Author Topic: Oil & Gas .... The pride of the nation. The next play after Glove counters?  (Read 570 times)

Offline Raging bull

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The oil & gas industry DID NOT collapse after Oil prices fell to a historic low of minus -$US37 a barrel. Now oil prices have recovered to a steady US 37 a barrel. With the pandenamic max out and many countries openning up their economies, oil prices can expect to firm up further. Glove companies have been overplayed and with a vaccine in sight by year end, its time players switch from gloves to  the oversold o& g counters , which play an important role in the nation's economy. With the coming Opec meeting, oil prices can shoot past US40 if they agree to extend production cut. It is also hoped that Petronas will consider to set up a SPV to take over the assets of ailing o& g companies (the Star Sat 23 May) .
Which are the companies? Read the article...

Online Sailor

  • Earl
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If Petronas wanted to help then must
cover Sarawak@politik and it will be PERDANA
cz Dayang  got stake.😁 and I m having it too.😁🤣
Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©

Offline Raging bull

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For the benefit of everyone, those  companies listed In the article are

1. Sap ura   Energy
2. Bumi Armada
3. Perdana Petroleum
4. Icon Offshore . This Is the COUNTRY’S LARGEST OSV ( offshore support vessel) provider.
5. Scomi Energy Services
6. Alam Maritime
7. Yinson

Yes Sailor. Perdana is one of them mentioned.

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  • Earl
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PERDANA  mentioned...yipeee.!
Petronas give to Dayang can give more contract
to  PERDANA.

Got indicators today O & G will play tomolo.
When gamin up fuel px then it is time to buy.
Suddenly all top volume are O&G🤗🤗🤗
Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©

Online dany

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ICON  :cash: :cash: :cash:

Offline Raging bull

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If PETRONAS really come in to assist the o&g industry, esp the OSV, the the O&G counters mentioned will definitely flyyyyyyy..!!,

Offline Raging bull

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Oil now above US 40 per barrel! Good for our country MALAYSIA!!

Offline Raging bull

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Yield play: An offshore support vessel of TAS group. The Malaysia Offshore Support Vessel Association has floated an idea to Petronas to set up a business trust of O&G assets.

A PROPOSAL for Petroliam Nasional Bhd (Petronas) to set up a special-purpose vehicle (SPV) to take over the assets of ailing oil and gas (O&G) companies has created a stir in the industry.

Initially, there was some confusion as to which party – the industry players or Petronas – had come up with the proposal. The question was answered when the Malaysia Offshore Support Vessel Association (Mosva) clarified that it had prepared the contents of the presentation deck that was with Petronas.

So, the proposal is now in the hands of Petronas.

Then comes the next question: is Petronas, the national oil company, seriously considering the proposal?

So far, there is no indication from Petronas if the proposal would be given any serious consideration.



“Like any other proposal, the implications are being looked into from the strategic, financial and tax angles, ” says a source.

According to reports, Mosva floated the idea to hasten the consolidation process within the industry. The fear is that many may not survive the turmoil that the O&G industry is going through now.

The logic behind an SPV that acts like a business trust is that it could be a way out for those wanting to exit the business.

Consolidation is definitely something up Petronas’ alley, as it has been calling on the industry to do so since 2015.

It would have been the perfect time to do so back then due the oil price rout, which saw the Brent plunging from US$110 in 2014 to US$30 in 2016.

But that did not happen, as industry players preferred to go it alone and underwent restructuring and recapitalisation, which left the O&G industry as crowded as it is.

The past several years have not been kind to O&G companies and at the rate things are going, it will not be getting easier anytime soon.

Most of them have yet to recover from the aftershocks of the previous oil price plunge and the first quarter of 2020 itself has gotten them on a roller-coaster ride with the coronavirus (Covid-19) pandemic coming in as the main factor in destabilising oil prices.

And this is where a consolidation is becoming more of a necessity, with some industry players scraping the bottom of their war chests to weather through the challenging economic environment.

But questions have been raised about the logic behind Mosva’s proposal as to how it would help the consolidation of the industry.

A trust normally consists of appreciating assets and in the case of OSV companies, their vessels itself are depreciating assets.

This is definitely not an easy plan to execute and there will be a lot of things that needs to be looked into if Petronas were to consider the proposal.

An industry player said Petronas will need to structurally change how the OSV space operates if they plan to set up the business trust.

Another said this may be a good move to help free up some cash for the companies to enable them to bid for new projects.

“But this strategy of adopting an asset-light model goes against the grain of building a robust O&G industry, ” the spokesman said.

Meanwhile, TH Heavy Engineering Bhdchairman Izad Shahadi Mohd Sallehuddin says it will be interesting to see how this would be structured with so many stakeholders involved and a lot of things needing to change first before such a business trust can be set up.

“Also, the asset class by nature depreciates over time, so it may be a bit more difficult to structure a business trust.

“Business trusts are usually viewed as stable yield plays. For OSVs, there are a lot of risks involved, as contract values depend on the oil cycle and the duration can be shortened, ” he says, adding that it will be riskier versus a business trust for a tanker which is chartered for a long term at a fixed price.

On the flip side, Izad agrees that consolidation needs to happen, as the market is getting crowded for a smaller number of jobs with lower margins.

He has not seen Mosva’s proposal but believes the objective is to facilitate consolidation.

Asked if the move will be seen as bailing out OSV players, Izad says it will be more of Petronas helping local players adapt to the new market environment.

“After all, Petronas is the national oil company and has done a tremendous job in developing the local O&G industry.

