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Sunday, January 21, 2018

Offshore Shares News

Offshore Shares Driving The Oslo Market

Share prices in Oslo rose in August for the sixth consecutive month, and can thus show for positive share price movements for seven out of eight months so far this year. While the All Share Index gained another 2.4 percent in August, the Shipping Index was a little behind with a 1.4 percent increase. Shipping and Offshore shares are up 43.2 percent for the year. The oil price continued to rise in August. For the first time since October 1997 North Sea oil for immediate delivery (Brent spot) was traded at more than USD 21 per barrel, doubling the oil price since January. Oil-related shares are obediently following the oil price with the value of offshore shares on the Main List rising 11 percent in August after the July rise of 20 percent. TGS Nopec (TGS), Det Søndenfjeldske (SFJ) and Fred.

Offshore shares driving the market

Share prices in Oslo rose in August for the sixth consecutive month, and can thus show for positive share price movements for 7 out of 8 months so far this year. While the All Share Index gained another 2.4 percent in August, the Shipping Index was a little behind with a 1.4 percent increase. Shipping and Offshore shares are up 43.2 percent for the year. The oil price continued to rise in August. For the first time since October 1997 North Sea oil for immediate delivery (Brent spot) was traded at more than USD 21 per barrel, doubling the oil price since January. Oil-related shares are obediently following the oil price with the value of offshore shares on the Main List rising 11 percent in August after the July rise of 20 percent. TGS Nopec (TGS), Det Søndenfjeldske (SFJ) and Fred.

Oslo Stock Watch

Shipping and offshore shares performed well in March with an increase in the Shipping Index of 2.3 percent. The Oslo market as a whole fell 2.2 percent, much due to the world-wide price fall for the IT and telecom sector. Despite the uncertainty about the outcome of the OPEC meeting on March 27 and 28, a number of offshore shares rose significantly during the month. Even though the oil price fell slightly as a result of the meeting, it is obviously within a price range that is considered as comfortable by investors. The two share classes in Smedvig (SME and SMEB) were both up about 19 percent in the period, topping the long list of positive performers in the offshore sector. All but five of the listed offshore shares increased their value during March.

Offshore Climbing Higher In Oslo

Shipping and offshore shares performed well in March with an increase in the Shipping Index of 2.3 percent. The Oslo market as a whole fell 2.2 percent, much due to the world-wide price fall for the IT and telecom sector. Despite the uncertainty about the outcome of the OPEC meeting on March 27 and 28, a number of offshore shares rose significantly during the month. Even though the oil price fell slightly as a result of the meeting, it is obviously within a price range that is considered as comfortable by investors. The two share classes in Smedvig (SME and SMEB) were both up about 19 percent in the period, topping the long list of positive performers in the offshore sector. All but five of the listed offshore shares increased their value during March.

Superior Offshore Shares Plunge

Shares of Superior Offshore International Inc., plunged after the company delayed filing its third-quarter financial statement. Superior Offshore shares dropped 77 cents, or 9 percent, to close at $7.83, after plunging 24 percent to $6.56 earlier in the session. The stock has dropped more than 40 percent since its initial public offering priced at $15 in April. In a Securities and Exchange Commission filing, Superior Offshore said the third-quarter filing was delayed as the company determines whether it is required to reclassify long-term debt as current debt. Superior Offshore said the reclassification may be necessary under the terms of a waiver from a lender related to defaults on the company's senior secured term loan facility.

Offshore Shares Are Leading The Way

Offshore shares on the Oslo Stock Exchange continued to rise in November, buoyed by the continuing high oil price and expectations of increased level of activities from oil companies in the year 2000. After a few dismal months, offshore shares regained the positive position they have occupied for most of the year. Other maritime shares fell during November so it was offshore and cruise that carried the Shipping Index to a 1.9 percent rise for the month and the rise of 36.2 percent for the year so far. TGS Nopec Geophysical Company (TGS), a seismic operator with a market cap of about NOK 2 billion, was up 33 percent in November. TGS, one of the most heavily traded shares in Oslo, both within the offshore sector on the exchange and throughout, is up 164 percent so far this year.

Shipping Outperforming Offshore In October

Higher oil prices have helped the Oslo Stock Exchange's shipping index, which features maritime and offshore shares, to rise by 33.7 percent so far this year - outperforming the exchange's other indexes. Share prices of offshore shares have decreased for two months now, resisting the influence of continued buoyant oil prices. The value of shares on the Main List dropped 5.6 percent in September and 13.6 percent in October. The 19.6 percent price fall recorded by the seismic company Petroleum Geo-Services (PGS), the biggest offshore company on the Exchange, was the main contributor. The SMB-listed offshore company Ocean Rig (OCR) tops the losers list for the second month running, having sliced almost 30 percent off its share price in October. Big players such as Fred.

Bouygues Offshore's Stock Outperforms

Morgan Stanley Dean Witter raised its recommendation today on French oil services company Bouygues Offshore to "outperform" from "neutral" and gave a price target of 55 euros ($48.47) for the stock. "Sector outlook remains strong for 2001 in our view," said MSDW analysts, adding that valuation on Bouygues Offshore was now compelling on their estimates. Bouygues Offshore shares were up 1.28 percent at 44.97 euros ($39.63).

