M'sian banks brace as O&G firms restructure debt

Kuala Lumpur

MALAYSIAN lenders are bracing for a hit to profits this year as they bump up provisions for sour loans to the local oil and gas (O&G) services sector that has been battered by the slump in energy prices and cutbacks in projects.

The problem mirrors pain playing out in neighbouring Singapore, where the collapse of oilfield services firm Swiber Holdings Ltd has stoked concerns about the size of the city state's biggest lender DBS Group Holdings' exposure to the industry.

Last month, Malaysia's Perisai Petroleum Teknologi, an offshore oil and gas services provider, said that it was aiming to renegotiate terms with bondholders on a S$1…