3 reasons why Singapore rig-builders are still in demand

Thanks to rising energy demand.

According to Phillip Securities, crude Oil price, a good sentiment gauge for the O&M sector, though fairly volatile, remains at a healthy level above US$80/bbl.

This indicates a robust sector outlook.

The rig-builders under our coverage, namely Keppel Corp and Sembcorp continue to register strong order book wins.

Here's more from Phillip Securities:

YTD order book wins total S$8.1bn vs PSR FY13F of S$10.6bn.

Management from both companies sees margin pressure to continue impacting the industry, due to competition from the Korean and Chinese yards.

However, we see limited downside risks from Chinese yards due to their lack of track record, late delivery concerns, as well as the anticipated recovery of the commercial shipbuilding market which should shift their focus from offshore back to shipbuilding.

The demand for rig-builders also remains high due to: 1) Rising energy demand from emerging countries and 2) depletion in existing oil fields per Keppel Corp’s management. 3) 48% of global jack-up fleet over 30 years old, thus driving demand from replacements.

Also Read

Shell pipeline leaks oil into Singapore’s Bukom Island

Changi Airport Group unveils three faster vessels for sea rescues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit