More offshore & marine firms may seek equity lifeline soon

Singapore

MORE cash calls from smaller offshore and marine (O&M) firms with high debt levels could be on the cards as their funds dry up amid a crude oil slump and persistent oversupply of offshore support vessels (OSVs).

In particular, OSV owners Otto Marine, Swiber and Marco Polo Marine are likely to be among the next few companies heading to the market with hat in hand, brokerage KGI Fraser said in a report on Monday.

These companies are likely to only be able to tap equity markets rather than bond markets due to prohibitively high bond yields - following in the footsteps of Ezra Holdings which recently announce…