offshore & marine (O&M)

SembMarine is now looking cheap but beware of the risks: OCBC

SINGAPORE (May 30): OCBC Investment Research is maintaining its “hold” call on Sembcorp Marine (SMM) while lowering its fair value estimate to $1.60 from $1.77 previously upon slashing its price-to-book valuation from 1.6 times to 1.45 times.

OCBC’s move comes post the group’s 13.2% share price correction (versus the STI’s 6.8%) since the release of its 1Q19 earnings announcement.

Swiber creditors give nod for proposed restructuring with Seaspan

SINGAPORE (May 30): Creditors of Swiber Holdings and its main subsidiary, Swiber Offshore Construciton (SOC), have approved a restructuring proposal which the group says will take it one step nearer to implementing a restructuring with equity investment from Seaspan Corporation.

The news comes nearly three years after Swiber Holdings filed for insolvency.

Active presence in China, improving O&M segment keep this stock's outlook bright

SINGAPORE (Jan 4): OCBC Investment Research is maintaining its “buy” call on Keppel Corporation with a fair value estimate of $7.25 on expectations of a continued recovery in the offshore and marine (O&M) segment, as well as the group’s recent developments in China.

The research house is forecasting $2.5 billion of new orders for O&M in 2019 after an estimated $1.7 billion worth of new orders were secured in 2018, compared to $1.1 billion in 2017.

Yangzijiang may be the only O&M stock to deliver stronger q-o-q results this season: CGS-CIMB

SINGAPORE (July 13): CGS-CIMB Securities is maintaining its sector “overweight” on Singapore’s offshore & marine (O&M) industry with expectations of Yangzijiang Shipbuilding to deliver stronger q-o-q earnings on stronger shipbuilding margins.

The counter has been rated “add” with a target price of $1.27, ahead of its 2Q results due Aug 8.

Sanli Environmental kept at 'buy' for potential PUB contract wins

SINGAPORE (May 25): SAC Advisors is maintaining its “buy” call on Sanli Environmental with an unchanged target price of 36 cents, even after the environmental engineering company reported lower FY18 earnings of $3.1 million, down 40.7% from $5.2 million a year ago despite higher revenue.

See: Sanli Environmental posts 40.7% lower FY18 earnings of $3.1 mil; announces 0.25 cent dividend

Keppel Corp on track to regain shareholders' trust, says CGS-CIMB

SINGAPORE (May 22): CGS-CIMB Securities is reiterating its “add” call on Keppel Corporation with an unchanged target price of $10 while highlighting the stock as its preferred pick in the capital goods sector as well as a “solid long-term investment candidate” that is on track to regaining its shareholders’ trust, in the research house’s view.   

Sembcorp Marine reports lower 1Q earnings of $5.3 mil on lower contributions from platforms division, absence of one-off gain

SINGAPORE (Apr 25): Sembcorp Marine announced an 86% fall in earnings for the first quarter ended March from a year ago.

Earnings for 1Q18 came in at $5.3 million, compared with the restated $37 million in 1Q17, which was mainly due to the absence of a one-off gain from the disposal of Cosco Shipyard in 1Q17 as well as lower contributions from the offshore platforms division.

Excluding the effects on the adoption of SFRS(I) 15, SembMarine says it would have reported a net loss of $33 million for 1Q18 instead.

4 ways the O&G sector continues to face protracted soft conditions: Phillip

SINGAPORE (Apr 16): Phillip Capital is of the view that Singapore’s oil and gas (O&G) sector is facing an extended period of soft conditions.

To begin with, banks have now become the de facto owners of vessels, rigs and other facilities taken over from loan defaulters, and are now facing difficulty in disposing of such assets, in the research house’s view.  

Kim Heng O&M acquires new AHTS vessel for $0.7 mil

SINGAPORE (Mar 1): Kim Heng Offshore & Marine, the integrated offshore & marine (O&M) value chain services provider, says it has purchased a 6,000BHP anchor handling tug/supply (AHTS) vessel for about $0.7 million.

The vessel, named Pacific 8, will be renamed as Bridgewater 80 and join Kim Heng’s growing fleet of AHTS vessels upon being fully operational in May 2018.

ST Engineering acquires repair assets in US for $34 mil

SINGAPORE (Aug 25): ST Engineering announced its subsidiary, Vision Technology Marines, has acquired selected rig repair assets adjacent to its existing yard, VT Halter Marine in Pascagoula, Mississippi.

The assets of World Marine of Mississippi (WMM) were bought for a consideration of US$25 million ($34 million) and comprises a purpose-built facility of 94 acres for heavy marine fabrication as well as offshore oil and gas rig upgrades, repairs and conversions.

Be informed of the stories that matter