Kenanga Research has a “neutral” call on the O&G sector.
PETALING JAYA: Malaysia’s upstream segment of the oil and gas (O&G) sector could see further earnings weakness, although the downstream division may experience an inflection point should the oversupply environment become more manageable.
Kenanga Research stated that, based on the second quarter of financial year 2025 (2Q25) results, earnings seem to have peaked for the majority of local O&G stocks in financial year 2024 (FY24), as some sector companies reported weaker-than-forecast numbers.
