KUALA LUMPUR: Several oil and gas subsegments in Malaysia are expected to see increased activity in 2026, despite a projected decline in capital expenditure, Maybank Investment Bank Bhd (Maybank IB) said, citing Petroliam Nasional Bhd's (Petronas) Activity Outlook 2026-2028.

The firm said momentum is expected to strengthen in selected areas, including the fabrication of fixed structures for wellhead and central processing platforms, as well as floating production, storage and offloading (FPSO) activities.

Onshore downstream plant turnarounds, linepipe supply, gas turbines for planned engine change-outs, and hook-up and commissioning works are also likely to pick up, Maybank IB said in a research note.

Based on these anticipated trends, the firm identified several potential beneficiaries in 2026, including Pantech Group Holdings Bhd, Wasco Bhd, MISC Bhd, Malaysia Marine and Heavy Engineering Holdings Bhd, Steel Hawk Bhd, Enproserve Group Bhd, Deleum Bhd and Dialog Group Bhd.

At the same time, the firm observed a slowdown in several key subsegments this year, notably offshore support vessels for production operations and drilling, maintenance, construction and modification works, production chemicals, as well as jack-up rigs.

"Those impacted may include Dayang Enterprise Holdings Bhd, Keyfield International Bhd, Perdana Petroleum Bhd, Uzma Bhd, Petra Energy Bhd, Carimin Petroleum Bhd, Marine & General Bhd and Sealink International Bhd," it said.

Maybank IB also noted that Petronas fell short of several activity targets in 2025, with actual execution trailing initial guidance across multiple segments.

These included FPSO awards, offshore support vessels for drilling and project works, downstream onshore plant turnarounds, hook-up and commissioning activities, maintenance, construction and modification works, linepipe installation lengths, as well as production chemicals.

"We observed that the outlook for most oil and gas services and equipment subsegments did not deviate significantly from our expectations that 2026 would be another year of low domestic capex spending," it said.

The firm maintained its "Neutral" call on the Malaysian oil and gas sector, with Dialog as its preferred pick.

Separately, Hong Leong Investment Bank Bhd (HLIB) said the Petronas' activity outlook suggests that hook-up and commissioning as well as plant maintenance service providers are likely to benefit, while drilling rig operators may face softer activity in 2026.

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