- In 2023, we expect the global rig market to continue the strength seen in 2022 with higher utilisation and day rates. The oil & gas industry is forecast to see double-digit capex growth over 2023-24.
- While some of this capex increase is inflation related, we point out that there are over 180 offshore projects that will require floating production and or storage systems which would benefit our top picks Sembcorp Marine and Keppel Corporation.
- - Read this at SGinvestors.io -
Tightness driving utilisation higher.
- Competitive utilisation rates spiked in Jan 23 to above 80%, a level not seen since prior to 2018 and despite the fact that the number of active rigs has increased 8% y-o-y. While aggregate jack-up dayrates are flat on a y-o-y basis, industry reports indicate that dayrates for high-specification jack-ups have hit 5-year highs of nearly US$140,000/day while semi-subs and drillships have seen dayrates increase by 6-47% y-o-y.
- - Read this at SGinvestors.io -
Firm outlook for offshore capex.
- Read more at SGinvestors.io.
