Some discussion of DO problems from Yahoo:
Therefore some food for thought:
1) Fire on Victory, damage covered by insurance, however there is lost revenue during the repair. It
could be that the repair will take 'much' longer than initially estimated, therefore it could be that some
reference will be made to 'substantial lost revenue for 1998'.
2) The Clipper could still (!?) be struggling with the BOP control system, present system could not be
acceptable, may be it will be removed and replaced by a superior system, again long lead times, costs, if
factual this could mean substantial lost revenue I am afraid. I could imagine that something could be
mentioned in their Q1 report.
3) Polyconfidence could be canceling the ordered BOP control system (learn from Clipper) and order
the other superior system. Demand/shortage of such vital systems could lead to delays, defered
revenue?
4) The newbuilds being under construction with competitors need to be (project) managed so that the
newbuild will be ready to go and more importantly fit for its purpose without costly last minute
modifications. Could it be that such managers are being sourced amongst experienced DO supervisory
personel?
5) Newbuilds coming to the market will have to be manned with experienced personnel, where can one
find these smart guys? Perhaps amongst DO staff?
6) Rose was a 'peoples' man, trying to get the best for his personnel whilst turning around the company
to a healthy proud outfit. Could it be that his superiors had another vision, looking at only balance
sheets, praising themselves howmuch profits have been generated in the past two years? Is DO like a
ship without captain at present?
Then, at the other hand:
Could it be possible that DO is for sale in its present state, and that the beancounters have determined
that the fastest growth of DO is now behind us and that it is treated as a handsome cashgenerator, and if
convenient passed over to the highest bidder..
So: good and bad need to be balanced. As usual, the above is all my personal view, and ideally it could
be good advice to sit on the sideline until the earnings are out, jump back on after the possible drop.
However, do not be pissed off when (Murphy's Law) DO announces that it will be bought/merged, just
at the time you decided to step out...
messages.yahoo.com@m2.yahoo.com |
