OSV companies worst hit in Petronas cutback on expenditure

PETALING JAYA: With national oil company Petroliam Nasional Bhd (Petronas) planning to slash RM50bil from its operating and capital expenditure (opex and capex) over the next four years in the wake of sliding oil prices, companies most affected are those providing offshore support services.

The offshore support vessel (OSV) segment is considered the most vulnerable segment within the value chain of the Malaysian oil and gas (O&G) services sector as it is relatively higher leveraged and has lower cash-coverage ratio compared to other segments such as the offshore facility construction and maintenance as well as hook-up and commissioning segments.