Poor sentiment of O&G sector reflected by disposal of Malaysia's Shell Refining

As expected, SRC lost RM378mil in market capitalisation yesterday, as investors reacted to news that a controlling stake in the oil refinery would be sold at a huge discount to its share price.

PETALING JAYA: The sale of Shell Refining Company (Federation of Malaya) Bhd (SRC) at valuations close to its book value is a stark reminder of the state of affairs in the oil and gas (O&G) industry.

A Malaysian party headed by a former corporate kingpin had been eyeing the company since last year with an offer that valued the entire company at about RM1.2bil.