Offshore support services firms' returns declined over the year: Singapore Exchange

Offshore support services firms listed in Singapore have seen their returns decline by more than one-tenth over the year, in line with falling oil prices, with some of the larger companies among these losing more than half of their returns during the same period.

The 32 offshore support services stocks listed on the SGX have generated an average decline of 13.4 per cent in total return over the year thus far, the exchange revealed in a market update on Wednesday. In the year to date, the price of WTI Crude Oil has fallen 43.2 per cent while the price of Brent Crude Oil has fallen 46.0 per cent as at Dec 16, 2014.

Out of the 32 offshore support services stocks SGX lists, which have a combined market capitalisation of S$8.0 billion, the five largest capitalised offshore support services stocks are Ezion Holdings, PACC Offshore Services Holdings (POSH), Pacific Radiance, Ezra Holdings and Mermaid Maritime Public Company.

Together, they have half of the combined market capitalisation of the 32 stocks.

Out of these five largest companies (by market cap), four of them saw their total returns wiped out by more than 40 per cent - Ezion (-43.5%), POSH (-53%), Ezra (-60.9%) and Mermaid (-41.1%). The exception was the third largest firm (market cap), Pacific Radiance, which lost 10.8 per cent of its total returns year to date. The biggest loser among the 32 counters over the year was Jasper Investments, which saw its total returns decline by as much as 84.9 per cent.

Among the 32 offshore support services stocks, the five best performing stocks in terms of 2014 year-to-date total returns were SBI Offshore (138.3%), KTL Global (90%), AusGroup (64%), Jason Marine Group (46.1%) and CH Offshore (33.7%). They have a combined market capitalisation of S$718.7 million and averaged 74.4 per cent year-to-date total return.