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Offshore floater market is still massively oversupplied (thanks to lower oil prices brought about by incremental US shale oil production), and stacked rigs still cost to maintain - - steel sitting in salt water doesn't keep well indefinitely, and offshore drillers are cash strapped. To that end, rig owners have have scrapped dozens of old rigs - - anything older than a ~2005 build date is at risk (that includes 3rd, 4th, and 5th gen floaters, as well as some weaker 6th gen assets). I agree that the the offshore sector is appearing to have bottomed - - the question is how long can the drillers stay solvent until a real recovery occurs. Pay attention to balance sheets. While levered names have the most ups, they are still at very much at risk of going bankrupt (as ATW would have gone had ESV not bought them). There's a lot of money to be made if you get the names/timing right, but it could be a long volatile road.
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