Keppel O&M and SembMarine would do well to merge: DBS report

Singapore

WITH orders at a trough and expectations for only a modest recovery, a merger of Singapore's two major rigbuilders could create a global giant that is more competitive and resilient, DBS analysts wrote in a report this week.

"Keppel Offshore and Marine (O&M) and Sembcorp Marine are barely profitable at the current activity level (down 50 to 60 per cent from peak) despite being one of the more …