“Even in the last oil market crash in 2016, Petronas had been very supportive of local players, and it is in the best interest of the country to see both Petronas and local players emerging stronger after the drastic downcycle we are witnessing currently, ” he says.

Meanwhile, a rather peculiar point about the proposal is that a lot of OSV players are not even aware of such a proposal by Mosva, which was presented to Petronas recently.

Several major OSV names spoken to claim they were either not involved nor were they in the know about the proposal.

This includes Icon Offshore Bhd, the country’s largest OSV provider.

Maybank IB Research pointed out in a research report that the group categorically affirmed that it was not consulted over Mosva’s proposal to Petronas to consolidate the OSV market in Malaysia via the setting-up of an OSV Trust.

While industry players are distancing themselves from the proposal, the proposal is on the table and is being studied to determine its implications and benefits.

It is a long, long way from a done deal.

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  • Earl
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Warrr...long stories.

OPEC kasi potong productions
O&G vroooooooommmmmmm🇲🇾🇲🇾🇲🇾

PERDANA IS A BUY.

Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©

Online master wahsing

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Warrr...long stories.

OPEC kasi potong productions
O&G vroooooooommmmmmm🇲🇾🇲🇾🇲🇾

PERDANA IS A BUY.
:cash: :cash: :cash: :cash:

ARMADA

Offline Raging bull

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The country's largest Offshore Support Vessel (OSV) provider ..ICON!   :cash: :cash: :cash: :cash::thumbsup: :thumbsup: :thumbsup: :thumbsup:

Last Q profit rm20m. Undervalued!!

Offline Raging bull

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Petronas.  Don’t wait for a crisis to happen to consolidate the O&G industry. You missed an opportunity to consolidate the industry in 2015. Now is the best time to do it. Set up the SPV and the industry will be healthier. Banks are also feeling the strain on the loans. Keep the O&G flag flying!!

Offline Raging bull

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PETALING JAYA: Tan Sri Wan Zulkiflee Wan Ariffin has been appointed as the new Malaysian Airlines Berhad (MAB) chairman while Tengku Muhammad Taufik Tengku Aziz will be the new Petronas group president and chief executive officer.

Prime Minister Tan Sri Muhyiddin Yassin said both appointments take effect on July 1.

"In light of the current challenging economic landscape, a few companies owned by the government must be strengthened to face the new normal.

"The government continues to review the leadership of government-linked companies to ensure the streamlining of policies and reaching the country's socio-economic objectives," he said in a statement on Saturday (June 6).

On behalf of the government, Muhyiddin thanked Wan Zulkiflee for his leadership and contribution during his 37-year tenure in Petronas.

"He managed to maintain Petronas as one of the government companies, which has stable financial standing and is managed successfully.

"Petronas is the only government company which has a good international credit evaluation and still listed in the Fortune Global 500.

"I believe MAB will be restructured and be expanded further as the national carrier, which is competitive and managed well," he added.

He also congratulated Tengku Muhammad Taufik on his appointment.

"The oil and gas industry is currently facing big challenges with the uncertain oil prices and global economic downturn.

"I believe with Tengku Muhammad Taufik's skills and experience, he and current chairman Datuk Ahmad Nizam Salleh will be able to lead Petronas to new heights," Muhyiddin said.

Offline Raging bull

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New Petronas CEO
Brent crude US42

Oil & Gas will fly on Tuesday!!

Online Sailor

  • Earl
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Walaahhhhh...no more really pkpb..
Ppl start travelling everywhere...
Buy oil full tank then vrooommmm.🇲🇾
Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©

Offline Raging bull

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Oil is back upto US 41.80. After brief correction, this time it should hit US45 on recovery and production cuts. O&G is the next focus!

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  • Earl
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Oil is back upto US 41.80. After brief correction, this time it should hit US45 on recovery and production cuts. O&G is the next focus!

Wait for meee larr..
I will topup for my Perdana.

So what to buy on Monday?
Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©

Offline Raging bull

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ICON of course!! Made rm20M last quarter. Undervalued at 13s! Warrants only 9s!
Oil now nearing US43! Monday  :cash: :cash: :cash:

Online kakipukul

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Wait for meee larr..
I will topup for my Perdana.

So what to buy on Monday?

monday gap up
perdana.. buy more if not enough.. if cheaper add in more.. the magic word is "hold until your last breath"

Online Sailor

  • Earl
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Baltic Index up up up.
Maybulk and other carrier transport ehemm..
+ Oil .MISC Institution Fund collecting.
We smal smal collect Maybulk😁
OPEC oredi cut  oil..
Time to slow collect meah🛫🛫🛫🛫
.
Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©

Online master wahsing

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Baltic Index up up up.
Maybulk and other carrier transport ehemm..
+ Oil .MISC Institution Fund collecting.
We smal smal collect Maybulk😁
OPEC oredi cut  oil..
Time to slow collect meah🛫🛫🛫🛫
.

MAYBULK  :cash: :cash: :cash: :thumbsup: :thumbsup: :thumbsup:

Offline Raging bull

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NYmex hitting US41. & Brent US 44 anytime soon...sapu ICON!!

Online kakipukul

  • Baron
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monday gap up
perdana.. buy more if not enough.. if cheaper add in more.. the magic word is "hold until your last breath"

perdana tomolo t9 .. don't forget when the game about to start.. buy cheap don't chase high

Online Sailor

  • Earl
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Everday have their own due date and frcell for few
players.

Dayang in the black,Perdana loss improved.
Today Dayang plays,spill over to Perdana.😁
Sail away from the safe harbour,Catch the trade winds in your sails,Dream,Explore,Discover  ®One does not discover new lands without consenting to loose sight of the shore for very long time©