- Small/mid-cap O&M stocks in Singapore such as Beng Kuang Marine, Dyna-Mac, Pacific Radiance, Mermaid Maritime, Atlantic Navigation, Kim Heng have done well year-to-date in stark contrast to Seatrium.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Maintain OVERWEIGHT on the sector.
Still a bullish outlook.
- Over the past three years, the number of active offshore rigs have declined 9-25% as old assets have exited via scrapping, cold-stacked or undergone conversion. The lower supply, together with higher oil & gas prices and robust demand, has led to higher utilisation and day rates across almost all asset classes - from offshore support vessels to the largest drillships. Only jack-up day rates have retreated, down 7% from its 2024 peak due to contract cancellation by Saudi Aramco.
- Overall, most of Singapore's small/mid-cap offshore marine (O&M) names (including Beng Kuang Marine (SGX:BEZ), Dyna-Mac (SGX:NO4), Pacific Radiance (SGX:RXS), Mermaid Maritime (SGX:DU4), Atlantic Navigation (SGX:5UL), Kim Heng (SGX:5G2)) have seen a lift in their share prices year-to-date vs Seatrium (SGX:5E2) which, while having won a number of key contracts, faces various investigations by local authorities.
Not all about oil.
- 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/ 2024-07-23
More views on outlook of offshore & marine sector:
Analyst Reports on Singapore Offshore & Marine Sector
