PETALING JAYA: UOB Kay Hian (UOBKH) Research has maintained a “market weight” call on Malaysia’s oil and gas (O&G) industry, noting that although there are more “buy” calls in terms of valuation grounds, it remains “neutral” on the sector until it sees firm clarity on the resolution of the Petroliam Nasional Bhd (PETRONAS)-Petroleum Sarawak Bhd (Petros) political impasse.
The research house told clients it had identified the issue – which centres on a jurisdictional disagreement – as the key sector de-rating catalyst since the second half of financial year 2024, an assumption it has maintained ever since.
“We acknowledge that several gems are proving to be nimble against changes in the business environment,” the research house added.
UOBKH Research said recent geopolitical events were greatly undermining seafarers’ human rights, blurring the distinction between a shipping route and a war zone.
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