Low valuations spell consolidation for O&M sector
Analysts rule out dramatic recovery as they look at the fund-raising, takeover and privatisation landscape in the aftermath of the 2014 rout
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
Singapore
PLUNGING oil prices have made 2014 a year to forget for offshore and marine (O&M) companies but industry players and observers do not expect things to dramatically improve in 2015, as the industry braces itself for a period of consolidation.
With the price of Brent crude oil falling below the psychological barrier of US$60 per barrel, investors have had a run on O&M stocks in recent months. The Business Times had previously reported that the market capitalisation of 23 O&M firms listed on the Singapore Exchange (SGX) fell 15.7 per cent in a month, as they lost S$5.77 billion over the period from Nov 4 to Dec 4.
Copyright SPH Media. All rights reserved.
TRENDING NOW
Air India asks Tata, Singapore Airlines for funds after US$2.4 billion loss
Beijing’s calculated silence on the Iran war
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
