The oil and gas companies under Kenanga Research’s coverage are likely to see deteriorating performance with lower number of outperformers.
Kenanga Research said only two out of seven companies that released their latest interim results had outperformed. They were Dialog Group Bhd and Sapura Energy Bhd.
Another company in the firm’s universe is Bumi Armada Bhd, which is due to release its first quarter results today..
“The disappointment ratio was also higher at 31 per cent (assuming Bumi Armada’s results came within expectations) versus 13 per cent in the fourth quarter of 2017 even with the anticipation of first quarter being a seasonally weak quarter,” Kenanga Research said today.
It noted that upstream services players such as Alam Maritim Resources Bhd, Coastal Contracts Bhd and Dayang Enterprise Holduings Bhd had missed expectations due to stubborn fixed costs amidst unsatisfactory vessel utilisation.
Gas Malaysia Bhd and Petronas Dagangan Bhd also had a soft start dragged by higher product costs and sliding sales volume.