Replies to post #48836 on Koil Energy Solutions Inc. (KLNG)

[spec machine]

Since the PR did not specify, the BS latchers may have been sold in either of two different pricing strategies.

If the customer contracted DDI to engineer, design, fabricate, and test the latchers, the price would include all of the above costs.

If the customer put out a "request for bids" on a specification, the latchers may have been engineered and designed on DDI's R&D expense and sold using the fabrication and testing costs plus a portion of the R&D costs as the basis.

I think the second scenario is more likely but all this is JMO

[JoeSmith]

Any idea if there are more of those sales where those came from?
We know of one other order in the pipeline for sure and I think as they add wells to these platforms they will need more Latchers.

"“During the first quarter of 2007, Deep Down received a number of significant orders that not only are expected to generate significant revenue, but made important inroads into several of Deep Down’s growing market channels,” commented Robert E. Chamberlain, Jr., Deep Down’s chairman. The Company received a flexible pipe retrieval, termination, and installation contract from Saipem America, Inc., marking our continuing expansion into the flexible pipe market. Deep Down received an order from Bourbon Offshore, Inc. for electrical umbilical installation reels, demonstrating our growing support of West African offshore operations. Deep Down received an order from Oceaneering International for bend stiffener latchers for the Shell BC-10 project, further illustrating our support of operations in Brazil and our expanding international footprint. We also received a bend stiffener latcher order from DUCO for the Shell Perdido project, which employs our very unique technology that establishes our leadership in remotely operated vehicle (ROV) support of subsea umbilical appliances.”


http://www.deepdowninc.com/Press/2007/news_04-24-07a.htm

[doogdilinger]

chev:

1. Yes they sold them & therefore yes they're booking revs...& given the timeframe...I'd say Q4 or Q1 is the right timeline

2. Not sure my friend but they appear to have been included in the April 2007 orders PR so hopefully someone else here can provide a better idea of pricing per unit plus the associated installation fees;)

And finally...for sure I'm expecting more of the same as DDI has previously stated that these BS Latchers "have established a new standard in the BS Latcher design for ultra high bending moment applications in 8,000 foot and deeper water depths"