PETALING JAYA: Kenanga Research upgraded its call on the oil and gas sector to “overweight” from “neutral” previously following a significant improvement in the upstream services segment’s earnings delivery.
The research house said the segment’s earnings improvement surpassed its expectations, with 88% of companies under its coverage either beating or meeting its forecasts and only 12% missing the forecasts.
As for the petrochemical and shipping segments, it said the segment’s earnings delivery only matched its expectations.
With Brent crude prices expected to remain stable at US$84 (RM393.79) per barrel, Kenanga Research also anticipated an increase in Petronas’s upstream spending in 2024, aligning more closely with its RM60 billion annual capital expenditure goal.
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