3 things you must know about Singapore rigbuilders' latest profits

Robust demand, stiff competition.

According to OSK DMG, the recent earnings season ended with more negative than positive surprises. The highlights were firstly, there are no surprises among the large-caps, as rig builders’ operating margins beat our estimates but missed on revenue.

Secondly, MTQ surprised on the upside with subsea improvement; and lastly, OSK DMG cut TGH and AUSG to Sell on poor results and weak visibility, but stay Neutral on the O&M sector.

Here's more from the report:

Rig demand robust but stiff competition again the highlight. Rig builders reported earnings that were in line due to better-than-expected operating margins although revenue was slightly below forecast.

Meanwhile, company managements kept their long-term operating margin guidance of 10% to 13%. Keppel (KEP)’s SGD13.1bn-strong order book and SMM’s SGD13.6bn in orders will keep both companies’ yards busy but it is unlikely that they would see significant jumps given the already high base.

We see little upside to our TPs as rig-building earnings growth is largely flat.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia