Kenanga still ‘neutral’ on oil and gas sector from brownfield space
It said that the possible pick-up in job flows from the brownfield space will likely benefit local players such as Dayang Enterprise Holdings Bhd and Uzma Bhd. 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).
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.
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