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Serious DBS got alot of exposure in O&G industry. Jia lak liao?
- Thread starter hbk75
- Start date
DBS's oil & gas exposure up by another S$1b
Of the S$23b exposure, S$7b is to riskiest sector; Group's Q2 profit slides 6% to S$1.05b
AUG 9, 2016 5:50 AM
Singapore
DBS Bank's total oil & gas exposure has increased to S$23 billion, up S$1 billion due to more trade finance loans, as the bank continues to do business in a sector straining under the weight of low oil prices.
Piyush Gupta, DBS chief executive, also warned that S$900 million of its oil & gas exposure is weak as some are linked to Swiber Holdings - which collapsed about two weeks ago - and he expects "contagion" to emerge later this year. Singapore's largest bank posted S$1.05 billion net profit for the second quarter, down 6 per cent from a year ago due to the S$150 million loss or net allowance charge it took for the Swiber group which is now under judicial management.
Of the total oil & gas exposure as at end-June, loans went up S$2 billion to S$19 billion as "trade finance has spiked up in this quarter", said Mr Gupta on Monday during the bank's Q2 results briefing. Earlier in February, DBS said that its oil & gas exposure totalled S$22 billion, of which S$17 billion were loans.
In an update on DBS's exposure to the struggling sector, he said that the riskiest part, some S$7 billion, is to the support services cluster, down from S$9 billion for Q1. He said that S$2 billion of this is to state-owned or government-linked firms and shipyards. While some are under stress, these shipyards are part of large conglomerates that have other sources of support.
The sector is made up of producers, traders, processors and the riskiest, support services. DBS said that it has no material weakness in its producers, traders and processors portfolio. Swiber was a support service firm and 13 banks and financial institutions had extended to the group banking facilities totalling in excess of US$736 million; with DBS accounting for the lion's share of S$721 million.
Drilling further into the support services exposure, Mr Gupta said that the remaining S$5 billion which is 90 per cent secured, comprises S$2.3 billion to five names of which one has weakness. The remaining S$2.7 billion has 90 names and one third of that has weakness or S$900 million.
"Some are Swiber linked" and he expects "some contagion" coming in H2. Even with more bad loans expected, he said that DBS's total non-performing loan ratio for full year 2016 should not exceed 1.3 to 1.4 per cent. For Q2, NPL rose to 1.1 per cent from 0.9 per cent a year ago and one per cent for Q1.
He noted that the bulk of the bank's security were charter vessels that are valued every six months, and these have been coming down.
The sector remains under stress and even with oil prices recovering to US$40-45, there were more contract cancellations than in Q1, he said. Oil prices fell to 13-year lows of below US$30 per barrel in January.
At the end of last year, the loan to value against these vessels were running at 50-60 per cent, he said. At the latest valuations at the end of June, LTVs are between 70-80 per cent.
"If I can get the LTVs today, I can recover all of my loans. Assume the vessels don't even get those valuations, and there is another 10-20 per cent haircut, we will still recover all of our loans."
On how DBS was caught off guard by Swiber's collapse, he said that it was a firm that the bank had been doing business with for some 10 years; at end-June, it had "zero overdue with us".
Describing Swiber as "idiosyncratic" and "not representative of Singapore's oil & gas industry", he said that it was one of a handful of names in Singapore which do a contracting business.
Think of Swiber as a main contractor which gets a contract, then goes to the bank for a performance bond, asks for working capital to buy materials, hire workers to get the job done which generally takes 2-3 years, he said.
The risk for DBS is execution risk and counterparty risk, he said, referring to the ability of Swiber to complete the job and that its customer pays up.
He said that Swiber imploded in six weeks.
DBS had been in close contact with Swiber, it also talked to the private equity firm AMTC that had promised to inject US$200 million into Swiber, but did not do so, leading to the collapse.
Mr Gupta said that AMTC had sent in teams of consultants and lawyers to look at the Swiber deal; he himself had talked to AMTC chief executive Smith O'Connor who told The Business Times last Friday that the deal was still "alive".
DBS was facing a "classic banker's dilemma" as Swiber neared crunch time, he said.
AMTC's injection was being delayed by two weeks, and DBS did have a choice to let the customer default but decided not to, he said.
"I'm not ashamed to say, this is the kind of bank we are. We don't pull the plug on customers."
