Industry Conditions Improving, Albeit At A Snail’s Pace
Since our last sector update in mid Mar 21, global rig utilisation and day rates have largely improved, albeit slowly. The Brent forward oil price for Dec 25 has risen 22% ytd to US$59.67/bbl which could lead to increased offshore capex. We also note that as offshore wind gains importance, Singapore’s yards may yet play a more active role in building out the infrastructure. For now, we maintain MARKET WEIGHT on the sector and have BUY ratings on SCI, YZJ and KEP.