Banks have to take the lead in O&M consolidation: analysts

Singapore

EZRA Holdings' massive impairment charges and a second merger deal in Norway to create the world's fourth-largest offshore support vessel (OSV) player are telling signs that consolidation is on the horizon in the offshore and marine (O&M) sector.

Observers noting that the government aid released catered mainly to the broader O&M sector, further argued that bank lenders have to lead by writing down debts to the sector to facilitate consolidation, and ensure those left standing can compete on the global stage.

While the sector may be over-represented by the two large yard group…