Over the past two years, Central Banks of the developed nations have printed trillions of dollars resulting in the inflation that we see today. Commodities have all gone up in prices. And the momentum does not seem to stop any time soon.
Due to the priority given to the ESG economy, many companies have been forced to adapt to the new guidelines. The IMF, World Bank and US Treasury Department are stressing that investment in the ESG economy must be prioritised while investment in the oil and gas sector are to be sidelined.
This has resulted in an underinvestment in the oil and gas industry. Major oil companies such as Shell and BP are also cutting their oil and gas exposure, further reducing their investment in the sector.
Owing to this, an argument is surfaced that we could see a global energy crisis which can push the oil price to new historic highs, fuelling further inflationary pressure across the global economy.
This could put Malaysian companies as attractive investment destinations owing to our pure-play oil companies. With commodities surging in price, it could benefit our commodities sector as well, including the companies that provide the support services.
JELI (May 14): The government must look at the country's financial performance before considering the proposal for Petroliam Nasional Bhd (Petronas) to take over Sapura Energy Bhd to prevent the oil and gas company from going bankrupt.
Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed said careful consideration must be taken as the oil and gas industry is a strategic industry and taking into account that Sapura Energy is the world's second largest integrated oil and gas service provider.
“Though the assistance (proposal) does not involve government funds, Petronas belongs to the government, so the government needs to think seriously before making a decision.
"We are aware that many other small and medium companies in the industry are in difficulties and Sapura Energy is among the big companies affected," he told reporters after the opening ceremony of the Sungai Nibong Bridge, Kuala Balah here on Saturday (May 14).
The proposed takeover of Sapura Energy by Petronas was recommended by former prime minister Datuk Seri Najib Razak during his debate with PKR president Datuk Seri Anwar Ibrahim at the Malaysia Tourism Centre (MaTiC), Kuala Lumpur recently.
Elaborating, Mustapa said small and medium companies had met with him to air their grievances, especially when oil prices plummeted after the Covid-19 outbreak.
“We understand their problems and they too have asked for help, but before taking any action, we need to look at the whole picture,” he said.
Meanwhile, on the Sungai Nibong Bridge, the Jeli Member of Parliament said after a 40-year wait, the 6,000 Kampung Kuala Balah residents finally realised their dream after the government approved the construction of the RM10.17 million bridge.
“Work on the 237-metre Sungai Nibong Bridge had started since March and is expected to be completed in March 2024.
"It is crucial to have a bridge linking Kuala Balah to the plantation area to facilitate rubber and palm oil production and for the socio-economy of the locals to improve," he said.
Mustapa said Kuala Balah had great potential in the agricultural sector as the area is a major producer of maize, pumpkin and watermelon.
Knowing SAPNG is GLC's and how important SAPNG to Malaysia, why is that after so many many years of losses and problems no action taken to carry out studies to identified the root causes of the problem?
Why is that it is not closely being minitor?
Sure ka all the losses was due to Oil Price?
How many political gamin ppls are there in it?
What all those "INVESTOR's" doing during the AGM?
What "WERE" the short and long term solutions that has been carried out to attend the problems for the few years?
Something and somewhere very big "are" not right. Gamin wanted to bail out GLC that are unable to overall benefits the rakyat.
Talk vey big worth 30 bilions but doesn't add much value and MENYUSAHKAN THE KING.
You have problem with your financial. What are your attempts to solve the problems. Recession is coming soon and you proposed bail out and it will solved out the whole issuse and problem. Please caaried business as usual. No salaries cuts,claim & elauns, efficiencies and competencies ignore. NO NEED CHECK AND BALANCE. Wha's important I stay alive and all those tipu2 just swept under the carpets.
* UNFAVOURABLE FINANCIAL PERFORMANCE FOR SO MANY YEARS. * NEED MAJOR SURGERY * NEED DEEP RESTRUCTURE * THEN OFFER @ HOW MUCH? * IT WILL THEN BE DELISTED WHICH IS NORNAL.
Usah beli sapngr. Pasukhas jauh lebih baik. Tak pakai duit rakyat/aset negara!!!!!!!!!!!
Bagi pasukhas, Para pengarah dah tua, paling muda pun dah 50++, kini mereka dah menguasai pasukhas dengan syer esos, bila dah memperoleh projek gergasi, mereka akan jualkan semua syer mereka kepada pihak lain. Sabar ya!
