- The recent 2022 earnings season saw US and European oil services uniformly reporting strong 2022 results and guiding for higher rates across all service segments. We expect the global rig market to continue the strength seen in 2022 with higher utilisation and day rates underpinned by double-digit capex growth over 2023-24.
- - Read this at SGinvestors.io -
Tightness driving utilisation higher.
- Thus far in 2023, competitive utilisation rates have remained steadfastly above 80%, a level not seen since prior to 2018 and in the face of a 10% y-o-y increase in the number of active rigs.
- While oil prices have retreated from its peak of US$128/bbl in 2Q22, utilisation and day rates have continued to improve. Industry reports indicate that jack-up rig owners are quoting six-figure dayrates for work in 2023 and beyond while semi-subs and drillships have seen dayrates increase by 6- 42% y-o-y.
More rigs being re-activated.
- - Read this at SGinvestors.io -
Firm outlook for oil industry capex.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-03-27
More views on outlook of offshore & marine sector:
Analyst Reports on Singapore Offshore & Marine Sector
