See why Keppel Corp is deemed top O&M stock pick

3 key advantages, according to PhillipCapital.

The research firm said that Keppel Corp stands out as its top pick among oil & marine stocks because of its stronger operating performance, better execution and attractive dividend yield of 4.6%.

For the sector as a whole, PhillipCapital also noted that fundamentals for the O&M sector remains strong.

But management from both Keppel Corp and Sembcorp Marine see competition from the Chinese and Korean yards may put pressure on margins.

Meanwhile in the small/mid cap space, Ezion is considered a strong performer with its good business model and high earnings growth visibility made possible through its SEU fleet expansion with firm contracts already secured.