“Should activity in the oil and gas industry strengthen, leading to a revival in the offshore & marine industry, we could see a cyclical upturn begin in the next six to 12 months. This assumes that the current wave of Covid-19 infections globally is dealt with in a reasonably quick manner and that governments are able treat the virus as an endemic,” he writes in a Sept 27 report.
UOB Kay Hian analyst Adrian Loh has upgraded his recommendation on the offshore & marine (O&M) sector to “overweight” due to growth in competitive utilisation for offshore rigs, which are approaching pre-pandemic levels.
Loh’s upgrade also comes as activity in the industry is expected to pick up in 2022.
