oil and gas

CSE Global secures 2 new oil and gas contracts in Americas region worth $103.7 mil

SINGAPORE (Oct 29): Technology solutions provider CSE Global has secured two new oil and gas project contracts worth US$74.7 million ($103.7 million) in the Americas region. 

In a regulatory filing on Tuesday, the group announced that the new orders involve projects ranging from design, fabrication and construction, as well as engineering and integration of production control systems and equipment. 

Total to buy Maersk Oil & Gas for $6.8 bil in shares

(Aug 21): Total SA has agreed to buy the oil and gas unit of AP Moller-Maersk A/S for US$4.95 billion ($6.75 billion), another sign that the pace of deals in the energy sector is accelerating after a long downturn.

Maersk will receive a consideration of US$4.95 billion in Total shares and the French company will also assume US$2.5 billion of Maersk's debt, the companies said in statements Monday. The transaction is expected to close in first quarter 2018.

Dip your toes and test the waters when investing in O&G stocks, says OCBC

SINGAPORE (Feb 3): OCBC advises investors to be nimble when investing in oil and gas stocks amid the uncertainties, but those with a longer-term horizon could consider accumulating on dips on their preferred picks.

In a Friday report, lead analyst Low Pei Han expects another eventful year for 2017 due to greater uncertainty in the macro environment, driven by political developments.

Will the O&G industry see a recovery in 2017?

SINGAPORE (Jan 12): Wood Mackenzie expects the oil and gas industry to show signs of recovery during the year, driven by a 3% growth in exploration and production spending to US$450 billion.

Granted, E&P spending still remains 40% below 2014 levels, and reflects a shift to smaller, incremental projects, according to the research firm.

But what is clear is that the industry will be a lot leaner than in the past.

Wood Mackenzie estimates that costs have fallen 20% on average and could fall further by 3% to 7% in 2017.

If nothing else, lower oil prices will boost overall sentiment in the Oil & Gas industry

SINGAPORE (Jan 5): With the production cut announced by OPEC in November, RHB Research has forecast crude oil prices will average at US$60 a barrel for 2017.

At this price level, oil majors and upstream crude oil producers would be incentivised to restart their exploration and development projects, according to RHB’s Singapore research team.

That will be good for the companies under RHB’s coverage as they build vessels for the exploration and development portion of the value chain.

70% of maritime leaders believe oil prices are undergoing a structural change

SINGAPORE (Dec 8): The volatility in prices are representative of a structural rather than a cyclical change according to 70% of maritime leaders in Asia, according to data released by Sea Asia 2017.

The survey revealed that minority of maritime leaders believes that oil prices (25%) and the maritime industry (26%) will rebound to pre-2014 levels in the next six months.

Mermaid Maritime terminates construction contract for dive support vessel

SINGAPORE (Dec 8): Mermaid Maritime has entered into a mutual agreement with China Merchants Industry Holdings to terminate their construction contract for a dive support and construction vessel in light of the challenging oil and gas market.

Under the terms of the settlement, China Merchants will retain the US$24.4 million pre-paid instalment, as well as the vessel and the materials and equipment forming the vessel.

Boustead Singapore’s 2Q earnings down 26% to $7.6 mil; declares interim dividend of 0.5 cent

SINGAPORE (Nov 11): Boustead Singapore reported a 26% fall in 2Q17 earnings to $7.6 million on the depressed state of the oil and gas industries impacting performance of the energy-related engineering division.

Revenue for the quarter dipped 1% to $113.5 million driven by the 28% decline in revenue from the Energy-Related Engineering division to $25.4 million. Geo-Spatial Technology division also faced currency headwinds, resulting in a 2% decrease in revenue to $25.7 million, which was mitigated by the Real Estate Solutions division’s 16% increase in revenue to $62.2 million.

Forecast: Strong headwinds and cloudy skies for this offshore stock

SINGAPORE (Nov 11): DBS is maintaining a “fully valued” call on offshore support vessel (OSV) and services provider Pacific Radiance with a target price of 12 cents, citing strong headwinds and deteriorating outlook.

“The outlook for 2017 remains bleak in our view as oil majors are guiding for lower capex y-o-y, and the OSV-to-rig ratio remains at record highs,” says analyst Suvro Sarakar.

CSE Global reports 53% drop in 3Q earnings to $4 mil on lower revenue

SINGAPORE (Nov 9): CSE Global posted a 52.7% drop in earnings for 3Q16 to $4 million from a year ago on the back of lower revenue.

Revenue for the quarter fell 21.6% to $80.9 million, driven by lower sales across all geographic regions, particularly in the oil and gas sector from the lack of large greenfield projects.

CSE Global has received orders for new projects worth $70.8 million, bringing the order book to $179 million at the end of the quarter.

Be informed of the stories that matter