4 Quick Things to Know About DBS Group Holdings Ltd’s Exposure to Oil and Gas
DBS Group Holdings Ltd (SGX: D05) held its second-quarter earnings briefing earlier this month.
Piyush Gupta, Chief Executive Officer for DBS Group, spent some time talking about DBS Group’s exposure to the oil and gas industry. He referred to the slide below for his presentation:
Source: DBS Group’s presentation
Here’re four quick notes from the briefing:
1. The weakest part of DBS Group’s oil and gas portfolio is in the support services segment. This segment accounted for around $7 billion exposure, relatively unchanged from a quarter ago.
2. From this exposure, a $1.8 billion portion belongs to state-owned or government-linked shipyards. Gupta said that this block is considered not at risk.
3. The remaining $5.5 billion can be further split into two blocks. The first block, worth around $2.4 billion, consists of five companies. The block was worth $2.6 billion a quarter ago, but Gupta said that DBS Group has written off some non-performing loans from this block. Two of the five companies remain classified as non-performing assets (NPA).
4. The other block which had an exposure of around $3 billion was distributed among 100-odd companies. Around 60% of the segment remains weak. In the first-half of the year, $600 million from this block has been moved to NPA. In total, $800 million from this block has been categorised as NPA, which resulted in provisions of $300 million.