Malaysian com­pa­nies dom­i­nate re­gional rank­ings

New Straits Times - - Business -

Petro­liam Na­sional Bhd’s ship­ping arm, MISC Bhd, is Malaysia’s top oil and gas ser­vices and equip­ment (OGSE) com­pany in 2015, as lo­cal play­ers dom­i­nate a gov­ern­ment list of top 20 OGSE firms in South­east Asia.

The list com­piled by Malaysia Pe­tro­leum Re­sources Corp (MPRC), the in­dus­try devel­op­ment agency un­der the Prime Min­is­ter’s Depart­ment, an­a­lysed the OGSE in­dus­try per­for­mance for the year ended 2015.

MPRC also an­a­lysed their stand­ing against re­gional peers from 2012 up to the third quar­ter of this year.

MISC, which made its de­but on the MPRC100 rank­ings com­pris­ing pub­licly-traded and pri­vately-held OGSE com­pa­nies, topped the list due mainly to higher rev­enue con­tri­bu­tion from its off­shore busi­ness unit.

Other sig­nif­i­cant movers in the list in­cluded E.A. Tech­nique (M) Bhd, which vaulted to the 23rd spot from No. 74.

Pe­tro­leum Geo-Ser­vices Ex­plo­ration (M) Sdn Bhd ad­vanced to No. 48 from No. 114 pre­vi­ously while Grade One Ma­rine Ship­yard Sdn Bhd took the 63rd spot af­ter com­ing in at No. 194 in the pre­vi­ous year.

In the 2015 fi­nan­cial year, over­all rev­enue for OGSE fell 11 per cent to RM65.8 bil­lion while to­tal OGSE pre-tax profit de­clined to RM3.1 bil­lion in 2015 from RM6.5 bil­lion in 2014. This was at­trib­uted mainly to as­set im­pair­ment losses recog­nised by off­shore drilling rig and ves­sel own­ers in re­sponse to de­clin­ing rates and de­mand.

How­ever, it also showed that to­tal fixed as­sets for the in­dus­try con­tin­ued to in­crease to RM86 bil­lion in fi­nan­cial year 2015 com­pared with 2014’s fig­ure of RM68.4 bil­lion, due to con­struc­tion and the de­liv­ery of new as­sets al­ready com­mit­ted in pre­vi­ous years.

“The lat­est MPRC100 re­port un­der­scores our com­mit­ment to in­for­ma­tion trans­parency in the OGSE in­dus­try,” said MPRC

Un­der the chal­leng­ing and com­pet­i­tive mar­ket en­vi­ron­ment, the MPRC100 is more im­por­tant than ever in pro­vid­ing hard data on com­pa­nies’ per­for­mance to as­sist stake­hold­ers in mak­ing busi­ness de­ci­sions.

DATUK SHAHROL HALMI Malaysia Pe­tro­leum Re­sources Corp pres­i­dent and chief ex­ec­u­tive of­fi­cer

pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Shahrol Halmi.

“Un­der the chal­leng­ing and com­pet­i­tive mar­ket en­vi­ron­ment, the MPRC100 is more im­por­tant than ever in pro­vid­ing hard data on com­pa­nies’ per­for­mance to as­sist stake­hold­ers in mak­ing busi­ness de­ci­sions.”

Shahrol said the en­vi­ron­ment of lower oil prices was an op­por­tu­nity for key play­ers to work to­gether to strengthen com­pet­i­tive­ness and im­prove pro­cesses.

In MPRC100’s anal­y­sis of the top 20 OGSEs in South­east Asia, nine were from Malaysia, eight from Sin­ga­pore, two from Viet­nam and one from In­done­sia.

MPRC said by analysing the fi­nan­cial data, it found that Malaysian com­pa­nies were catch­ing up with their peers in terms of rev­enue and had sur­passed them in terms of fixed as­sets.

Malaysian firms also fared bet­ter as they were spread across the OGSE sup­ply chain, com­pared with re­gional com­pa­nies that were con­cen­trated mainly in up­stream cap­i­tal ex­pen­di­ture seg­ments such as fab­ri­ca­tion, trans­port and in­stal­la­tion.

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