I read it and I actually understand what it says. The increasing of authorized but NOT issued and outstanding shares is not dilution. Only when the shares are issued in a secondary offering does dilution occur.
How about you? You seem like a big mouth, lets hear your comments.
I think some analyst will get on the call and will say that low oil is bad for drillers and that there is fear they may cut the dividend some day
Like just now. Oil dropped .5% for Brent in the last 10 minutes, SDRL dropped 15 cents in the exact same time frame.
The earnings will be reported hours before that, you monkey.
A couple of things about tanker rates.... First, the rates many quote are for an "indicative route" which used to be WAFR-US now it's CARIB-US for Suezmaxes. These "rates" do not mean that every tanker gets that much per day even in that area. More than anything, it is to suggest that IF you had a Suezmax in the area ready to go and a charterer needed it TODAY for a load in a couple of weeks, that is what you might expect to get. Any tanker that left today fully laden got a rate determined a couple of weeks back.
Tightness in one area doesn't translate nicely to other areas. One area this happens a lot in the winter is the Black Sea. The Bosphorus Straits often get closed due to fog in the winter as the days get shorter and the narrow passage is closed to traffic causing delays up to a month. This takes many tankers out of the available fleet and pushes rates up in the area.
With NAT tankers working in all parts of the world, you might expect the average TC to be up 20-40% in Q4 v. Q3, not 300% as the $80k+ rate for the indicative route might suggest.
One thing is for sure, that nobody knows for sure. It will depend on price, OPEC output, Russian sanctions, demand growth, debt levels of tight oil producers and managing declining well output against the cost of drilling replacement wells.
Yes, it seems that oil producers of all kinds are just pumping and selling it for very small profits if at a profit at all. I am not saving enough at the pump to make up for losses in SDRL.
Contango often causes big surges in tanker rates. If crude falls more, tanker rates could soar. Even at $100k a day for a VLCC, it's still possible to store the oil for a couple of months if the price of oil rises $5 or more and make a few bucks. Actually $2 a barrel would be the profit in that case.
You do that. I'll read it. Meanwhile, look at this one: "The Detailed US Shale Oil Cost Curve: Where Is The Line In The Sand?"
Pull up a post from then in which you ever even discussed the subject. All you did was make up stupid comments about DRYS then.
Just for a look at how this works, you can store 2 million barrels on a VLCC (holds that much) for fifty days for $1 a barrel if you pay $40,000 per day for the use of the ship. A suezmax would cost twice as much for the same amount per day, as it only holds 1 million barrels.
Exactly. At some point, oil may go up. Tanker owners are seeing a huge surge in tankers being used as storage as many expect oil to rise and that storing it now rather than selling it at these low prices will offset the cost of storing it in tankers at $40,000 a day or so. For a two million barrel VLCC, you can store the oil for fifty days for $1 a barrel.
It is estimated that 50 milliion barrels are sitting in tankers off of W.Africa and Asia waiting for prices to rebound. The usual contango amount is $5 a barrel in expected rise to warrant this activity. And the time line is usually three months or so.
At a million barrels a day in surplus, they will run out of tankers in a few months!!!!
Pull up a real time chart of oil. A good one is found by googling "crude oil price real time" and choose the DailyFX site. Both Brent and WTI charts are shown and if you select the "1" in the upper left corner, it sets the chart to one minute and you can see the price of the two move around in real time. Comparing UDW drillers to the price of oil often shows them moving in very close correlation.