O&G firms expected to continue cutting capex

Oil and gas companies are seen to reduce their capital expenditure this year as demand remains muted on the back of the Covid-19 pandemic

PETALING JAYA: Local oil and gas companies will still cut their capital expenditures (capex) this year as demand for the commodity remains gloomy amid the Covid-19 pandemic.

AmInvestment Bank pointed out that for the first half of 2020 (1H2020), the new contract awards to Malaysian operators dropped 62% year-on-year (y-o-y) to RM2.2bil, with the worst fallout yet to come in 2H2020 onwards.