Nam Cheong

[CityFarmer]

OT a bit, actually my observation is that the old adage of buying the pick and shovel companies is not always true, in fact mostly untrue. Semicon equipment makers and shipbuilders are good examples.

I have a slightly different view. For example, shipbuilders weren't doing as bad as shipper in the last down cycle. Shipbuilding companies has more flexibility, vs. the shipping companies to adapt to market downturn. Similar as kitchen equipment suppliers, no restaurants, then go to food court stalls, but restaurant owners unlikely to "downgrade" to food court stall owners.

Of course, if you bet on a wrong sector at a wrong time, the choice will not save you.

But in this case, the spot price nature of accommodation vessels does make the builder "safer"

If penguin could or chose to do it, it would have already done so for the offshore rigs and coast. I think Accommodation vessels are very niche for very offshore projects. I wonder what's the driver for POSH to focus on it.

Penguin will not build accommodation vessel, with its company structure. Penguin is excel in building vessels to ferry, rather than to accommodate people.

I am finding out the "prospect" of the accommodation vessels, and POSH is a good reference. I reckon it is a new need, after more offshore sites in deeper water. At the moment, shallow water operation still the majority. The accommodation vessels provide better accommodation and facilities, to help the recruitment of staffs.