Maybank positive on oil and gas sector

The research note said its crude oil estimate of US$65 (RM 265.82) per barrel is unchanged, a level that will continue to spur activities and spending worldwide. — Reuters pic
The research note said its crude oil estimate of US$65 (RM 265.82) per barrel is unchanged, a level that will continue to spur activities and spending worldwide. — Reuters pic

KUALA LUMPUR, March 11 — Maybank Investment Bank Bhd reiterated the positive call on oil and gas industry and foresee buoyant activities across the value chain in Malaysia based on Petronas’ Activity Outlook 2019-2021 report.

The research note said its crude oil estimate of US$65 (RM 265.82) per barrel is unchanged, a level that will continue to spur activities and spending worldwide.

Meanwhile, Kenanga Investment bank Bhd said it maintained “neutral” recommendation on the sector.

“With balance sheet resilience and earnings visibility still key selection criterion for us, we favour more stable names such as Dialog, SerbaDk and Yinson, although we also see a post-restructuring Sapnrg as a potential prime beneficiary of increased oil and gas upstream activities not just domestically, but globally as well,” it said.

Overall, Kenanga opined that the benchmark Brent crude oil prices ranging between US$60 to US$70 per barrel to be “sensible”, with oil majors comfortable producing at these levels.

At 9.53 am, Dialog and Yinson were flat at RM3.18 and RM4.45, respectively, SerbaDk lost four sen to RM3.84 but Sapnrg added half-a-sen to 31.5 sen. — Bernama

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