Singapore oilfield services firm Swiber Holdings Ltd filed for liquidation facing hundreds of million of dollars in debt and a decline in orders, becoming the biggest local name to fall victim to the slump in oil prices. Shares in other oil and gas-related companies dropped on the news, with the sector hard hit by a combination of weak oil prices, tumbling charter rates and clients either delaying or cancelling projects. Swiber’s shares have slumped by nearly 90 percent since mid-2014, taking its market value to just S$50 million ($37 million), while the company has flagged delays in orders, raising concerns and sparking demands for cash.
Smaller firm, Technics Oil & Gas Ltd was placed under judicial management this month, and analysts said other firms could face difficulties. “If highly leveraged offshore and marine companies are unable to raise capital from equity markets, then they will be left with very little other options other than to file for liquidation or for judicial management,” said Joel Ng, an analyst at KGI Fraser Securities. Energy and offshore marine companies in Singapore have bonds totaling nearly S$1.2 billion ($881 million) due to mature over the next year-and-a-half, with S$615 million due over the next five months, according to IFR, a Thomson Reuters publication.
Swiber said in a statement filed early Thursday that a Singapore court had appointed provisional liquidators and a hearing to wind-up the company has been set for Aug. 19.bit.ly/2avDQ62
Trading in Swiber’s stock was suspended, while shares in other oil and gas related companies such as Ezion Holdings (EZHL.SI), Marco Polo Marine (MAPM.SI) and Ezra Holdings (EZRA.SI) fell between 4 and 10 percent. Shares in Vallianz Holdings (VHLD.SI), 25 percent-owned by Swiber, tumbled 44 percent. Womens Jersey