Replies to post #87424 on Koil Energy Solutions Inc. (KLNG)

[jdsgungho]

You will remember this one, Now think about rov dayrates and rates for the crews, big money ,real fast!

Posted by: jdsgungho Date: Thursday, April 03, 2008 5:55:18 PM
In reply to: None Post # of 87425

a few times here on the board we have discussed big contracts for new products, which is great -but i have said before we often overlook the service side. i dug this out of the 10-k

Products

We provide installation support equipment and component parts and assemblies for subsea distribution systems. We believe the key to successful installations of hardware is to design the subsea system, considering installation issues first, working backwards to the design of the hardware itself. This is why we have been instrumental in the development of hardware and techniques to simplify deep water installations. We design, manufacture, fabricate, inspect, assemble, test and market subsea equipment, surface equipment and offshore rig equipment that are used by major integrated, large independent and foreign national oil and gas companies in offshore areas throughout the world. Our products are used during oil and gas exploration, development and production operations on offshore drilling rigs, such as floating rigs and jack-ups, and for drilling and production of oil and gas wells on offshore platforms, TLPs, Spars and moored vessels such as FPSOs. We have been involved in almost every Umbilical installation and Steel Flying Lead installation and development in the Gulf of Mexico. Approximately 40% of our revenue is from product sales. A few of our major product lines are highlighted below.

Services

Deep Down’s engineering team can provide project engineering, installation and pull-in engineering, project management, installation management, and commissioning services. We pride ourself on collaborating with engineers from the installation contractors and manufacturing side of the industry to find the most effective solutions to address installation problems in the subsea world. We also provide installation, retrieval, storage and management services in connection with the use of our products. Approximately 60% of our revenue is derived from services.

[jdsgungho]

Heres another, now remember when I had told you last year that DPDW wanted to make their own J-plates? Our j-plates can also be used with any other companys flying leads,morays ect... Flying leads are a DPDW speciality , one That i believe will be another big service and sales producer



Posted by: JoeSmith Date: Thursday, April 03, 2008 6:01:36 PM
In reply to: jdsgungho who wrote msg# 59263 Post # of 87426

So true jds, and your post dovetails nicely with this question by Mrbojangles to Steve Haag.

http://investorshub.advfn.com/boards/read_msg.asp?message_id=28126153

Here are some quotes:
"This is a great question and one that is extremely important to understand. Deep Down is a service-minded company that develops technological solutions to help get done what its customers need. So, for example, the Moray(TM), which is at the terminal end of a steel flying lead and connects the J-plate to the wellhead, was developed by Ron Smith with certain ingenious enhancements to better address underwater installations with ROV's. These types of innovations then typically become products that are desirable to a wide range of customers with similar installation challenges.

So, to answer your question, YES! Not only does Deep Down make money with installation management and service, it is DDI's core business. Ron Smith's vision is to provide offshore E&P companies with senior-level experience and technological innovation to help them complete projects on-time, on-budget, and more safely.

Again, great question, and understanding this fact about Deep Down will help one understand that our service business drives our technological innovations."