HERO is down 1% today at around the $7.30, slipping back having
been near a year high $7.62.
Credit Suise said: "Our Thoughts. While HERO continues to see
jackup re-pricings edge higher - dayrates for both 200' and 250'
rigs were flat at just over $100,000. Durations were also flat to
slightly up - with average term of about 90 days on the new
contracts. We note four of the new contracts commence between
May-August and the Hercules 350 starts its newly announced contract
next January (the Hercules 350 has 1 year of backlog)."
Shipyard Time Lowering Revenue Days - Holding Earnings Flat.
"Increased pricing was offset by the loss of revenue days related
to an increase of 110 shipyard days: 84 days in 2013 and 26 days in
2014 (shifted). We are maintaining our 2013 and 2014 estimates as
increased pricing was offset by less revenue days.
Back to Work. "HERO also reactivated two ready stacked inland
barges (HERO 17 and HERO 49). Both barges have been fixed at an
average rate of about $30k/d for average term of 79 days. We
estimate daily OPEX of an inland barge at $25k/d (does not include
allocated SG&A, other) which puts these barges at positive cash
flow under current contracts."
Liftboats International Good, US Gulf Ok. "The international
liftboat fleet (65% of liftboat revenues) saw average pricing up 2%
and utilization up 900 bps M-M. The domestic business saw average
pricing down 6% but utilization up 1800 bps. The international
liftboat average daily revenue increased over 16% M-M versus
domestic which was up 13% M-M."