PETALING JAYA:
Oil and gas (O&G) players say they have more or less made the required impairments that have come about due to weak crude oil prices.
However, large impairments seem to have come from the big boys of the O&G industry, while not many of the smaller players have set aside provisions for their assets.
Heading the list of impairments is SapuraKencana Petroleum Bhd that has booked in impairments of RM1.7bil in its last two quarters.
The others that have bitten the bullet are Malaysian Bulk Carriers Bhd that has an impairment of RM900mil, followed by service providers Icon Offshore Bhd and UMW Oil & Gas Corp Bhd (UMW O&G) that have provided for RM377mil and RM347.7mil.
Icon provided for the impairment very early last year when oil prices had started to fall, while UMW O&G set aside the amount over the last one year.
Whether more impairment has to be set aside will depend on crude oil, which last traded at US$49.45 per barrel.
Some say it is still too early to assess whether future impairments would be needed.
Offshore support vessel (OSV) provider Alam Maritim Resources Bhd, for instance, last made some RM29mil in provisions in the quarter ended Dec 31, 2015 to cover for potential losses linked to its vessels and receivables.
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