Seadrill Sells FPSO Crystal Sea

Seadrill Limited, the owners of the Crystal Sea, have completed a sale of the FPSO vessel to BW Offshore. The total consideration for the FPSO vessel is $80 million of which $60 million in cash and U20 million in BW Offshore shares. BW Offshore Limited is a Oslo Stock Exchange listed company.

Stolt Offshore To Settle Share Guarantee

Stolt Offshore S.A. announced that, as expected, Vinci, the owner of the 6.1 million Stolt Offshore Common shares issued as partial compensation in the ETPM acquisition in December 1999, has advised Stolt Offshore of its intention to sell all of its Stolt Offshore shares as permitted by the ETPM acquisition agreement. Stolt Offshore has in turn advised Vinci that Stolt Offshore will organize this sale. release, it is Stolt Offshore's intention to buy back these shares and to do so in the second quarter of this year. The transaction will be funded through the use of existing Stolt Offshore S.A. credit facilities and the sale of Common shares to Stolt Offshore S.A.'s parent company, Stolt-Nielsen. S.A., and/or other interested parties for up to $65 million.

Oslo Offshore Shares Stumble in September

Offshore shares have been the winners in recent months on the back of a rapidly rising oil price. In September however, this sector dipped 5.9 percent to show the poorest price performance on the Main List. PGS's (PGS) price fall of 7.3 percent was the main contributor. Fred. Olsen Energy (FOE) and Smedvig (SME & SMEB) dropped 12.6 and 10.3 percent respectively. This was despite a continuing rise in the oil price resulting from OPEC discipline and declining oil stocks. Not since January 1997 has North Sea oil commanded such high prices as today. The SMB-listed Ocean Rig (OCR) almost halved its value during September, much due to a new issue that are being executed at a much lower price than expected.

Strong Finish To A Strong Year In Oslo

A December rally on the Oslo Stock Exchange gave maritime shares an extra glitter and ensured a strong finish to an already strong year. Shipping and offshore shares performed marginally better than shares on the general Oslo market during 1999, rallying 8.6 percent in December to finish the year a solid 48.0 percent above last year's close. The All Share Index, which includes all shares on the Main List, was up 45.5 percent for the year, and shaking off the dismal record in 1998 when the index dropped 26.7 percent. The All Share Index is still 4.4 percent away from its all time high, while the Shipping Index is 24.4 percent below its top mark.

$230M Offshore Contract Announced

Saibos CML, an equally-owned subsidiary of Bouygues Offshore and Saipem SpA, has been awarded a contract for the Kizomba A Development Project in Angola for an approximately total amount of $230 million (Bouygues Offshore's share: approximately $115 million). Esso Exploration Angola (Block 15) Limited (Esso), a subsidiary of Exxon Mobil Corporation, is the operator (40%). Other participants include BP Exploration (Angola) Limited (26.67%), Agip Exploration Angola B.V. (20 %) and Statoil (13.33%). Sonangol is the concessionaire. The three-year contract covers: Engineering, procurement, construction and installation of flowlines for fluid transfer and an umbilical from the FPSO (Floating Production Storage and Offloading) to supply the TLP (Tension Leg Platform) with electricity…

Bouygues Offshore Logs New Contract

Technigaz, a wholly-owned subsidiary of Bouygues Offshore, will build a Liquefied Natural Gas (LNG) tank in Palos de Frontera, Spain under a contract awarded by ENAGAS. This contract, for a total amount of EUR 40 million (Bouygues Offshore's share: EUR 28 million) will be performed by a Joint-Venture of Technigaz (70%) and Initec (30%). The customer, ENAGAS, is the only LNG importer in Spain so far. This turnkey contract covers Engineering, Procurement, Construction and pre-commissioning of a full-containment storage tank for the extension of the LNG import terminal located in Huelva harbor on the Atlantic Ocean. The inner tank will be made of 9% nickel steel with perlite insulation to maintain the LNG at a temperature of -163(degree)C…

Diamond Offshore profit falls as rig demand softens

Diamond Offshore Drilling Inc, one of the world's top five offshore rig contractors, reported a 17 percent drop in quarterly profit as demand fell for rigs used in deep water drilling. Contract drillers face a tough year as vessels ordered during boom times are delivered just as energy companies are tightening spending on offshore exploration. Diamond Offshore, whose competitors include Ensco Plc , Transocean Ltd and Helmerich & Payne Inc , has two rigs due for delivery in 2014 but has yet to land contracts for them. While the fall in rig demand and utilization is likely to affect the entire sector, analysts expect Diamond Offshore to fare worse than rivals, given the age of its fleet.

