The Singapore economy is facing a tough year and there are little signs of it becoming better in the near future. Economists have reduced their growth forecasts and Singaporeans are experiencing the inevitable strain of the economy, one way or another.
According to the Ministry Of Trade and Industry, Singapore’s manufacturing contracted at a worrying annualised growth rate of -17.4%, and the oil, gas and shipping industry being among the worst hit.
With BP Plc abandoning its oil exploration project in Australia, coupled with unpredictable oil price, demand for oil rigs have fallen significantly.
A quick glance at some of the stock prices for these companies would show that marine and offshore engineering sector are getting affected the most. With all the uncertainties surrounding the industry, Singaporeans might wish to think twice before adding these companies to their portfolio.
# 1 Keppel Corp Ltd
Stock price for Keppel Corp has fallen close to 22% compared to a year ago. Earnings results for Keppel Corp Ltd indicates that net profit for the first half of the year was S$416 million, down from S$757 million a year ago.
# 2 Sembcorp Marine Ltd
Bloomberg: Stock Price of Sembcorp Marine Ltd
Sembcorp Marine Ltd was hit hard too. Stock price for Sembcorp Marine has fallen close to 47% compared to a year ago. Profit before tax for Sembcorp Marine stood at about SG$87 million compared to SG$271 million a year ago.
# 3 Ezion Holdings Limited
Bloomberg: Stock Price of Ezion Holdings Limited
Ezion Holdings is less of a household name as compared to Keppel and Sembcorp. They provide offshore marine logistics and support services to the offshore oil and gas industries. Stock price for Ezion Holdings dipped close to 51% since last year.
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Event: Wongamania, The Social Series
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Cost: $8 per person
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