AI
Thursday, June 05, 2008 10:16:43 PM
40% off the old $2.50 target gives you $1.50, assuming this was a purely dilutive move to keep the lights on. It's not. The acquisition is more than paying for itself in terms of revenues. Balance sheet improvements are significant. PBR is driving new rig builds at a frantic pace with which their domestic ship builders can't keep up. 12 new deepwater rigs by 2011 all to be built outside Brazil. We've already landed buoyancy LOIs for two of those. 28 more thru' 2017 to be built in Brazil. Assuming we can get even 25% of those rigs at about $10M per, gives you $100M over the next 9 years - just the rig builds PBR is driving. PBR is also driving 140 service ships. I have no idea how much/what type buoyancy might be involved there. We've seen at least $5.5M of other buoyancy already for 2008. Flot Tech is by far the most significant acquisition of all three so far and will be a launch pad for significant growth. Will be interesting to see what DR has to say about the target now.
Sage
Sage
Sage
