Hercules Offshore Earnings

Hercules Offshore (Nasdaq: HERO  ) reported earnings today, revealing an unimpressive third quarter. The company suffered a $37.9 million loss from continuing operations, with international operations proving particularly problematic. There, lost operating days added up to significant revenue declines. The shallow-water driller fared better on the domestic front, with day-rates up 29% over last year, and utilization rates coming in at 88%, up 14% YTD.

While it hasn't been a great year for Hercules the future still holds a glimmer of hope as the jackup rig segment has seen increased demand, especially in the Gulf of Mexico. The favorable environment should last well into 2013, which helps Hercules since the company currently has the fourth largest jackup fleet in the world. However, Fool.com analyst Joel South sees deepwater drilling as the future of offshore drilling, but to see how this sub-industry did this past quarter, we will have to wait until Transocean (NYSE: RIG  ) and Seadrill (NYSE: SDRL  ) report next month. Competition is fierce in this industry and for full detail on the story, be sure to check out the video below.

If you're an energy investor in search of exciting opportunities, then look no further than one of the most exciting plays in the space: Seadrill. To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out The Motley Fool's new premium research report on SDRL, authored by one of our top Stock Advisor analysts. To access your copy, simply click here now.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2078122, ~/Articles/ArticleHandler.aspx, 10/31/2014 12:09:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement