Keppel Corp

Regional Oil & Gas
Research by RHB
OVERWEIGHT (from Neutral);

"Challenges Ahead Amidst Uncertainties "

Upgrade to OVERWEIGHT (from Neutral), Top Picks: TOP, Keppel, Yinson. October production cut compliance remained strong for OPEC participating members at 135%, with Saudi Arabia being 231% compliant. The balancing of the oil markets remain a challenge for OPEC+, with uncertainties in global economic slowdown, weaker oil demand, and higher non-OPEC supply. We believe OPEC+ will continue to do what is required to maintain stability in the oil markets. Our oil price forecasts are maintained USD64/bbl for 2019F-2020F, and USD60/bbl for the longer term.

Kannika Siamwalla, CFA
+66 2088 9744
kannika.si@rhbgroup.com

$SGX-BN4 $YINSON / 7293 (YINSON HOLDINGS BERHAD)

Regional Oil & Gas
Research by RHB
Neutral (Maintained)

"Sluggish Year Ahead"

Maintain NEUTRAL; Top Picks: Thai Oil, Keppel, Yinson. October production cuts by OPEC+ should be 126% compliant, with Saudi Arabia still doing the heavy lifting. OPEC+ may factor in the slowdown in US shale oil production at its upcoming December meeting. Crude oil prices are expected to see limited upside for now, due to the global economic slowdown, weaker oil demand, and higher non-OPEC supply. Our crude oil price forecasts remain at USD64/bbl for 2019-2020 and USD60/bbl for the longer term.

Kannika Siamwalla, CFA
+66 2088 9744
kannika.si@rhbgroup.com

$YINSON / 7293 (YINSON HOLDINGS BERHAD) $SGX-BN4

Regional Oil & Gas
Reserach by RHB
Neutral (Maintained)

"A Challenging Year Ahead For OPEC+"

Maintain NEUTRAL; Top Picks: TOP, Keppel, Yinson. The crude oil price ended the week at USD62/bbl (+7% from early October), buoyed by falling US crude oil inventories, US-China trade war optimism, and the prospects of further cuts by OPEC+ at its upcoming December meeting. We note several market-moving events over several weeks that could affect crude oil prices (US Fed meeting and OPEC production survey). Our crude oil price forecasts are USD64/bbl for 2019-2020, with the long-term oil price at USD60/bbl.

Kannika Siamwalla, CFA
+66 2088 9744
kannika.si@rhbgroup.com


$SGX-BN4 $YINSON / 7293 (YINSON HOLDINGS BERHAD) $OIL

Oil & Gas
Reserach by RHB
Neutral (Maintained)

"Dark Clouds Loom"

Maintain NEUTRAL; Top Picks: TOP, Keppel, Yinson. Crude oil price is expected to see limited upside for now due to the global economic slowdown/weaker oil demand/higher non-OPEC supply. Our crude oil price forecasts are now revised to USD64/bbl from USD66/bbl for 2019-2020, with long-term oil price at USD60/bbl. US shale oil production is on the rise, but at a decelerating rate. In this report, we highlight US shale oil producers’ financial positions and how they compare with the oil majors.

Kannika Siamwalla, CFA
+66 2088 9744
kannika.si@rhbgroup.com

$SGX-BN4 $YINSON / 7293 (YINSON HOLDINGS BERHAD)