Tuesday, October 16, 2012

Hercules Offshore Presentation Says Activity is Heating Up in the Gulf of Mexico ($HERO, $CNRD)

Check out this recent Hercules Offshore (HERO) presentation [pdf]. Things are heating up in the Gulf of Mexico again!

Slide 5 shows a huge increase in GOM jackup backlog and dayrates. HERO's backlog per rig is at a 5 year high. Slide 6 shows shallow GOM lease block sales back to early 2008 levels.

This should be bullish for Conrad! The energy sector business is important from them, and it was hurt by the oil price crash and the drilling ban. Everything correlated with Conrad business segments (inland tank barges, offshore drilling, dry bulk barges) is improving right now. I'd imagine that revenues will grow and profit margins could actually increase (especially since the industry is near capacity).

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