CIMB Securities expects robust domestic upstream activities.
KUALA LUMPUR: Malaysia’s oil and gas sector is poised for a promising 2025, driven by robust sector earnings, strong domestic upstream activities, and potential mergers and acquisitions.
In a note yesterday, CIMB Securities Sdn Bhd expressed a positive view supported by the sector’s attractive forward price-to-earnings of 16.2 times, which is one standard deviation below the 10-year mean of 19.1 times, as reported by Bernama.
“Although the market remains cautious due to a potential crude oil oversupply in 2025 and uncertainties surrounding Trump’s energy policies, we believe the Organisation of the Petroleum Exporting Countries plus allies control of global oil supply and disciplined capital strategies by United States producers will help stabilise the market,” it said.
CIMB Securities expects robust domestic upstream activities, driven by rising demand for plant maintenance, production optimisation, and offshore support vessels.
“These efforts aim to boost output and extend the lifespan of existing fields, especially in response to Malaysia’s 3.8% year-on-year decline in oil production this year.
