Lot of psv being layed up in north sea. saw spot rate fixture for NAO below breakeven. if I know herb he will operate below cost to gain market share and rapport with companys . hoping the low cost model will allow this to happen with minimal cash burn. Good for long term but feel will be more pain ahead.
yeah I don't get it. this company imo opinion is the best run of the tanker stocks. bugbee is best in business at the moment. I suppose the hammer ( dividend) and anvil( buyback). will get it higher eventually.
well doesnt make sense to buy back 100 million at high stock price. so no div stock falls, and can buy up more shares.
this is good for sector.consolidation of fleets into larger pools should help keep rates high and out of small owners hands who are willing to work for cheap.
from a seeking article comment. i asked same question
Check out the street view 864 S Peters St, New Orleans, LA which cost $3.5 million. Looks like they are actually building a parking garage for a hundred people. The 10Q states that they are presently abandoning their lease in Mobile and may be on the hook for $3.5 million and are moving 100 office employees to temporary location in New Orleans. In return they get $10.27 million economic incentives from the state of Louisiana, probably income tax credits which they can sell immediately. So the move will end up costing about $5-7 million. Are we still looking for a bottom or is this really bottomless?
we are coming into refinery maintenance that has been delayed all summer. cant be delayed much longer market will get weak for while. and no div raise may have ppl taking money off the table. long term story still intact. look for broker upgrades tomorrow to make it pop.
they say that 20% of remaining oil may be in arctic. the polar ice caps are melting and these areas will be exploited. You will need harsh environment (HE) rigs and HE PSV's to service them. NAO having high spec HE class PSV is in a good position for that servicing. NAO psv can go to other areas but others cannot operate in extreme north sea and arctic. So if things never materialize can leave for other areas.
some other points
-lifting of russia sanctions will pulll rigs and psv out of north sea alleviating some of glut.
-as one of previous post statoil and most likley others will prefer high spec psv going forward. older units will have to be scrapped balancing out oversupply.
-possible rescue operations contract in med after siem PSV having good success. this would most likely be a good contract
-strong US dollar make buying new ships best use of money to expand. 8 million a ship cheaper than previous buys.
all this said there is choppy waters ahead for at least a year. i would be in no rush to add to holdings.
yeah and not to mention selling dorian stake for 47 million gain. you think it would be up. STNG is gonna buy 8 handymax with the proceeds.