- 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.
