Oil prices have fallen as much as 40% since June this year to a new
five-year low of USD60.94 per barrel as of Wednesday. OPEC (Organisation
of the Petroleum Exporting Countries) forecasted that the global oil
demand in 2015 will plunge to the lowest level in more than a decade,
which may have contributed to the drop in oil prices. In a monthly oil
market report, OPEC expects the oil demand for next year will decline to
28.92M barrels-per-day (bpd), down 280,000 bpd from its previous
expectation.
According to a news report from The Edge Market on Thursday, the group CEO of SapuraKencana, Tan Sri Shahril Shamsuddin, felt that the lower oil price will force players to innovate in order to deliver affordable energy to the mass market. Shahril said, “It was important for industry players to realign their costs due to the lower oil prices and go back to the drawing board.” He acknowledged that shareholders who invest in O&G companies expect high returns on their investments and this will be a challenge in the current environment.
Effects on the Malaysian O&G stocks
O&G stocks have been severely battered of late due to weak crude oil prices. Since Aug 11, 2014, SapuraKencana’s share price had fallen 44.2%, Bumi Armada declined as much as 48.9%, Icon Offshore collapsed 40.0%, KNM Group fell 61.5% and Petronas Dagangan shaved 14.7%.
Source: Macquarie Research - 12 Dec 2014
According to a news report from The Edge Market on Thursday, the group CEO of SapuraKencana, Tan Sri Shahril Shamsuddin, felt that the lower oil price will force players to innovate in order to deliver affordable energy to the mass market. Shahril said, “It was important for industry players to realign their costs due to the lower oil prices and go back to the drawing board.” He acknowledged that shareholders who invest in O&G companies expect high returns on their investments and this will be a challenge in the current environment.
Effects on the Malaysian O&G stocks
O&G stocks have been severely battered of late due to weak crude oil prices. Since Aug 11, 2014, SapuraKencana’s share price had fallen 44.2%, Bumi Armada declined as much as 48.9%, Icon Offshore collapsed 40.0%, KNM Group fell 61.5% and Petronas Dagangan shaved 14.7%.
Source: Macquarie Research - 12 Dec 2014
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