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To: Jenna who wrote (10691)	6/25/1998 10:12:00 PM
From: Peter O.	Read Replies (1) \| Respond to of 120523

Jenna, Regarding oil services stocks, this story probably affected prices today. Asian impact continues. Peter ------------ Thursday June 25, 10:10 am Eastern Time RESEARCH ALERT-Oil field service sector downgraded NEW YORK, June 25 (Reuters) - SBC Warburg Dillon Read Inc. said analyst Byron Dunn cut his ratings on three oilfield service companies Thursday and trimmed profit forecasts due to a steep decline in dayrates. -- He cut Ensco International Inc. (ESV - news), Noble Drilling (NE - news) and Global Marine (GLM - news) to neutral from outperform. -- He said dayrates for jackup drilling rigs have fallen sharply over the last two weeks, especially in the Gulf of Mexico. Dayrates have also declined in Southeast Asian markets and West Africa, he said. -- Ensco is at the highest risk of the jackup providers covered by SBC Warburg Dillon Read, he said. A majority of its 23 rigs will have to reprice to lower market rates this summer. The company's Gulf supply boat fleet has also been hurt by falling utilization rates. -- Ensco shares were off 13/16 to 18-1/16. -- He cut Ensco's 1998 profit estimate to $1.98 a share from $2.35, and cut the 1999 view to $2.00 from $2.76. Dunn also cut cash flow per share estimates. -- Global Marine will have to reprice to market by the end of the third quarter, Dunn said, but the company is somewhat insulated from short-term market swings because of its expanding deepwater fleet. Still, Global is likely to be hurt as Gulf of Mexico activity slows and its ADTI division is forced to sublet rigs to preserve cash flow. -- Global Marine shares were flat at 19-5/16. -- He cut 1998 estimates on Global Marine to $1.65 a share from $1.96 and cut 1999 to $1.90 from $2.33. Also cut cash flow estimates. -- Noble Drilling will suffer less because it has only five jackups in the U.S. Gulf, he said. He cut his 1998 estimate to $1.71 a share from $1.78.