Android app on Google Play

Dril-Quip (DRQ) Scores Larger Than Expected Share of Shell Malikai TLP Contract

March 14, 2013 1:42 PM EDT Send to a Friend
Get Alerts DRQ Hot Sheet
Price: $112.06 --0%

Rating Summary:
    9 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade DRQ Now!
Join SI Premium – FREE
This morning Dril-Quip, Inc. (NYSE: DRQ) announced it has been awarded a contract to supply drilling and production equipment services to Sabah Shell Petroleum Company Limited for the Shell Malikai TLP project located offshore Malaysia in approximately 1,800 feet of water.

Commenting on the news, analyst Tom Curran of Wells Fargo said "[We were] surprised with a much larger share of its total accessible market (TAM). Shell awarded DRQ not only the subsea wellheads, but also the tensioner systems, risers, production trees, injection trees and tieback connectors."

Curran estimates revenue of $100 to 130MM.

"That compares to an estimated TAM on Malikai of $135-170MM, and our far too conservative assumption that DRQ would claim $35MM of it," added the analyst.

Wells Fargo has an Outperform rating on Dril-Quip.

For an analyst ratings summary and ratings history on Dril-Quip (NYSE: DRQ) click here. For more ratings news on Dril-Quip click here.

Shares of Dril-Quip closed at $83.37 yesterday.




You May Also Be Interested In


Related Categories

Analyst Comments, Analyst EPS View

Related Entities

Wells Fargo

Add Your Comment