Singapore’s offshore and marine (O&M) sector is witnessing a significant upswing, buoyed by expanding opportunities in renewable energy and a solid backlog of orders. This positive trend was evident in the latest earnings reports, with many companies posting strong profits for the April to June quarter and the first half of 2024. 

Industry analysts predict continued growth for these companies, attributing their success to a robust pipeline of projects and their readiness to engage in renewable energy ventures. Carmen Lee, Head of OCBC Investment Research, noted the sector’s ongoing recovery, reflected in the impressive share price performances of companies such as Dyna-Mac and Yangzijiang Shipbuilding, which have delivered total returns of 74% and 64% respectively as of September 6. Other notable performers include Beng Kuang Marine and Mermaid Maritime. 

Maybank Securities analyst Jarick Seet highlighted the ongoing strength in the floating production storage and offloading (FPSO) sector and offshore support vessel charters for oil and gas. He emphasized that the burgeoning opportunities in renewable energy, particularly wind farms, are proving to be significant growth areas for Singapore’s O&M firms. 

DBS analyst Ho Pei Hwa echoed this sentiment, noting that O&M companies are strategically positioning themselves to capitalize on the clean energy transition. By leveraging their expertise in offshore engineering, these firms are well-equipped to contribute to the development of wind farms and other offshore renewable projects. 

Overall, Singapore’s O&M sector is not only benef.