about the expansion of Petrobas drilling activity off the coast of Brazil. This can't but help ULTR's off-shore supply business. The river business is expanding. Yet the stock price languishes and management can't seem to turn a profit. Thoughts of other shareholders would be appreciated.
I'm hopeful for some meaningful profitability in 2012. A lot of the higher costs on the river take a year or so to be passed on to customers since their contracts are usually like for 12 months or so. I'm not sure why they brought PSV #8 to the North Sea for $25K per day on contract when they probably could have gotten $30K per day in Brazil. Who knows when those Indian PSVs will be delivered. Hopefully they have two more within the next 9-12 months. Bottom-line they need to start generating some positive cash flow. Oh and a real explanation of that $19M payable they can't seem to collect on would be nice. I love how they just glossed over that. It is a huge number to this company. The fact that they brush it off is very disconcerting. I hope they disclose more details in the Q3 10Q.
As I recall, management had mentioned that they have the right to have certain numbers of PSVs operating in Brazil. PSV #8 might not have been eligible for Brazil. Since north sea rates have recovered nicely they put it up there. If the yard ever gets it together, we should have the Indian PSVs coming in the next year and we will see if ULTR has the rights to bring them to Brazil.
I'd like to hear more about the payable, too. Hopefully tehy sort it out soon.