KUALA LUMPUR, Dec 15 (Bernama) -- The 2015-2016 oil and gas industry downturn triggered cuts in activity and asset impairment in Malaysia’s oil and gas services and equipment (OGSE) industry in recent years. But, financial data on the top 100 privately held and public-listed OGSE companies saw losses tapering off in 2019 amid a pick-up in activities, according to industry development agency Malaysia Petroleum Resources Corporation’s (MPRC) latest ranking of the top 100 OGSE companies Malaysia. 
A preview of the top 100 OGSE companies or OGSE100, showed that the sector swung back into the black with a PBT of RM612 .45 million in financial year 2019 (FY2019), from a loss of RM1.87 billion registered in the previous year. This was due to a modest pickup in project activities and fewer impairments after OGSE companies recorded large impairments in the last two years. OGSE100 analyses the financial performances of both public-listed and private companies to provide a wholesome ‘state of the industry’ assessment to industry, policymakers and financial institutions.  
Topping the list for FY2019 was MISC Bhd, followed by Sapura Energy Bhd and Serba Dinamik Holdings Bhd at second and third place, respectively.
Top 10 OGSE companies in Malaysia: 

Whilst FY2019 financial data showed modest signs of recovery in the OGSE segment, the year 2019 was characterised by weaker global growth, trade dispute and tension between China and US. Concerns about global demand for hydrocarbons and its long-term price trend were expected to be key factors on the industry’s overall FY2020 financial performance, MPRC’s President and Chief Executive Mohd Yazid Ja’afar said. 
“In the early months of 2020, it was still business-as-usual mode for OGSE firms, as oil and gas activities picked up per spending plan. There was news of an infectious disease caused by a new strain of Coronavirus, but it was contained in the affected countries. But, as we all know, COVID-19 escalated into a global pandemic and restricted international travel and slowed economic activities,” he said. “The sharp drop in this year’s global oil demand in the wake of the COVID-19 pandemic, coupled with the oversupply of crude will have forced OGSE players to re-evaluate their playbooks and resilience in navigating the years ahead.” 
As the OGSE industry finds its way forward, industry players would also need to evolve in ways which contribute to efforts in digitalising the supply chain as well as reducing carbon footprint among industry players, he added. 
Globally, there is a gradual but consistent shift in policies to support the energy transition, encouraging the use of technology and renewable fuels. At the same time, investors and sovereign funds have also joined the calls for decarbonisation efforts.   
“Investors will be taking a harder look at the environmental impact of the oil and gas services and production through Environment Social Governance-focused investing as the future energy mix takes shape. OGSE companies remains important to economic activities, but they will need to respond by looking at their businesses, rethink their business models in a world that is marching steadily towards zero-carbon economies,” Mohd Yazid said.