• Oil and gas

In Public Invest Research’s view, the oil and gas sector ended the 2QCY18 results with mixed performances.

“As expected, not much improvement was seen in the quarter, suggesting that the pickup in oil and gas activities have yet to translate to better profits,” the research arm said, adding that discrepancies were mostly due to slower jobs progress and weak profit margins.

Meanwhile, MIDF Research noted that the downstream oil and gas companies performed favour ab ly as the supply and demand dynamics for petrochemical and fuel products were within expectations.

The research arm further noted that with the relatively stable crude oil price environment in the first half of financial year 2018 (1HFY18), operating margins were well balanced amidst pressure from average selling prices.

“Service providers on average faired reasonably well due increasing offshore activity levels owing to stable crude oil price environment,” it said.

Looking ahead, PublicInvest Research believed that significant contribution to earnings from a slew of new contract awards in these recent times may only be reflected in next year’s number.

“2018 is still a markedly better year nonetheless as compared to years past, and recovery in the sector remaining on the track as oil prices stay at current levels,” the research arm affirmed

“Further supply constraints arising from fresh US sanctions on Iran and a substantial decline in Venezuelan product ion will provide some support to prices.”

Meanwhile, Kenanga Research kept its cautiously optimistic view on the sector, noting that “the higher oil prices environment has still yet to lead to any meaningful uptick in the number of contract awards”.