Maybank IB sees more new jobs on higher capex outlook

KUALA LUMPUR: A revival of new awards in the oil and gas (O&G) industry can be expected in the first half of this year on higher capital expenditure (capex) outlook, said Maybank Investment Bank Bhd (Maybank IB).

It said Petroliam Nasional Bhd was expected to announce several job awards, which would augur well for Malaysia-based service providers.

“We are sensing a rise in confidence. Higher capex trend is a new positive. We expect more projects to be sanctioned,” it said in a note yesterday.

Maybank IB said the potential revival would benefit Bumi Armada Bhd, Dialog Group Bhd, Wah Seong Corp Bhd and Yinson Holdings Bhd, among others.

Overall, it expects an improved performance for the sector this year, with crude oil price averaging US$60 (RM234) per barrel.

“We are not ruling out the acceleration beyond US$80 per barrel should instability in the Middle East takes place,” it said.