04-01-2013, 12:57 PM
http://www.pwc.com/en_US/us/industrial-p...ssance.pdf
The above link is a dated PWC report. Personally, I think the shale led US industrial revival is in its infancy stages.
The discovery and extraction of abundant shale gas in US is slowly changing the facade of US economic structure. While there are plans to export cheap shale gas out of America to take advantage of higher international prices, the eventual export prices out of US may be substantially higher than domestic levels (due to logistics to ship gas out in LNG form and the associated huge capex in LNG trains).
When one mentioned about SGX listed oil and gas plays - the fundamental ones are the rig builders and to a lesser extend the support industry players like deep water service providers.
Boustead has long had a presence in the oil and gas sector via Boustead International Heaters and C&E. BIH has a well established track records in supplying heaters that help recycle waste heat to oil refineries and other chemical plants.
If my understanding is correct, any process that required heaters to aid in energy efficiency (such as waste heater recycling) will provide BIH with potential business.
After working with many top notch energy and engineering companies, BIH is potentially well placed to reap the potential of new manufacturing plant construction in US.
I am merely extrapolating the shale gas revolution in US to BIH. However, given the lead time associated with big manufacturing plant constructions and BIH's usual tailend involvement (since heaters are likely to be installed towards the end of mega plant constructions), the potential earnings kicker could easily be another 2 years off.
Apart from merely equating BIH's earnings potential to traditional oil and gas facilities, investors in Boustead should be keeping an eye to new contract awards for BIH in shale related plants.
Vested and Wildly Imagining
The above link is a dated PWC report. Personally, I think the shale led US industrial revival is in its infancy stages.
The discovery and extraction of abundant shale gas in US is slowly changing the facade of US economic structure. While there are plans to export cheap shale gas out of America to take advantage of higher international prices, the eventual export prices out of US may be substantially higher than domestic levels (due to logistics to ship gas out in LNG form and the associated huge capex in LNG trains).
When one mentioned about SGX listed oil and gas plays - the fundamental ones are the rig builders and to a lesser extend the support industry players like deep water service providers.
Boustead has long had a presence in the oil and gas sector via Boustead International Heaters and C&E. BIH has a well established track records in supplying heaters that help recycle waste heat to oil refineries and other chemical plants.
If my understanding is correct, any process that required heaters to aid in energy efficiency (such as waste heater recycling) will provide BIH with potential business.
After working with many top notch energy and engineering companies, BIH is potentially well placed to reap the potential of new manufacturing plant construction in US.
I am merely extrapolating the shale gas revolution in US to BIH. However, given the lead time associated with big manufacturing plant constructions and BIH's usual tailend involvement (since heaters are likely to be installed towards the end of mega plant constructions), the potential earnings kicker could easily be another 2 years off.
Apart from merely equating BIH's earnings potential to traditional oil and gas facilities, investors in Boustead should be keeping an eye to new contract awards for BIH in shale related plants.
Vested and Wildly Imagining