If you believe that the O&G Industry is almost bottoming, then perhaps it is time to do some homework on the bargains available in the stock market.

Here are some of the Oil & Gas, Shipping related counters that are on my watch list and i will most likely pick a few up when the price is right.

Keppel Corp (BN4.SI)

Keppel is a diversified conglomerate with its core businesses in offshore marine (O&M), property investments and development, and infrastructure-based activities in Singapore and the region. O&Ms the largest segment that typically contributes about 70% of group revenue. 

Ezion (5ME.SI)

Ezion provides service rigs and offshore logistics support services to the offshore oil & gas industry. It was also one of the first companies to introduce liftboats in Asia and the Middle East regions. 

• Windfarm venture in China is shaping up (more demand for liftboats)
• Charter-backed fleet expansion, 7 liftboats expected to contribute to earnings in 2017.
• O&G price recovery, driving charter demand

Last Traded Price: $0.490
13-05-2016

What Analysts Say:

CIMB: ADD: $0.630
DBS Vickers: BUY: $0.850
OCBC: HOLD: $0.56
UOB: BUY: $0.790

Vard (MS7.SI)

Vard is a major global shipbuilder that constructs complex and highly customised offshore support vessels.

• Diversification from O&G related vessels prove to be positive
• New initiatives to assist parent in cruise ship hull contruction
• Significant order win announced - 15 Module Carrier Vessels
• Oil price recovery

Last Traded Price: $0.182

Yangzijiang (BS6.SI)

Yangzijiang is one of the largest, most efficient and most profitable shipbuilders in China. It has moved up the value chain to produce container ships, large bulk carriers and LNG vessels. 

• Strong balance sheet (Net Cash of 44 Scts)
• Consolidations. Yangzijiang is one of China's largest ship building corporations
• Diversification of shipbuilding - LNG Carriers
• Decent orderbook (US$5.4bn as at end 2015)
• Healthy dividend yield (4.5 Scts - 4-5% Yield)

Last Traded Price: $0.920
13-05-2016

SembCorp Industries (U96.SI)

Sembcorp Industries (SCI) is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It has facilities with 10,600 megawatts of gross power capacity and over 10 million cubic metres of water per day in operation and under development. It is also a world leader in marine and offshore engineering (via Sembcorp Marine) as well as an established brand name in urban development (comprising industrial parks as well as business, commercial and residential space) in Vietnam, China and Indonesia. 

Key Points

Risk Factors

• Marine Segment hit by project deferments
• Provisions for Sete Brazil's Bankruptcy (Major customer)

What Analysts Say:

CIMB: ADD: $3.10
DBS Vickers: BUY: $3.10
OCBC: BUY: $3.07
UOB: BUY: $4.00

Credit: Stockfacts (SGX), SG ShareInvestor