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GD Wildbill. Did you see the post on Tankers-board, where FRO explains what the ITC -dividend is?
Added to the radar. Anything goes in modern stock markets ...lol
New Lotto-board discoveries on radar: CRAP.pk, PUKE.pk and FART.pk :)
Yes - it's Friday.
GM SL. What are you keeping on radar today?
FRO - Presentation Independent Tankers Corporation Limited
We refer to the press release issued by Frontline Ltd. on February 20, 2008 regarding Independent Tankers Corporation Limited ("ITC").
A presentation of ITC can be found in the attached file or on the company's website www.frontline.bm.
Oslo, 29 February 2008
ITC presentation
Maybe it's the next AGIX...
ACUS.n $0.65. Look what I found:
Acusphere Hugely Undervalued
Thursday February 7, 12:16 pm ET
By Jason Napodano, CFA
With Acusphere, Inc.'s (NasdaqGM: ACUS - News) stock trading below $1 now for over 30 days, the company received a NASDAQ non-compliance letter in early January 2008. Acusphere has only 38+ million shares outstanding, so a reverse split seems highly unlikely. However, there are several near-term catalysts that could get the stock back over $1 before an official delisting.
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Our $5 price target is based on our belief that Imagify is real, and that Acusphere will eventually secure a partnership for the drug in the U.S. Although we don't expect to see this level anytime soon, even $5 would be significantly undervalued if Imagify, a potential billion-dollar product, does get approved in early 2009.
Our model below explains quite simply our stance on Acusphere. We see $2.45 in EPS in 2011 based on $321.5 million in Imagify sales. At the current market capitalization of $30 million, the name represents the most undervalued story in our entire biotech coverage universe. At this point we are surprised the company has remained independent. Our only concern is that someone could takeout Acusphere at $50-100 million ($1.50 -- $ 2.50 / share), and that would be unfair to long-time shareholders that believe in the story and have been waiting around through difficult times for that day when it all comes together.
Our thesis is that, assuming all four of the above events take place by April / May 2008, Acusphere should be able to secure enough financing to continue with Imagify until the FDA rules in early 2009. Obviously a positive ruling will send the shares soaring. However, the goal right now is to get the stock back above $1, and meeting the near-term goals outlined above should get the job done.
Read the full analyst report on ACUS.
Zacks.com
Good morning Stuffit! Poor BQI... heavily shorted.
Click the link to see the proper table.
7 Stocks Under Attack
By Rich Duprey February 28, 2008
Since everyone loves a winner, it's reasonable to assume that everyone hates a loser -- everyone but short sellers, at least. These contrarian investors bet that hot stocks are primed to fall, aiming to turn their pessimism into potential profits.
This week, let's look at companies on the American Stock Exchange with the largest numbers of shares short. We'll then consult the collective intelligence of Motley Fool CAPS to see which of these firms Fools believe have the power to make short work of short sellers.
Company
Shares Short, Feb. 15
Shares Short, Jan. 31
% Change
Total Shares Out
1-Year Return
CAPS Rating (out of 5)
Grey Wolf (AMEX: GW)
28.2
27.1
4.2%
179.4
(4.0%)
*****
On2 Technologies (AMEX: ONT)
17.3
17.8
(2.6%)
159.8
(4.3%)
***
Rentech (AMEX: RTK)
13.8
13.5
2.2%
165.2
(60.8%)
**
Oilsands Quest (AMEX: BQI)
12.4
12.3
1.1%
204.9
15.6%
****
InterOil (AMEX: IOC)
11.4
10.8
6.4%
29.9
2.1%
*
Sulphco (AMEX: SUF)
10.9
9.9
9.6%
78.9
33.3%
*
Inverness Medical Innovations
8.6
7.8
10.6%
65.5
(25.1%)
****
Shares short data courtesy of wsj.com. CAPS Rating courtesy of Motley Fool CAPS. Share counts in millions.
Of course, this isn't a list of stocks to buy -- or short! These stocks could have serious problems that warrant their short interest, but they might also be stricken by short-term troubles. Only Foolish due diligence will tell you for certain; our 84,000-strong CAPS community just offers a good place to start. Yet most of these companies are generally well-liked -- they've garnered three stars or better on their CAPS ratings.
Feeling the squeeze
Watching a video on YouTube is like eating a sausage; you don't think much about what goes on behind the scenes. You'd probably rather not know what goes into your spicy links as long as they taste good, and you probably don't care exactly what technology allows you to watch a video of what happens when you mix Mentos with Diet Coke. Yet companies like On2 Technologies not only care, they are the technology.
You might be more familiar with QuickTime or RealPlayer, but it's On2's TrueMotion VP video-compression technology that was behind the fairly ubiquitous Flash player from Adobe (Nasdaq: ADBE). The company doesn't have the same name recognition as some of its competitors, but On2's proprietary technology is on display everywhere.
In part, that was both the opportunity and the risk here. Because Adobe has a strong platform in the Flash player, On2 was able to achieve a modicum of success. Yet its codecs (compression / decompression algorithms) are proprietary, meaning the chance to lose business or be shut out of opportunities was great, since customers could opt for the standard compression specs of MPEG-2 or H.264. And that's just what happened late last year, when Adobe announced that the newest version of its Flash player would also carry H.264 specs.
On2 has always been something of a speculative stock, and it was the limited nature of its portfolio that had top-rated CAPS All-Stars like Gibybo betting against it last April:
They have a strong product with great potential. However, the market seems to have figured that out already. It's one product and I think their competitive moat is far too small to justify the hype.
In a reply to Gibybo's post, CAPS player mysoftballcoach pointed out last August the Adobe development that he thought would make On2 irrelevant:
Word out this week that Adobe will be switching their video codec to H.264 in the Flash Player 9. An Adobe Blog mentioned they did not know if they would be supporting VP6 (ON2's codec). At this time, they did not have VP6 compatible with H.264 and did not know if they could make it compatible. If that is the case, it will render ON2's products, such as Flix Encoders, Flix Decoders, virtually irrelevant. Add to this, they are about to issue millions of shares to purchase Hantro, a company that has never shown a profit. Looks to me like stormy seas are just ahead.
Stormy, yes, but Hantro does offer H.264 codecs, so On2 just might be able to expand its offerings at a time when the industry is looking for more choice. It was that choice that allowed Infineon Technologies to choose On2's Hantro video accelerators for chips designed for mobile handsets.
http://www.fool.com/investing/high-growth/2008/02/28/7-stocks-under-attack.aspx
DEEP $4.00 in trouble?