Gas Prices, Offshore Shares Fall In Tandem

Gasoline prices on the benchmark New York Mercantile Exchange (NYMEX) Monday dipped below 90 cents a gallon for the first time in nearly three months, signaling the end of this summer's red-hot run. After trading above a record $1.05 a gallon for most of June, front month gasoline futures have made a 16 percent dive to Monday's midday low of 88.50, the lowest intraday level seen since May 4. Gasoline last closed below 90 cents a gallon on May 3. The fall in gasoline prices, which amounts to over 20 cents since June and nearly ten cents over the past three trading days, comes amid a seasonal shift in the market from the summer driving season to the lag stage before the winter heating season heats up.

Aker Kvaerner Acquires RR Offshore

Aker Kvaerner has entered into an agreement which gives full ownership of Finnish RR Offshore and ends the co-operation between Aker Kvaerner and its former Russian partner ST Holdings. As part of the agreement, Aker Kvaerner sells its shares in the Astrakhan Korabel yard to ST Holding. The parties have agreed to not disclose any transaction values. RR Offshore OY is a Finnish engineering and project management company with considerable experience in Russia and the North Caspian region. From before, Aker Kvaerner owned 26 per cent of the shares in the company. Aker Kvaerner is actively positioning itself for future projects in Russia and the Caspian region.

Maritime Shares Make A Comeback

Share prices in Oslo continued to rise during June and in the first six months of 1999 the Shipping Index rocketed 30.6 percent. The All Share Index is not far behind with an increase of 23.7 percent during the same period. Trading at the Oslo Stock Exchange has never been more active than in 1999 so far with the daily average turnover for the first half of the year at NOK 1,640 million. This is 27.1 percent higher than the average for the whole of 1998. On average 4,775 transactions were carried out each day during June.This is 42 percent higher than the average for last year.The Italian company Navigazione Montanari has offered NOK 60 per share in I.M. Skaugen (SKA), sending the stock up almost 40 percent and to the top of the winner list for June.

Eidesvik Scores Work for Two Vessels

Photo: Eidesvik Offshore ASA

Norwegian shipping company Eidesvik Offshore ASA  has signed a letter of intent (LoI) with Seabed Geosolution for the use of  two vessels. Contract commencement are ultimo January to primo February and the duration is expected to last for the remaining part of 2018. The LoI is for the use of the multi-purpose support vessel Subsea Viking and for the use of the seismic vessel Vantage. Recently, Eidesvik Invest AS, together with some of the largest shareholders in Eidesvik Offshore, have undertaken to subscribe new equity in a private placement of NOK 120 million at a price of NOK 5 per share.

Shipping And Offshore Beating The Market

While the All Share Index dropped 2.1 percent during January, maritime shares were the best performing sector at the Oslo Stock Exchange as the Shipping Index rose 3.6 percent. Shares worth of NOK 54.2 billion changed hands in 196,710 trades in January. On average, 9,367 trades to a value of 2,582 million were transacted daily, compared with last year's figures of 5,292 trades and NOK 1,770 million respectively. As much as 90.3 percent of all trades were automatically matched in the now one year-old trading system. Royal Caribbean Cruises (RCL) and NCL Holding (NCL), the two cruise operators listed at the Exchange, experienced a good month as they climbed 12.3 and 11 percent respectively. Competitive bidding made NCL Holding the second most active share in Oslo.

Keppel AmFELS to Deliver Scorpion Jackup

Keppel AmFELS Inc., the U.S. subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), is on course to a timely delivery of Scorpion Offshore Ltd.’s first jackup drilling rig at the end of May 2007. The ultra premium drilling rig, Offshore Courageous, is the first of five jackups that Keppel AmFELS is constructing for Scorpion Offshore. The other four rigs are Offshore Defender, Offshore Resolute, Offshore Vigilant and Offshore Intrepid. Mr Ho Cheok Yuen, President and CEO of Keppel AmFELS, said, “Keppel AmFELS and Scorpion Offshore share a win-win partnership. The close collaboration and open communication between the teams are key factors that contributed to the success of the project. “As with many shipyards worldwide, Keppel AmFELS is faced with high level of activities.

Training Initiative by BW Offshore & Seagull

BW Offshore & Seagull's Training Initiative

BWO Offshore and Seagull Oil & Gas are cooperating to develop industry-leading training material for the offshore industry. Building on a training relationship stretching back almost two decades, BW Offshore and Seagull are developing new training material to cover BW Offshore’s process and production operations. “This is a great opportunity for Seagull Oil & Gas,” says Morten Aasen, Managing Director, Seagull Oil & Gas. “We have the ambition to offer the most comprehensive training library for the oil & gas industry, and BWO Offshore is an ideal partner for us.

Stolt Offshore Announces $110 Million Contract

Stolt Offshore S.A. has secured a contract from Shell Petroleum Development Company (SPDC) in Nigeria for the ForcadosYokri offshore development in the Niger Delta. The $245 million contract has been awarded to a consortium of Stolt Offshore and the Nigerian company Suffolk which is part of the Adamac group. The Stolt Offshore share of the contract is $110 million. The Forcados Yokri project includes the expansion and refurbishment of existing shallow water oil and gas production and process facilities and the fabrication and the installation of a new production platform with a 250 tonne jacket and 1,300 tonne topsides. Stolt Offshore is responsible for all of the engineering…

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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