Brokers' take

Oil & Gas sector | Neutral

OCBC Investment Research, Aug 25

TIMES remain tough for fabricators, asset owners and service providers along the oil and gas value chain, though with varying degrees of stress. Confidence has to come back to oil and gas companies first, who will then award projects, benefiting companies lower down the value chain. Meanwhile, we have seen some investor interest in the bonds of companies versus their equity, but we caution that a lot depends on banks' willingness to support, and investors will likely need to hold the bonds till maturity, besides the risk of "amend and extend" prior to maturity.