OGSE industry’s revenue in FY22 increases to RM72.7b

Malaysia’s oil and gas services and equipment (OGSE) companies recorded 7% year-on-year growth in revenue to RM72.7 billion in the 2022 fiscal year (FY22), driven by higher contracting rates and asset utilisation amid the awards of new contracts.

In its FY22 edition of the OGSE100 publication, Malaysia Petroleum Resources Corporation (MPRC) said 73.5% of the industry revenue was contributed by the country’s top 100 OGSE companies by revenue. Non-OGSE100 mid-tier companies (MTC) and small and medium-sized enterprises (SME) accounted for 13.8% and 12.7%, respectively.

The report said the OGSE industry’s total population stood at 2,286 companies in 2022, made up of the OGSE100, 1,945 non-OGSE100 SMEs and 241 non-OGSE100 MTCs. Meanwhile, of the 241 MTC, 12 had grown from SME in the previous year whereas 23 had reverted to SME status.

“Our analysis of the OGSE industry and 100 top OGSE companies by revenue for FY22 showed the fragility of the recovery achieved in 2022. This can be seen with a contraction in the industry’s profitability in FY22 compared with the previous year, despite growth in revenue,” said MPRC president/CEO Mohd Yazid Ja’afar.

According to the OGSE100 FY22 report, the industry registered pre-tax losses of RM3.5 billion against profit before tax (PBT) of RM4.2 billion a year earlier mainly due to RM5.2 billion in impairment losses from a number of public-listed companies within the OGSE100. Excluding the impairments, the industry would have registered PBT of RM1.7 billion, of which the OGSE100 accounted for RM974.4 million. In FY21, the industry had recorded PBT of RM4.2 billion.