Kim Heng’s utilisation and charter hire rates have also risen, with rig utilisation growing by 5.7% points year-on-year (y-o-y) to 71.4% in August, while time charter rates for anchor handling tug supply vessels (AHTS) increased 46.6% y-o-y in August to US$34,300 ($48,252.73) per day, according to Shipping Intelligence Network.
SAC Capital analyst Peggy Mak has recommended “hold” for shares in Kim Heng with a target price (TP) of 10.16 cents, as the company’s offshore expertise has bolstered its windfarm contract wins.
According to the analyst, higher energy prices have rejuvenated offshore drilling activities, and the companies that provide offshore oil and gas support services. She believes that crude oil prices are likely to hover at current levels, which is still 70% above 2019’s average, and will “underpin” the oil and gas support services sector.
