Brokers' take

Singapore O&M | Underweight

UOB Kay Hian, Aug 1

THE turnaround by Swiber Holdings from liquidation to judicial management only delays the inevitable cascade defaults in the sector. A prolonged lower oil price environment and the recent spate of poor earnings from oil majors will prevent the much-needed rise in service price required for the sector to make a turnaround. With liquidity pressure in the sector mounting amid a prolonged downturn, we downgrade the sector to "underweight".