FBR Capital on Nor-Shipping 2011: Operators Seek Brazilian Exposure and Technological Differentiation
Tweet
Share
E-mailGet Alerts PBR Hot Sheet
Price: $19.15 +0.74%
Rating Summary:
10 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
FBR Capital on Nor-Shipping 2011: Operators Seek Brazilian Exposure and Technological Differentiation
FBR analyst said, "Representatives from hundreds of offshore companies gathered at Nor-Shipping 2011 to share their views of and solutions for the rapidly changing landscape of maritime industries. Topics ranged from new trends in technology in a post-Macondo world to the impact that Petrobras and the Brazilian pre-salt deposits will have on the offshore sector. At Marine Money's 13th Annual Norway Ship & Offshore Finance Forum, companies and financiers discussed the issues and opportunities awaiting the offshore industry, particularly regarding financing growth, as well as differences in perspective between equipment owners and their banks. We believe the most striking takeaways related to the ongoing development of Brazil's offshore resources, which should be a particular boon for shuttle tankers, offshore service vessels (OSVs), and deepwater drilling rigs. The offshore drilling market on the whole looks strong, but high-specification rigs are the order of the day with many expecting technologically advanced equipment to command premium pricing, higher-than-average utilization, and improved reliability."
"The Brazilian opportunity: A central theme of the conference was the rise of Brazil and the magnitude of the opportunity for offshore and shipping companies in that market. This was underscored early on by the CEO of Petrobras commenting that he views the firm as a maritime company, with more than 85% of production coming from offshore basins. This should prove a significant boon for companies with offshore exposure to Brazil and relationships with Petrobras (NYSE: PBR), including Ensco (NYSE: ESV), FMC Technologies (NYSE: FTI), and Tsakos Energy Navigation (NYSE: TNP)."
"Outlook for the offshore market. Although concerns have begun to be raised about the size of the offshore drilling orderbook, both industry and financier expectations remain strong. The industry is still focused on newbuilding and does not believe that the current orderbook will prove burdensome given their expectations of demand. However, many recent newbuilds have not yet secured exit financing, and while banks are eager to make loans, it is only to select operators. This should prove an interesting challenge for the industry going forward but will likely not be a problem for the larger offshore drillers. Our favorite drilling stock is Ensco (NYSE: ESV), particularly after the closing of its merger with Pride International (NYSE: PDE). "
FBR analyst said, "Representatives from hundreds of offshore companies gathered at Nor-Shipping 2011 to share their views of and solutions for the rapidly changing landscape of maritime industries. Topics ranged from new trends in technology in a post-Macondo world to the impact that Petrobras and the Brazilian pre-salt deposits will have on the offshore sector. At Marine Money's 13th Annual Norway Ship & Offshore Finance Forum, companies and financiers discussed the issues and opportunities awaiting the offshore industry, particularly regarding financing growth, as well as differences in perspective between equipment owners and their banks. We believe the most striking takeaways related to the ongoing development of Brazil's offshore resources, which should be a particular boon for shuttle tankers, offshore service vessels (OSVs), and deepwater drilling rigs. The offshore drilling market on the whole looks strong, but high-specification rigs are the order of the day with many expecting technologically advanced equipment to command premium pricing, higher-than-average utilization, and improved reliability."
"The Brazilian opportunity: A central theme of the conference was the rise of Brazil and the magnitude of the opportunity for offshore and shipping companies in that market. This was underscored early on by the CEO of Petrobras commenting that he views the firm as a maritime company, with more than 85% of production coming from offshore basins. This should prove a significant boon for companies with offshore exposure to Brazil and relationships with Petrobras (NYSE: PBR), including Ensco (NYSE: ESV), FMC Technologies (NYSE: FTI), and Tsakos Energy Navigation (NYSE: TNP)."
"Outlook for the offshore market. Although concerns have begun to be raised about the size of the offshore drilling orderbook, both industry and financier expectations remain strong. The industry is still focused on newbuilding and does not believe that the current orderbook will prove burdensome given their expectations of demand. However, many recent newbuilds have not yet secured exit financing, and while banks are eager to make loans, it is only to select operators. This should prove an interesting challenge for the industry going forward but will likely not be a problem for the larger offshore drillers. Our favorite drilling stock is Ensco (NYSE: ESV), particularly after the closing of its merger with Pride International (NYSE: PDE). "
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Revolution (RVMD) PT Raised to $179 at Bernstein SocGen Group
- DA Davidson Starts Everus (ECG) at Buy
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