Part of DBS's S$721 million exposure included S$403 million of working capital for two projects, of which one was 80 per cent completed, the other 50 per cent, he said. DBS also knows Swiber's customer well.
Referring to the S$200 million bridging loan extended in June and July that Swiber used for bond redemptions, Mr Gupta said that the bank was faced with the question of whether it should put in more money to get more back.
He said that DBS private bank clients hold less than 20 per cent of Swiber's outstanding S$540 million bonds, when asked about its private bank exposure.
The total leverage the bank has given to private bank clients against the Swiber bonds is "minuscule" - S$35 million; there were 20 margin calls, all of them have been paid, he said.
Of the S$23b exposure, S$7b is to riskiest sector; Group's Q2 profit slides 6% to S$1.05b
AUG 9, 2016 5:50 AM
Singapore
DBS Bank's total oil & gas exposure has increased to S$23 billion, up S$1 billion due to more trade finance loans, as the bank continues to do business in a sector straining under the weight of low oil prices.
Piyush Gupta, DBS chief executive, also warned that S$900 million of its oil & gas exposure is weak as some are linked to Swiber Holdings - which collapsed about two weeks ago - and he expects "contagion" to emerge later this year. Singapore's largest bank posted S$1.05 billion net profit for the second quarter, down 6 per cent from a year ago due to the S$150 million loss or net allowance charge it took for the Swiber group which is now under judicial management.
Of the total oil & gas exposure as at end-June, loans went up S$2 billion to S$19 billion as "trade finance has spiked up in this quarter", said Mr Gupta on Monday during the bank's Q2 results briefing. Earlier in February, DBS said that its oil & gas exposure totalled S$22 billion, of which S$17 billion were loans.
In an update on DBS's exposure to the struggling sector, he said that the riskiest part, some S$7 billion, is to the support services cluster, down from S$9 billion for Q1. He said that S$2 billion of this is to state-owned or government-linked firms and shipyards. While some are under stress, these shipyards are part of large conglomerates that have other sources of support.
The sector is made up of producers, traders, processors and the riskiest, support services. DBS said that it has no material weakness in its producers, traders and processors portfolio. Swiber was a support service firm and 13 banks and financial institutions had extended to the group banking facilities totalling in excess of US$736 million; with DBS accounting for the lion's share of S$721 million.
Drilling further into the support services exposure, Mr Gupta said that the remaining S$5 billion which is 90 per cent secured, comprises S$2.3 billion to five names of which one has weakness. The remaining S$2.7 billion has 90 names and one third of that has weakness or S$900 million.
"Some are Swiber linked" and he expects "some contagion" coming in H2. Even with more bad loans expected, he said that DBS's total non-performing loan ratio for full year 2016 should not exceed 1.3 to 1.4 per cent. For Q2, NPL rose to 1.1 per cent from 0.9 per cent a year ago and one per cent for Q1.
He noted that the bulk of the bank's security were charter vessels that are valued every six months, and these have been coming down.
The sector remains under stress and even with oil prices recovering to US$40-45, there were more contract cancellations than in Q1, he said. Oil prices fell to 13-year lows of below US$30 per barrel in January.
At the end of last year, the loan to value against these vessels were running at 50-60 per cent, he said. At the latest valuations at the end of June, LTVs are between 70-80 per cent.
"If I can get the LTVs today, I can recover all of my loans. Assume the vessels don't even get those valuations, and there is another 10-20 per cent haircut, we will still recover all of our loans."
On how DBS was caught off guard by Swiber's collapse, he said that it was a firm that the bank had been doing business with for some 10 years; at end-June, it had "zero overdue with us".
Describing Swiber as "idiosyncratic" and "not representative of Singapore's oil & gas industry", he said that it was one of a handful of names in Singapore which do a contracting business.
Think of Swiber as a main contractor which gets a contract, then goes to the bank for a performance bond, asks for working capital to buy materials, hire workers to get the job done which generally takes 2-3 years, he said.
The risk for DBS is execution risk and counterparty risk, he said, referring to the ability of Swiber to complete the job and that its customer pays up.
He said that Swiber imploded in six weeks.
DBS had been in close contact with Swiber, it also talked to the private equity firm AMTC that had promised to inject US$200 million into Swiber, but did not do so, leading to the collapse.
