The way they see it, both analysts believe concern on energy security is driving demand for offshore assets. They cite evidence such as steady term rates of around US$8,500 ($10,800) per day for anchor handling tug supply (AHTS) vessels as well as “positive momentum” for high-spec jack-up units where rates increased by some 18% to US$100,000-140,000 per day.
UOB Kay Hian (UOBKH) believes that the current Middle East conflict between USA, Israel and Iran is the “most powerful” catalyst for offshore energy, in an offshore and marine (O&M) sector report issued on May 7.
Analysts Adrian Loh and Heidi Mo maintain their “overweight” rating for the sector, describing the growth prospects of small/mid caps including Beng Kuang Marine, ASL Marine and Marco Polo Marine as “more exciting” than those of larger industrials they cover.
