Barakah Offshore posts RM4.6m net loss in Q1

Barakah Offshore Petroleum Bhd registered a net loss of RM4.6 million in the first quarter (Q1) ended March 31, 2017, from a net profit of RM1.27 million in the previous corresponding quarter.

Revenue dropped 25.6% to RM76.84 million, compared with RM103.3 million in the same period last year, mainly due to lower revenue from installation and construction services (ICS).

In a filing with Bursa Malaysia, the group said ICS generated a total revenue of RM45.78 million, which is a decrease of 44.32% from the corresponding quarter.

Petronas okays Hibiscus’ purchase of Shell stake in Sabah venture

Petronas has given the go-ahead for partner Royal Dutch Shell to sell its (Shell’s) 50% stake in their joint-venture North Sabah enhanced oil recovery (EOR) project to Hibiscus Petroleum Bhd. However, the approval is subject to certain conditions.

Hibiscus told Bursa Malaysia that Shell’s units Sabah Shell Petroleum Co Ltd and Shell Sabah Selatan Sdn Bhd - which hold the combined 50% interest - were reviewing the conditions.

“If further clarifications are required from Petronas in respect of these conditions, these will be sought in due course and the company (Hibiscus) will make further announcements, if appropriate,” it said.

Hibiscus did not disclose the conditions imposed by Petronas.

Icon Offshore bags RM5.4m vessel provision contract

Icon Offshore Bhd has bagged a RM5.4 million contract to provide a 60-tonne bollard pull anchor handling tug supply vessel for Sarawak Shell Bhd and Sabah Shell Petroleum Co Ltd’s operations.

In a filing with Bursa Malaysia, Icon said the contract, clinched through its wholly-owned subsidiary Icon Offshore Group Sdn Bhd, is for a period of up to 10 months.

"The contract is expected to contribute positively to the earnings and net assets of Icon Group for the financial year ending Dec 31, 2017 and beyond. Notwithstanding this, the contract is not expected to have any material effects on the share capital and shareholding structure of Icon," it added.

KUB to spend US$80 mln on joint LPG terminal project

KUB Malaysia Bhd plans to spend up to US$80 million (US$1=RM4.295) under the memorandum of understanding (MoU) it entered into with Mabanaft Pte Ltd for the joint development of a refrigerated liquefied petroleum gas (LPG) terminal at Westport, Klang, Selangor.

Its President/Group Managing Director, Datuk Abdul Rahim Mohd Zin said the investment would entitle the group to have the majority shareholding of at least 51 per cent under the MoU.

“We need at least six months or until end of the year to undertake a feasibility study, and once we have determine that, we will make the financial investment decision,” he told reporters after the group’s annual and extraordinary general meeting here, yesterday.

Sarawak still negotiating with Petronas on increase in oil royalty

Sarawak has not abandoned its negotiation with Petronas for a 20% increase in oil royalty, Chief Minister Datuk Amar Abang Johari Tun Openg said.

In his winding up speech at the 18th Sarawak legislative Assembly sitting here, he said now the time is unfavourable for the negotiation as the price of oil is low and production cost very competitive.

"Under such a situation, we have to manage this with care," he said.

Meantime, he said in lieu of the loyalty increase, he had decided that the state would continue to pursue interests in the development of the oil and gas industry in the state.

Petronas Dagangan Records Stellar 1Q17 Results

Petronas Dagangan Bhd (PetDag) recorded a stellar first quarter pre-tax profit of RM335.6 million for the three months ended March 31, 2017 against RM295.6 million recorded in the same quarter last year.

Revenue rose to RM6.69 billion from RM4.91 billion previously, thanks to the 43 per cent increase in average selling price following the increase in Mean of Platts Singapore prices.

The selling prices, however, was offset by lower sales volume of four per cent, the petroleum products provider said in a filing to Bursa Malaysia.

The group's operating profit was higher by RM39.3 million to RM336.1 million, during the quarter under review, compared with the corresponding quarter last year on the back of better operating profits from retail and commercial segments which increased to RM198.80 million and RM132.20 million, respectively.

Dialog Group's Q3 earnings up nearly 20%

 Dialog Group Bhd's earnings rose 19.6% to RM94.40mil in the third quarter ended March 31, 2017, boosted by higher contributions from its joint ventures particularly the Pengerang Independent Terminals.

It said on Tuesday its revenue rose 42.4% to RM913.60mil from RM641.40mil a year ago. Its earnings per share were 1.74 sen and it declared an interim dividend of 1.2 sen a share.

Dialog Group said its share of joint ventures results in Q3 FY17 increased by 90.7% to RM28.6mil from RM15mil a year ago.

The Malaysia operation remained busy during the current financial quarter with engineering, construction and fabrication activities from various on-going projects such as the Pengerang Deepwater Terminal Phase 2, jetty topside works for Samsung in Pengerang and the construction of plasticiser plant for UPC Chemicals in Kuantan. 

UMW-OG bags RM151m contracts from Petronas Carigali

UMW Oil & Gas Corporation Bhd (UMW-OG) has received two contracts from Petronas Carigali Sdn Bhd worth US$34.81mil or RM151.07mil to provide services to its firm and optional wells.

UMW-OG said on Monday the contracts are to provide jack-up drilling rig services.

It said the first contract is to provide drilling rig services for Petronas Carigali’s drilling programme, whereby UMW-OG will assign its UMW Naga 3 for this contract.

The contract is to drill five firm wells with the option of drilling additional five wells, starting in June 2017.

PETROL refiners and distributors benefit from volatile oil prices

PETROL refiners and distributors have been one of the bright sparks on Bursa Malaysia in recent weeks.

Petron Malaysia Refining & Marketing Bhd and Hengyuan Refining Company Bhd (previously known as Shell Refining Company (Federation Of Malaya) Bhd, for example,have seen their shares rise by over 100% since the beginning of the year.

The market is of the impression that downstream players could benefit from a lower oil price environment as it can help stimulate demand growth and raise the sales of their products.

These companies have also benefitted from the oil price environment today which is not too high nor too low and prices have recovered when compared to the same quarter of the previous year.

Natural Gas – Flipping The Switch

by Investvine - May 2017

Our brand new free 54-page report NATURAL GAS: FLIPPING THE SWITCH – Dawn of a New Era takes a close look at the current state of the natural gas industry both in Malaysia and the wider Southeast Asia region, as well as worldwide. It aims at making people familiar with the features and benefits of natural gas as compared to other energy sources, namely coal and oil, deciphering common myths and examining and highlighting the advantages of natural gas in terms of energy efficiency, environmental impact and costs.

The report puts Malaysia’s natural gas policy in perspective to other countries in Southeast Asia, and also versus large energy consumers such as the US, China and Europe, highlighting worldwide trends, future projections and environmental consequences.