Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on February 8, 2019

KUALA LUMPUR: MISC Bhd was the top Malaysian oil and gas (O&G) company in financial year 2017 (FY17) based on reported revenue, said the Malaysia Petroleum Resources Corp (MPRC).

In a statement yesterday, the MPRC said MISC topped the FY2017 rankings of MPRC100, a list of top 100 oil and gas services and equipment (OGSE) companies in Malaysia, ranked based on their annual revenues.

MISC edged last year’s top ranking Sapura Energy Bhd to second place, while Dialog Group Bhd maintained its third spot. Serba Dinamik Holdings Bhd is ranked No 4, and Wah Seong Corp Bhd at No 5.

MPRC said the list also saw several rank climbers compared with 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 spot from 57th; and T7 Global Bhd at No 47 from 98.

Joining the FY2017 top 100 ranking for the first time are Chiyoda Malaysia Sdn Bhd, Ice Petroleum Engineering Sdn Bhd, and Helios Petroleum Sdn Bhd, on the back of a higher turnover.

The MPRC100FY17 analysis shows the overall Malaysian OGSE sector recorded a total revenue of RM68.1 billion against RM68.8 billion in FY16, a marginal drop of 1.1%.

Profit before tax 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 show 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% versus other regional players’ 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 becoming more diversified to remain competitive.

While oil prices have risen since the beginning of the year, concerns about a supply glut and a weakness in the global economy will keep prices on a tight leash, as evident from global oil companies’ general cautiousness 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,” he said.

“Companies that turn to innovation, hone niche technologies to gain economic advantages, employ and retain skilled talents, and embrace diversification, in particular the downstream segment, are in a better position to undertake new growth ventures in Malaysia and beyond.”

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