Ship yards and Oil Rig Makers in big trouble

[GoFlyKiteNow]

Potential customers and oil majors are cancelling orders for oil rigs in a hurry.

Major yards in Korea, Japan and other places are all
reporting mass order cancellations for the oil rigs..some of them costing
as much as 500 million dollars each. Part of the reason is the sudden
fall in oil prices, lower demand for oil etc, that make banks pull back credit
they initially offered to these oil rig customers.

Looks like there will be many job losses in this sector.

Similar downturn is seeping into the shipping industry.
The almost 50% reduction in cargo have created a glut
and this has caused shipping charges to fall by as much as
70 % in some cases. These ripples are now spreading to the
logistics sector and their ancillaries who are facing sharply less
business to handle while having grown and expanded exponentially
these past two years.

 

[batman1]

Potential customers and oil majors are cancelling orders for oil rigs in a hurry.

Major yards in Korea, Japan and other places are all
reporting mass order cancellations for the oil rigs..some of them costing
as much as 500 million dollars each. Part of the reason is the sudden
fall in oil prices, lower demand for oil etc, that make banks pull back credit
they initially offered to these oil rig customers.

Looks like there will be many job losses in this sector.

Similar downturn is seeping into the shipping industry.
The almost 50% reduction in cargo have created a glut
and this has caused shipping charges to fall by as much as
70 % in some cases. These ripples are now spreading to the
logistics sector and their ancillaries who are facing sharply less
business to handle while having grown and expanded exponentially
these past two years.

What are the impact on the lifeboat maintenance services industry ???

 

[breakaway]

Potential customers and oil majors are cancelling orders for oil rigs in a hurry.

Major yards in Korea, Japan and other places are all
reporting mass order cancellations for the oil rigs..some of them costing
as much as 500 million dollars each. Part of the reason is the sudden
fall in oil prices, lower demand for oil etc, that make banks pull back credit
they initially offered to these oil rig customers.

Looks like there will be many job losses in this sector.

Similar downturn is seeping into the shipping industry.
The almost 50% reduction in cargo have created a glut
and this has caused shipping charges to fall by as much as
70 % in some cases. These ripples are now spreading to the
logistics sector and their ancillaries who are facing sharply less
business to handle while having grown and expanded exponentially
these past two years.

What will happen to shipping brokerage?

 

[kuntakinte]

It can't be .......

My client just recruited more staff to fulfill the orders and some staff also quit because another company in the same trade pinched their staff.

Probably, not all in the oil rig industry suffers the same fate ?

 

[jw5]

Potential customers and oil majors are cancelling orders for oil rigs in a hurry.

Major yards in Korea, Japan and other places are all
reporting mass order cancellations for the oil rigs..some of them costing
as much as 500 million dollars each. Part of the reason is the sudden
fall in oil prices, lower demand for oil etc, that make banks pull back credit
they initially offered to these oil rig customers.

Looks like there will be many job losses in this sector.

Similar downturn is seeping into the shipping industry.
The almost 50% reduction in cargo have created a glut
and this has caused shipping charges to fall by as much as
70 % in some cases. These ripples are now spreading to the
logistics sector and their ancillaries who are facing sharply less
business to handle while having grown and expanded exponentially
these past two years.

If the companies have cash, they will survive this severe downturn. It is those who have funded their expansion through debt that may be in trouble.
But the share price will be under pressure as previous price increases were in part due to contract wins, some of which will now be cancelled.

 

[Merl Haggard]

Keppel Corp, Semb Corp and Semb Marine are also facing many oil-rig cancellations.

 

[red amoeba]

actually for many years, our maritime industry (shipbuilding & repair) is like shit already. We are only helped by fact that our oil rig building is keeping the industry going - buoyed by the high prices. But shipbuilding business is one industry where you have to predict the trend because a ship or oil rig takes 3-4 years to complete.

While people like Keppel have orders on their books, they will suffer when these orders are fulfilled, or they face defaults on payments or cancellation (where the contract permits). Basically the shipping industry is in deep shit - with some shipping companies offering free freightage even.

Our ship repair business has long since lost out to Malaysia and Indonesia due to costs. Its during the boom times of recent years that we get business due to over demand. Expect more retrenchments to come after CNY.

 

[eeoror88]

The shipyards here are still recruiting. Don't talk cock !!

 

[jolininc]

no wonder some of the major shipyards are losing $ in shares... thanks for the info