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Prolonged Middle East tensions and volatile oil markets could turn into a tailwind for  Gas Malaysia , according to UOB Kay Hian. The research house says sustained higher natural gas prices would directly lift the company’s profitability — making it one of the clearer beneficiaries of the current energy shock. Key Takeaways Gas Malaysia derives about 40% of net profit from gas sales Every 1% change in gas prices can swing net profit by 4% LNG prices in Asia have surged 46% in the past week Earnings upside if elevated oil prices persist beyond six months Tenaga Nasional impact seen as marginal Why Gas Malaysia Stands to Gain Gas Malaysia Bhd  supplies natural gas to over 1,000 industrial customers, with about 40% of its net profit tied directly to gas sales. According to UOB Kay Hian: Every 1% change in natural gas prices can shift net profit by 4% If elevated oil prices persist beyond six months, earnings could improve meaningfully Asian LNG prices have surged 46% in just one ...

Shares of  PETRONAS Chemicals Group Bhd  jumped to a four-month peak as analysts say the Middle East crisis is handing the company a rare cost advantage over global peers. CGS International upgraded the stock to  “add”  (from “reduce”) and lifted its FY2026 earnings forecast to  RM143 million , reversing a prior projected loss of RM667 million. Target price: RM4.45 — implying over 20% upside. Key Takeaways PetChem benefits from domestic gas feedstock supply Brent up 17%, naphtha up 26%, LNG up 50% amid Hormuz shutdown Naphtha-based plants globally face production cuts Analysts see earnings turnaround in FY2026 Why PetChem Is a Winner The key advantage:  PetChem sources its gas feedstocks domestically , avoiding reliance on Middle Eastern supply. This shields its: Kertih Olefins & Derivatives (O&D) complex Fertilisers & Methanol (F&M) division Unlike naphtha-based producers, PetChem benefits from: Fixed, low long-term ethane pricing Methane c...

Quick Summary Wall Street rebounded , led by AMD’s 8.8% surge on a major AI chip deal with Meta FBM KLCI slipped 0.23% , ending a four-day winning streak Malaysia’s reserves hit US$127.9 billion , highest since 2014 PM Anwar says Malaysia  won’t rush decisions  after US tariff reversal Wall Street Recap: AI Optimism Returns US markets bounced back as investors viewed Monday’s AI selloff as overdone. Nasdaq:  +1.04% S&P 500:  +0.77% Dow Jones:  +0.76% The rally was driven by: Advanced Micro Devices  (AMD)  +8.8% Following a massive AI GPU order from  Meta Platforms Intel  +5.7% After investing US$350 million in AI chip startup SambaNova IBM  and  Salesforce  also rebounded Precious metals were mixed amid tariff and geopolitical tensions: Gold futures:  -0.7% to US$5,186 Silver futures:  +1% Bursa Malaysia: Mild Profit-Taking FBM KLCI:  1,754.01 (-0.23%) Top gainer:   Petronas Dagangan Bhd  (PETDAG) ...

Quick Summary PCHEM shares fell over 6% , extending 2026 losses to more than 14% Analysts cut forecasts after another  deeper-than-expected quarterly loss Industry faces  persistent oversupply and weak demand , especially from China Majority of research houses now recommend  ‘Sell’ Stock Extends Downtrend Shares of  PETRONAS Chemicals Group Bhd  dropped to  RM3.09 (-6%) , reflecting mounting concerns over prolonged sector weakness. Market cap:  ~RM25 billion YTD decline (2026): -14% More than  9 million shares traded  by midday The latest quarterly results sank  deeper into the red than expected , prompting analysts to downgrade outlooks. Why the Pressure Continues The petrochemical sector remains stuck in a  structural downcycle  driven by: Persistent global oversupply Weak downstream demand Aggressive capacity expansion in China According to  Maybank Investment Bank , additional plants coming online in China will continu...

PETRONAS Chemicals Group Bhd sank to its lowest level since April after reporting another quarterly loss, with analysts cautioning that the petrochemical giant faces a longer and more painful downturn ahead. The latest quarter’s core net loss — excluding exceptional items — was the company’s largest since its 2010 listing, prompting consensus forecasts to now price in a full-year loss for PChem. Hong Leong Investment Bank (HLIB) said the sector remains under heavy pressure due to China’s aggressive capacity expansion and sluggish downstream demand, a combination that continues to depress pricing across key product chains. PChem plunged as much as 13% intraday to RM2.83 before closing 10% lower at RM2.92 on Monday, with over 34 million shares traded. The counter has shed nearly 40% year-to-date, cutting its market value to about RM23 billion. Broker sentiment remains overwhelmingly bearish: 12 sells, four holds, and just three buys, Bloomberg data show. HLIB is the most bearish among 21...

