For one, interest costs remain high, which discourages a major capital expenditure cycle. Companies that survived the previous boom-and-bust cycle are now more cautious, wary of becoming over-leveraged and left with idle vessels or underutilised yards if the market softens.
When US President Donald Trump famously urged energy players to “drill, baby, drill”, it served as a boost for the already thriving oil and gas industry, which is moving past the multi-year slump following the Global Financial Crisis.
Despite this rebound, the notoriously volatile nature of the sector keeps CGS International’s Lim Siew Khee cautious. With nearly two decades of experience covering oil and gas, offshore and marine (O&M) companies, she remains hesitant when asked if the industry is heading to a new peak.
