 comparison with the top 20 OGSE companies in Southeast Asia, Malaysian OGSE firms registered an average revenue growth of 12%, while other regional players showed an average revenue decline of 14%.
MPRC deputy chief executive officer Mohd Yazid Ja’afar said with signs of greater market volatility in 2019, Malaysian OGSE companies must not lose sight of the need to become more diversified to remain competitive.
While oil prices have risen since the beginning of the year, concerns about a supply glut and weakness in the global economy will keep prices on a tight leash, as evident from the general cautiousness of global oil companies and their continuous push for cost efficiencies.
“Even as the industry is seeing a gradual recovery in activities, the oil price uncertainty is a clear reminder to OGSE players to stay focused and become more competitive.”
“Companies that turn to innovation, hone niche technologies to gain economic advantages, employ and retain skilled talent, and embrace diversification in particular to the downstream segment, are in a better position to undertake new growth ventures in Malaysia and beyond,” he said.