O&M will take years, post-oil rebound, to make a turnaround

Singapore

EVEN with the prospect of oil market-rebalancing looking up with the agreement by Opec to cut production, investors are going to need holding power if they are betting on beleaguered offshore & marine (O&M) counters returning to the pink of health any time soon.

This warning, drawn from industry commentaries, flies in the face of a resurgent investor interest in O&M and oil and gas (O&G) counters on Thursday. SembCorp Marine, Ezion Holdings, Ezra Holdings, KrisEnergy, Nam Cheong Dockyard and Vallianz Holdings ended the trading day higher.