“The higher offshore activity expected in 2022 and 2023 underpins our positive view on the sector, especially given that meaningful rig supply was removed globally,” he adds.
UOB Kay Hian analyst Adrian Loh has maintained “overweight” on the offshore and marine (O&M) sector as he sees the sector moving “onwards and upwards”.
“The rig market appears to have turned a corner in 2021 with oil prices exceeding US$80 ($107.50) per barrel – this has resulted in stronger rig utilisation rates and a firming of rig dayrates vs 2020,” writes Loh in his Jan 14 report.
