Cosco: partners Norwegian engrg outfit Inocean, to take on the S Korean shipbuilding giants for turnkey drillship construction contracts. The signed JV for the devt and basic design of a new compact ultra deepwater drillship, INO-80, is an extension of a standing working relationship between Cosco and Inocean. Cosco and Inocean have collaborated on several offshore projects incl the hull of a DP3 FDPSO...
Inocean notes yard slots at the major S Korean giants are fast filling up and deliveries have been pushed to 2014 and 2015, which puts Cosco and Inocean in an advantageous position if not on par with the S Korean on delivery position. Cosco says its available capacity implies it can offer a delivery as early as 1Q14 for drillship orders that are finalised by end 2011...
The Cosco-Inocean JV sees potential newbuild drillship demand in the Far East. Note demand for deep-water drilling units has picked up in the Chinese sector of the South China Sea, expect Cosco as a Chinese yard to be well-placed to pick up orders for drillship orders targeted for the Chinese market.
Cosco 1Q11 results due 6 May after market.
Stock trades at 19.4x P/E. Street has mixed views, with wide range of TP btwn $1.60-3.16.
No comments:
Post a Comment