Oil & Gas counter - Sembcorp Marine and KepCorp

Oil prices rose on Friday after the Saudi energy minister said OPEC would need to keep coordinating supply cuts with non-member countries including Russia into 2019.

Oil's rise defied a slump in global stock markets, which fell in response to worries about a trade stand-off between the United States and China. Gold, seen as a safe haven, hit a two-week high.

Brent crude futures were at $70.4+ per barrel, up $1.55. U.S. West Texas Intermediate (WTI) crude futures settled at $65.88 a barrel, up 2.5 percent. Both Brent and WTI rose more than 5 percent for the week.

The weekly oil rig count rose by 4 to 804 in total, up 152 rigs from a year ago, Baker Hughes reported.

Since January 2017, the Organization of the Petroleum Exporting Countries as well as a group of non-OPEC countries led by Russia, have curbed output by 1.8 million barrels per day to counteract surging U.S. output.

Saudi Energy Minister Khalid al-Falih said OPEC members would need to continue coordinating with Russia and other non-OPEC oil-producing countries on supply curbs in 2019 to reduce global oil inventories.

OPEC officials have also said producers could look at a longer period than five years for developed-country oil stocks averages as a reference point.

"As the Saudi guessing game for the new rebalancing target begins, Brent seems well positioned to have another crack at the $70 (a barrel) level," PVM said in a note.

Although analysts said the stand-off between the United States and China could hit oil markets, for now most said demand looked healthy.

"Geopolitical tensions are coming to the front. But global balances are relatively tight at the moment. That's enough to amplify relatively small factors," said Andrew Wilson, head of energy research at BRS Brokers.

Morgan Stanley also cited an expected pick-up in seasonal demand in the coming months.

"We are only three-four weeks away from peak refinery maintenance, after which crude and product demand should accelerate ... Global inventories are already at the bottom end of the five-year range," the U.S. bank said.

"There are sufficient reasons to expect oil prices to strengthen further from here, and we stick with our (Brent) $75 per barrel call for Q3," Morgan Stanley said.

Goldman Sachs said in a note this week demand and OPEC cuts pushed their Brent spot price expectations to $82.50 a barrel by mid-year.quote : (https://www.cnbc.com/2018/03/22/oil-focus-on-saudi-arabia-comments-that-curbs-could-last-into-2019.html)

Keppel Corp - NAV of $6.311.
Rolling EPS of $0.12, PE of 69 times at current price of $7.72 per share.
dividend of 22 cents, Yield is 2.73%.
With Crude oil price estimated to go higher towards $70 per barrel.
Kepcorp may see price heading higher once the new order for building new Rigs come .
Various analyst has a Target price of bewteen $7.92 to $10.00.
Short term wise, price may fluctuate and stuck within $7.50 to $7.85.


Sembcorp Marine - NAV of $1.207.
Rolling EPS of 3.9 cents.
PE of 69 times.
dividend of 2.5 cents, yield of 0.95%.
Price has already been running up from the low of about $1.30+ to a high of $2.70 level as the future crude oil price estimated to go higher.
It seems that the price has already factor in the rise of this oil price and the possibility of securing new order for building Rigs.Like wise, for Kepcorp price may not go far with the current market sentiment gearing towards the down side. dyodd

Short term wise, I think it may not likely to go anywhere. Might be stuck within $1.90 to $2.20. We may need sometimes to see the financial results in order to re-assess the fundamental value for this counter. At this moment, price is moving ahead of fundamental of which I think is more of a speculative move. dyodd.

Sembcorp Marine - Sembcorp Marine Ltd, an investment holding company, provides marine and offshore engineering solutions worldwide. It offers turnkey solutions for projects in the areas of conversions and new builds, including floating, production, storage, and offloading units; floating, drilling, production, storage, and offloading; floating storage and offloading vessels; floating production units; floating LNG; floating, storage, and regasification units; and mobile offshore production units, as well as drill ships, semi-submersibles, jack-up rigs, and TLP and SPAR constructions. The company also provides marine repair services, such as afloat and emergency repair, underwater cleaning and repair, main engine maintenance and repair, mechanical repair, steel and pipe work, electrical and instrumentation repair, motor rewind repair, tank cleaning, sludge and oily waste disposal, staging work, hydro jetting and hydro/vacuum blasting, riding crew and voyage repair, specialized workshop repair and reconditioning, vessel towage and port clearance arrangement, and specialists service and navigation, automation, safety, and fire protection services. In addition, it offers offshore platforms, which includes engineering, construction and fabrication of offshore structures, wind-farm substations, and LNG modules; and designs and builds accommodation and crane barges, offshore support vessels, harbor and ocean-going tugs, dredgers, research/seismic/multi-purpose vessels, heavy-lift pipelay vessels, and container/heavy cargo/LPG/LNG carriers. The company was formerly known as Jurong Shipyard Ltd and changed its name to Sembcorp Marine Ltd in 2000. The company was founded in 1963 and is headquartered in Singapore. Sembcorp Marine Ltd. is a subsidiary of Sembcorp Industries Ltd.

Keppel Corp - Keppel Corporation Limited, an investment holding company, engages in the offshore and marine, property, infrastructure, and investments businesses in Singapore and internationally. The company engages in the construction, fabrication, and repair of offshore production facilities and drilling rigs, power barges, specialized vessels, and other offshore production facilities; research and development on deepwater engineering; the engineering, construction, and fabrication of platforms for the oil and gas sector, shipyard works, and other general business activities; the procurement of equipment and materials for the construction of offshore production facilities; and ship owning business. It is also involved in the trading and installation of hardware, industrial, marine, and building related products, as well as the provision of leasing services; production of jacking systems; sourcing, fabricating, and supply of steel components; ship repairing, shipbuilding, and conversions activities; marine contracting; painting, blasting, shot blasting, and process and sale of slag; property investment and development activities; fund management; golf course and hotel ownership and operation; development of marina lifestyle and residential properties; marketing agency business; trading of construction materials; development of district heating and cooling systems; electricity generation and supply, and general wholesale trade businesses; purchase and sale of gaseous fuels; trading of communications systems and accessories; and travel agency business. In addition, the company offers property management, engineering and procurement, towage, financial, trust management, logistics and supply chain, warehousing and distribution, data center, and co-location services; and technical consultancy for ship design and engineering works, as well as solid waste treatment solutions. Keppel Corporation Limited was incorporated in 1968 and is based in Singapore.