Kuala lumpur: The oil and gas (O and G) sector is expected to record a 6.4 per cent quarter-on-quarter (q-o-q) earnings increase in the fourth quarter of 2025 (4Q 2025), said CIMB Securities Sdn Bhd.
According to BERNAMA News Agency, the stockbroking firm indicated that this growth is driven by improved contributions from Petronas Chemicals Group Bhd and Bumi Armada Bhd, attributed to the absence of maintenance works, as well as the continued ramp-up of Yinson Holdings Bhd’s new floating production, storage and offloading (FPSO) unit.
CIMB Securities noted that six out of the eight companies under its coverage delivered third-quarter 2025 results that aligned with expectations, while two companies posted weaker-than-expected results. The firm anticipates a relatively flat q-o-q performance from Dialog Group Bhd, MISC Bhd, and Petronas Dagangan Bhd, with operations expected to remain stable.
However, the brokerage highlighted that Dayang Enterprise Holdings Bhd’s sequential earnings are likely to soften significantly, dropping 79.5 per cent q-o-q, due to seasonally slower offshore maintenance and workboat activities, amplified by the monsoon season affecting operational intensity.
The brokerage house now projects the sector’s core profit for calendar year 2025 (CY2025) to decline by 28.6 per cent year-on-year (y-o-y), compared with its earlier forecast of a 6.3 per cent y-o-y decline. This marks the fourth consecutive year of contraction, pushing earnings to a new decade low, in line with the downtrend observed since CY2021.
Looking ahead, CIMB Securities expects a rebound in the full year 2026 with a projected 40.4 per cent y-o-y increase, driven by improvements at Dayang (6.1 per cent y-o-y), Dialog (13.8 per cent y-o-y), Yinson (84.2 per cent y-o-y), and MISC (10.6 per cent y-o-y). Additionally, a recovery is anticipated from Petronas Chemicals, along with narrower losses from Lotte Chemical Titan Holding Bhd. However, the firm cautions that recovery will likely be gradual, influenced by ongoing structural constraints and company-specific challenges.