INVESTOR ALERT: KGS Announces the Initial Filing of Securities Class Action Lawsuit Against Superior Offshore International, Inc. -- DEEP
Friday February 29, 12:16 am ET
NEW ORLEANS, LA--(MARKET WIRE)--Feb 29, 2008 -- Kahn Gauthier Swick, LLC ("KGS") has filed a class action lawsuit against Superior Offshore International, Inc. ("Superior Offshore" or the "Company") (NasdaqGM:DEEP - News) in the United States District Court for the Eastern District of Louisiana, on behalf of shareholders who purchased the common stock of the Company in connection with Superior Offshore's Initial Public Offering ("IPO") on or about April 20, 2007, or who purchased shares thereafter in the open market through January 9, 2008. No class has yet been certified in this action.
UNLESS A CLASS IS CERTIFIED, YOU ARE NOT PERSONALLY REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY.
If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, via cell phone after hours at 504-301-7900, or by email at lewis.kahn@kgscounsel.com.
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Superior Offshore, certain of its officers and directors, and the Company's underwriters -- collectively, "defendants" -- are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO, in violation of the Securities Act of 1933.
On April 20, 2007, Superior Offshore and Company insiders sold over 10 million shares of common stock to the public, raising gross proceeds in excess of $152 million. However, unbeknownst to investors at the time of the IPO, the Company's core business was not performing according to plan, its core market in the Gulf of Mexico was declining, and defendants would be forced to immediately transform and reorganize the Company, and enter into new, untested markets such as Deep Water and International Operations. Moreover, at the time of the IPO, Superior Offshore was not operating according to plan, such that the Company's sales already had been, and foreseeably would continue to be, adversely affected.
Beginning on August 14, 2007 -- after defendants and other Company insiders liquidated over $49 million of their personally held shares -- Superior Offshore revealed the truth about the Company, including that the problems existing at the time of the IPO would result in extremely disappointing results for the foreseeable near-term, and would force defendants to reorganize and transform the Company. Later, on November 14, 2007, shares again declined after defendants belatedly revealed that the Company was operating even below its recently revised forecasts, and that its core business was operating even worse than previously disclosed. On January 9, 2008, the Company announced that it was suspending its prior substantially downward revised guidance.
Following these belated disclosures, shares of Superior Offshore fell from their offering price of $15 per share to approximately $3.50 per share as a direct result of defendants' belated disclosures.
If you wish to serve as lead plaintiff in this class action lawsuit, you must move the Court no later than April 28, 2008. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you would like to discuss your legal rights, you may e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost to you, toll free 1-866-467-1400, ext. 100, after hours via cell phone 504-301-7900, or by email at lewis.kahn@kgscounsel.com. To learn more about KGS, you may visit www.kgscounsel.com. KGS focuses its practice on securities litigation, and has been appointed lead counsel in numerous federal securities cases.
SPECIAL NOTICE: While federal law does not prohibit other lawyers from "announcing" the filing of this class action through the issuance of other press releases, KGS is the law firm that researched, investigated, drafted and filed the securities case against Superior Offshore. If you are a Superior Offshore shareholder who decides to contact one of these lawyers, KGS reminds you to interview any such lawyer to assure that he or she understands the facts surrounding the substantive claims alleged in the complaint KGS has filed with the Court. Factors bearing on a law firm's ability to successfully prosecute this action and obtain a recovery for you include its lawyers' knowledge of applicable federal securities laws, the resources it will dedicate to prosecution of the case (including the number of lawyers the firm has available to prosecute this action) and the quality of the firm's work.
Contact:
Contact:
Lewis Kahn
Kahn Gauthier Swick, LLC
1-866-467-1400, ext. 100
Lewis.kahn@kgscounsel.com
DPDW.ob 0.56 climbing - in a good business area. Offshore/oil services are strong. Transocean's CEO said that a possible slowing down in USA does not concern them.
Rowan Reports Record Revenues and Profits
Thursday February 28, 8:45 am ET
HOUSTON--(BUSINESS WIRE)--For the three months ended December 31, 2007, Rowan Companies, Inc. (NYSE:RDC $41.01 - News) generated record net income of $138.5 million or $1.23 per share, compared to $62.4 million or 56¢ per share in the fourth quarter of 2006 and $130.8 million or $1.16 per share in the third quarter of 2007. Revenues were a record $623.6 million in the fourth quarter of 2007, compared to $410.9 million in the fourth quarter of 2006 and $502.2 million in the third quarter of 2007.
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The fourth quarter 2007 results included $0.7 million or less than 1¢ per share of gains on asset sales, compared to $1.1 million or 1¢ per share in the third quarter of 2007. There were no significant asset sales in the fourth quarter of 2006, though that period included $12.8 million or 10¢ per share of charges related to environmental matters.
For the year ended December 31, 2007, the Company generated record net income of $483.8 million or $4.31 per share on record revenues of $2.1 billion, compared to net income of $318.2 million or $2.85 per share on revenues of $1.5 billion during 2006. The prior-year results included approximately $1.2 million, or 1¢ per share, of after-tax income from the Company’s discontinued aviation operations which were sold in 2004.
Rowan’s offshore rig utilization was 97% during the fourth quarter of 2007, compared to 81% in the fourth quarter of 2006 and 99% in the third quarter of 2007. The Company’s average offshore day rate was $164,300 during the fourth quarter of 2007, up by $19,900 or 14% from the fourth quarter of 2006 and by $6,100 or 4% from the third quarter of 2007. Rowan’s land rig utilization was 94% during the fourth quarter of 2007, compared to 95% in the fourth quarter of 2006 and 96% in the third quarter of 2007, though the number of rig operating days increased between periods. The Company’s average land rig day rate was $23,000 during the fourth quarter of 2007, up by $300 or 1% from the fourth quarter of 2006, but down by $300 or 1% from the third quarter of 2007.
Rowan’s drilling operations generated record revenues of $372.4 million during the fourth quarter of 2007, up by $91.8 million or 33% from the fourth quarter of 2006 and by $3.6 million or 1% from the third quarter of 2007. The Company’s income from drilling operations was $170.6 million or 46% of revenues during the fourth quarter of 2007, up by 91% from the fourth quarter of 2006, but down by 7% from the third quarter of 2007. The Company’s current backlog of drilling contracts is estimated to be approximately $2.1 billion.
Rowan’s combined manufacturing operations generated record revenues of $251.2 million during the fourth quarter of 2007, up by $120.9 million or 93% from the fourth quarter of 2006 and by $117.8 million or 88% from the third quarter of 2007. The Company’s income from manufacturing operations improved to $38.3 million or 15% of revenues during the fourth quarter of 2007, up by 312% from the fourth quarter of 2006 and by 162% from the third quarter of 2007.
