The first casualties are the rig builders, the darlings of yesterday with order books to the brim to last another 20 years of growth. Overnight the orders turned into smokes and according to some analysts the oil rig companies are facing bankruptcies! The reports are talking about Keppel Corp and SembCorp Marine, two of our blue chip companies whose stock prices have fallen by 40 or 50%..
If the reports are real, or close to the truth, then someone will be looking for buyers of these companies just like NOL. The wheel of fortune is really spinning hard and fast. Maybe they should look at China to be the Yellow Knight. China has just saved Najib from his 1MDB investment flirtation. Don’t sneer, China has very good reasons, economic reasons, to want to buy up the half completed oil rigs for a song. At least the oil rig builders need not file for Section 11.
Look, China is developing the oil fields in the South China Sea and would need a lot of cheap oil rigs. And since we are able to sell them cheaply, China may be interested to pick them up with the companies thrown in. But just be careful should China raise the issue of hosting American spy planes and ships to harass them in the South China Sea. This would drag in politics from an otherwise clean economic deal.Would anyone be sending a team to China to invite the Yellow Knight to save the day? The Singapore Discount or Singapore Sale is on again for oil rigs or oil rig builders. Would these companies be renamed Keppel Corp(China) and SembCorp Marine(China)?