Why Singapore yards aren't scared of Chinese competitors

There are two performance catalysts.

According to CIMB, they are not overly concerned by the competition posed by the Chinese for Singapore yards.

"Traditional drillers with stronger cash flows should still find comfort in Singapore and Korean yards, unwilling to take on risks in quality and delivery," it said.

Catalysts that CIMB expect will likely come from: 1) stronger-than-expected orders; and 2) a breakthrough in drillships from non-Petrobras clients. Our top pick is Keppel Corp.
 

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