The world’s two biggest builders of oil rigs saw their stocks rise the most in more than two years last month as crude rebounded. Investors looking for more gains shouldn’t get their hopes up just yet, Baring Asset Management and Henderson Global Investors say.
Keppel Corp. surged 13 percent and Sembcorp Marine Ltd. rose 7.8 percent in March, the largest monthly gains since January 2012 and September 2013 respectively. Oil climbed briefly above $40 a barrel last month, a level not seen since December.
Oil companies and rig operators remain at risk of rising debt and spending cuts, and are abandoning or delaying orders of offshore drilling rigs and production facilities as crude prices are still less than half what they were three years ago. That’s prompted shipyards to post losses or smaller profits after writing off costs from projects under construction.