Vantage Orders New Drillship

MarineLink.com
Thursday, July 11, 2013

Vantage announced the order of its fifth drillship, the Cobalt Explorer, to be built at Daewoo for an August 2015 delivery. The company will issue convertible debt to fund the initial $60 million yard payment.

Last night, Vantage announced a construction contract with DSME to build the Cobalt Explorer, which they said will be one of the highest-spec drillships in the global fleet when it is delivered in August of 2015. When the Palladium Explorer is delivered toward the end of 2015 (the Cobalt will actually be delivered earlier) Vantage will have five modern drillships and four high-spec jackups. We believe the company will be just starting to reach the point where a growing scale will lead to increased profitability as fixed costs are spread over a larger number of rigs.

The company announced a $75 million convertible debt offering in conjunction with the Cobalt order, which will be used to fund the initial $59.5 million shipyard payment. The remaining payments on the rig will be heavily back-end loaded which will likely improve the economics of the project. While the convertible offering may pressure shares in the near-term, the order is accretive to our NAV estimate; it is likely that the remaining cost of the rig will be financed through more attractive debt instruments that will be raised once the rig is contracted.

The Cobalt will be able to drill in 10,000 feet of water and to depths of 40,000 feet. It will be equipped with two seven-ram BOP's and will be capable of dual-activity operations. The Cobalt is the fourth rig VTG has ordered from DSME, (the Palladium joint venture rig will be built at the STX yard) and will have the same equipment on board as its sister ships Tungsten, Titanium and Platinum (Aker drilling package and Cameron subsea systems). While the all-in construction cost was not disclosed it its likely in the range of ~$625 million; the second BOP and additional equipment will likely add to the final cost of the rig.

While the company’s 2013 estimate remains unchanged at $0.02, it is lifting 2014 and 2015 estimates to $0.35 and $0.45 (from $0.30 and $0.40, respectively), as it tempers opex assumptions and take into account the announced contract on the Sapphire Driller. The company’s NAV estimate rises to $2.77 per share (from $2.49) while the price target is unchanged at $2.50 (0.9x NAV).

cowen.com
 

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

Shipbuilding

Rederij Groen Takes Delivery of 7-Waves

Rederij Groen’s entire SRSV fleet built by Damen Maaskant Shipyards Stellendam. Dutch offshore services company Rederij Groen has taken delivery of the 7-Waves,

De Beers Orders Specialized Ship from Kleven

Kleven signed a contract with diamond company De Beers Marine Namibia, part of De Beers Group, on the building of a highly specialized vessel for deep water mineral exploration.

FMT Options for another Towboat from Eastern

Eastern Shipbuilding Group, Inc. announce that Florida Marine Transporters, Inc. of Mandeville, La. exercised another additional 90’x32’x10’ “Canal Class” Inland

Vessels

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

UN Authorizes Ship Inspections Near Somalia For Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

Offshore Energy

New Oil Field Found in British North Sea

GDF SUEZ E&P UK Ltd and BP today announced a new exploration discovery in the UK Central North Sea. The discovery, which spans GDF SUEZ operated block 30/1f

A History of U.S. Oil Export Controls

On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war.

Three Dead in Offshore Platform Accident

Three workers were killed and one is still missing after an accident at one of the offshore oil and gas platforms in the Caspian Sea in Azerbaijan, Azeri state energy company SOCAR said on Thursday.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Ship Repair Sonar
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: 0.1136 sec (9 req/sec)