- Our bullish outlook for the offshore marine sector remains unchanged with both shallow and deepwater assets marching well past 5–8-year highs, supported by a high oil price. After struggling with instability in 2023, the outlook for offshore wind in 2024 appears much better with policy support providing further impetus for growth.
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- Sector rating: OVERWEIGHT.
Strong demand continues to feature across all rig types.
- Since our Dec 23 update, only dayrates for midwater semi-subs have stagnated while jack-up and deepwater assets have continued their march well past 5-year highs. We expect dayrates and utilisation rates to remain on an uptrend given that only 6% of competitive rigs are available globally, and the number of active offshore rigs have declined by 12% y-o-y.
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- In our view, the oil price environment appears highly favourable for the upstream sector, and thus the offshore marine industry, given that Brent for delivery in Jan 29 is currently around US$71/bbl and averaging US$70.50/bbl in 2029.
Bullish US reporting season.
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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/ 2024-01-30
More views on outlook of offshore & marine sector:
Analyst Reports on Singapore Offshore & Marine Sector