Mr Gupta said that AMTC had sent in teams of consultants and lawyers to look at the Swiber deal; he himself had talked to AMTC chief executive Smith O'Connor who told The Business Times last Friday that the deal was still "alive".
DBS was facing a "classic banker's dilemma" as Swiber neared crunch time, he said.
AMTC's injection was being delayed by two weeks, and DBS did have a choice to let the customer default but decided not to, he said.
"I'm not ashamed to say, this is the kind of bank we are. We don't pull the plug on customers."
Part of DBS's S$721 million exposure included S$403 million of working capital for two projects, of which one was 80 per cent completed, the other 50 per cent, he said. DBS also knows Swiber's customer well.
Referring to the S$200 million bridging loan extended in June and July that Swiber used for bond redemptions, Mr Gupta said that the bank was faced with the question of whether it should put in more money to get more back.
He said that DBS private bank clients hold less than 20 per cent of Swiber's outstanding S$540 million bonds, when asked about its private bank exposure.
The total leverage the bank has given to private bank clients against the Swiber bonds is "minuscule" - S$35 million; there were 20 margin calls, all of them have been paid, he said.
Don't need to worry.....
Teamasick will surely bail it out. It's hundreds of billions of USD at its disposal. If Teamasick hasn't enough funds, it can always depend on Sinkie's CPF funds.
It is all in the famiLEE mah!....after all, you have KFC Tan to say Yes! & then you have another "kar ki lang' door keeper at Themaresick....the only & only, 30 + years do f$#$%^k off & get paid & now till doing f%$%&%&k off & et paid....."SIBEH heng lim".
This foreign talent CEO should resign.
借钱给红毛丐帮就等于肉包子打狗有去无还。
he is the contagion
Shit Stirring Angmo Banks downgrade DBS. Kettle calling the pot black!
bloomberg.com
DBS Head Fails to Ease Analyst Discomfort on Energy Exposure
Darren Boey darrenboey
DBS Group Holdings Ltd. Chief Executive Officer Piyush Gupta’s robust defense of his bank’s handling of loans to Swiber Holdings Ltd. has failed to ease some analysts’ concerns that more losses could emerge from financing the struggling energy-services industry.
Following a briefing with Gupta on Monday, Goldman Sachs Group Inc. and Credit Suisse Group AG issued reports saying asset quality remains a concern for DBS, with the latter firm downgrading the Singaporean lender’s stock to neutral from outperform. The consensus analyst rating on Southeast Asia’s largest bank has dropped to the lowest in almost seven years, according to recommendations compiled by Bloomberg.
In its second-quarter results on Monday, DBS disclosed an exposure of S$721 million ($537 million) to Swiber and took S$150 million of provisions for losses related to the energy-services firm, which is under court supervision as it tries to turn its business around. DBS had an exposure of S$7 billion to oil support-services companies other than Swiber, a presentation from the bank showed.
“We expect concerns over asset quality to weigh on price performance,” Credit Suisse analysts Danny Goh and Dawei Lee wrote in an Aug. 8 report. There are “signs of stress” in the bank’s remaining oil and gas exposure, they said.
Energy Risk
The expense DBS set aside to cover Swiber dragged its second-quarter profit down by 6 percent. The lender’s stock has fallen 6 percent since July 28, when it first said it would take provisions for the troubled company. The bank’s shares sank 0.7 percent to S$14.93 as of 10:34 a.m. in Singapore on Wednesday, taking their drop this year to 11 percent.
In breaking down its risk to energy services, DBS said S$2.3 billion was to five oil-services companies, one of which “has weakness.” A third of another S$2.7 billion portfolio of loans to 90 companies was also classified as weak, according to the presentation. It didn’t identify the companies and Gupta, 56, declined to give names at a press briefing Monday.
“Some worries on asset quality will linger,” Goldman Sachs analysts wrote in an Aug. 8 report. The New York-based bank has a buy rating on DBS with a 12-month target price of S$17.60.
For a story detailing efforts to revive Swiber, click here.
CIMB Group Holdings Bhd. analyst Jessalynn Chen cut her recommendation on DBS to hold from add in a report the same day, and reduced her 2016-2018 earnings forecasts on expectations of higher oil and gas provisions and lower net interest margins.
