PETALING JAYA: Velesto Energy Bhd
stands to gain from the prevailing uptrend in charter rates as well as future improvements.
That said, Hong Leong Investment Bank (HLIB) Research remains cautious about potential cost hikes in the oil and gas services and equipment sector.
“This concern arises from the combination of cost inflation challenges, intensified by increased demand for oil and gas, and disruptions in the global supply chain, which have impacted the availability of oilfield equipment and spares,” the research house said in a report.
Based on its assessments, oil majors would proactively allocate upstream capital expenditure as long as oil prices stay above the US$65 (RM302) per barrel level for a sustained period.
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