China surpasses S'pore as global market leader in building rigs

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In 2013, Singapore secured 26 per cent of all contracts awarded to build drilling rigs - lower than 33 per cent in 2012.
But as Singapore rigbuilders continue to maintain their technological advantage and a strong track record of on-time delivery, some analysts remain upbeat about their prospects.
"So revenue is quite strong but margins are down year-on-year for Singapore, and that is why earnings growth did not come through. It won't be so much of a shock in revenue, but we could see some disappointment in the margins."
Wong Kok Seng, managing director (offshore) of Keppel Offshore & Marine, said: "We are a designer and user as well. So we are able to look at it and construct it in the most cost effective way. We have volume and volume does help with the economy of scale."
OCBC Investment Research notes that Singapore rigbuilders should go into 2014 with record order books - Keppel Corp at $16.1 billion and SembMarine at $13.5 billion - keeping them fully occupied until 2019.