Danny McNease, Chairman and Chief Executive Officer, commented, “Rowan’s fourth quarter operating results concluded another record year for the Company. By just about any financial measure, our performance in 2007 was the best in the Company’s 85-year history. Our backlog of business, which currently approaches $2.5 billion, together with our aggressive strategic growth plan, suggest that even better times are ahead for Rowan.”
Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.
Drillers get long contracts!
Pride Awarded Contract Extensions Worth 12 Yrs, $1.5B
Pride International 2/27/2008
URL: http://www.rigzone.com/news/article.asp?a_id=57444
Pride International, Inc. has been awarded contract extensions from Petroleo Brasileiro S.A. (Petrobras) for the deepwater, dynamically positioned semisubmersible rigs Pride Rio de Janeiro and Pride Portland.
The contract extensions, representing six years per rig, are expected to commence during late 2010 to early 2011, in direct continuation of each rig's current contract commitment and a scheduled shipyard program to complete a regulatory survey. Estimated contract revenues which could be generated from each six-year contract extension are approximately $768 million, inclusive of a performance bonus opportunity for each rig of up to 15 percent, or approximately $1.5 billion in total revenues. The contract extensions also provide for a cost escalation provision from the signing date through the six-year term.
Louis A. Raspino, President and Chief Executive Officer of Pride International Inc., commented, "The extensions of these two dynamically positioned, deepwater semisubmersibles through 2016 are further evidence of the continuing need by clients for deepwater rigs and reflect the long-term nature of the present deepwater drilling cycle. With these extensions, Pride will remain one of the largest contractors of floating rigs to Petrobras in support of their exploration and development drilling needs. Accordingly, our company is in an advantageous position to potentially benefit from additional deepwater rig requirements for Petrobras in Brazil, as well as in their international deepwater operations."
As previously disclosed, consideration received under the contract extensions will be subject to an earn-out provision with the company's previous joint venture partner. The company expects payments, if any, under the earn-out provision to be less then $10,000 per day, per rig over the term of the contract extensions, which would be capitalized as additional purchase price.
The Pride Rio de Janeiro and Pride Portland are two of eight deepwater rigs currently in the Pride International fleet, six of which are dynamically positioned deepwater rigs. The two semisubmersibles have operated offshore Brazil for Petrobras since entering service in 2004. Both units are expected to continue operations offshore Brazil throughout the extension period.
Heavy Lift marine sector:
Dockwise Ltd. (DOCKF.pk $3.35) announces Q4 and full year 2007 results
Dockwise performs according to plan in year of transformation
Hamilton, Bermuda, 27 February 2008, DOCKWISE Ltd., today announced its Q4 and full year 2007 results.
Highlights
* Revenue increased 15% to USD 290 million (USD 252 million 2006).
* Milestone projects executed successfully: for example installation of GX deck offshore Nigeria, transport of 3 jack-up rigs on the same voyage, transport of a 6th generation semi-submersible rig and transport of the Tahiti SPAR, the largest SPAR ever.
* Adjusted EBITDA* increased 39% to USD 141 million (USD 102 million in 2006) .
* Adjusted EBITDA margin increased to 45% (40% in 2006).
* Total CAPEX of USD 908 million including the acquisition of Sealift, OKI and ODL.
* Listing on OTC market in Oslo on 4 May 2007 followed by a full listing on the Oslo Stock Exchange on 2 October 2007.
* Expansion of operational fleet with three vessels in 2007.
* Delivery of five more vessels (incl. MS3) to be expected during the course of 2008.
* Total order backlog of Dockwise Heavy Lift (DHL) projects of USD 233 million (YTD Q3 2007 USD 224 million).
* For 2008, management expects revenue, including MS3 contribution, to be around USD 500 million. Expected Adjusted EBITDA margin broadly in line with 2007.
André Goedée, CEO of Dockwise commented: "Looking at the performance of Dockwise in 2007, I am encouraged in my belief that the company continues to perform in line with management's expectations. This is particularly important as the current performance provides momentum for the strategic changes of which the implementation started in 2005 and to which management has committed itself. The continuous improvement of the quality of Project Management with the new organizational structure has largely contributed in managing risk in 2007 and in successful bidding for large projects. As clients find more comfort in the new skill set of Dockwise, I believe this to be a strong support in achieving our results in 2008 and filling our backlog for the years beyond 2008."
A live video webcast of the presentation of year-end 2007 results by Mr. André Goedée (CEO) and Mr. Stefan Malfliet (CFO) can be followed tomorrow, 28 February 2008, at 12:00 CET; 11.00 GMT (UK); 06.00 EST (New York) on the Company's website www.dockwise.com.
For further information please contact:
Analysts
Press
Fons van Lith
Jacqueline van den Bergen
Tel : +31 (0)76 5484116/+31 (0)6 51314952
Tel:+31(0)765484253
+31(0)622448435
Please click here for the full press release including tables:
pdf version press release
SDRL $26.20 - Seadrill reports fourth quarter and preliminary 2007 results
Published: 16:36 27.02.2008 GMT+1 /HUGIN /Source: Seadrill Limited /OSE: SDRL /ISIN: BMG7945E1057
Highlights
Seadrill reports net income of US$222.5 million and earnings per share of US$0.56 for the fourth quarter of 2007
Seadrill mainly on track for newbuild program deliveries
Seadrill takes successful delivery of jack-up rig West Triton
Seadrill secures new three-year contract for jack-up rig West Janus
Seadrill successfully issue US$1 billion convertible bond
Seadrill orders new self-erecting tender rig T12 for US$121 million, with option for one additional unit
Seadrill resolves to distribute dividend of US$0.25 per share
Preliminary results 2007
Seadrill today reports preliminary consolidated revenues for 2007 of US$1,676.4 million as compared to revenues of US$1,154.6 million in the 2006 accounts. The increase in revenues mainly reflects start-up of new shallow water units as well as higher average dayrates for the Company fleet. Operating profit for the full year amounted to US$488.9 million as compared to US$226.1 million in the 2006 accounts. Included in the operating profit in 2007 were gains from sale of two FPSO units amounting to approximately US$130 million. Net financial items were US$102.1 million. Net income was US$465.5 million as compared to US$214.1 million in the 2006 accounts.
Fourth quarter 2007 results
Consolidated revenues for the fourth quarter 2007 amounted to US$446.1 million as compared to US$377.1 million for the preceding quarter. The increase in revenues mainly reflects higher activity in all three divisions. Operating profit for the fourth quarter was US$110.3 million as compared to US$96.2 million in the third quarter.
Operating profit from the Mobile units amounted to US$71.5 million as compared to an operating profit of US$58.8 million in the third quarter. The increase was mainly due to a full quarter in operations for the new jack-up West Atlas as well as West Larissa resuming operations. The improvement was partly offset by 45 days out of operations for the deepwater drillship West Navigator.
