OREANDA-NEWS. According to the Association of Singapore Marine Industries, the Singapore Marine Industry has seen significant growth over the last 40 years, evolving from a small regional ship repair and building centre into a world-class industry that serves international clientele. The maritime industry consists of a wide variety of services such as ship repair, shipbuilding, rigbuilding and offshore engineering, and other marine supporting services- click here for more information.

With the price of oil falling below USD\$50 per barrel – a drop in more than 50% since June when the price was USD\$115 a barrel, the 20 largest capitalised marine stocks reported an averaged decline of 20.2% in total over the last 12 months. Of the 20 largest capitalised stocks, there are 11 industrials, eight energy and one consumer discretionary categorised to the Global Industry Classification Standard (GICS®).

The 20 largest capitalisation stocks in the Maritime & Offshore Services industry have a combined market capitalisation of S\$46.1 billion and they averaged a 2.1% decline in year-to-date total return. The five largest capitalised marine industry stocks are Keppel Corporation, Sembcorp Marine, Hutchison Port Holdings Trust, Yangzijiang Shipbuilding and Genting Hong Kong. Together, they have a market capitalisation of S\$34.8 billion which represented more than three-quarter of the combined market capitalisation of the top 20 marine industry stocks. These five stocks averaged 1.3% decline in year-to-date total return.

The table below details the top 20 largest capitalised stocks sorted according to market capitalisation.

Name SGX Code Market Cap \$M Total Return YTD% Ind Net Div Yield % GICS Sub Industry
KEPPEL CORPORATION BN4 14,712.3 -9.3 5.2 Industrial Conglomerates
SEMBCORP MARINE S51 6,205.4 -9.8 3.7 Construction Machinery & Heavy
HUTCHISON PORT HOLDINGS TR-USD NS8U 6,097.8 0.7 6.9 Marine Ports & Services
YANGZIJIANG SHIPBUILDING BS6 4,828.4 4.6 4.0 Construction Machinery & Heavy
GENTING HONG KONG S21 2,973.6 7.1 2.7 Hotels, Resorts & Cruise Lines
NEPTUNE ORIENT LINES N03 2,490.1 13.1 N/A Marine
EZION HOLDINGS 5ME 1,847.0 3.1 N/A Oil & Gas Equipment & Services
COSCO CORP SINGAPORE F83 1,153.2 -5.4 1.9 Construction Machinery & Heavy
PACC OFFSHORE SERVICES HOLDI U6C 946.4 -4.6 N/A Oil & Gas Equipment & Services
NAM CHEONG N4E 660.3 1.6 1.6 Construction Machinery & Heavy
VARD HOLDINGS MS7 607.7 -14.2 N/A Construction Machinery & Heavy
PACIFIC RADIANCE T8V 540.7 -7.0 2.7 Oil & Gas Equipment & Services
EZRA HOLDINGS 5DN 539.4 0.0 N/A Oil & Gas Equipment & Services
PAN-UNITED CORP P52 469.9 1.2 5.1 Trading Companies & Distribution
MERMAID MARITIME PCL DU4 424.0 0.0 2.1 Oil & Gas Equipment & Services
CH OFFSHORE C13 356.1 -2.9 5.0 Oil & Gas Equipment & Services
CIVMEC P9D 333.2 -3.6 1.1 Construction & Engineering
DYNA-MAC HOLDINGS NO4 317.9 -3.1 6.3 Oil & Gas Equipment & Services
SWISSCO HOLDINGS ADP 305.5 -10.7 2.2 Oil & Gas Equipment & Services
CHARISMA ENERGY SERVICES 5QT 268.0 -3.7 N/A Construction & Engineering

Source: Bloomberg (Data as of 19 January 2015)

Keppel Corporation

Keppel Corporation primarily engages in the marine, property, and infrastructure businesses. The company’s Offshore & Marine segment is involved in the design, construction, repair, and upgrading of offshore rigs; ship conversions and repair; and specialized shipbuilding activities. It designs and builds mobile offshore rigs; repairs, converts, and upgrades a range of vessels; and builds anchor handling tug/supply vessels, multi-purpose offshore support vessels, tugboats, and ice-capable vessels. Keppel Corporation has a market capitalization of S\$14,712.3 million and the stock generated a decline of 9.3% year-to-date total return. On 21 October 2014, the company reported that their revenue for the third quarter period ended 30 September 2014, increased by 8.1% to S\$3,184.8 million. The stock went ex-dividend on 31 July 2014, distributing S\$0.12 per share in dividends.

