Global Marine Picture Brightens

Monday, June 12, 2000
As the offshore drilling picture continues to improve, companies such as Global Marine should experience a healthy market capitalization boost as shares fly high simultaneously with oil prices and rig utilization rates. Last week, for example, ABN AMRO raised its 2000 earnings estimate on offshore oil and gas drilling contractor Global Marine Inc. to 60 cents a share from 55 cents. A day previous to the upgrade, Global Marine agreed on contract extensions for three of its rigs at significantly higher daily rental rates. The extensions of 7 to 9 months are for jack-up rigs operating in the U.S. Gulf of Mexico and capable of drilling in water depths of 250 to 300 ft. The details are as follows: Vessel Dayrate Increase Extension Adriatic X $28,000 to $61,000 Nov 3 2000 to May 31 2001 Main Pass IV $18,500 to $49,000 Aug 31 2000 to May 31 2001 High Island 1 $20,000 to $40,000 Sep 17 2000 to May 31 2001 Global Marine spokesman Michael Dawson said the increased dayrates reflected the current tightness of the Gulf of Mexico market for premium jackup rigs capable of drilling in water depths of 250 ft. or greater. "These rigs are 100 percent utilized and there are no idle rigs to put into the market. Any additional rigs would have to be brought here from somewhere else in the world," he said. Dawson said current U.S. natural gas prices of over $4 per thousand cubic feet were spurring demand for rigs that could bring additional gas supplies to market quickly. ABN AMRO reiterated its buy rating and $32 a share price target on the company. Global Marine "remains one of our favorites in the drilling sector," analyst Asit Sen said. Meanwhile, Lehman Bros. analyst Jim Crandell also raised his estimate of Global Marine 2000 earnings per share to $0.60 from $0.55. It noted the contract extensions at sharply higher daily rental rates. Lehman 2000 EPS estimate raised to $0.60 from $0.55. 2001 estimate recently raised to $1.30, 2002 estimate to $2.20, 2003 estimate to $3.75. Stock recommended for purchase.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

STX Shipbuilding Likely to Enter Court-lead Restructuring

South Korean shipbuilder STX Offshore & Shipbuilding Co Ltd will likely need to enter court-supervised receivership due to financial difficulties, the firm's lead

Naviera Nabia Orders Newbuild from Gondan

Gondan Shipyard signed a new contract for the construction of a new vessel for Naviera Nabia, part of Acuña Group, from Bueu (Pontevedra-Spain). This new catamaran

ClassNK Updates Steel Ships Survey/Construction Guide

Classification society ClassNK has released printed versions of its 2016 Rules and Guidance for the Survey and Construction of Steel Ships.   ClassNK regularly

Cruise Ship Trends

FAL Engages Inland Marine Service for Marine Operations

French America Line, the newest U.S. cruise line that begins sailing five- to 10-day cruise itineraries aboard its intimate 75-stateroom flagship Louisiane in August,

Mumbai Port to Revamp Int'l Cruise Terminal

Indian Merchants’ Chamber provides a platform to urban developers to address various issues pertaining to the restructuring of Mumbai City Mumbai, May 23, 2016:

HUMMEL LNG Hybrid Barge Begins Second Season

For over one year the HUMMEL has been contributing to improved air quality at the port of Hamburg. Becker Marine Systems’ LNG Hybrid Barge will also be supplying

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0796 sec (13 req/sec)