O&M stocks may decouple from oil prices: analysts
A rebound in floating production contract awards is in sight with cost taking over as the key driver
Singapore
A REBOUND in floating production contract awards is in sight but this being fuelled more by cost reductions, say analysts, raises the possibility of offshore and marine (O&M) stock valuations decoupling from oil prices moving forward.
Data released by the Singapore Exchange in early March showed a high correlation of 0.9x between marine and offshore engineering (MOE) share prices and oil prices for the surveyed period from September 2010 through to December 2016.
Indeed, share prices of the two large-cap …
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