SINGAPORE: Seatrium, which has US shipyard assets, and Marco Polo Marine could benefit from US President Donald Trump’s return to office. His push for more offshore drilling may boost the Asian offshore and marine (O&M) sector, according to UOB Kay Hian.
Singapore Business Review reported that analysts expect offshore activity to increase, leading to tighter market conditions and higher rig and offshore support vessel (OSV) rates. Analysts have kept the sector’s rating overweight, naming Seatrium and Marco Polo Marine as top picks.
The report said Seatrium could benefit from “stronger offshore marine dynamics in 2025 as well as demand for offshore vessels and structures related to the renewables industry”. It added, “We also like Marco Polo Marine as its vessels are exposed to potential upside in charter rates in 2025 and beyond.”
The shift in US energy policy marks a positive change from 2024, when Saudi Aramco cancelled several jack-up contracts. Brent crude futures for December delivery have remained above $68 per barrel, keeping offshore production projects on track.
UOB Kay Hian noted that limited rig supply will likely boost rates and utilization.
Seatrium pointed out low demand for newly built rigs in the next few years would benefit Keppel’s sale of 13 older rigs. Clarksons Research reported slow OSV fleet growth of 1.1% in 2024, with only a slight increase to 1.7% expected in 2025. Fearnley Offshore expects record-high vessel activity this year, driven by the oil and offshore wind sectors.
Seatrium is building eight of Petrobras’ 11 floating production storage and offloading (FPSO) units, scheduled for deployment between 2024 and 2028. Petrobras also has seven to 11 FPSO projects worth up to $30 billion, which must be awarded in the next two years to meet production deadlines. /TISG