KUALA LUMPUR (April 16): Things appear to be going well for state oil company Petronas, with oil prices surging above US$120 (about RM508.26) a barrel in March this year and the company making a profit after taxes of RM48.6 billion on the back of RM247.96 billion in income for the financial year ending 31 December 2021.
Although there have been minor setbacks recently – such as a suggestion that it take control of struggling Sapura Energy Bhd – the national oil company has been quick to brush aside those notions and pursue its oil resource management mandate. and Gas (O&G) from Malaysia.
However, it emerged that the Malaysia Oil & Gas Services Council (MOGSC) and the Malaysia OSV Association wrote to Petronas spreading their grouses, mainly to suggest that Petronas was raking in billions off the margins of O&G players. . According to the MOGSC, Petronas had in 2015 sought their help and renegotiated contracts, which is eating away at their members’ profits.
There was also a claim that Petronas had been slow to pay out Covid-19 claims that numbered in the hundreds of millions to industry players, leaving them without adequate cash flow.
Petronas Chairman and CEO Datuk Tengku Muhammad Taufik Tengku Aziz dismissed the allegations but met with the MOGSC anyway to try to find common ground.
Are O&G players too dependent on Petronas? Do companies have what it takes to get by without help from Petronas?
Will the much-needed consolidation finally happen in the fragmented industry?
‘Petronas seeks to clear the air‘, The Edge MalaysiaThe cover story for the week of April 18-24 looks at these and more.
The curious Serba Dinamik affair
The second cover story of the week focuses on the decision by the Securities Commission Malaysia (SC) to aggravate Serba Dinamik Holdings Bhd and its four top executives RM3 million each for submitting false information involving a sum of income a staggering RM6.01 billion in the company’s financial statements for the period ended December 31, 2020, which made headlines.
Capital market players The edge questioned the decision, which was taken following the decision of the General Prosecutor to accept the representations made to the General Prosecutor’s Office by Serba Dinamik and the persons concerned, concerning the charges pending before the court.
Notably, there is the observation that the authorities’ decision could signal that companies can “false” numbers and documents and yet not have to serve a day in jail, although incarceration is provided as a penalty under of the Capital Market Services Law, the very law that senior Serba Dinamik officials allegedly broke.
This is despite many investors being burned when Bursa Malaysia suspended trading in Serba Dinamik shares following the group’s refusal to release Ernst & Young Consulting Sdn Bhd’s findings following the special independent review. he has been instructed to do on matters relating to the financial statements. that KPMG was first reported as Serba Dinamik’s external auditor.
Will the SC explain why it suddenly decided to settle the criminal charges it brought against Serba Dinamik and its main leaders of the complex?
What kind of message does this decision send to capital markets and how will it affect investor confidence?
Hear the stories of Petronas and Serba Dinamik in the latest copy of The Edge Malaysia.