Earnings Snapshot Petronas Dagangan Bhd (KL:PETDAG)  posted a  3.9% YoY decline in 2QFY2025 net profit  to  RM265.5 million , as retail weakness overshadowed growth in its commercial and convenience businesses. Net Profit:  RM265.5m (–3.9% YoY) Revenue:  RM9.07b (–7.9% YoY) Dividend:  22 sen/share (vs. 20 sen last year), bringing  1H25 payout to 42 sen/share  (vs. 38 sen last year) 1H25 Results:  Net profit  +11.3% YoY to RM559m , despite revenue falling  5.6% to RM18.16b Shares gained  0.5% to RM22.92  by midday Monday, valuing PETDAG at  RM22.8 billion . YTD, the stock has risen  18.6% , outperforming the broader Bursa benchmark. Segmental Performance Retail:  Weaker gross profit, hit by: Less favourable  MOPS (Mean of Platts Singapore)  pricing trends. Softer demand for diesel & Mogas. Normalisation of travel patterns (boosted in Q1 by festive holidays). Commercial:  Higher profit,...

Earnings Snapshot Petronas Gas Bhd (KL:PETGAS)  reported a  2.3% YoY decline in 2QFY2025 net profit  to  RM450.2 million  (22.75 sen per share), weighed down by softer revenue and higher expenses. Revenue:  RM1.59 billion (–3.5% YoY) Net Profit:  RM450.19 million (–2.3% YoY) Dividend:  16 sen/share (RM316.6m), ex-date Sept 12, payable Sept 22 1H25 Performance:  Net profit RM919m (vs. RM926m a year earlier), revenue RM3.18b (–2.5% YoY) Shares were steady at  RM18.96  before the results announcement, valuing the company at  RM37.5 billion . Key Drivers Lower Revenue:  Decline in gas transportation earnings due to tighter regulated margins. Higher Costs:  Expenses linked to  pipeline restoration  after the April Putra Heights explosion. Tariff & Tax Impact:  Restructuring of electricity tariffs and an expanded sales & service tax (SST) expected to further pressure operating margins going forward. O...

Petronas’ first bond issuance in four years is expected to see significant investor demand, potentially lowering borrowing costs for the state-owned oil and gas company, according to CreditSights, a research arm of Fitch. Key Points: Attractive Pricing Expected : The new senior unsecured bonds, which will mature in five, 10, and 30 years, were initially marketed at 1.20%, 1.30%, and 1.50% above US Treasury yields. However, CreditSights anticipates the final pricing will be around 37.5 basis points tighter than the initial price guidance, reducing the overall borrowing cost. Strong Investor Interest : The pricing tightening indicates strong demand for Petronas’ bonds, as investors show confidence in the company's financial stability. This would lead to further spread tightening in the secondary market, with additional narrowing expected for the five-year, 10-year, and 30-year bonds. Capital Raise Plan : Petronas aims to raise up to US$3 billion (RM13.27 billion) through this bond is...

  KLCC (Holdings) Sdn Bhd (KLCCH) , a subsidiary of  Petroliam Nasional Bhd (Petronas) , announced the acquisition of  486 acres  of prime land in Bandar Malaysia. The land, previously a Royal Malaysian Air Force base, is located along Jalan Sungai Besi in Kuala Lumpur. The sale-and-purchase agreement, signed on  October 4 , was only disclosed recently. While financial terms were not revealed, reports suggest the transaction could be valued at up to  RM12 billion , as mentioned in  The Edge Malaysia Weekly . Development Plans KLCCH aims to transform the area into: An  international business hub , A  liveable and inclusive city  for the community. The development will be carried out over the long term based on commercial viability. KLCCH, already renowned for managing real estate like the  Petronas Twin Towers  and other properties in Kuala Lumpur City Centre (KLCC) and Putrajaya, is expected to replicate its expertise in this p...

