DO has the largest deep water drilling fleet in the world,but gets very little publicity. I am starting this thread so that I can share some information I learned from IR today that IMHO is significant regarding the 15 rigs that have to go into a shipyard for a Govt. mandated inspection ( see 1997 10K or 10Q for 1st qtr.)during 1998.
I talked with IR @ DO today and was told the following.
1. 13 of the 15 being inspected are Semis, &2 Jackups.
2. They figure an average of 30 days down time per rig. So we can expect 30 days of lost rev. for 13 semis or 390 days @ $150K per (EST) + the 60 days for the jackups. They also will incur add'l expense in moving the rigs. Bottom line IMHO this sounds like it could impact earn. This year significantly. I am not sure how much of this is built into the current earnings estimates. I hope all, but I am afraid to gamble on that assumption. I hold a sizable pos. in both FLC & DO and have been evaluating which one to add to this week. This inf. Made the choice easy. I added more FLC this AM @ $32. Comments will be appreciated. Good Luck Don |
