Winners and Losers of Offshore Spending Revival
Still Hard Times
On the other hand, the market for equipment used on shallow water platforms such as pumps, turbines and heat exchangers provided by the likes of General Electric Co., ABB Ltd. and National Oilwell Varco Inc. may lag, partly because they tend to be ordered later in project cycles, Martinsen said.
Bourbon Corporation, a French operator of support vessels for offshore industry, is also looking for signs of recovery as persisting low rates has forced it to suspend the payments of its debt. Bourbon’s situation is “worrying” as it operates in an oversupplied market, said Kevin Vo, an analyst at AlphaValue in Paris. Bourbon declined to comment.
“As a company sanctions a project or an exploration campaign, that cash doesn’t flow through the supply chain until perhaps one or two or three years, so the supply chain isn’t out of the woods yet,” said Woodmac’s Evans. “So 2020 looks like the year where many parts of the supply chain will start to feel better.”
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