The total announced contract value in 2016 fell 49% year-on-year to RM12.5bil, against RM24.5bil in 2015. “We observe that contract value bottomed in second quarter of 2016 at RM1.5bil, the lowest level seen since 2012. “Nevertheless, we expect contract flows to pick up in 2017 based on the visible tender pipeline and as oil majors revisit their capex plans on stabilising global oil prices,” it said. Across the value chain, it said, production players will be the first to benefit from higher oil prices due to their oil-producing fields. It increased its target prices for Petronas Chemicals, SapuraKencana and Petra Energy, as it expects these three stocks to be the direct beneficiaries of more bullish oil prices.

Source: The Star February 08, 2017 22:07 UTC