KUALA LUMPUR, Feb 7 (Bernama) -- MISC Bhd has topped the table in a new ranking of Malaysia’s top oil and gas services and equipment (OGSE) companies, according to Malaysia Petroleum Resources Corporation (MPRC).

Offshore floating facility service provider MISC came in at number one for the second consecutive year in the FY2018 rankings of OGSE100 (formerly known as MPRC100), which ranks Malaysia’s top 100 OGSE firms based on their annual revenues. Sapura Energy Bhd is ranked at number two, followed by Serba Dinamik Holdings Bhd in the third spot and Dialog Group Bhd in fourth place.

Major rank climbers of OGSE100 are Petronnic Sdn. Bhd. ranked 42nd from 73rd, Wood Group Engineering Sdn. Bhd., (up from 61st to 32nd spot)  AntiCorrosion Protective Systems (M) Sdn. Bhd. at 99th spot (from 342nd), Technip Consultant Sdn. Bhd. at 84th (from 133rd) , and Aker Solutions APAC Sdn. Bhd., which rose to 38th from 116th, among others.

“The FY2018 findings in OGSE100 provide useful insights into how Malaysian OGSE companies had performed throughout the year whilst navigating geopolitical and trade tensions, as well as uncertainties confronting the global oil and gas landscape,” said MPRC Deputy Chief Executive Officer Mohd Yazid Ja’afar.

The list also provides an opportunity for OGSE industry players to gain clarity on their positions against other domestic players as well as their regional peers, he added.

OGSE100 data showed that overall revenue for the sector declined 2.2% on-year to RM55.2 billion in FY2018 and recorded a loss of RM1.9 billion in FY2018 compared with a loss of RM361.6 million in the previous financial year, due to impairment charges undertaken by asset-heavy companies. The companies that lead the impairment exercise for 2018 include Sapura Energy Berhad and Bumi Armada Berhad, with a combined impairment of RM 4.4 billion from a total of RM 5.8 billion that took place in the same financial year. Other listed players that have also booked impairments include MISC Bhd, Icon Offshore Bhd, Perisai Petroleum Teknologi Bhd, KNM Group Bhd, and Alam Maritim Resources Bhd.

In terms of regional performance, Malaysian players were more affected by the market movements with slower growth recorded at 6.4% on-year compared to 24.9% by their regional peers in FY18. OGSE companies in neighbouring countries saw positive upswings in their books on the back of assets deliveries including rigs, floaters, FPSOs as well as revenue recognition for increased assets utilisation rates.

Looking ahead in 2020, Malaysia OGSE’s industry is facing a confluence of headwinds: geopolitical and trade policy uncertainties, concerns about global economy, a well-supplied oil market and the gradual transition to a low-carbon future.

Against these headwinds, Malaysia’s OGSE companies need to be in the “driving seat of innovation and venture to safeguard profitability and improve efficiency,” Yazid said.

“Companies can also build future-proof portfolios by venturing into complementary new areas such as solar and biomass to meet growing demand for sustainable energy sources, while exploring new areas of growth that are in step with Malaysia’s journey towards Industry 4.0.,” he added.

To access the latest OGSE100 report, visit www.mprc.gov.my/publication

NOTE TO EDITORS
About OGSE100
The OGSE100, previously known as MPRC100, is a list of 100 OGSE public listed and privately-held companies in Malaysia, ranked based on revenue. It further highlights the growth of these companies and provides a point of reference to the industry, potential investors and stakeholders. This report also contains industry commentaries and supplemental analysis to provide an aggregated view of the OGSE industry in Malaysia.

About MPRC
Malaysia Petroleum Resources Corporation (MPRC) was established to advance the local oil and gas services and equipment (OGSE) industry and anchor on Malaysia’s strategic geographical location to transform the country into a thriving regional OGSE hub. Formed in 2011 and currently an agency reporting to the Ministry of Economic Affairs, MPRC provides recommendations to the Government to promote the globalisation of local OGSE capabilities in the upstream, midstream, and downstream sectors.

SOURCE: Malaysia Petroleum Resources Corporation (MPRC)

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Lim Shie-Lynn
Strategic Communications
Tel: +6012 304 3389/+603 2858 8569
Email: lynn.lim@mprc.gov.my

--BERNAMA