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
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Kraft Heinz misses sales estimates as higher prices deter customers
Marriott boosts full-year profit view after mixed Q1 results
J&J advances US$6.48 billion settlement of talc cancer lawsuits
US holds quarterly debt sale steady, starts buybacks this month
US dollar nears six-month high after pre-Fed data shock, yen steady
KFC parent Yum reports surprise drop in global same-store sales on weak demand