Malaysian companies dominate regional rankings
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.