Page 26 - Oil&Gas-AustralAsia-2015-Issue-5
P. 26
M ALAYSIA
Tough outlook for service Technip
providers after Petronas results awarded
By Marie RYAN Layang Field
Analysts have warned Petronas’ poor subsea work
performance and sober prediction for Holdings Bhd and UMW Oil & Gas
the oil and gas industry next year could Corp Bhd would be affected. By Marie RYAN
make for a challenging outlook for More companies could face further
industry players with earnings at risk. book value deratings, like in the case Technip has been awarded a key subsea
UOB KayHian Research, which has an of MMHE/Perisai which have under- contract by JX Nippon Oil and Gas Ex-
“underweight” call on the sector, said performed by more than 30 per cent ploration (Malaysia) Ltd at Block SK10,
Petronas would need to continuously year-to-date. Stocks under our coverage within the Layang field, located offshore
readjust its capital priorities, which may which could face earnings risks in 2016 Sarawak in Malaysia at a water depth of
further defer upstream activities. are SapuraKencana Petroleum Bhd, 85 meters.
Petronas released its third-quarter Bumi Armada Bhd, Barakah, MMHE The contract covers the engineering,
results in November with analysts and Perisai,” said UOB in a statement. procurement, fabrication, installation
noting the national oil company’s worst The national oil company would need and commissioning of three flexible
quarterly performance, with a net profit to continue adjusting to the prolonged pipes totalling 9.9 kilometres.
of 1.4 billion ringgit (US$319.8 million) low oil price environment while it rode The flexible pipes consist of two pro-
after a five billion ringgit impairment, through the crude oil “supply shock” duction risers and flowlines and one gas
against 11 billion ringgit in the second downturn, said Maybank IB. export riser and flowline, connecting
quarter. Petronas has spent 42 billion ringgit in shallow water platforms to a new FPSO.
Compared to Petronas 15.1 billion ring- capex, largely on the Refinery and Pet- The Group will leverage its unique
git profit after tax result last year. rochemical Integrated Development’s subsea integrated approach, as Technip’s
UOB KayHian said for nine months, (Rapid) second phase as at the nine- operating center in Kuala Lumpur, Ma-
net profit fell 41 per cent year-on-year month period and will pay 26 billion laysia, will execute the contract, while
to 30 billion ringgit, due to the fall in ringgit in dividends to the Government the flexible flowlines will be produced
crude oil prices. this year. in Asiaflex Products, Technip’s manu-
So far this year, revenue is down 25 per However, for 2016, it has committed facturing facility in Tanjung Langsat,
cent to 187.6 billion ringgit compared to a lower dividend amounting to 16 Johor, Malaysia.
to the 249.8 billion ringgit that it had billion ringgit, a figure that was arrived The installation campaign will use the
chalked up in the similar period last at after some negotiations. Group’s multipurpose vessel, the Deep
year due to lower crude oil prices. “This move is sensible, as a funda- Orient and the project is scheduled
Maybank Investment Bank Research mental recovery in the sector is not to be completed in the second half of
(Maybank IB) said the results were not foreseeable in the next 12 months,” said 2016.
surprising. It said cash flow preserva- Maybank IB. President of Technip in Asia Pacific
tion was paramount at such a time. Although Petronas is cautious on the KK Lim said the company was delight-
Almost all analysts agreed although outlook of the sector, it is not cutting ed to work with JX Nippon Oil and
Petronas was committed to its capital staff at the moment, which Maybank IB Gas Exploration and its main partner
expenditure (capex) programmes of 350 views as “atypical” but “understandable” Petronas Carigali Sdn Bhd (PCSB) on
billion ringgit over the next five years, for a national oil company. this project which is awarded under the
the poor results would affect down- UOB said the company seemed to be ‘Flexible Pipes Framework Agreement’
stream players. on track to spend its 70 billion ringgit signed with PCSB last year.