Usah beli sapnrg kerana cadangan menggunakan duit rakyat/aset negara dan mengugat keyakinan pelabur2 asing dan tempatan terhadap integriti pengurusan perbendaharaan negara, dll.. Usah merugikan generasi akan datang!
MALAYSIA GDP 5.0 above Analyze expectation. Oil Price now USD 111 far above government budget 70 USD. Palm oil price now is consistently above 6k very high
Explain RM2.7bil injection into Sapura when you were govt, Najib tells PH
He also reminded his critics that the country will not gain anything if SEB, which is said to be the second largest in the world in offering oil and gas services, collapsed.
“Do we allow this to happen by using emotions and feelings of hatred against a former CEO who is no longer the main shareholder?
“And thus, allow a Malaysian and Bumiputera-owned oil and gas company which is among the largest in the world to be taken over by foreigners at a time when the oil price is high?” Najib asked.
Dulu masa saya masih sekolah, Arwah Puan Sri spura dan Tan Sri selalu datang rumah di taman TAR Ampang.. mereka berdua memang baik... saya juga tahu pasal anak dia....kesimpulannya berhati2lah dengan saham ini.
What will happen to Petronas & MYR if crude oil price suddenly crash back to below USD20 in 6months time?? Most of ppl keep thinking crude oil price above USD80 is granted forever???? In reality, please get well prepared in whatever the circumstances is!!!!!!!!!!
It won't. The price war is already over. The shale industry will be more prudent. Extra income can come for GST ma. Pakatan want to fullfill their manesfesto and abolished the supposing income for the goverment.
Posted by Nikmon > 2 minutes ago | Report Abuse Just a question, if petronas confirm take over Sapura, what would be the price ? ************************************************************************************ my guessed is, d price should b better than Reach Energy!
Sapura is GLC. So government normally will not let it go bankrupt. Somemore, Sapure hold strategic assets including oil and gas block in Sarawak and Sabah. For sure even PETROS will be interested in some of this assets because its belong to Sarawak,
Trim Sapura’s losses, no need for bailout, says Dr M FMT Reporters -May 16, 2022 7:02 PM
PETALING JAYA: Steps should be taken to trim losses incurred by Sapura Energy Bhd (SEB), Dr Mahathir Mohamad said today, disagreeing with calls for Putrajaya to bail out the oil and gas services company.
Money dumping into bottomless debt ? should not bail out especially by Petronas whom contributed substantial amount of revenue for Malaysia. Would drag Petronas into unfavorable position. Secondly, why the company unable to make profit especially now when crude oil has been soared to historical height.
BN always think GST is good but you never think the chain effects from GST, ie. prices of goods would keep going up and causing inflation. Secondly, how the revenue from GST been channeled to ??? During Bossku time, with first implemented GST not even enough to cover 1MDB debt.
After many many years of problems and loosing now asking Petronas to bail out. Roughly how many more years do you think for Petronas to "Pikul Biawak Hidup?
To settle the debts,to face recessions,to restart back, to recover back your money,to turn loss making company into profits and to gains investor confidents. How long Petronas needs to takes this burden and for the next many years? Petronas profit won't be effected??
Why not change name from Petronas Gas / Dagang to 'Petronas Bank'. You bail out,later can see how Petronas share price going to do and the snow ball effect on Indexs and the spill over.
come think of it, if umno needs money for GE15, all it needs to do is buy tons and tons of sapnrg now @ 6sen, then approve the bailout, sapnrg will be easily 60sen, they make 10x their money the put in now. easy peazy!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Mabel
24,076 posts
Posted by Mabel > 2022-05-14 11:41 | Report Abuse
Yes Lah...
Over the past two years, Central Banks of the developed nations have printed trillions of dollars resulting in the inflation that we see today. Commodities have all gone up in prices. And the momentum does not seem to stop any time soon.
Due to the priority given to the ESG economy, many companies have been forced to adapt to the new guidelines. The IMF, World Bank and US Treasury Department are stressing that investment in the ESG economy must be prioritised while investment in the oil and gas sector are to be sidelined.
This has resulted in an underinvestment in the oil and gas industry. Major oil companies such as Shell and BP are also cutting their oil and gas exposure, further reducing their investment in the sector.
Owing to this, an argument is surfaced that we could see a global energy crisis which can push the oil price to new historic highs, fuelling further inflationary pressure across the global economy.
This could put Malaysian companies as attractive investment destinations owing to our pure-play oil companies. With commodities surging in price, it could benefit our commodities sector as well, including the companies that provide the support services.
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