KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) sees signs of recovery in the shipbuilding and heavy engineering segment of the upstream oil and gas (O&G) industry, due to stronger oil prices.
MHB managing director and chief executive officer Wan Mashitah Wan Abdullah Sani expects more jobs to be available in the market that the company can tender for.
This will add to its tender book of RM2.8 billion, she added.
"Signs do suggest that the industry is recovering slightly. From the tender activities perspective, we should see more of that as some of the oil majors have started to revalidate some of the tenders," Wan Mashitah told a media conference after MHB’s annual general meeting here.
Wan Mashitah said currently, jobs were scarce due to volatility in oil prices, and major oil players have deferred a lot of investment decisions.
"However, these oil majors will not defer their investments indefinitely. Should the oil price continue to improve and stay stable, we should see more jobs in the market in the future," she added.
Wan Mashitah is hopeful of maintaining, or even improving, the company's financial performance in 2018.
Wan Mashitah said activities in the O&G downstream segment, on the other hand, will continue to be more active, with more job opportunities expected in the sector.
"More new investments are expected in the downstream segment as refiners take advantage of the lower cost of raw materials as the oil price plunged.
"Global increase in downstream capital spending will provide more opportunity for international onshore module fabrication and construction," she said.
Opportunities for onshore maintenance services are anticipated to increase as RAPlD is scheduled to start operation by next year, she added.
MHB is diversifying into the downstream petroleum sector, especially into maintenance type of work and has procured the necessary licences from Petroliam Nasional Bhd.