Operating profit from the Tender rigs amounted to US$26.6 million as compared to US$25.6 million in the third quarter.
Operating profit from Well services amounted to US$12.2 million as compared to US$11.9 million in the third quarter.
Net financial items for the fourth quarter resulted in a net expense of US$4.2 million as compared to an expense of US$54.3 million in the third quarter.
Income before income taxes amounted to US$106.1 million.
Income taxes were US$71.6 million in income. The tax income is in the main related to restatement of deferred tax liabilities.
Net income for the quarter amounted to US$222.5 million.
For further information, please see the fourth quarter and preliminary results 2007 report attached.
Analyst contact
Jim Daatland
VP Investor Relations
Seadrill Management AS
+47 51 30 99 19
Media contact
Trond Brandsrud
Chief Financial Officer
Seadrill Management AS
+47 51 30 99 19
PDC $13.92 - a land drilling company expanding to oilfield services
Pioneer Reports Results for Its Third Quarter and Nine Month Reporting Year Ended December 31, 2007
Wednesday February 27, 6:00 am ET
SAN ANTONIO, Feb. 27 /PRNewswire-FirstCall/ -- Pioneer Drilling Company, Inc. ("Pioneer" or the "Company") (Amex: PDC - News) reported financial results for the quarter and nine months ended December 31, 2007. As previously announced, the Company changed its fiscal year end from March 31 to December 31, resulting in a nine month reporting year from April 1, 2007 to December 31, 2007.
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Net income for the three months ended December 31, 2007 (the "Third Quarter") was $14.8 million, or $0.29 per diluted share, compared with net income of $11.8 million, or $0.23 per diluted share, for the three months ended September 30, 2007 (the "Second Quarter") and net income of $24.0 million, or $0.48 per diluted share, for the three months ended December 31, 2006. Net income for the nine months ended December 31, 2007 was $39.6 million, or $0.79 per diluted share, compared to net income of $67.0 million, or $1.34 per diluted share, for the nine months ended December 31, 2006. The Third Quarter net income was impacted by a $0.04 per diluted share income tax benefit related to the completion of our federal income tax audit, certain tax benefits recognized for our investment in Colombia and a lower statutory tax rate for Colombian earnings as compared to the U.S. statutory tax rate.
Revenues for the Third Quarter were $104.6 million compared with $106.5 million for the Second Quarter and $112.4 million for the third quarter of 2006. The Third Quarter benefited from the increase in revenue generated by the start-up of operations in Colombia which was offset by the decrease in U.S. revenues of $9.3 million for the quarter over sequential quarter and $16.9 million for the quarter over the same quarter last year. For the nine months ended December 31, 2007, revenue increased $1.1 million to $313.9 million from $312.8 million for the comparable nine months in 2006 due to the advent of Colombian operations, the addition of an average of 7 rigs which were offset by an 8% decline in rig utilization rates and a decrease in average revenues of $621 per day.
Contract drilling costs for the Third Quarter were down $1.5 million over the Second Quarter primarily due to the decline in utilization rates offset by higher than normal supplies, repair and maintenance costs for the start-up of Colombian operations. When compared to the same quarter last year, drilling costs were up $6.5 million primarily due to the increase in the number of rigs in our fleet, the addition of our Colombian operations and higher supplies, repairs and maintenance costs in our U.S. operations. The increase in our fleet, both domestically and internationally, resulted in a $0.6 million increase in depreciation quarter over sequential quarter, $2.7 million increase over the same quarter last year, and $10.7 million increase for the nine month period ended December 31, 2007 over the same nine months in 2006.
General and administrative expenses increased $0.6 million quarter over sequential quarter, $1.7 million over the same quarter last year, and $3.0 million for the nine month period ended December 31, 2007 over the same nine months in 2006, primarily due to additional compensation-related costs and professional fees associated with enhancing the Company's corporate operations to meet the demands of expanding both internationally and into other oilfield service sectors.
EBITDA(1) for the Third Quarter increased $1.7 million to $35.1 million from $33.4 million in the Second Quarter, noting that the Second Quarter was impacted by at $2.6 million write down of a receivable related to a customer bankruptcy. Third Quarter EBITDA was impacted by the revenue contribution from Colombia which was offset by higher supplies, repairs and maintenance costs. Cash flows from operations for the nine months ended December 31, 2007 increased 21% to $115.5 million compared to the same nine months in 2006.
Wm. Stacy Locke, President and CEO, commented, "We are pleased with our results for the third and final quarter of our reporting year. We've maintained solid margins despite experiencing some softness in the market. Our strong U.S. operations continue to provide a solid base for the expansion opportunities we are currently undertaking. Our Colombian operations are performing well with a contribution to pretax income of $1.6 million for the Third Quarter. Most of our international start-up expenses are behind us, we have commenced operations of our third rig in Colombia and we expect to add two more rigs this year."
Mr. Locke continued, "We are also happy to report that the previously announced acquisition of WEDGE Well Services, L.L.C., WEDGE Wireline Services, Inc. and WEDGE Fishing and Rental Services, L.L.C. is progressing nicely. The acquisition of these oilfield service businesses, along with our international expansion, represents the next phase in our growth strategy and will transform Pioneer beyond a pure play land driller. We are on track to close the acquisition within the next week. Upon closing the acquisition, we will follow with another conference call to provide more detailed information related to the acquisition."
OSG $70.54, a tanker shipper suffered from lower spot rates and high bunkering costs:
Overseas Shipholding 4Q Profit Sinks
Tuesday February 26, 5:42 pm ET
Overseas Shipholding Group 4th-Qtr Profit Tumbles on Higher Fuel Costs, Lower Vessel Rates
NEW YORK (AP) -- Overseas Shipholding Group Inc., which owns and operates crude oil tankers, said Tuesday its fourth-quarter earnings sank 81 percent, dragged down by higher fuel costs and weakened vessel rates.
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The company earned $21 million, or 67 cents per share, compared with $113.2 million, or $2.86 per share, in the year-ago quarter.
Revenue rose to $276.8 million, from $259.8 million a year earlier.
Analysts were expecting a profit of 57 cents per share on revenue of $261.8 million, according to a poll by Thomson Financial.
The company said an increase in time charter revenue was more than offset by higher fuel costs and "a significant weakening in spot rates" across several vessel grades.
For the full-year, the company posted a profit of $211.3 million, or $6.16 per share, compared with $392.7 million, or $9.92 per share, in 2006. Revenue rose 8 percent to $1.13 billion.
Shares fell 29 cents to $70.25 in aftermarket trading after closing up $2.73, or 4 percent, at $70.54 during the regular session.
