Which Singapore offshore firms will gain from Trump's energy push?

Seatrium and Marco Polo Marine are emerging as top picks.

Donald Trump's return to the presidency and his revival of the "drill baby drill" policy are expected to benefit the Asian offshore and marine (O&M) sector, UOB Kay Hian said.

Analysts predict tighter market conditions as global offshore activity rises, driving up rig and offshore support vessel (OSV) day rates.

The report said Seatrium is well-positioned to gain due to its U.S. shipyard assets, which may secure more orders amid growing pro-American sentiment. Analysts maintain an "OVERWEIGHT" outlook on the sector, with Seatrium and Marco Polo Marine as top picks.

“We like Seatrium as we believe that the company will benefit from stronger offshore marine dynamics in 2025 as well as demand for offshore vessels and structures related to the renewables industry,” the report said. “We also like Marco Polo Marine as its vessels are exposed to potential upside in charter rates in 2025 and beyond.”

The shift in U.S. energy policy is a positive change from 2024 when Saudi Aramco canceled multiple jack-up contracts. With Brent crude prices exceeding $68 per barrel for December delivery, offshore production projects are expected to continue.

UOB also said that limited new rig supply will likely support higher rates and utilization levels. Seatrium has noted low demand for newbuild rigs over the next few years, benefiting Keppel’s sale of 13 legacy rigs.

Clarksons Research reported sluggish OSV fleet growth of 1.1% in 2024, with only a marginal uptick to 1.7% expected in 2025. Fearnley Offshore predicts that 2025 could see record-high vessel activity, driven by the oil and offshore wind industries.

Seatrium is currently building eight of Petrobras’ 11 FPSOs, with deployment planned between 2024 and 2028. Petrobras has another seven to 11 FPSO projects valued at up to $30b that must be awarded in the next two years to meet production timelines