As a result, service players that highly in capex for 2015 mainly on domestic “It demonstrates the competitiveness of
depend on Petronas jobs such as Bar- projects like Pengerang and liquefied our flexible pipe technology for shallow
akah Offshore Petroleum Bhd, Malaysia natural gas (LNG) Train 9 in Sarawak. water developments and the advan-
Marine and Heavy Engineering Hold- Petronas remains committed to its tages of our unique subsea integrated
ings Bhd (MMHE), Perisai Petroleum three mega-projects, two floating LNG approach as a one stop solution for
Teknologi Bhd, Dayang Enterprise developments, Rapid and the Pacific cost-effective field developments,” Mr
North-West LNG project.§ Lim said.§
A A24 OIL & GAS ustral SIA NOVEMBER/DECEMBER 2015 www.oilandgasaustralasia.com
Tough outlook for service Technip
providers after Petronas results awarded
By Marie RYAN Layang Field
Analysts have warned Petronas’ poor subsea work
performance and sober prediction for Holdings Bhd and UMW Oil & Gas
the oil and gas industry next year could Corp Bhd would be affected. By Marie RYAN
make for a challenging outlook for More companies could face further
industry players with earnings at risk. book value deratings, like in the case Technip has been awarded a key subsea
UOB KayHian Research, which has an of MMHE/Perisai which have under- contract by JX Nippon Oil and Gas Ex-
“underweight” call on the sector, said performed by more than 30 per cent ploration (Malaysia) Ltd at Block SK10,
Petronas would need to continuously year-to-date. Stocks under our coverage within the Layang field, located offshore
readjust its capital priorities, which may which could face earnings risks in 2016 Sarawak in Malaysia at a water depth of
further defer upstream activities. are SapuraKencana Petroleum Bhd, 85 meters.
Petronas released its third-quarter Bumi Armada Bhd, Barakah, MMHE The contract covers the engineering,
results in November with analysts and Perisai,” said UOB in a statement. procurement, fabrication, installation
noting the national oil company’s worst The national oil company would need and commissioning of three flexible
quarterly performance, with a net profit to continue adjusting to the prolonged pipes totalling 9.9 kilometres.
of 1.4 billion ringgit (US$319.8 million) low oil price environment while it rode The flexible pipes consist of two pro-
after a five billion ringgit impairment, through the crude oil “supply shock” duction risers and flowlines and one gas
against 11 billion ringgit in the second downturn, said Maybank IB. export riser and flowline, connecting
quarter. Petronas has spent 42 billion ringgit in shallow water platforms to a new FPSO.
Compared to Petronas 15.1 billion ring- capex, largely on the Refinery and Pet- The Group will leverage its unique
git profit after tax result last year. rochemical Integrated Development’s subsea integrated approach, as Technip’s
UOB KayHian said for nine months, (Rapid) second phase as at the nine- operating center in Kuala Lumpur, Ma-
net profit fell 41 per cent year-on-year month period and will pay 26 billion laysia, will execute the contract, while
to 30 billion ringgit, due to the fall in ringgit in dividends to the Government the flexible flowlines will be produced
crude oil prices. this year. in Asiaflex Products, Technip’s manu-
So far this year, revenue is down 25 per However, for 2016, it has committed facturing facility in Tanjung Langsat,
cent to 187.6 billion ringgit compared to a lower dividend amounting to 16 Johor, Malaysia.
to the 249.8 billion ringgit that it had billion ringgit, a figure that was arrived The installation campaign will use the
chalked up in the similar period last at after some negotiations. Group’s multipurpose vessel, the Deep
year due to lower crude oil prices. “This move is sensible, as a funda- Orient and the project is scheduled
Maybank Investment Bank Research mental recovery in the sector is not to be completed in the second half of
(Maybank IB) said the results were not foreseeable in the next 12 months,” said 2016.
surprising. It said cash flow preserva- Maybank IB. President of Technip in Asia Pacific
tion was paramount at such a time. Although Petronas is cautious on the KK Lim said the company was delight-
Almost all analysts agreed although outlook of the sector, it is not cutting ed to work with JX Nippon Oil and
Petronas was committed to its capital staff at the moment, which Maybank IB Gas Exploration and its main partner
expenditure (capex) programmes of 350 views as “atypical” but “understandable” Petronas Carigali Sdn Bhd (PCSB) on
billion ringgit over the next five years, for a national oil company. this project which is awarded under the
the poor results would affect down- UOB said the company seemed to be ‘Flexible Pipes Framework Agreement’
stream players. on track to spend its 70 billion ringgit signed with PCSB last year.
As a result, service players that highly in capex for 2015 mainly on domestic “It demonstrates the competitiveness of
depend on Petronas jobs such as Bar- projects like Pengerang and liquefied our flexible pipe technology for shallow
akah Offshore Petroleum Bhd, Malaysia natural gas (LNG) Train 9 in Sarawak. water developments and the advan-
Marine and Heavy Engineering Hold- Petronas remains committed to its tages of our unique subsea integrated
ings Bhd (MMHE), Perisai Petroleum three mega-projects, two floating LNG approach as a one stop solution for
Teknologi Bhd, Dayang Enterprise developments, Rapid and the Pacific cost-effective field developments,” Mr
North-West LNG project.§ Lim said.§
A A24 OIL & GAS ustral SIA NOVEMBER/DECEMBER 2015 www.oilandgasaustralasia.com
