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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: david james who wrote (12860)	2/26/1998 8:04:00 AM
From: swamp fox	Respond to of 95453

In 1997 GLM(about equal revenues from shallow and deep water) had average day rate of 61000-average expenses of slightly less than 20000. Hope this helps. Of the 20000-about 6000 in labor cost. Strong fundamental picture. Sure wish market would realize!!!

To: david james who wrote (12860)	2/26/1998 9:05:00 AM
From: Big Dog	Read Replies (2) \| Respond to of 95453

David -- First, be leary of these companies that all of a sudden want to build drilling rigs. If they were even able to get a contract, the margin would like be pretty low since they would have to compete mostly on price with "real" yards that have been serving the drillers all the years...like FGII, Samsung, Hyundai, Daewoo. Building a rig is no simple task and if you are a driller you don't want to take your 200 million dollar job to someone that is just coming to market. But to answer your question, I can't. There are soooo many variables. The margin could range from 5% to 20%, depending on economies of scale and many other factors. If you want to invest in a rig builder, go with the best. FGII.