Chart of the Day: An inside look at rig builders' dwindling order books
Over half of orders come from Petrobras.
Singapore's largest rig builders are being propped up by shaky orders from beleaguered Brazilian multinational oil company Petrobras.
This chart from DBS shows that Petrobras orders account for roughly half of Sembcorp Marine and Keppel Corporation's order books.
The two rig builders have a total order book of $23.9b, of which roughly $11.7b come from Petrobras.
"The corruption investigations are ongoing in Brazil and may take awhile. This would create an overhang on Singapore rig builders’ share prices, given that Petrobras-related projects account for almost half of their current order backlogs," DBS said.
Singapore rig builders' order wins are expected to dwindle to $5b this year, lower than the 10-year average of $9b and close to the post-GFC levels of $6.2b in 2010.
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