Strong Tailwinds In Charter Rates, Vessel Utilisation And Ship Repairs

The rationalised oil & gas offshore support industry has shown resilience over the COVID-19 pandemic. Channel checks suggest vessel utilisation has been improving, helped by minimal newbuilds and more vessels on lay ups. We like MPM for its lean operations following completion of its corporate restructuring efforts. A successful transition to new revenue sources would be a key turning point for MPM. Maintain BUY with target price raised to S$0.036.