Marine Link
Tuesday, November 20, 2018

Stable Oil Prices News

The U.S. Gulf Market: When Will It Turn Around?

Discussions around our office and with various clients usually entail an exchange of anecdotal information believed to explain the current situation with the quest to predict when things will turn around. There are a host of different viewpoints, most seemingly relevant, but no one satisfactory answer. In previous downturns in the offshore service sector, there was usually a fairly clear understanding embraced by most of why things were slow. This downturn is more difficult to understand. Back in 1998 when the Asian financial crisis impacted oil prices, it was easy to see why E&P fell. This downturn also affected most oil fields around the world about the same. The price of oil was too low to drill new wells and upgrade production at a profit.

Transocean to Buy Ocean Rig in $2.7 Bln Deal

© Eugenio Roqueñi / MarineTraffic.com

Offshore oil driller Transocean Ltd said on Tuesday it would buy peer Ocean Rig UDW Inc in a $2.7 billion cash-and-stock deal, its second major acquisition this year as the company bets on a recovery in the offshore sector.The acquisition signals new optimism for offshore drillers, which were hit hard by the steep plunge in oil prices from 2014. Offshore projects, which are more costly than onshore work and take years to develop, became less attractive after oil prices fell to below $30 a barrel in 2016.Global crude prices have since recovered to above $70…

Hansson Sees Positive Outlook for NAO

Photo: NAO

Nordic American Offshore Ltd. (NAO) executive chairman, Herbjørn Hansson, has increased his ownership in the company, purchasing an additional 50,000 NAO shares with his son, Alexander, yesterday at about $7.83 per share. In a letter to NAO shareholders, Hansson shared thoughts on the progress the company has made since first being listed on the New York Stock Exchange (NYSE) in June 2014, entering the Platform Supply Vessel (PSV) market against high, stable oil prices and record investment levels in the offshore segment.

OPEC Heads Plan Summit To Discuss Oil Market

Senior oil ministry officials from OPEC's 11 member states will meet Nov. 17 in Vienna to prepare a rare summit of the cartel's heads of state and discuss the oil market outlook, an OPEC spokesman said. "They will flesh out the agenda for the heads of state summit and discuss the medium-term objective for OPEC, the oil market situation, supply and demand," said Farouk Muhammed, spokesman for the Vienna-based OPEC secretariat. The meeting will be followed in early December by talks in Caracas of senior diplomats and oil ministry officials, plus OPEC Secretary-General Rilwanu Lukman, to complete preparatory work for the summit on March 30. OPEC oil ministers are expected to hold their next full conference in Caracas on March 27, to review a 12-month agreement to cut production.

Jaya Reports $46.1 Million Full Year Net Profit

Jaya Valour (Photo: Jaya)

Jaya Holdings Limited reported consolidated revenue of $201.8 million and net profit of $46.1 million for the financial year ended 30 June 2013. The group’s total revenue for the financial year under review was $201.8 million, 145% higher than the previous financial year. The increase in the group’s revenue was due to increased vessel sales and improved charter utilization. The Offshore Support Services (OSS) Division’s higher revenue for the financial year under review was due to improved utilization of 80% compared to 70% a year ago.

Possibly the Worst Quarter on Zero DSV Utilisation

Pic:  Pacific Radiance Ltd

According to a research note released today from UOB Kay Hian, Singapore offshore vessel operator Pacific Radiance achieved an ominous vessel utilization of 0% for its diving support vessel fleet in the second quarter of 2015. "OSV activities are recovering on more stable oil prices but E&P spending cuts are hampering a strong rebound. There is also 0 utilization for DSV segment in 2Q15," says the note. Pacific Radiance is talking delivery of 6 vessels in 2H15 instead of 8, which is in response to the low tender activity for OSV vessels.

South Korean Shipyards Aim More Orders

Phto: Samsung Heavy Industries

South Korean shipyards have sharply raised their order targets for next year on expectations that the shipbuilding sector will improve, Yonhap reported. The country's three major shipyards - Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine Engineering (DSME),  and Hyundai Heavy Industries (HHI) - are looking at improving business conditions  on the back of a recovery in the global economy and stable oil prices. The report quoted industry sources saying that HHI is targeting US$13.2 billion worth of new orders next year, up 76 percent from this year's $7.5 billion.

Maritime Reporter Magazine Cover Nov 2018 - Workboat Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

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