DBS has lowered its expectations for Mermaid Maritime on the back of a dwindling order backlog and the potential fallout from the collapse of Seadrill.
The Singapore bank said Mermaid’s orderbook declined by around 34% in the second quarter of 2017 to a new low of $98.6m.
“While continued deferment of inspection, repair and maintenance (IRM) work by oil majors is one reason, we cannot discount the effects of stronger competition from increased tonnage in the region,” said analysts Suvro Sarkar and Glenn Ng.
