Chart of the day: Fewer FPS projects reaching bidding stage leaves shipyards project-starved

Only 50 of 241 planned projects have made it so far.

Singapore shipyards' profits are poised to dry up further in the coming quarters, as fewer projects are making it to bidding and final stages.

According to a report by UOB Kay Hian, of the 241 floating production system (FPS) planned, 50 are at the bidding/final design stages, representing 21% of total orders. This is the stage where contracts are awarded.

Meanwhile, the remaining 142 are in the planning stage, and 49 in the appraisal stage.

"The low oil price environment has make it difficult for companies to sanction projects, evident from the percentage of projects at the bidding/final design stage, which has fallen from a peak of 31% to 21% currently, an 8-year low," stated UOB Kay Hian.