PDE Offers Less Than Enthusiastic Outlook For Floater Market
Analysts at Pritchard Capital Partners reiterate their "buy" rating on Pride International Inc (NYSE: PDE), while reducing their estimates for the company. The target price for PDE is set to $32.
Pritchard Capital Partners mentions, “PDE also guided down Q3 results, of which we calculate 8c to be from the delayed start-up of the Deep Ocean Ascension…. PDE offered a less than enthusiastic outlook for the floater market citing customer reluctance to sign new contracts given the influx of supply, both from the GOM and newbuilds. Additionally, prospects for the midwater market remains short-term in nature, with 25% of the global fleet outside of the North Sea having 2010 availability and recent awards coming in well below pre-Macondo rates. As for jackups, the outlook remains relatively dire outside of West Africa, where PDE may relocate a second rig if a contract emerges.”
“PBR has launched two inquiries for floaters with 2010 and 2011 availability. As for the NOC’s 28 rig tender, PDE elected not to expose itself to a Brazilian shipyard and thus declined to bid on the NOC’s recent newbuild tender, but PDE is exploring the possible opportunity of taking on management contracts for PBR’s owned rigs,” the analysts add.
Pritchard Capital Partners has lowered its EPS estimates for 2010 and 2011 from $1.83 to $1.61 and from $3.55 to $3.25, respectively.
