Last year's day rates were 3143 at 57% utilization which yielded (.28) per share. This year's were 4224 at 74% utilization which yielded (.04) per share. If other posts are correct that next year we get 6500 per day and utilization stays the same we should go to .26 per share earnings. This is just the Gulf rate but should we look for that kind of jump?
OK Now that we have established that financial results inside a parentheses are negative and that going from (.28) to (.04) is improvement, is it reasonable to expect quarterly earnings to rise to approximately .26 if day rates go to $6500? Earnings like that would support a price greater than $20. I'm just looking for some knowlegeable critique and insight.
Sounds logical to me. In this market there is no logic just reaction. Whenever gas or oil goes up or there is a comment about shortages we go up. Very few are willing to commit to buys longer than a few months out. I have waited for 5 years for this sector to come back and am willing to wait a little more for TMAR to return to profitability. I belive we are only half the way back. Hoping for a Bush election and a good Energy policy to keep the US strong in exploration and production.
Following your analysis and the indicated trend, I would expect very negative numbers in the future. Day rates went up, utilization went up and earnings dropped by a factor of 7? Maybe I haven't been paying close enough attention.