“We take the view that Petronas has been slow to cut costs as it continues to face multiple challenges despite having an ample cash buffer of RM168bil (helped by the recent US$6bil bond proceeds). Hence, contract deferrals remain as a key impact to the earnings outlook for the sector, ” it said.
KUALA LUMPUR: Earnings downside risk remains prevalent for oil and gas stocks due to contract deferrals, according to UOB Kay Hian Malaysia Research’s channel checks.
In its report on Thursday, it pointed out Petronas has benchmarked itself to an oil price of US$40/bbl, which is also its sector assumption.
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