Ensco 4Q Profit Jumps, Tops Forecasts
Tuesday February 26, 9:59 am ET
Ensco 4th-Quarter Profit Rises 13 Percent As Higher Dayrates Offset Increased Downtime
DALLAS (AP) -- Drilling contractor Ensco International Inc. said Tuesday its fourth-quarter profit rose 13 percent, beating Wall Street forecasts, as higher average daily rates offset lower usage of the company's offshore oil rigs.
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Net income for the three months ended Dec. 31 rose to $238.6 million, or $1.66 per share, compared with $210.4 million, or $1.39 per share, during the same period a year earlier.
Revenue increased to $529.2 million from $470.6 million.
Analysts had expected the company to earn $1.55 per share on revenue of $518 million, according to a survey by Thomson Financial.
Ensco said average dayrates for the company's jackup rigs jumped 21 percent during the quarter to $140,900. Jackups, which are movable platforms raised on legs resting on the seabed, make up nearly all of Ensco's existing rig fleet.
Utilization dipped to 89 percent from 96 percent a year earlier because of a fall-off in usage in the Gulf of Mexico, where industry demand has been weak, and downtime to move a rig from the North Sea from West Africa.
For the full year, net income rose to $992 million, or $6.73 per share, from $769.7 million, or $5.04 per share, in 2006. Revenue increased to $2.14 billion from $1.81 billion.
Ensco said it is almost finished refurbishing a number of its jackup rigs, and expects one of its vessels to remain in the shipyard for a total of 60 days this year. The upgrade projects caused Ensco to log 442 shipyard days in 2007 and 491 in 2006.
"Looking forward to the remainder of 2008, we expect to see a more meaningful contribution from our deepwater fleet and stronger financial performance from our jackup rigs," Chairman, President and Chief Executive Dan Rabun said in a statement. The company already has international jackup contracts in place for 85 percent of the year, and is "seeing some improvement" in the U.S. Gulf of Mexico market, he added.
Shares rose $1.12, or 2 percent, to $59.32 in morning trading.
Diana Shipping Inc. Announces Long-Term Time Charter Contract for One of the Two Capesize Newbuildings on Order
Tuesday February 26, 9:22 am ET
ATHENS, Greece, Feb. 26 /PRNewswire-FirstCall/ -- Diana Shipping Inc. (NYSE: DSX - News), a global shipping company specializing in the transportation of dry bulk cargoes, today announced that it has entered into a long-term time charter contract with a major Japanese charterer for one of its Capesize newbuilding dry bulk carriers. Diana Shipping has the option to deliver either Hull 1107 or Hull 1108 to the charterer for a minimum fifty eight (58) to a maximum sixty two (62) month period. Based on the vessels' delivery dates from the shipbuilding yard (Shanghai Waigaoqiao Shipbuilding Co., Ltd.), the gross rate will vary as follows: US$50,000 per day for delivery between October 1, 2009 and January 31, 2010 or US$48,000 for delivery between February 1, 2010 and April 30, 2010.
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As previously announced, the above mentioned Capesize dry bulk carriers of approximately 177,000 dwt were contracted for a price of $60.4 million each. This employment is anticipated to generate approximately US$84 million to US$87 million of gross revenues for the minimum scheduled period of the charter.
Kosmos Makes Second Oil Discovery Offshore Ghana
Kosmos Energy 2/25/2008
Kosmos Energy announces today that the company has made a second significant oil discovery offshore the Republic of Ghana on the West Cape Three Points Block. The Odum-1 exploration well has confirmed another oil accumulation on the block based on the results of drilling, wireline logs and reservoir fluid samples. The Odum-1 well, which tested a different prospect than the company's Mahogany-1 discovery well, has been suspended as a future development well.
The Odum-1 well encountered a gross oil column of 60 meters (197 feet), which consisted of high-quality stacked reservoir sandstones and net oil-bearing pay of 22 meters (72 feet). Samples recovered from the reservoir indicated an oil gravity of approximately 29 degrees API. The Odum-1 well, which was drilled in water depths of 955 meters (3,151 feet), reached a total depth of 3,386 meters (11,109 feet). The well is located approximately 13 kilometers east of the Mahogany-1 well and the Jubilee Field.
Kosmos and its block partners used the "Songa Saturn" drillship to drill the Odum-1 well. When operations on the Odum-1 well are completed, the "Songa Saturn" will drill a second appraisal well of the Jubilee Field as part of the company's 2008 multi-well appraisal program. Kosmos and its partners conducted a high-resolution 3D seismic survey of 940 square kilometers (232,280 acres) over the Jubilee Field and adjacent areas in December 2007 following the company's announcement of the Mahogany-1 oil discovery in mid-June 2007.
"The success of the Odum-1 well and its confirmation of a new, significant oil province in Ghana's western offshore basin is another momentous event for the Republic of Ghana and Kosmos," said James C. Musselman, Kosmos Chairman and Chief Executive Officer. "We are pleased that the second exploration well in our Ghana drilling program is another success. We look forward to continuing our work with the government and people of Ghana, as well as our block partners, to help develop and produce Ghana's vital natural resources."
This is the second exploration well drilled by Kosmos and its partners under the West Cape Three Points Block's seven-year exploration agreement.
URL: http://www.rigzone.com/news/article.asp?a_id=57319
OPEC to Crimp Supply to Drive Oil Price, But No Official Cut
AFX News Limited 2/25/2008
URL: http://www.rigzone.com/news/article.asp?a_id=57351
OPEC will continue to restrict supplies to maintain oil prices at elevated levels, but the cartel is unlikely to sanction an official production quota cut at its meeting next week, according to the Centre for Global Energy Studies.
OPEC ministers meet next Wednesday in Vienna to decide on official export quotas for 12 of its members, with oil prices currently sitting close to 100 usd a barrel. While member oil ministers have consistently blamed high oil prices on factors beyond their control rather than a lack of crude in the market, the CGES believes OPEC policies have had a key role in driving prices to current levels.
Analysts at CGES said: "Global stock-cover is as low as it has ever been and oil demand is still growing strongly in the subsidised markets of Asia and the Middle East, where final consumers have not felt the impact of rising oil prices," adding that OPEC aimed to continue to restrict supplies to keep global inventories low.
"This policy was masked somewhat in 2007 by Angola joining the group, but output by the other eleven members dropped last year by 670,000 bpd, causing global stocks to fall by the same amount," the CGES analysts said.
"OPEC brought stock-cover to its low ebb -- its recovery will be delayed if OPEC restricts output."
While some OPEC ministers have mooted a potential output cut due to concerns over a slowing US economy and seasonally lower demand in the second-quarter of the year, the CGES has argued that an official output cut is probably politically unviable for the cartel.
