PETALING JAYA: Petra Energy Bhd
has finally turned a corner, according to MBSB Research.
In a report, the research house said after a challenging financial year 2025 (FY25) and first half of FY26, the integrated engineering, maintenance and operational services provider’s future is looking up.
“We believe Petra Energy has turned the corner, with the third quarter of FY26 (3Q26) marking the start of its earnings recovery on the back of improving work-order flow under its Pan-Malaysia maintenance, construction, and modification and hook-up and commissioning umbrella contracts.”
In addition, the resumption of production at its Banang oilfield, stronger contract work orders and lower marine operating costs are expected to drive an earnings recovery.
The Banang field, located offshore Terengganu, resumed production in April 2026 following a 15-month shutdown caused by mandatory dry-docking of its mobile offshore production unit, Petra Orion. The field completed two oil liftings in 3Q26, with another targeted for 4Q26.
The research house expects Banang to contribute significantly to revenue and profits from 3Q26 onwards as the field is estimated to produce between 1,400 and 1,500 barrels per day, providing Petra Energy with direct exposure to crude oil prices.
MBSB Research said another growth driver for the group is the Adong Kechil West field under Block SK433 in Sarawak, in which Petra Energy holds a 50% participating interest and acts as operator.
“Based on our research, we understand that the gas will be sold to Petroleum Sarawak Bhd under a long-term offtake arrangement, likely at a fixed price per unit volume, which should provide cash flow and earnings stability without being exposed to the fluctuation of gas prices,” MBSB Research said.
It expects first gas to add to Petra’s earnings base from FY28 onwards despite first gas being achievable in May to June 2027.
Furthermore, the disposal of three idle accommodation work barges for a total proceeds of about RM80mil is expected to improve the marine segment’s prospects.
It said the disposals will eliminate recurring lay-up, reactivation and dry-docking expenses while reducing depreciation – which means the segment could return to profitability in FY27 through lower fixed costs rather than stronger charter rates.
