| Latest Forum Topics / Others |
 Post Reply
|
|
Boomtime still for oil stocks
|
|
|
giantlow
Master |
23-Dec-2006 15:23
|
|
x 0
x 0 Alert Admin |
Oil facilities targeted in Nigeria Fri, December 22, 2006 http://www.edmontonsun.com/News/World/2006/12/22/2931777-sun.html |
| Useful To Me Not Useful To Me | |
|
Livermore
Master |
23-Dec-2006 13:42
|
|
x 0
x 0 Alert Admin |
Don't be disheartened if you buy a stock and it refuses to move for some time. I admit some don't move "forever". But those fundamnetally good ones with potential will eventually move. I have learnt from my lessons from being impatient. Some expamples : 1. Labroy was like a "sleeping tortoise" 3 years ago at 58c and never broke 60c barrier for a long time. But it is now around $1.80. 2. Fibrechem was another "sleeping tortoise" just 1 year ago at 60c but it is now around $1.87 |
| Useful To Me Not Useful To Me | |
|
|
|
|
giantlow
Master |
23-Dec-2006 13:00
|
|
x 0
x 0 Alert Admin |
Hmmm. Interesting. I'll take a look. |
| Useful To Me Not Useful To Me | |
|
Livermore
Master |
23-Dec-2006 12:31
|
|
x 0
x 0 Alert Admin |
ASL Marine has dropped to very attracttive levels and cheap valuations. Today's business times forecast oil and gas ply in 2007. ASL Marine already has a fixed order book in the millions... |
| Useful To Me Not Useful To Me | |
|
giantlow
Master |
23-Dec-2006 07:55
|
|
x 0
x 0 Alert Admin |
Good post. Thanks for the updates. What are your views on other oil related counters like SPC, CAO etc |
| Useful To Me Not Useful To Me | |
|
|
|
|
lg_6273
Elite |
20-Dec-2006 18:10
|
|
x 1
x 0 Alert Admin |
Boomtime still for oil stocks By OH BOON PING, Published December 20, 2006 OIL prices have started easing lately, and it would seem the frenetic play in oil and gas stocks will soon peter out. But that may be a premature conclusion. Several trends in the sector remain intact and these are expected to benefit oil and gas plays. While oil prices have receded from their recent peaks, several trends in the sector remain intact and these are expected to benefit oil and gas plays on the Singapore stock market. For one, deep-water production has turned more profitable following the earlier spike in oil prices, with some expecting the offshore sector's contribution to eventually account for a quarter of global oil supply in the period to 2015. Yet an estimate by international shipbroking firm RS Platou showed that less than 15 per cent of the global fleet of over 1,800 anchor-handling tug supply vessels can undertake deep-water operations. As a result, deep-water chartering rates have been moving up, driven by the derived demand for offshore support vessels. These rates are now at least 20 per cent higher than those for vessels used for shallow-water oil support activities. In this environment, offshore vessel specialist Ezra Holdings stands to benefit. Second, demand for new-builds has grown and the replacement cycle for rigs and offshore equipment has shortened. Day charter rates for rigs now stand at five-year highs, boosted by near-full utilisation capacity amid firm oil prices. Likewise, combined new orders secured by locally-listed rig builders have already reached US$7 billion so far this year, compared with US$7.1 billion for the whole of last year. In a report, OCBC Investment Research says it expects rig builders to receive a second wave of order as 2010 approaches, as past under-investment has meant that over 70 per cent of semi submersibles and over 80 per cent of jack-ups in the global fleet will exceed the optimal 25-year usage span in four years' time. 'While owners may extend the life of fully depreciated but well maintained rigs beyond the typical useful life, the initial higher margin is expected to fall as operational downtime increases with extended usage,' it says. Industry players have indicated that only the better maintained rigs can be stretched by probably another five to seven years before unbearable inefficiencies begin to kick in. That is good news for major players like Keppel Corporation and SembCorp Marine, which could benefit from rising demand in the rig building segment. Similarly, demand for rig and related capital equipment refurbishment has also been growing, riding on the boom in exploration and production (E&P) activities. Indeed, some industry watchers view refurbishment as a cheaper and faster alternative for less demanding E&P activities. For example, a refurbished rig is normally delivered based on the rig owner's requirements, and they typically get a new lease of life of 20 years and are still capable of operating under less challenging conditions. New-builds, on the other hand, are often based on new-generation designs and have the capability to operate in tougher operating environments, which may not be required. If more operators go the refurbishment route, companies like KS Energy Services and Aqua Terra could benefit. Lastly, the industry is also seeing higher investment for downstream activities, even as independent storage operators rush to rectify the years of under investment in product storage. For instance, the announced Bukom Shell Houdini project alone is estimated to carry an average annual investment value of about $1.6 billion from 2007 to 2009. This is notwithstanding ExxonMobil's planned second petrochemical complex as well as other announced investments in refineries and storage facilities from Iran, Vopak Terminals Singapore Ltd and Horizon Terminals. In contrast, annual total investment commitments in the chemicals industry cluster here have ranged between $1.5 billion and $2 billion from 2002 to 2005. Companies which stand to benefit from the uptrend in downstream investments include Rotary Engineering and Hiap Seng Engineering - both players in the engineering, procurement and construction segment. All things considered, the oil and gas plays look set to continue their buoyant run in 2007. |
| Useful To Me Not Useful To Me | |