Cosco: Sevan Drilling -8% on Oslo Stock Exchange after shock anncmt that CEO Jan Erik Tveteraas has resigned, just a mth after listing. Jan has also relinguished his position as CEO & board member of parent Sevan Marine, which is facing a breach of minimum liquidity req under one of its financing arrangements by end May after failing to proceed with a proposed rights issue.
Recall that Cosco has signed a LOI with Sevan Drilling to build 2 rigs worth US$1.05b, which may now be at risk of award postponement in the light the latest developments. Still, Cosco is up 206% on latest award of 2 rigs by KS Energy. Resistance at $2.00, followed by $2.11, support at $1.90.
Separately, billionaire John Fredriksen, owner of Seadrill, the world’s 2nd largest fleet of deepwater rigs, has indicated his interest in acquiring companies & has prev commented that consolidation is important for the industry. Seadrill, which lost a bidding contest for Pride Int’l to Ensco earlier this year, bought Scorpion Offshore in Jun & acquired 2 Seadragon rigs in Jan.
Rising oil prices, cheaper financing & greater demand for modern rigs has spurred an order boom for ultra deepwater rigs in the past year & Seadrill expects interesting opportunities for takeovers & JVs. Would cash strapped Sevan Marine make a good target? Watch this space for more developments ahead.
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