S'pore rig owners have room to sink some more: KGI Fraser

Singapore

THE already dampened shares of Singapore-listed rig and offshore support vessel (OSV) owners could sink even further as their seemingly secure long-term contracts turn shaky, brokerage KGI Fraser cautioned in a report on Tuesday.

Although these offshore support companies are already trading at an average 20 per cent discount to book value, their stocks have room to fall 10-30 per cent more until they reach valuations that are closer to their global peers', said analyst Joel Ng.

While Singapore firms have not taken any write-downs on the value of their rigs and OSVs so far, they may eventually have to,…