KeyBanc reiterated an Overweight rating and $50.00 price target on National-Oilwell Varco (NYSE: NOV) following the company’s announced agreement with Estaleiro Atlantico Sul S.A. and EAS International, Inc. concerning seven contracts for the supply of drilling equipment packages for drillship construction projects in Brazil.
Analyst Robin Shoemaker commented, “NOV announced that it has reached an agreement with Estaleiro Atlantico Sul S.A. and EAS International, Inc. concerning seven contracts for the supply of drilling equipment packages for drillship construction projects in Brazil.
NOV will not incur a loss on the cancelled rig equipment packages because advance payments and progress payments made by EAS were at least equal to (and possibly more than) the total costs NOV had incurred as of the settlement date. As a result of the settlement, the Rig Systems segment backlog will be reduced by $1.1 billion. The Rig Systems backlog was $8.0 billion at the end of 3Q15, of which $3 billion (38%) related to rig equipment packages for Brazilian customers. At the end of 3Q15, the Company had Rig System orders for a total of 22 deepwater rigs to be built in Brazil.”
石油圈
