(EnergyAsia, November 16, Monday) --- DnB NOR Markets, the investment banking arm of the Norwegian financial institution, recently organised its inaugural Asian Investor Conference on the international energy, offshore and maritime sectors.

More than 300 representatives from global investment institutions attended the event to discuss investment opportunities as well as networked with professionals from the offshore and maritime industries.

Guest-of-honour Lim Hwee Hua, Singapore Minister in the Prime Minister’s Office and Second Minister for Finance and Transport, said in her speech:

“Singapore is committed to growing a vibrant capital market that can serve the interests of the international maritime community and its investors here.

“We value the contributions by DnB NOR to Singapore’s development as an international maritime centre.”

DnB NOR Markets’ analysts have begun research on Asian companies and markets, providing some optimistic views for certain markets next year.

Thor Andre Lunder, offshore analyst and head of research in Asia, said: “We are positive about activity, which will pick up significantly in 2010. We estimate E&P spending to increase by 11% in 2010 versus 2009.

“The Asian oil service market represents a good opportunity for investors as the markets are more protected and oil production/exploration does not require as high an oil price as many projects internationally. Projects in the region are highly profitable with current oil prices at US$70-per-barrel-plus.”

However, he also advised caution: “Oil companies highlight that oil service costs need to come down due to the rapid increases in 2006-2008. This, combined with huge asset growth within certain sub-sectors, is likely to put pressure on margins in 2010.”

DnB NOR Markets’ shipping analyst Glenn Lodden warned that the shipping sector would continue to face difficulties.

More than 10% of the global container shipping fleet are now idle, with 70% of this fleet owned by non-operating owners. Meanwhile, spot rates for most shipping sectors are at five year lows.

He said: “We expect that demand will return over the next years, but fleet growth will still outpace demand growth. However, yards continue to deliver ships, prices are being cut and financing solutions are coming into place.”

With container shipping now moving out of peak season, volumes and rates are again showing signs of weakness. The dry bulk market will probably see demand improving, but massive fleet growth will put pressure on fleet utilisation, said Mr Lodden.

In his speech, Erik Borgen, DnB NOR bank’s general manager and Head of Asia, said:

“On the general macro-economic side, we believe the world economy has touched bottom and there will be an upturn of a kind in 2010. But next year will continue to be very tough for the shipping industry. At best we can say the outlook for global shipping next year is uncertain.

“But DnB NOR also believes that amid these difficulties, there are also opportunities for the bank because there will be restructuring taking place and no doubt we shall be playing a role in this for many companies.

“The outlook for the oil and gas industry and the offshore sector in general appears to be looking healthier for 2010.”

Opening the conference, Minister Lim paid tribute to the Norwegian bank. She said:

“DnB NOR has played a significant role in the development of Singapore’s maritime sector since the setting up of its office in Singapore in 1970. In 2007, DnB NOR’s Singapore office opened its Asian Corporate Finance unit.  This year, it set up an Asian Equity Research and Sales Team. DnB NOR’s Singapore office is now its Asian regional headquarters, servicing companies in the shipping, offshore, logistics and energy sectors. We value the contributions by DnB NOR to Singapore’s development as an international maritime centre.”