MISC Leads OGSE100 List for FY2018

KUALA LUMPUR, Feb 7, 2020 — MISC Bhd has topped the table in a new ranking of Malaysia’s top oil and gas services and equipment (OGSE) companies, according to Malaysia Petroleum Resources Corporation (MPRC).

Offshore floating facility service provider MISC came in at number one for the second consecutive year in the FY2018 rankings of OGSE100 (formerly known as MPRC100), which ranks Malaysia’s top 100 OGSE firms based on their annual revenues. Sapura Energy Bhd is ranked at number two, followed by Serba Dinamik Holdings Bhd in the third spot and Dialog Group Bhd in fourth place.  

Major rank climbers of OGSE100 are Petronnic Sdn. Bhd. ranked 42nd from 73rd, Wood Group Engineering Sdn. Bhd., (up from 61st to 32nd spot) AntiCorrosion Protective Systems (M) Sdn. Bhd. at 99th spot (from 342nd), Technip Consultant Sdn. Bhd. at 84th (from 133rd) , and Aker Solutions APAC Sdn. Bhd., which rose to 38th from 116th, among others. 

“The FY2018 findings in OGSE100 provide useful insights into how Malaysian OGSE companies had performed throughout the year whilst navigating geopolitical and trade tensions, as well as uncertainties confronting the global oil and gas landscape,” said MPRC Deputy Chief Executive Officer Mohd Yazid Ja’afar.

The list also provides an opportunity for OGSE industry players to gain clarity on their positions against other domestic players as well as their regional peers, he added

OGSE100 data showed that overall revenue for the sector declined 2.2% on-year to RM55.2 billion in FY2018 and recorded a loss of RM1.9 billion in FY2018 compared with a loss of RM361.6 million in the previous financial year, due to impairment charges undertaken by asset-heavy companies. The companies that lead the impairment exercise for 2018 include Sapura Energy Berhad and Bumi Armada Berhad, with a combined impairment of RM 4.4 billion from a total of RM 5.8 billion that took place in the same financial year. Other listed players that have also booked impairments include MISC Bhd, Icon Offshore Bhd, Perisai Petroleum Teknologi Bhd, KNM Group Bhd, and Alam Maritim Resources Bhd. 

In terms of regional performance, Malaysian players were more affected by the market movements with slower growth recorded at 6.4% on-year compared to 24.9% by their regional peers in FY18. OGSE companies in neighbouring countries saw positive upswings in their books on the back of assets deliveries including rigs, floaters, FPSOs as well as revenue recognition for increased assets utilisation rates.

Looking ahead in 2020, Malaysia OGSE’s industry is facing a confluence of headwinds: geopolitical and trade policy uncertainties, concerns about global economy, a well-supplied oil market and the gradual transition to a  low-carbon future. 

Against these headwinds, Malaysia’s OGSE companies need to be in the “driving seat of innovation and venture to safeguard profitability and improve efficiency,” Yazid said.  

“Companies can also build future-proof portfolios by venturing into complementary new areas such as solar and biomass to meet growing demand for sustainable energy sources, while exploring new areas of growth that are in step with Malaysia’s journey towards Industry 4.0.,” he added.