MISC retains top spot as OGSE company
22 Mar 2022
MISC Bhd maintained its position as Malaysia’s top oil and gas services and equipment (OGSE) company for FY2020, according to Malaysia Petroleum Resources Corporation’s (MPRC) yearly publication OGSE100 which ranks Malaysia’s top 100 OGSE firms based on their annual revenues.
MISC, a leading provider of international energy related maritime solutions and services, has been ranked first place for four consecutive years since FY2017. Integrated oil and gas services company Sapura Energy Bhd maintained its second position while Yinson Holdings Bhd is ranked third, up from its 11th spot in FY2019. In fourth and fifth place are Bumi Armada Bhd and Dialog Group Bhd.
For FY2020, the OGSE sector recorded RM56.2 billion in the year under review, down 13.7% from RM65.1 billion in 2019 and incurred a loss of RM4.01 billion on asset impairments by several asset-heavy OGSE players including Sapura Energy, Velesto Energy Bhd, Bumi Armada Bhd and MISC.
“FY2020’s performance clearly showed the extent of the effects from the Covid-19 pandemic related movement control orders, and we saw companies taking a hard look at their businesses and right-sizing the cost structure,” MPRC president and CEO Mohd Yazid Ja’afar said, adding that impairment charges were necessary amid the industry headwinds for the year in review.
Nevertheless, Mohd Yazid said some Malaysian OGSE players persevered and faced challenges head-on, maintaining their industry position and future growth. “Due to their efforts, Malaysian OGSE sector had a relatively lower performance decline compared with its regional peers.”
Review of the public listed OGSEs in OGSE100 analysis also saw OGSE public listed companies (PLCs) demonstrating an admirable commitment to sustainability. With regard to the OGSE industry sustainability reporting overview, five PLCs (Alam Maritim, Boustead, Yinson, MISC and Petra Energy) have reported progress towards achieving their long-term targets while OGSE PLCs (MISC, Velesto Energy, Petra Energy, Boustead and Dialog) have been reporting progress towards achieving climate change targets. Mohd Yazid added that with evolving regulatory environment, investor requirements regarding sustainability reporting, companies will have to start looking at “sustainability as a subset of survivability.”