Considering the shellacking given to shares of offshore engineering ace Acergy
Acergy's quarterly results were strong, with fatter revenues and earnings reported. Just as important, margins improved meaningfully. Operationally, good things appear to be happening on the new CEO's watch.
But that was all before the great storm really took hold. How do things look going forward?
At the risk of pulling an Alfred E. Neuman, I believe that this company has little to worry about.
Like drillers Transocean
Neither are their large projects, which brings us to reason No. 2. These companies are extremely conservative with their commodity price forecasts, and while $80 oil may look like the end of days to peak-oil preachers, integrated oil companies like Marathon Oil
Third is the company's very strong financial position. Acergy stands to benefit if/when weaker competitors fold. The company will be able to buy assets at distressed prices, which is the stuff that truly outstanding returns on capital are made of. I certainly don't wish ill on its competitors, but Acergy is staying afloat no matter what happens here.