PETALING JAYA: Despite growing headwinds, BIMB Research believes the local oil and gas (O&G) sector stocks offer selective opportunities with stronger projects flow expected over the next six to 12 months, as companies focus on high-grade projects underpinned by stabilising oil prices and easing drilling service rates.
This will benefit upstream services providers such as Malaysia Marine and Heavy Engineering Holdings Bhd
(MMHE), Velesto Energy Bhd, Vantris Energy Bhd and MISC Bhd.
The research house, which has maintained an “overweight” call on the O&G sector, favours in particular companies with long-term earnings visibility, solid growth potential and decent dividend yields.
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