However, it sees key players such as Saudi Arabia, OPEC's most powerful member and the world's number one crude producer, as manipulating supplies to maintain prices at higher levels.
"The CGES has recently calculated that, with production at 9 mln bpd, the Kingdom needs an absolute minimum OPEC Basket price of 62 usd a barrel on average in 2008, broadly similar to that required in both 2006 and 2007."
"This suggests that the Kingdom will follow a similar policy to that adopted in recent years of adjusting the discounts against benchmark crudes for its export grades to choke off or stimulate demand as required," the CGES said in its monthly report, adding that Saudi Arabia had been using this means to vary production levels without officially changing output quotas, acting quietly to reduce the build-up of global inventories to ensure oil prices remain at higher levels.
Some market watchers have argued that US oil demand is slowing, with prices close to record levels and a struggling economy crimping demand.
However, while crude inventories in the world's largest consumer of oil have been building since the beginning of the year, CGES sees this as symptomatic of falling refinery rates, rather than as a result of greater supplies in the market.
AGIX.n 0.71 running today. I don't see any news.
SFL $27.01 Take a serious look at this company:
Ship Finance Ltd: Steady and Profitable
posted on: February 24, 2008 | about stocks: SFL
Ship Finance Ltd. (SFL) is so far under the radar that the latest earning release and conference call are not listed
on either Yahoo Finance or MarketWatch under recent news. These events happened on 2/14, and just today I
tracked them down on Ship Finance’s website.
SFL had a very nice 4th quarter. Net income was 71¢ per
share and cash flow from ongoing operations was $1.49 per share. The profit sharing agreement with Frontline
(FRO) chipped in another 22¢. A dividend was declared of 55¢, where it has been for several quarters.
Because of the charter structure and bookkeeping rules of Ship Finance’s fleet the cash flow number is a better
indicator of the company’s profitability. The growing cash flow bodes well for future dividend increases.
SFL had a busy 2007. Several ships were sold to reduce single hull exposure, or just for nice profits. Others were
acquired and placed in service on long term charters. Due to the company’s strong financial position they are able
to obtain financing at very favorable rates and re-lease ships at excellent ongoing cash flow. The size and value of
the fleet has tripled over the last 4 years, and should grow by another 1/3 over the next two years.
This company has the unique combination of very conservative financing to protect cash flow and aggressive
growth to increase said cash flow. They do not increase the dividend until they are sure they can maintain it
indefinitely. And this is a company whose average charter length is over 13 years, so indefinitely is a pretty long
time.
With the current yield at 8% it is hard to see much downside to SFL. Of course the market will hammer the stock
when it gets a wild hair about shipping or tanker companies, but that will just be a buying opportunity. I consider
this stock an excellent long term investment.
Disclosure: I have a long position in SFL.
This article has 3 comments! Add yours below...
DRYS $84.78 Dryships: Shipper of the Global Commodities Boom
Tuesday, 26.02.2008, 12:17am (GMT)
Well, after announcing blockbuster earnings with Q4 EPS of $5.37 vs. consensus of $4.07 and Q4 revenues of $233.379M vs. consensus of $208.75M, DRYS is now #1 on the IBD list and for good reason. DryShips is a global leader and is based in Greece, the global shipping leader.
They own and operate drybulk carriers worldwide carrying every type of booming dry commodity you can think of. They run the transport cells to the global economic body.
They deliver coal (booming), iron ore (booming), grains (booming), baxite, phosphatee (booming), fertilizers (booming), and steel products (booming). DRYS stock price seems correlated to the moves of the Baltic Dry Index (BDI). The Street.com has a very good look into DRYS and what they do. DRYS has a very nice P/E ratio of 6.57 with a forward of 6.14. Quarterly revenue growth of 195% and quarterly earnings growth of 443.5% (um does someone see some sort of discrepency here?). I love, love their float at 24 million shares for the world to trade and they do trade this puppy with an average volume of almost 6 million shares a day.
Short interest is at over 3 million shares or over 12.5% of the float. The year highs were at $131.34 with recent lows at $50. Analysts are bullish as well. Here are their comments:
On Feb. 19th, Jefferies reiterated their Buy rating following the upside to Q4 results and saidd they believe dry bulk spot charter rates are likely to remain strong throughout 2008 and finds shares attractively valued at current levels. Target remains $160.
On Feb. 15th Cantor reiterated their BUy rating with a $121 price target saying they believe the company continues to benefit from a sustained strong dry bulk market.
Now they do have some bears with Howe Robinson Shipbrokers on Feb. 7th saying that a global downturn would hit dry bulk shipping faster and harder than expected, also it is of note that the global steel industry accounts for half of dry bulk demand. MT and RIO recently raised iron ore prices do you think they raised due to softening demand? Nope, i don’t think so. I also believe that the worst case scenario has already been priced into the stock after dropping from $130 to $50 and the Dry Bulk Index dropping from its highs to the present.
On a technical note one can see an inverted head and shoulder formation since December. The double bottom head sits on $50 and the neck line is around $80. The length between the two is $30 and could indicate a short term target of over $110 off of the right shoulder break.
Source: Seeking Alpha
GM Stock Lobster. DRYS. A title on front page of TradeWinds:
"DryShips in drillship deal
George Economou’s Nasdaq-listed bulker owner quietly picks up rights for two drillships at a South Korean shipyard."
Economou is growing DRYS's O&G drilling sector. Very wise to diversify DRYS's operations, and not trust on only one sector.
I posted more on DRYS on Tanker-board.
GLNG $21.71 GOLAR LNG Q4 2007 RESULTS
Tuesday February 26, 3:05 am ET
LONDON, NORWAY--(MARKET WIRE)--Feb 26, 2008 -- Golar LNG Limited
Highlights
- Golar reports operating income of $24.7 million and a net income of
$2.7 million for the quarter.
- Golar reports record annual 2007 operating income of $120.9 million
and net income of $136.8 million.
- Golar successfully raised $77.5 million in new equity during the
quarter to finance the acquisition of the "Granatina" and future
growth.
- Final MOU signed during the quarter in respect of the sale of the
"Golar Frost" for $231 million.
- Solid earnings from short term vessels.
- Ebisu chartered in to support short term shipping capacity.
- Golar announces a cash dividend of $0.25 per share.
NOTE: an excerpt from the report: "More recently there is now a growing interest in developing the capability to produce LNG directly onboard a floating facility; a development that mirrors the development of FPSO's in the oil industry. Several industry players have now publically announced their intention to develop and market this emerging technology."
Yahoo has the whole report available.
Eeeeek! Trøim leaving FRO??!!!
