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 Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Regulations Threaten Superyacht Innovation

To increase innovation within the superyacht industry, designers need to work with flag states, classification societies and naval architects to ensure regulations are workable, as said by experts.

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at

Private Equity Drives New Ship Buys

Ship Registries are an excellent bellwether of industry health and trends, and when Maritime Reporter & Engineering News sought answers to some topical questions,

Cruise Ship Trends

Holland America Line Offers ‘Explore 4’ Early Booking

Holland America Line knows the trend for savvy travelers is to book vacations well in advance. To encourage those early bookings the line is returning with its

Fred. Olsen's ‘Poison, Murder & Mystery Cruise’

Fred. Olsen Cruise Lines is proud to introduce a very unique cruise experience for Summer 2015, aboard its 880-guest ship Boudicca, the like of which guests

MTN Lands Cruise Line SatCom Contracts

MTN Communications (MTN) says that three cruise operators around the world have selected the company for its passenger, crew, corporate communications and content services.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1142 sec (9 req/sec)