On 17 April, a share buy-back resolution was passed for Keppel Corporation. Between 15 and 19 December, Keppel Corporation repurchased a total number of 4,372,000 shares with a total consideration of S\$35,764,763.68. The maximum number of shares authorized for the buy-back transaction was 90,775,318. As of end of the third week of December, by way of acquisition, Keppel Corporation had purchased a cumulative amount of 5,932,000 shares under the 17 April resolution. This represented 0.33% of the company's issued shares (excluding treasury shares) as at the date of the share buy-back resolution.

Sembcorp Marine

Sembcorp Marine is engaged in the marine and offshore engineering business worldwide. The company operates in two segments, Ship and Rig Repair, Building, and Conversion; and Ship Chartering. It offers ship repair services to tankers of various sizes, including mid-sized tankers, and very large and ultra large crude carriers; and repairs chemical tankers, container vessels, passenger ships, LNG and LPG gas carriers, dredgers, bulk carriers, derrick barges, and navy vessels. Sembcorp Marine has a market capitalization of S\$6,205.4 and the stock generated a decline of 9.8% year-to-date total return. On 5 November 2014, the company reported that their turnover for the third quarter period ended 30 September 2014, increased by 3.2% to S\$1,711.6 million. The stock went ex-dividend on 15 August 2014, distributing S\$0.05 per share in dividends.

Hutchison Port Holdings Trust

Hutchison Port Holdings Trust, together with its subsidiaries, invests in, develops, operates, and manages deep-water container ports in Guangdong Province of China, Hong Kong, and Macau. The company owns interests in four deep-water container ports located in Kwai Tsing, Hong Kong and Shenzhen, China. Hutchison Port Holdings Trust has a market capitalization of US\$6,097.8 and the stock generated a year-to-date total return of 0.7%. On 27 October 2014, the company reported that their revenue for the third quarter period ended 30 September 2014, increased by 1.7% to HK\$3,422.0 million. The stock went ex-dividend on 1 August 2014, distributing HKD0.187 per share in dividends.

Yangzijiang Shipbuilding

Yangzijiang Shipbuilding is engaged in the ship building and related activities. It produces a range of commercial vessels, containerships, bulk carriers, and multi-purpose cargo vessels. The company also is engaged in the building, repair, maintenance, and dismantling of vessels; production and processing of steel structures and belt transportation machinery; gas cylinder filling and seamless gas cylinder inspection; and manufacture of ship accessories. Yangzijiang Shipbuilding has a market capitalization of S\$4,828.4 million and the stock generated a year-to-date total return of 4.6%. On 7 November 2014, the company reported that their revenue for the third quarter period ended 30 September 2014, increased by 2.0% to RMB 3,742.7 million.

Genting Hong Kong

Genting Hong Kong is engaged in cruise and cruise related operations; and leisure, entertainment, and hospitality activities in the Asia Pacific region. It is primarily involved in the operation of passenger cruise ships. The company operates a fleet of 20 ships with approximately 42,000 lower berths cruising to approximately 130 destinations worldwide under the Star Cruises and Norwegian Cruise Line brands. Genting Hong Kong has a market capitalization of S\$2,973.6 million and the stock generated a year-to-date total return of 7.1%. On 22 August 2014, the company reported that their turnover for the six months ended 30 June 2014, increased by 9.7% to US\$281.6 million. The stock went ex-dividend on 18 June 2014, distributing USD\$0.01 per share in dividends.