KUALA LUMPUR (Nov 17): MIDF Research has maintained its Positive rating on the oil and gas sector, and saud that sustained order book, intact earnings outlook, healthy new contracts replenishment and positive news flow were the key supports for its view on the sector.
In a note Thursday, Nov 17, MIDF Research said it believed that Petronas' capex plans of RM60 billion annually (as compared with RM30 billion-RM40 billion previously) would eventually translate into bigger contract size, and this may support valuation.
'We are also encouraged by the recently proposed US$12 billion EOR projects in Sabah and Sarawak by Petronas and Shell, expecting more contracts to be awarded going forward,' it said.
In a note Thursday, Nov 17, MIDF Research said it believed that Petronas' capex plans of RM60 billion annually (as compared with RM30 billion-RM40 billion previously) would eventually translate into bigger contract size, and this may support valuation.
'We are also encouraged by the recently proposed US$12 billion EOR projects in Sabah and Sarawak by Petronas and Shell, expecting more contracts to be awarded going forward,' it said.
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