Published: 19:27 25.02.2008 GMT+1 /HUGIN /Source: Frontline Ltd /OSE: FRO /ISIN: BMG3682E1277
FRO - Appointment of new director
The Board of Frontline Ltd ("Frontline" or the "Company") is pleased to announce the appointment of Kathrine Fredriksen as a director of the Company. Ms. Fredriksen is employed at the oil trading company Arcadia Petroleum and is a graduate of the Wang Handels Gymnas in Norway and has studied at the European Business School in London. Ms Fredriksen is the daughter of Mr. John Fredriksen, the Chairman, CEO and a principal shareholder of Frontline.
Ms Fredriksen has been appointed to the Board of Frontline to fill a vacancy created by the resignation of Mr. Tor Olav Trøim. Mr. Trøim has served on the Board of the Company since 1997. Mr. Trøim is leaving the Board of Frontline as an ordinary member to concentrate on activities in related companies. Mr. Trøim will continue to support the Board in financial matters and will act as an alternate director for Kathrine Fredriksen.
February 25, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Published: 19:27 25.02.2008 GMT+1 /HUGIN /Source: Frontline Ltd /OSE: FRO /ISIN: BMG3682E1277
FRO - Appointment of new director
The Board of Frontline Ltd ("Frontline" or the "Company") is pleased to announce the appointment of Kathrine Fredriksen as a director of the Company. Ms. Fredriksen is employed at the oil trading company Arcadia Petroleum and is a graduate of the Wang Handels Gymnas in Norway and has studied at the European Business School in London. Ms Fredriksen is the daughter of Mr. John Fredriksen, the Chairman, CEO and a principal shareholder of Frontline.
Ms Fredriksen has been appointed to the Board of Frontline to fill a vacancy created by the resignation of Mr. Tor Olav Trøim. Mr. Trøim has served on the Board of the Company since 1997. Mr. Trøim is leaving the Board of Frontline as an ordinary member to concentrate on activities in related companies. Mr. Trøim will continue to support the Board in financial matters and will act as an alternate director for Kathrine Fredriksen.
February 25, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Offshore drilling list: Also take THE off the list; it was acquired by Rowan (if I remember correctly)
GM Stuffit. It's divvy time :)
Thanks! This is a usefull page indeed. Commodities may fluctuate somewhat, but they are in clear uptrend.
Yes I saw it. Thanks for the lists. I have been following the offshore equipment/drillers, because I own some Norwegian drillers. There's real buzz in getting rigs. Companies pay anything asked for a semisubmersible.
Good morning SL. Oilfield services and deep water drillers have done well recently. Long contracts with oil companies show that big oil does not believe in rapid changes in energy markets, and they are not giving up their targets of new discoveries. Shippigyards and their supply contractors building new rigs are fully booked for several years. A new rig ordered now will cost over $500 mil, when 2-3 years ago the price was $120-180 mill.
DEEP $4.30 and DPDW $0.49 (!!) should do really well in this sector.
Seadrill (SDRLF.PK $23.75) will release its 4Q results on Wednesday Feb 27.
Anybody interested in this sector please read the transcript of Transocean's (RIG $137.96) conference call (available on their website). Usefull and informative information about the whole industry.
RDC $39.51 Rowan Awarded 3-Year Drilling Contract Offshore Saudi Arabia
Rowan 2/21/2008
Rowan Companies, Inc. reported that its Tarzan Class jack-up, Bob Keller, has been awarded a term drilling contract for work offshore Saudi Arabia.
The contract provides for a three-year term, over which the Company expects total revenues of approximately $201 million, and contains an option for a fourth year. The Bob Keller recently concluded work in the Gulf of Mexico and is en route to the Middle East. The rig is expected to commence drilling operations during the second quarter of 2008.
Danny McNease, Rowan Chairman and Chief Executive Officer, commented, "We are pleased to grow our relationship with Saudi Aramco and again want to thank Rawabi Trading & Contracting Co. Ltd. for their continuing assistance. Just two years ago, we re-entered the Middle East market after a 25-year absence. This commitment expands our presence to nine jack-up rigs in the area, and is further testament to the high performance of our drilling equipment and personnel throughout the world. Our Tarzan Class rigs, in particular, have demonstrated drilling capabilities that are well-suited to this environment, and all three of these rigs will soon be working offshore Saudi Arabia. We are confident that the Middle East market will require more quality drilling equipment in the future, and look forward to further opportunities for Rowan."
URL: http://www.rigzone.com/news/article.asp?a_id=57132
Gazprom, Total, StatoilHydro Form JV to Develop Shtokman Field
StatoilHydro 2/21/2008
Gazprom, Total and StatoilHydro signed a Shareholder Agreement for the creation of Shtokman Development AG for phase one of the Shtokman field.
The agreement was signed at the central office of Gazprom by Alexey Miller, Chairman of the company's Management Committee, Christophe de Margerie, CEO of Total, and Helge Lund, CEO of StatoilHydro.
Gazprom holds a 51% stake in Shtokman Development AG while Total holds 25% and StatoilHydro a 24% stake. The company is registered in Switzerland.
Shtokman Development AG will be organizing the project engineering, development, construction, financing and exploitation of first phase facilities related to the development of the Shtokman field.
The partners also indicated that front end engineering design (FEED) for the project has commenced, and will be finished in the second half of 2009 allowing a final investment decision to be made. Among other things, Russian and international subcontractors for FEED studies have already been identified and a site has been chosen for the technical and transportation complex near Teriberka in the Murmansk region.
"This strategic partnership of our companies brings together long experience, vast resources and advanced technologies which are fundamental to the success of this unique project, which will guarantee reliable and long-term gas supplies for European consumers. The establishment of the Shtokman Development Company marks the starting point in the realization of the development of the Shtokman field," said Alexey Miller.
"The creation of this joint company by Gazprom, Total and StatoilHydro is a major milestone allowing us to combine our forces and experiences in large developments in harsh and remote environment to meet the challenges of the Shtokman project," said Christophe de Margerie.
"Shtokman can become a locomotive for new developments in the arctic region, with safe operations under cold and harsh condition. We look forward to the next stages in cooperating with Gazprom and Total on this large and challenging project by contributing with our competence and experience from the Norwegian Continental Shelf," said Helge Lund.
The Shtokman field, located in the Russian sector of the Barents Sea, holds 3.8 trillion cubic meters of gas reserves and around 37 million tons of gas condensate.
Phase one of the development of the deposit provides for a yield of 23.7 billion cubic meters of natural gas per annum, the start of pipeline deliveries to commence in 2013 and LNG in 2014.
URL: http://www.rigzone.com/news/article.asp?a_id=57133
ATW $93.11 one of The Street's Five Fast-Growth stocks:
Feb 25, 2008
Atwood Oceanics (ATW - Cramer's Take - Stockpickr) is a Houston-based international drilling contractor. The company also provides related support, management, and consulting services.
