Banks key to survival of O&G companies

SINGAPORE (Aug 25): OCBC Investment Research analyst Low Pei Han says banks that are currently financing the O&G companies will play a key role in ensuring their survivability.

“Local banks currently still seem keen to support the sector, and we would look out for companies with heavy reliance on foreign banks,” writes Low in a note on Thursday.

On Wednesday, Malaysia’s RHB bank reported a 37% fall in 2Q16 net profit to MYR 350 million which included a net impairment allowance of MYR 192 million on Swiber. Excluding this, 2Q16 core net profit would have dipped just 4% instead.