SG Morning Highlights | Seatrium Secures S$180 Million Worth of Vessel Repair and Upgrade Contracts

Moomoo News SG wrote a column · Jul 23, 2024 09:15

SG Morning Highlights | Seatrium Secures S$180 Million Worth of Vessel Repair and Upgrade Contracts

Good morning mooers! Here are things you need to know about today's Singapore markets:

●Singapore shares opened higher on Tuesday; STI up 0.55%

●Decline in Singapore Banks' Net Interest Margins Predicted by S&P

●Industrial Property Sales Surge in Singapore, Boosted by Manufacturing Growth

●Stocks to watch: Seatrium

●Latest share buy back transactions

-moomoo News SG

Market Snapshot

Singapore shares opened higher on Tuesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ rose 0.55 percent to 3456.19 as at 9:13 am.

Advancers / Decliners is 110 to 56, with 98.52 million securities worth S$113.86 million changing hands.

Breaking News

Decline in Singapore Banks' Net Interest Margins Predicted by S&P

S&P Global Ratings suggests that Singapore banks' net interest margins (NIMs), having peaked earlier in the year at around 2% to 2.2%, are expected to decrease by 10 basis points annually through 2026 due to anticipated US Federal Reserve rate cuts. Loan growth is projected to increase by 3% to 5% in the next 18 to 24 months, with credit costs holding steady at pre-pandemic rates. However, prolonged high interest rates could increase nonperforming loans. The Fed is expected to reduce rates by a total of 250 basis points by the latter half of 2026.

Industrial Property Sales Surge in Singapore, Boosted by Manufacturing Growth

Singapore's industrial property market saw a significant 25.1% increase in sales, reaching $949.6 million in Q2, with notable transactions including the sales of BHL Factories, Kian Ann Building, and a factory on Pandan Road. While industrial leasing rose by 5.9%, it was slightly lower year-on-year. Manufacturing output also grew by 2.9% in Q2, indicating a positive trend for the sector. Knight Frank credits the sector's recovery to international investments and a positive outlook for electronics and semiconductor manufacturers. The firm anticipates sustained demand for industrial properties, especially with potential interest rate cuts, and identifies data centres and EVs as key growth drivers for the industry.

Stocks to Watch

$Seatrium Ltd (5E2.SG)$: Seatrium, a marine and offshore specialist, has announced securing contracts worth S$180 million for the repair and upgrade of various types of vessels, with the majority set to be completed by the end of 2024. The projects encompass work on offshore vessels, naval vessels, ferries, LNG carriers, and tankers. Notable contracts include the restoration of jack-ups and drillships for clients such as Velesto Energy, Zonda Drilling AS, and Seadrill, as well as a heavy pipelay vessel for Sapura Energy and a lifetime upgrade for a vessel from Japan Offshore Marine Company. Seatrium also secured naval works from the US Military Sealift Command and Australia's Teekay Shipping, repairs for New Zealand's Interislander ferry, maintenance for ConocoPhillips/Polar Tankers, and a series of LNG vessel retrofits. Additionally, the company will undertake significant steel renewal for a vessel damaged in a collision.

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