Brokers' take

Singapore yards | Underweight OCBC Investment Research, Jan 29

It remains to be seen if oil prices have bottomed, and even if so, oil companies would want to see some sustainability before budgeting for new projects.

Given the highly oversupplied rig market, things could get worse for Keppel Corp and Sembcorp Marine due to 1) potential provisions in jack-up rig orders in their order books, 2) potential provisions from Brazil, and 3) likely minimal new rig order flows for at least this year and next.