Petroliam Nasional Bhd (Petronas) is contemplating the sale of a minority stake in its renewable energy subsidiary Gentari Sdn Bhd , as part of a strategy to expand the business, according to insiders familiar with the matter. The state-owned energy giant has enlisted an adviser and has garnered interest from infrastructure funds and industry peers , according to these sources, who requested anonymity due to the private nature of the discussions. The potential stake sale could be valued between US$300 million (RM1.30 billion) and US$500 million , though the sources emphasized that the process is still in its early stages. The final size of the sale and Gentari’s valuation remain under discussion, and Petronas may ultimately decide against selling, they added. Petronas has not yet commented on the matter. Founded in 2022, Gentari was established to drive Petronas' efforts in delivering renewable energy, hydrogen, and green mobility solutions . The unit has set ambitious goals fo...

Petroliam Nasional Bhd (Petronas) is among several energy companies that have reached agreements with Guyana's government to explore offshore oil and gas blocks. Alongside TotalEnergies , Qatar Energy , Cybele Energy , Delcorp , and International Group Investment , these firms are finalizing production sharing deals for five offshore blocks. The agreements stem from a tender process launched in 2022 aimed at diversifying Guyana's energy industry, which is currently dominated by an Exxon Mobil-led consortium. The tender resulted in offers for eight blocks, and the government is still in talks with Exxon Mobil regarding the exploration of area S8, part of the tender. These discussions include the assessment of carbon capture and storage opportunities within the block. While the agreements for the shallow and deep water blocks have yet to be finalized, negotiations on non-fiscal terms began earlier this year. Petronas, TotalEnergies, and Qatar Energy had been approved to explore ...

  Petronas and the Sarawak government have confirmed that no legal action is being considered regarding the distribution of natural gas in Sarawak, clarifying the situation after rumors suggested otherwise. In a joint statement issued by the Sarawak Premier's Office on Tuesday, the two parties, along with Petroleum Sarawak Bhd (Petros) , emphasized that ongoing discussions are progressing well and are expected to conclude soon. The statement confirmed, "No legal action is being contemplated by Petronas against Sarawak and Petros ." The parties also expressed their commitment to adhering to both federal and state laws on the matter. This clarification follows Petros' gas sale agreements (GSAs) signed in July with Sarawak Petchem Sdn Bhd and Sarawak Energy Bhd , which indicated that Petros would take over from Petronas as the sole gas aggregator in the state. Sarawak is seeking greater control of its oil and gas resources , a key issue in ongoing negotiations...

Petroliam Nasional Bhd (Petronas) has approved RM1.9 billion in funding for over 300 oil and gas services and equipment (OGSE) vendors through its Vendor Financing Programme (VFP), introduced in 2018. This initiative aims to enhance the financial resilience of vendors amid a rapidly changing energy landscape. Key Points: Renewal of the Vendor Financing Programme (VFP) : During the OGSE Partners Day, Petronas signed a Memorandum of Understanding (MOU) with nine panel financial institutions to renew the VFP, emphasizing the need for agility and resilience among OGSE players to navigate industry changes and contribute to national development. Support for Smaller Vendors : Alongside the VFP, Petronas offers additional support through the Special OGSE (SOS) Financing Programme, in collaboration with Malaysian Industrial Development Finance (MIDF). Since 2022, this program has approved RM49 million for over 30 applicants. Road to Bursa Programme : Petronas also promotes local business growth...

Petronas Chemicals Group Bhd (PetChem) is expected to experience weaker earnings in the second half of the financial year ending Dec 31, 2024 (2HFY2024), due to declining average selling prices (ASPs) in the olefins and derivatives segment as regional supply increases following the end of shutdowns, according to analysts. Key Highlights: Earnings Pressure: CIMB Research noted that the fertilisers and methanol segment is also expected to face challenges, particularly with China lifting its export restrictions on urea, which will likely depress urea prices further as ammonia costs decline. Operational Challenges: Planned plant turnarounds, including those at PC Ethylene and Polyethylene in Kertih in 3QFY2024 and Asean Bintulu Fertilizer in 4QFY2024, are anticipated to reduce utilisation, production, and sales volumes, adding to the downward pressure on earnings. Losses at PIC: PetChem's 2QFY2024 core earnings were impacted by higher-than-expected losses at the Pengerang Integrated...

