The rally in crude oil prices is unlikely to lead to a spate of offshore orders for Singapore’s shipyards, say two local analysts.
“The recent run-up in valuations for the shipyard sector was largely driven by bullish sentiment in oil prices and the recent spate of contract wins,” said UOB Kay Hian analysts Foo Zhiwei and Andrew Chow.
“However, we expect the run to be short-lived as there are no clear signs of earnings recovering.