Singaporean banks’ loans to oil and gas-services providers have been in the spotlight since Swiber sought to liquidate its operations after facing payment demands from creditors, a plan it later dropped in favor of judicial management. Many companies that specialize in servicing oil and gas producers are suffering as the plunge in crude prices since 2014 curtails exploration.
At the media briefing, Gupta indicated the lender was caught off guard by how quickly Swiber collapsed and defended his bank’s decision to extend the troubled company S$197 million of bridging loans in June and July to cover bond redemptions.
DBS’s exposure to Swiber also includes S$403 million to finance working capital for two projects. Swiber is an “idiosyncratic” case because its financing is secured against working capital rather than physical assets, unlike other Singaporean companies in the same sector, said Gupta, who has led DBS since November 2009.
CEO Checked
The CEO said he had personally checked up on Swiber’s financial health three months ago. He said the bank had spoken with a would-be investor to ensure an equity injection would be coming before deciding to extend the bridging loans.
“The problem is Swiber imploded in six weeks,” Gupta said. “Between the end of May through mid-July, people said you should have known -- but none of the indicators were showing.”
He provided enough detail at the briefings on Monday to convince Aberdeen Asset Management Plc investment manager Christina Woon that the bank “had a handle on the matter.”
bloomberg.com
DBS Head Fails to Ease Analyst Discomfort on Energy Exposure
Darren Boey darrenboey
DBS Group Holdings Ltd. Chief Executive Officer Piyush Gupta’s robust defense of his bank’s handling of loans to Swiber Holdings Ltd. has failed to ease some analysts’ concerns that more losses could emerge from financing the struggling energy-services industry.
Following a briefing with Gupta on Monday, Goldman Sachs Group Inc. and Credit Suisse Group AG issued reports saying asset quality remains a concern for DBS, with the latter firm downgrading the Singaporean lender’s stock to neutral from outperform. The consensus analyst rating on Southeast Asia’s largest bank has dropped to the lowest in almost seven years, according to recommendations compiled by Bloomberg.
In its second-quarter results on Monday, DBS disclosed an exposure of S$721 million ($537 million) to Swiber and took S$150 million of provisions for losses related to the energy-services firm, which is under court supervision as it tries to turn its business around. DBS had an exposure of S$7 billion to oil support-services companies other than Swiber, a presentation from the bank showed.
“We expect concerns over asset quality to weigh on price performance,” Credit Suisse analysts Danny Goh and Dawei Lee wrote in an Aug. 8 report. There are “signs of stress” in the bank’s remaining oil and gas exposure, they said.
Energy Risk
The expense DBS set aside to cover Swiber dragged its second-quarter profit down by 6 percent. The lender’s stock has fallen 6 percent since July 28, when it first said it would take provisions for the troubled company. The bank’s shares sank 0.7 percent to S$14.93 as of 10:34 a.m. in Singapore on Wednesday, taking their drop this year to 11 percent.
In breaking down its risk to energy services, DBS said S$2.3 billion was to five oil-services companies, one of which “has weakness.” A third of another S$2.7 billion portfolio of loans to 90 companies was also classified as weak, according to the presentation. It didn’t identify the companies and Gupta, 56, declined to give names at a press briefing Monday.
“Some worries on asset quality will linger,” Goldman Sachs analysts wrote in an Aug. 8 report. The New York-based bank has a buy rating on DBS with a 12-month target price of S$17.60.
For a story detailing efforts to revive Swiber, click here.
CIMB Group Holdings Bhd. analyst Jessalynn Chen cut her recommendation on DBS to hold from add in a report the same day, and reduced her 2016-2018 earnings forecasts on expectations of higher oil and gas provisions and lower net interest margins.
Singaporean banks’ loans to oil and gas-services providers have been in the spotlight since Swiber sought to liquidate its operations after facing payment demands from creditors, a plan it later dropped in favor of judicial management. Many companies that specialize in servicing oil and gas producers are suffering as the plunge in crude prices since 2014 curtails exploration.
At the media briefing, Gupta indicated the lender was caught off guard by how quickly Swiber collapsed and defended his bank’s decision to extend the troubled company S$197 million of bridging loans in June and July to cover bond redemptions.
DBS’s exposure to Swiber also includes S$403 million to finance working capital for two projects. Swiber is an “idiosyncratic” case because its financing is secured against working capital rather than physical assets, unlike other Singaporean companies in the same sector, said Gupta, who has led DBS since November 2009.
