Oil price winner


MermaidM subsea10.21

  • BUY Entry – 0.09 Target – 0.12 Stop Loss – 0.08

  • MMT is a Thailand-based but SGX-listed company that provides drilling and sub-sea engineering services for the offshore & marine industry.

    The company’s subsea engineering segment services clients mainly in Southeast Asia and the Middle East. MMT is a 58% owned subsidiary of Thailand-listed Thorsen Thai Agencies. 

  • Dismal performance from 2014-2020. MMT’s share price has significantly underperformed the broader market since 2014 when oil prices collapsed due to oversupply from US shale production.

    This underperformance is not specific to MMT but cuts through the whole O&G sector, as investors have severely underweighted exposure to the sector. 

  • Oil’s on a roll. Ironically, the global push towards renewables is helping to lift oil prices higher.

    The decline in capex to replenish depleting oil wells, combined with massive stimulus policies to prop up the global economy, are creating a favourable environment for oil prices going into 2022.

    WTI crude futures are now trading above US$80 a barrel, the highest since 2014. 

Stock price 

9.4 c

52-week range

5 – 10.2 cts

Market cap

S$133 m

PE (trailing)

--

Dividend yield (trailing)

--

1-year return

57%

Shares outstanding

1.4 b

Source: Yahoo!

New contracts are finally coming in. The company announced on 19 October that it had won contracts in Thailand, Angola and Saudi Arabia worth a total of US$120mn.

The contracts consist of subsea construction, IRM, subsea wellhead cutting and removal in Thailand and Survey in Angola and multiple Cable Lay scopes and Sat Diving interventions with long standing clients in Saudi Arabia.

We expect the company to win more such contracts on the back of the favourable oil price environment. 


Source: KGI 

Another Singapore-listed company benefitting from current oil prices is Rex International: 


Share Prices

Counter NameLastChange
AEM Holdings3.7000.050
Avi-Tech Electronics0.290-
Best World1.790-0.010
Broadway Ind0.117-
China Sunsine0.410-
DISA0.003-
Food Empire0.6500.030
Fortress Minerals0.345-
Geo Energy Res0.350-
Golden Energy0.7800.010
GSS Energy0.046-0.001
InnoTek0.4700.020
ISDN Holdings0.395-
ISOTeam0.095-
IX Biopharma0.127-
Jiutian Chemical0.0760.001
KSH Holdings0.350-0.005
Leader Env0.053-0.007
Medtecs Intl0.1500.002
Meta Health0.0250.001
Nordic Group0.475-
Oxley Holdings0.1450.001
REX International0.230-
Riverstone0.6250.025
Sinostar PEC0.191-
Southern Alliance Mining0.405-
Straco Corp.0.405-
Sunpower Group0.255-
The Trendlines0.0940.001
Totm Technologies0.110-0.004
UG Healthcare0.197-0.001
Uni-Asia Group0.800-
Wilmar Intl4.0800.020
Yangzijiang Shipbldg1.390-0.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 656 guests and 5 members online

  • conradvenuti779
  • frankietruchanas678