News
ECONOMY, FINANCIAL SERVICES, SHIPPING & MARINE | Staff Reporter, Singapore
view(s)

Daily Briefing: Singapore O&G sector remains muted; Shipyard sector continues to sink

And here's why Razer is unlikely to lead the shift to cashless.

From ZUU Online via Yahoo!:

Market watchers have already warned that the industry could remain muted for much longer as the likes of Keppel Offshore & Marine, Sembcorp Marine (SembMarine), RK Offshore, and Pacific Radiance continue to close down yards and slash jobs in a bid to conserve capital. Large scale projects that were expected to drive growth in the energy sector are getting deferred as new orders continue to be slow in coming.

Growth in demand for energy in emerging economies such as India and China led to a bevy of activities on the exploration and production front in the past. Fast forward, demand has dropped and backlog orders for some for the big players in the industry remain at multi year lows.

Order backlog for Keppel Corp stood at US$2.5 billion in the first quarter, below 2013 peak of US$13.1 billion. Analysts at Citi have warned that investors should not expect a strong production order-led recovery this year, given the slowdown in the industry.

Read more here. 

From Shares Investment via Yahoo!:

Major oil companies as a whole reduced their Capital Expenditure (CAPEX) by US$900 million (-5.0%) while National Oil Companies (NOCs) cut by US$750 million, a whopping 26% lesser.

Clearly, the impact of stagnated oil prices is still quite significant after a few years since it fell from historical peak levels.

UOBKH pointed out order numbers have increased on the expectations that oil prices would recover in 2017. Unfortunately, that wasn’t the case. As such, oil companies are pushing their tender awards back into 2018 and beyond.

Read more here.

From DollarsAndSense via Yahoo!:

There are two fronts on which the cashless revolution needs to happen: the consumers and the merchants. If the value proposition for either side isn’t strong enough, then the transition would stall.

You can roll out tens of thousands of cashless Point-Of-Sale systems, but if customers are not sold on the concept, they will continue to request to pay in cash.

Conversely, even if customers wish to pay using cashless methods as their primary choice, if insufficient merchants accept them, then cash is here to stay as the main mode of daily transactions.

Read more here.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.