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The Week In Numbers: Destructive Oil

The spillage from oil-producers has left a trail of destruction in its wake. These not include the many businesses that are directly involved in oil drilling and exploration but a host of companies that are tangentially involved with oil too.

According to a recent report from consulting and auditing firm, Deloitte, about a third of the 500 publicly-traded oil and gas explorers are at a high risk of going bankrupt this year. The 175 or so companies that are most vulnerable have more than US$150 billion in debt

Sembcorp Marine (SGX: S51) has been pushed into a quarterly loss, as a result of an $801 million provision it was forced to make against bad debts. Chinese shipbuilder Cosco Corporation (Singapore) (SGX: F83) also plunged into the red – to the tune of S$484m in the fourth quarter.

Banks didn’t escape the onslaught, either. Oversea-Chinese Banking Corporation (SGX: O39) warned of deepening issues for the oil sector. All its net new non-performing loans in the last year are from the Oil & Gas sector. Its non-performing loans as a percentage of all loans rose from 0.6% a year ago to 0.9%.

United Overseas Bank (SGX: U11) fared even worse. Its non-performing loans as a ratio of total loans rose from 1.2% last year to 1.4%.

Singapore’s exports to China fell 25% in January. The Garden City’s reliance on China as a strategic trading partner was laid bare, after the world’s second-largest economy said global trade continued to contract. Total exports from China fell 11.2%, while imports dropped 18.8%.

And finally, one petrol station in the US was giving way its fuel almost for free. A computer glitch saw a petrol forecourt offering its fuel at US$0.01 per gallon. One customer said he filled his empty tank for just US$0.27. The low pricing lasted for more than three hours.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.