Credit Suisse Analyst Gregory Lewis says he expects the jackup market to perform better than the floating rig market in 2014, as it did in 2013, a fact he says bodes well for Rowan Companies (RDC).
“Rowan has a best-in-class jackup fleet with a dominant market share on the high end of the market; this is where you want to be,” Lewis says. “We like the jackup market in 2014 relative to the offshore floater market overall. The supply/demand balance looks tighter based on — for the jackup market than the floating rig market. We are seeing strong demand for jackups in places such as the Middle East, the North Sea, West Africa. Bottom line, we see strength in the jackup market generally.”
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Lewis says another driver for potential growth for Rowan is its more recent efforts in the deepwater market.
“Rowan’s deepwater fleet are next-generation rigs that we expect to work in any market; lucky for Rowan three of their four deepwater floaters are already on multiyear contracts,” he says.
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