O&G producer stock performance will always depend somewhat on macro, narrative, and commodities momentum. This comes with the territory when a sector becomes a "battleground" for narratives like inflation.
What I like about OSV companies is the vessel supply is limited, the orderbook basically zero, and they will quietly make money in the background, no matter what is fashionable in the stock market. A slowly rising tide.
That said, we are headed into a seasonally weaker period -- in the North Sea especially -- so probably best to accumulate slowly.
Why were PSV rates in summer 22 much elevated than summer 23? (for AHTSs the difference is much bigger indeed between summer 22 and summer 23). On the other hand, what triggered the increase in rates in September? Thx a lot.
This AM, GS downgrades Maersk to a SELL.
Like they just discovered container carriers are in a downdraft?
Seems like a CYA note.
if anything might be a buy signal, lol. more seriously: Great company, but probably too early.
btw, I'm told that Maersk offshore is not very popular among competing owners because they accept sh_t rates...
Thank you Edward, very relevant. Glad to read Petrobras's management is pragmatic. Allways looking for clues .
Thank you for a great article. The Polarsyssel is by the way hired by the local authorities on Svalbard (see article in Norwgian: https://www.sysselmesteren.no/nb/nyheter/2023/09/sysselmesteren-inngar-ny-kontrakt-med-polarsyssel/). The day rate is NOK 233000. The vessel has been hired the Governor of Svalbard 6 months per year since 2014, and 12 months per year since 2023.
Thank you Lars! I will modify the article to reflect that.
Just saw a small typo: The vessel has been hired by the Governor of Svalbard 12 months per year since 2020 (not since 2023 as I wrote)
Thanks Lars -- I corrected the typo.
As the market, including O&G equities, declines, PVS demand increases.
How long can that last? Asking for a friend.
O&G producer stock performance will always depend somewhat on macro, narrative, and commodities momentum. This comes with the territory when a sector becomes a "battleground" for narratives like inflation.
What I like about OSV companies is the vessel supply is limited, the orderbook basically zero, and they will quietly make money in the background, no matter what is fashionable in the stock market. A slowly rising tide.
That said, we are headed into a seasonally weaker period -- in the North Sea especially -- so probably best to accumulate slowly.
Excelent wrtitte up, LONG SDSD and STSU
Wonderful article - very enjoyable and informative reading!! Thanks for sharing - I will buy AHT shares!
Great article. I’ve recently reduced my OSV holdings but this indicates that I should be looking for some re-entry.
Tempting, isn't it! But if (when!) we see a seasonal drop in day rates, the tourists might panic. Good to keep in mind.
Why were PSV rates in summer 22 much elevated than summer 23? (for AHTSs the difference is much bigger indeed between summer 22 and summer 23). On the other hand, what triggered the increase in rates in September? Thx a lot.