Monday, February 6, 2023
O&M Downturn: A look at EBITDA, Capex and Leverage

O&M Downturn: A look at EBITDA, Capex and Leverage


A sharp decline in oil prices in Q4 2014 sent the energy sector into the doldrums. That much is history. As oil pries stayed in the $50-60 dollars range, Offshore and Marine engineering companies which supplied everything from production platforms, to rigs and smaller service vessels were equally impacted as Oil & Gas majors cut back on projects and capex spend. The last 3-4 years have seen ship yards go bust and offshore rig orders practically vanish.

We took a look at how global O&M majors in Korea and Singapore as well as up and coming Chinese players performed in the last 3 years.

  • EBITDA has clearly declined as orderbooks run down
  • Players continued to invest capex in capacity / capabilities, but to varying extent
  • 5 of 7 players have improved net cash / (debt) positions
  • As oil price and related O&M activities recover, we believe some players will emerge stronger than others

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