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Vantage Drilling Company Message Board

  • zd60610 zd60610 May 19, 2013 9:01 PM Flag

    Dalian ?

    Anyone think Dalian is still in play through the JV?

    Odd the ship is still under construction with no buyer or contract. At this point, the value of the ship has to be dropping when you look at the technology in the Palladium at a mid 600 price point.

    I cant believe the bank owning Dalian is happy tying up $600mm in capital at this stage.

    Thoughts?

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    • ZD

      Now that Odfjell is managing the rig means that Vantage is now out of the picture.
      Thank Goodness, the Rig would have been impossible to keep working at the needed Dayrate.

      Dalian Developer - a versatile drillship
      Odfjell Drilling is hired as manager for the drillship Dalian Developer, the world’s largest and most versatile drillship and field development asset. Dalian Developer will be commissioned for drilling operations during 2013 and Odfjell Drilling is currently assisting the owners in marketing the drillship towards potential clients across the globe.

      The new unit will initially be configured as a drilling asset but it has been

    • Very unlikely. Unless it was at a firesale price and there was a 7+ year record dayrate contract behind it. Plus, I would have to think that the Tungsten would need to have started working. If there was a mid-sept delivery on the vessel then it could pop back into play. But the vessel has been largely ignored on almost every call and presentation so dont really see it in play. Timing would need to be perfect.

      They have said that they will be purchasing a ship from a Korean shipyard for their next endeavor.

      As for cash flow, I am not sure if the earnings estimated for the back half of the year include revenues from the new JV jackups coming online. 3 to 4 of those operations mgmt contracts will be the earnings of 1 owned rig. Estimates appear to have bottomed for the year and have begun to tick up.

      First time in a long while I think takeout is at least in the cards. (a major could now refi a little less than half the debt much cheaper. Plus get access to the options in our drillship JV. While I dont expect a takeout, it should add a slight premium to valuation in the back half of the year as the Tungsten gets to work.

      • 2 Replies to cernst2
      • Dalian Developer - a versatile drillship

        Odfjell Drilling is hired as manager for the drillship Dalian Developer, the world’s largest and most versatile drillship and field development asset. Dalian Developer will be commissioned for drilling operations during 2013 and Odfjell Drilling is currently assisting the owners in marketing the drillship towards potential clients across the globe.

        The new unit will initially be configured as a drilling asset but it has been designed to accommodate other development activities such as Extended Well Test and Early Production capability with a potential One million barrel capacity for produced crude. The storage capacity and large variable deck load (25000 mt) provide potential clients with significant advantages for operations in remote areas where there is potentially limited support infrastructure

      • I agree, still think there is an outside chance but contract would have to be there and lets be honest Bragg needs 1-2yrs of no event risk to generate cash flow and to get the stock up. The longer this stock stays below 3, Bragg risks getting taken out for some weak takeover premium. I do not want to see that at this stage in the game. The SU lawsuit should help keep potential suitors away for sometime.

        Pray Bragg only orders the new drillship with cash and not equity. This company can not afford more dilution at these levels and the confidence drain would only worsen. Using the JV for another drillship is a responsibe growth strategy he can opt for every 6mos for all i care.

        I agree. A company like HERO or RDC who desperatley needs udw exposure and new premium jackups is surely eying up VTG but most takeover plays in this space are expensive and VTG balance sheet makes it hard to pay a big premium. Even SU knows better then to take a weak offer here. Ideally were around to experience big growth in 2014 then maybe as we level off consider a deal in 2015.

        Cernst?? the 15k mgt fee is not free and clear of expenses is it? Therefoe its not equiv to the margin we get on a jackup assuming 40% margin etc...also are you sure the current debt covenant allows for 45% of the current debt as is to be refinanced??? Thats a big part of the premium to someone like RDC or DO.

 
VTG
1.87-0.02(-1.06%)Jul 31 4:00 PMEDT

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