  Malaysia’s national oil-and-gas company Petroliam Nasional Bhd (Petronas) announced its decision to withdraw operations from South Sudan, marking the end of a more than two-decade presence in the East African country. Key Highlights: Divestment Decision: Petronas' decision follows a two-year period of divestment initiatives, aligning with its long-term investment strategy amidst a changing industry environment and accelerated energy transition. Scrapped Sale: A planned sale of Petronas’ entire oil and gas business in South Sudan to Savannah Energy PLC, a British energy company, for up to US$1.25 billion (RM5.6 billion) was cancelled after both parties failed to reach an agreement. Savannah remains in discussions with relevant parties for an alternative transaction. Historical Context: Petronas’ venture in South Sudan faced numerous challenges, including the country’s secession from the Republic of Sudan in 2011 after decades of armed conflict, which resulted in the deaths of ov...

National oil and gas company Petroliam Nasional Bhd (Petronas) was among eight successful bidders for Malaysia’s first nature-based carbon credits auction. The auction, organized by Bursa Malaysia Bhd’s (KL) subsidiary Bursa Carbon Exchange (BCX), featured carbon credits from the Kuamut Rainforest Conservation project in Sabah. Key Takeaways: Winning Bidders : The successful bidders included Petronas, Malayan Banking Bhd (KL), Gas Malaysia Bhd (KL ), Yinson Holdings Bhd (KL ), CIMB Bank Bhd (the banking arm of CIMB Group Holdings Bhd - KL ), BBB Asia Capital Bhd, Eco Green Carbon Ventures Sdn Bhd, and TROX Malaysia Sdn Bhd. Carbon Credit Auction : The auction allows companies to reduce their environmental impact by offsetting greenhouse gas (GHG) emissions. The auction of the domestic forest protection and regeneration project cleared at RM50 per contract. Environmental and Social Benefits : The Malaysian nature-based carbon credits plus (MNC+) contracts provide co-benefits in preservi...

Petroliam Nasional Bhd (Petronas) has taken a significant step towards establishing a carbon capture and storage (CCS) hub in Pahang by signing a land rental agreement with Kuantan Port Consortium Sdn Bhd. This project is a part of Petronas’ broader efforts to contribute to Malaysia's energy transition and carbon emission reduction goals. Key Highlights Land Rental Agreement : Petronas’ unit, Petronas CCS Solutions Sdn Bhd (PCCSS), signed the agreement with Kuantan Port Consortium Sdn Bhd. The financial details and exact location of the land were not disclosed. Southern Carbon Capture and Storage Hub : The CCS hub, named Southern Carbon Capture and Storage Hub, is expected to begin its first carbon injection by 2029. This hub aims to reduce carbon emissions for "hard-to-abate industries" both locally and internationally, including steel, chemical, cement, power generation, and petrochemical industries. Strategic Importance : Nora’in Md Salleh, CEO of PCCSS, emphasized the...

Maintain BUY call with target price (TP) of RM9.50 Highlights MISC announced that it has filed a Notice of Adjudication dated 23 Sep 2016 against Sabah Shell Petroleum Company Limited (“SSPC”) seeking resolution on contractual disputes covering claims for outstanding additional lease rates, payment for completed variation works and other associated costs amounting to approximately US$245m. The above litigation would not post any negative impact to its earnings as the current lease contract terms for Gemusut-Kakap Semi-Floating Production Ltd (GKL) is maintained. In contrast, potential upside could be reaped by the group in the event of successful claim from the legal suit. The group has also just taken delivery of Seri Camelia, LNG vessel built by Hyundai Heavy Industries, 1st of the 5 LNG vessels to be chartered to Petronas for the next 15 years. This is in line with our assumption of LNG vessel delivery in 3Q16 and 4Q16. In the coming years, the group’s core...

Highlights 2016 OTC Asia event. Yesterday, we attended the forum led by MIDA discussing the Malaysian O&G industry. The event, hosted by Y. Bhg. Datuk N. Rejendran (MIDA Deputy CEO, was joined by several speakers namely: Mr. Adif Zulkifli (SVP of Petronas Corporate Strategy), Mr. Maen Razouqi (Schlumberger VP & GM), Mr. Douglas Bruce Moody II (FMC GM) and Mr. Craig McMahon (Wood Mckenzie Asia Pacific Head of Research). Readjustment to the new norm. In essence, most of the major players in the industry have accepted the new norm of low oil prices whereby exuberance is no longer tolerable and are taking multiple initiatives to optimize their cost structures. Petronas has launched Coral 2.0 initiative to save costs and improve efficiencies. Schlumberger, on the other hand, has looked at further optimization in its business involving reduction of Non Performing Time (NPT) through widening scope of work on per staff basis. This is in line with staff cuts, margin shrinkage an...