Friday, November 28, 2008

Hornsbeck Offshore Optimistic on On Deep Water Rates

Hornbeck Offshore (HOS-$16.77) does not believe that short-term fluctuations in energy prices will affect the long-range investment plans of major oil companies, and remains upbeat on long-term prospects for day rate pricing of its offshore supply vessels. Chairman and Chief Executive Officer Todd Hornbeck told analysts on the third-quarter 2008 earnings call that a growing world population, developing economies in China, India, Latin America, and the Far East, and projected long-term overall economic growth– despite existing global events— will result in net increases in demand for hydrocarbons. Nonetheless, the company remains dependent on cash flow generated from existing supply vessels to meet contractual obligations on new builds under construction … continue reading…

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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