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The main offshore & Marine industry has had a bad year in 2021. Keppel O&M reported a loss of 160 million while SCM's had a loss of 320 million (excluding provisions)
https://links.sgx.com/FileOpen/SCM%20FY2...eID=703819
SCM's order book has fallen drastically. For the past 6 months, SCM has only secured two orders and it is not enough to keep yards fully utilized in year 2023. From 2023, SCM could be bleeding losses due to idleness.
A merger between Keppel O&M and SCM is not worth it, two idle yards merging together still means idle. With the world moving towards clean fuel, I dont foresee a drastic increase in rig orders. New offshore wind platforms is a possibility but there are already a large number of yards doing this.
https://links.sgx.com/FileOpen/SCM%20FY2...eID=703819
SCM's order book has fallen drastically. For the past 6 months, SCM has only secured two orders and it is not enough to keep yards fully utilized in year 2023. From 2023, SCM could be bleeding losses due to idleness.
A merger between Keppel O&M and SCM is not worth it, two idle yards merging together still means idle. With the world moving towards clean fuel, I dont foresee a drastic increase in rig orders. New offshore wind platforms is a possibility but there are already a large number of yards doing this.