Offshore and Maritime Firms Ride Recovery Wave in Industry

Offshore and marine (O&M) companies listed in Singapore are poised for success in the growing renewables sector and are benefiting from their current order books, according to experts. Many of these companies have reported profits for the April to June quarter and the first half of 2024, signaling a positive trend that is expected to continue. Companies like Dyna-Mac and Yangzijiang Shipbuilding have seen significant total returns this year, with a strong pipeline of work and capabilities to take on greener projects driving their success.

Analysts highlight the robust opportunities in the floating production storage and offloading (FPSO) space, offshore support vessel charters, and renewable energy projects like wind farms for Singapore’s O&M companies. Companies like Seatrium, which returned to profitability in the first half of 2024 and secured significant new orders, are positioning themselves as leaders in clean energy solutions. Despite challenges like a correction in share price due to external inquiries, experts remain optimistic about the industry’s outlook and the potential for growth in offshore platforms and margins.

Other O&M companies, such as Dyna-Mac and Marco Polo Marine, are also seeing positive results and promising prospects. Dyna-Mac’s focus on niche topside modules and plans to diversify into new areas like liquefied natural gas and renewable hydrogen modules position it well for capturing demand amid capacity shortages. Marco Polo Marine’s ship-chartering business is supporting offshore oil and gas projects and wind farms, offering vast opportunities in the transition to renewable energy. However, experts caution about risks such as a steep learning curve in new business segments and market competition in sustainable projects, emphasizing the importance of government policies and global economic stability in the industry’s success.

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