Is surge in orders a sign of uptrend in O&M sector?

THE large contracts won in the short span of a week by several Singapore-listed companies in the offshore & marine (O&M) space has prompted this question: Is the sector seeing an upswing and, if so, what does it mean in terms of orders for the industry players?

Analysts and industry players that The Business Times spoke with are mixed in views. Some say the segment is already in an upcycle while others say it is too premature to call it a trend.

An O&M analyst with a major equity research house here pointed out that this wave of upswing has already been going on for a while. "The momentum has already been there since the later part of last year and just because some companies have won orders in the last couple of weeks coincidentally, it does not necessarily mean that it will create a precedent for orders to really surge," he said, speaking on condition of anonymity.