Malaysia Oil-and-Gas Service Companies Could Be High-Yielding Plays — Market Talk

Malaysia's oil-and-gas services sector could offer stronger dividend returns as healthier balance sheets and growing cash reserves position some players as high-yielding stocks, Maybank IB analyst Jeremie Yap says in a note. He sees Velesto Energy, with a 27% dividend yield, and Wasco, with a 7% yield, as standout dividend plays. Cash-rich names such as Perdana Petroleum, Deleum, Dayang Enterprise and Coastal Contracts could also boost shareholder returns. Yap remains positive on the sector, favoring oil-and-gas service providers ahead of an expected rise in capital spending in 2027, driven by energy-security needs, inventory rebuilding and production replacement amid Middle East tensions. Keyfield International and Perdana Petroleum are Maybank's top sector picks.(yingxian.wong@wsj.com)