CEO Checked
The CEO said he had personally checked up on Swiber’s financial health three months ago. He said the bank had spoken with a would-be investor to ensure an equity injection would be coming before deciding to extend the bridging loans.
“The problem is Swiber imploded in six weeks,” Gupta said. “Between the end of May through mid-July, people said you should have known -- but none of the indicators were showing.”
He provided enough detail at the briefings on Monday to convince Aberdeen Asset Management Plc investment manager Christina Woon that the bank “had a handle on the matter.”
CEO of bank got fooled? Swiber gamed the indicators? or outright fraud and deception involved?
stories like these sure inspire confidence in the markets....
never trust an ah neh esp one who upgraded from f trash to shitizen,,,,,,,,,,,,,,,,,,to him sgian so easy to bluff one!!!!!!!!!!!!!!
http://www.businesstimes.com.sg/com..._medium=Social&utm_source=Facebook&xtor=CS1-3
[SINGAPORE] The recent drubbing in Singapore bank stocks is turning Southeast Asia's biggest lenders into bargains for money managers including Aberdeen Asset Management Plc.
DBS Group Holdings Ltd lost S$3.6 billion in market value in seven days from July 28 when its client Swiber Holdings Ltd signalled it was in financial trouble.
DBS's two smaller domestic rivals slid at least 5 per cent. With bank stocks priced near their cheapest since the depths of the global financial crisis, Nader Naeimi of AMP Capital Investors Ltd says it's time to buy, while Aberdeen's Hugh Young says they'll prove resilient to any debt exposure.
"The banks are strong and valuations are reasonable, backed by decent dividends," Mr Young, Singapore-based managing director at Aberdeen, which oversees about US$420 billion, said by e-mail.
"Generally, they're a buy. There will be other Swibers so it is a risk. If you wait until the problems are sorted, the prices would have moved. It's not an easy call, but at these levels, a fair chunk of bad news is in the price."
The fallout from the energy-services firm's troubles add to the struggles facing Singapore's lenders as they navigate their exposure to energy-related companies amid spending cuts by explorers and an economy estimated to expand at the slowest pace in seven years in 2016. That's weighed on the island nation's equities this year, the worst performers among major Southeast Asian peers after Malaysia, and the only country in the region where earnings are projected to shrink in the next 12 months.
DBS is down almost 10 per cent this year and is trading at the lowest level since January 2013 relative to the MSCI Asia Pacific Index. The Singapore bank is valued at 0.9 times net assets, below the multiples for United Overseas Bank Ltd and Oversea-Chinese Banking Corp, data compiled by Bloomberg show. Shares of UOB have fallen 7.9 per cent in 2016 while OCBC has declined 3.5 per cent.
"Banks are a great buying opportunity at these levels," said Naeimi, Sydney-based head of dynamic markets at AMP Capital, which oversees about US$120 billion.
"Most of the bad news is priced in."
Court Supervision
Swiber, facing about US$50.5 million of demands last month from various creditors, said July 29 that it's seeking to operate under court supervision as it attempts to turn around its business. Two days earlier, it had filed a petition for liquidation, which was dropped following talks with lenders.
Swiber's woes are the latest example of the difficulties engulfing the oil industry since crude prices plunged more than 50 per cent in two years and forced explorers such as Royal Dutch Shell Plc and Statoil ASA to cut spending.
The rout in commodity shares and Singapore lenders dragged the benchmark Straits Times Index to 1.1 times book value, compared with 1.4 for the MSCI Asia Pacific Index. That's the biggest discount since the financial crisis.
Not everyone is rushing to buy bank shares just yet.
"The defaults in the energy sector are just starting so it's still too early to nibble," said Kar Tzen Chow, Kuala Lumpur-based fund manager at Affin Hwang Asset Management Bhd, which oversees about US$7.6 billion.
"The discount reflects the fundamental outlook for Singapore, with global growth and external demand remaining weak."
Swiber Exposure
DBS said on Monday that second-quarter profit declined 6 per cent as provisions for Swiber overshadowed gains in interest and fee income. The bank's exposure to Swiber amounted to S$721 million, according to a presentation accompanying its results. Chng Sok Hui, DBS's chief financial officer, said at the briefing that she expects to recover more than S$320 million of the bank's total exposure.
