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Deleum sees ‘lower for longer’ oil price
Ho Chung Teng | 06 Apr 2018 00:30
The five contracts awarded by Petronas Carigali Sdn Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas), with an expected value of RM750 mil to RM1 bil, along with the Brent crude oil price rally in recent months have revived investors’ interest in oil and gas (O&G) counters.

Deleum Bhd, which provides supporting specialised products and services to the O&G industry, particularly in the exploration and production sector, saw its share price rallying to close at RM1.09 on March 15, from a 52-week low of 75.5 sen. The counter closed at 96 sen on April 4.

Despite the improved sentiments, Deleum group MD Nan Yusri Nan Rahimy says the company remains cautiously optimistic on the O&G sector, with a “lower for longer’ view on oil price.

“The industry seems to be accepting the new mantra of ‘lower for longer’ even as oil price is on a rebound. Indeed, the sustainability remains to be seen and it is right to say the industry continues to be cautiously prudent,” Nan Yusri tells FocusM.