Boustead Singapore

[yeokiwi]

High Oil Price => Oil companies becomes very rich => Oil companies got more money to buy offshore oil platforms, build new refineries, upgrades => more oil related projects???

Correct?

[newborn1000]

hmmmmmm, cos the oil is deposited in areas that make it v.costly to extract and process........

So if the oil price is higher, it makes the project economically viable =)

[mikh]

High Oil Price => Oil companies becomes very rich => Oil companies got more money to buy offshore oil platforms, build new refineries, upgrades => more oil related projects???

and the reason:
more oil related projects <- incentive to invest in oil related projects <- high demand for oil <- Oil companies got more money to buy offshore oil platforms, build new refineries, upgrades <- High Oil Price

[mrEngineer]

hmmmmmm, cos the oil is deposited in areas that make it v.costly to extract and process........

So if the oil price is higher, it makes the project economically viable =)

Thanks. It makes no sense to me though as it holds the assumption that oil prices will never go back down.

Yeokiwi explanation makes abit more sense. More short term profits to fund long term projects.

Still, I think there must be a higher or complicated reason for this phenomenen.

[Musicwhiz]

I guess Boustead will need time to be able to negotiate for better O&G deals for its energy-related engineering division, and to be able to crystallize bbetter margins from such deals.

Even if oil majors begin a major capex drive starting this year (CY 2011), it will be a while before the effects cascade down to players such as Boustead. With more stringent requirements and checks in place since the BP's Deepwater Drilling Disaster last year, I feel it would be beneficial to companies like Boustead and even MTQ which focus on delivering quality at good value.

I am putting more faith in their planned M&A activity, for which Boustead is still sitting on a large cash hoard waiting to be suitably deployed.

[valuestalker]

it is mentioned in the report that Upstream market is more competitive.
and it is also mentioned that Boustead Control is doing preventive thingy as well.
does it mean that MTQ is also in fierce competitive market?

[Musicwhiz]

does it mean that MTQ is also in fierce competitive market?

MTQ is in a rather niche business of repairing and servicing BPO (Blow Out Preventers).

If you want more info or wish to ask more questions, perhaps you can post them in the MTQ thread? Thanks!

[Nick]

BOUSTEAD ENERGY-RELATED ENGINEERING DIVISION AWARDED S$16M IN CONTRACTS

http://info.sgx.com/webcoranncatth.nsf/V...F0030441C/$file/Boustead_Announcement-Boustead_Energy-Related_Engineering_Division_Awarded_SGD16m_in_Contracts-05.01.2011.pdf?openelement

[Musicwhiz]

Thanks Nick for highlighting.

Business Times - 06 Jan 2011

Company Briefs

Boustead wins deals worth $16m

BOUSTEAD Singapore Ltd has secured some $16 million in contracts from the oil and gas industries. The contracts involve the design, process engineering and construction of large-scale process systems for oil refineries in Iraq, Malaysia and Saudi Arabia.

[Nick]

CSE announced US$11 million contract wins for telecommunication solutions in an oil-field and LNG plant. With Boustead current win also related to energy, I guess the high oil prices will be a catalyst for a sharp boost in order-book this year for energy-related companies ?