Petra Energy's Comeback Story—Is It Already Under Threat?

In 2019, Petra Energy was primarily a brownfield services provider, focused on hook-up and commissioning, maintenance, construction and marine support. By 2023/24, it had transformed into a petroleum contractor and operator:

• Sole operator of the Banang oilfield under a Technical Services Agreement with PETRONAS.

• Production sharing contract (PSC) operator for Block SK433 (onshore Sarawak) via a Petroleum Contract with PETROS.

This marked a strategic leap from service contractor to resource holder. Profitability declined from 2019 to 2022 due to transitional costs, pandemic-related project delays, and early upstream investments.

A turnaround followed in 2023, driven by improved marine utilization, stronger service execution, and higher contributions from Banang. This progress is reflected in its Goldmine position on the Fundamental Mapper.

Yet, just as returns improve, Petra now faces the challenge of falling crude oil prices. While its PSC terms are undisclosed, such contracts typically link revenue to oil prices through cost recovery and profit-sharing mechanisms.

If prices stay low, financial performance may come under renewed pressure - depending on the duration of the current tariff war. The question is: Has the market priced this in?