PETALING JAYA: The oil and gas services and equipment (OGSE) industry recorded its highest revenue in over a decade for the financial year 2023 (FY23), according to the latest edition of OGSE100 by the Malaysia Petroleum Resources Corp (MPRC).
In a statement yesterday, MPRC said the OGSE100 FY23 report revealed that the country’s 1,855 OGSE companies, for which data was available as of end-October 2024, recorded a revenue of RM83.9bil.
It noted that this marked the highest revenue since MPRC began tracking OGSE financial data in 2013.
MPRC said the industry also achieved a turnaround in pre-tax profit to RM4.8bil from a pre-tax loss of RM3.5bil in FY22 on the back of lower impairments from publicly listed companies (PLCs).
“Excluding the impairment loss, the industry would have registered a pre-tax profit of RM8.3bil,” it said.
MPRC president and chief executive officer Mohd Yazid Ja’afar said that with the OGSE industry having recovered from the oil price and Covid-19 crises of the last decade, sentiment is positive on the way forward.
“While some uncertainty remains on the implications from the energy transition and sustainability requirements, recent oil and gas activities have picked up and are expected to stay buoyant over the medium term,” he said.
According to the report, the country’s top 100 OGSE companies by revenue, or the OGSE100, accounted for 76% of the industry’s revenue. This was with 24 PLCs making up 68% of the OGSE100’s revenue.
It also highlighted that apart from the lower impairment losses, a sampling of the PLCs also showed that drilling, offshore support vessels and international business operations and contracts further drove growth.
Mohd Yazid said that moving forward, the OGSE industry must consider the intensifying energy transition and heightened requirements for sustainability in charting its way ahead.
He said this transition opens the door for OGSE companies to diversify and capture growth within the new energy landscape. — Bernama