We have rated this company a buy since September 2004, based on its revenue growth, solid financial position, EPS improvement, and solid stock performance. Revenue rose 49% for the fourth quarter of 2007 to $121.6 million, up from $81.8 million in the same period a year ago. Atwood's debt-to-equity ratio is very low at 0.03, implying very successful management of debt levels. In 2007, the company increased its fully-year bottom line to $4.37 a share from $2.75 a share in 2006. The company has demonstrated a pattern of positive earnings per share growth over the past two years. Finally, the stock has surged 72% over the past year, powered by strong earnings growth of 128.37%.
Regarding the stock's future course, although almost any stock can fall in a broad market decline, Atwood should continue to move higher despite its substantial gain in the past year. Risks to the rating include any pricing fluctuations in the oil and gas industry, the company's ability to secure adequate financing and governmental regulation and environmental matters.
This process of producing ethanol gathers attention in Scandinavian countries:
Coskata, Inc. Introduces Next Generation Ethanol –
Technology to Produce Ethanol for Less Than a Dollar per Gallon
Company Discloses Strategic Partnership with General Motors; Launches with Funding from Khosla Ventures, Advanced Technology Ventures and GreatPoint Ventures
Warrenville, IL – January 13, 2008 – Coskata Inc., a leading developer of biology-based technology for the production of biofuels, formally launched and unveiled its proprietary process today. The Coskata process can produce ethanol almost anywhere in the world, using a wide range of feedstock, for less than US $1.00 per gallon. This technology makes the widespread use and availability of ethanol much more achievable.
Today, the company also announced major industry support through a strategic partnership with General Motors (Editor’s Note: See “GM Partners with Coskata in Breakthrough Ethanol Making Technology”). Rick Wagoner, the Chairman and CEO of General Motors, announced the partnership and that GM had taken an undisclosed equity stake in Coskata at the 2008 North American International Auto Show. Coskata was initially formed with funding from Advanced Technology Ventures (ATV), GreatPoint Ventures and Khosla Ventures.
“As a nation, we’ve been dependent on oil for so long, we continue to think we will be dependent on oil to meet our future energy needs,” said Vinod Khosla of Khosla Ventures. “Scientists, technologists and entrepreneurs like Coskata are here to prove it doesn’t have to be this way. With the development of an economically-viable ethanol solution, Coskata has the propensity to change the types of fuel consumers find at the pump – providing fuel derived from widely-available national resources, rather than foreign imports.”
Coskata’s process is feedstock flexible, and enables the use of cost-effective, locally abundant materials to achieve the lowest ethanol production cost targets in the industry. This groundbreaking approach addresses many of the constraints lodged against current renewable energy options, including environmental, transportation and land use concerns.
Using patented microorganisms and transformative bioreactor designs, Coskata ethanol is produced via a unique three-step conversion process that turns virtually any carbon-based feedstock, including biomass, municipal solid waste, bagasse and other agricultural waste into ethanol, making production a possibility in almost any geography. Coskata’s process technology is ethanol-specific and enzyme independent, requiring no additional chemicals or pre-treatments; environmentally superior, reducing carbon dioxide emissions by as much as 84% compared to conventional gasoline; and has the ability to generate 7.7 times as much energy as is required to produce the ethanol, compared to corn ethanol which generates approximately 1.3 times as much energy according to Argonne National Labs.
“Our technology and proprietary process have been validated by some of the world’s most renowned research labs, universities and energy companies,” said Bill Roe, CEO of Coskata. “Coskata is poised to revolutionize the ethanol industry with the backing of GM and our partners. Together, we can make ethanol a viable transportation fuel with production costs of under $1 per gallon.”
Coskata is working closely with leading research institutions focused on renewable energy to bring this compelling syngas-to-ethanol process technology to market, including Oklahoma State University, The University of Oklahoma, Brigham Young University and Argonne National Laboratory. Founded in 2006 by Todd Kimmel and Dr. Rathin Datta, the company has compiled a strong IP portfolio of patents, trade secrets, know-how and assembled a first-class management team.
"Coskata's announcement is a perfect example of the evolutionary state of the ethanol industry," said Bob Dinneen, president of the Renewable Fuels Association, the national trade association for the U.S. ethanol industry. “Building on the solid foundation grain-based ethanol production has provided, and partnering with companies like General Motors that have demonstrated a commitment to renewable fuels, Coskata demonstrates what is possible when financial and intellectual capital are applied to solving the growing energy crisis in the United States."
Experienced Team to Lead Coskata
Bill Roe, president and CEO: As former COO of Nalco Company, the world’s largest provider of industrial water-treatment chemicals and process additives, Roe will draw on his extensive leadership experience in all functions of growing a global technical business, including operations management, strategy development and implementation, sales and marketing, and research and development.
Wes Bolsen, Chief Marketing Officer and vice president of business development: Previously, Bolsen was the Chief Financial Officer of ICM, Inc., the leading U.S. ethanol plant construction, engineering and design firm, where he gained critical exposure to the inner workings of the ethanol industry and established strong relationships with key value chain participants.
Dick Tobey, vice president of R&D / engineering: Tobey comes to Coskata from the Dow Chemical Company, where he spent more than 28 years developing and commercializing new products and processes. While at Dow, he demonstrated success in leading the research, development, scale-up and manufacture of both synthetic and natural products, as well as pharmaceutical chemistries and processing technologies.
About Coskata
Coskata is a biology-based renewable energy company for economies dependent on oil. Using proprietary microorganisms and transformative bioreactor designs, the company will produce ethanol for under US$1.00 per gallon almost anywhere in the world, from a wide variety of input material. Founded in 2006 by leading renewable energy investors and entrepreneurs, including Khosla Ventures, Advanced Technology Ventures, and GreatPoint Ventures, Coskata has compiled a strong IP portfolio of patents, trade secrets, know-how and assembled a first-class team for the development and commercialization of its compelling syngas-to-ethanol process technology. For more information, please visit www.coskata.com.
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Yep. Take a pause, you busy ant. You've deserved it.
GM Stuffit, thanks for good weekend reading :)
Good afternoon Lady-baron. You are right - the recovery of the dollar may take more time, and requires at least that FED does not lower the rates further. On the other hand there has come out troubling signs of lowering consumption, both from businesses and from consumers, and that of course does not point for a rate hike from FED. The same weakening of consumption goes for Europe, too, but hopefully not for BRIC countries.
Euro will be in real trouble in the global markets, if ECB does nothing and the dollar will weaken further. Especially the sectors, which manufacture the goods in euros and sell them in dollars (pulp and paper, machinery, white goods).
We'll see. Next six months will be important time.