Swiber is an "idiosyncratic" case as its financing is secured against working capital rather than physical assets, unlike other Singaporean companies in the same industry, DBS chief executive officer Piyush Gupta said.
The Straits Times gauge is down 0.4 per cent in 2016. Shares on the measure trade at 13 times 12-month projected earnings, below the 10-year average multiple of 13.3.
"The Singapore equity market definitely interests me," said AMP's Naeimi.
"Bank valuations offer a good buffer against bankruptcies in marginal oil services players."
[SINGAPORE] The recent drubbing in Singapore bank stocks is turning Southeast Asia's biggest lenders into bargains for money managers including Aberdeen Asset Management Plc.
DBS Group Holdings Ltd lost S$3.6 billion in market value in seven days from July 28 when its client Swiber Holdings Ltd signalled it was in financial trouble.
DBS's two smaller domestic rivals slid at least 5 per cent. With bank stocks priced near their cheapest since the depths of the global financial crisis, Nader Naeimi of AMP Capital Investors Ltd says it's time to buy, while Aberdeen's Hugh Young says they'll prove resilient to any debt exposure.
"The banks are strong and valuations are reasonable, backed by decent dividends," Mr Young, Singapore-based managing director at Aberdeen, which oversees about US$420 billion, said by e-mail.
"Generally, they're a buy. There will be other Swibers so it is a risk. If you wait until the problems are sorted, the prices would have moved. It's not an easy call, but at these levels, a fair chunk of bad news is in the price."
The fallout from the energy-services firm's troubles add to the struggles facing Singapore's lenders as they navigate their exposure to energy-related companies amid spending cuts by explorers and an economy estimated to expand at the slowest pace in seven years in 2016. That's weighed on the island nation's equities this year, the worst performers among major Southeast Asian peers after Malaysia, and the only country in the region where earnings are projected to shrink in the next 12 months.
DBS is down almost 10 per cent this year and is trading at the lowest level since January 2013 relative to the MSCI Asia Pacific Index. The Singapore bank is valued at 0.9 times net assets, below the multiples for United Overseas Bank Ltd and Oversea-Chinese Banking Corp, data compiled by Bloomberg show. Shares of UOB have fallen 7.9 per cent in 2016 while OCBC has declined 3.5 per cent.
"Banks are a great buying opportunity at these levels," said Naeimi, Sydney-based head of dynamic markets at AMP Capital, which oversees about US$120 billion.
"Most of the bad news is priced in."
Court Supervision
Swiber, facing about US$50.5 million of demands last month from various creditors, said July 29 that it's seeking to operate under court supervision as it attempts to turn around its business. Two days earlier, it had filed a petition for liquidation, which was dropped following talks with lenders.
Swiber's woes are the latest example of the difficulties engulfing the oil industry since crude prices plunged more than 50 per cent in two years and forced explorers such as Royal Dutch Shell Plc and Statoil ASA to cut spending.
The rout in commodity shares and Singapore lenders dragged the benchmark Straits Times Index to 1.1 times book value, compared with 1.4 for the MSCI Asia Pacific Index. That's the biggest discount since the financial crisis.
Not everyone is rushing to buy bank shares just yet.
"The defaults in the energy sector are just starting so it's still too early to nibble," said Kar Tzen Chow, Kuala Lumpur-based fund manager at Affin Hwang Asset Management Bhd, which oversees about US$7.6 billion.
"The discount reflects the fundamental outlook for Singapore, with global growth and external demand remaining weak."
Swiber Exposure
DBS said on Monday that second-quarter profit declined 6 per cent as provisions for Swiber overshadowed gains in interest and fee income. The bank's exposure to Swiber amounted to S$721 million, according to a presentation accompanying its results. Chng Sok Hui, DBS's chief financial officer, said at the briefing that she expects to recover more than S$320 million of the bank's total exposure.
Swiber is an "idiosyncratic" case as its financing is secured against working capital rather than physical assets, unlike other Singaporean companies in the same industry, DBS chief executive officer Piyush Gupta said.
The Straits Times gauge is down 0.4 per cent in 2016. Shares on the measure trade at 13 times 12-month projected earnings, below the 10-year average multiple of 13.3.
"The Singapore equity market definitely interests me," said AMP's Naeimi.
"Bank valuations offer a good buffer against bankruptcies in marginal oil services players."
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