MIDF Research said investment in the oil and gas sector is much needed to ensure that oil and gas companies have enough funds to perform a complete, reliable energy transition for the long term, while maintaining the efficiency and production rate of existing and new oil and gas projects.
"We believe the RM60b capex is fair and necessary to minimise the higher cost of having deferred and delayed projects, as well as to support upcoming projects in the remaining 2022, including the allocations for the group's green energy and sustainability initiatives," it said in a note today.
The investment in the oil and gas sector ensures that the production rate is maintained.
Petronas' status as a national oil company, energy security and affordability remain its top priorities, followed by profitability from lower costings and higher efficiency.
"Hence, we believe the recent capex announcement would be an attractive proposition for other sub-companies to recover and improve, through project tenders and collaborations," it added.
However, MIDF Research said it remained cautious on the inflation impact on prices of Petronas' retail sector.
At the time of writing, the price for industrial gas had been nearing parity with global natural gas. Additionally, the risk of fuel subsidiaries being abolished in the current political climate also plays a part in securing continuous demand despite the inflation risk.
Another challenge to Petronas' operations is meeting its sustainability expectations in time.
"On that note, we expect that the price of the benchmark Brent crude oil will average in a range-bound of US$110 per barrel to US$116 per barrel in 2022.
"The range is set as such to cater for the volatility of the market over the Russian sanctions, rising inflation and supply chain disruption, as well as the increase in shipping rate, offset by the possibility of increasing production and supply output towards year-end," it added.
-- BERNAMA
Bernama
Mon Jun 13 2022
The recent Petronas capex announcement would be an attractive proposition for other sub-companies to recover and improve, through project tenders and collaborations, writes MIDF Research - File Pic
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.