After losing more than 100 points and 7% for two consecutive months, the WorkBoat Composite Index rebounded in October, gaining 159 points or 11%. For the month, gainers topped losers by a 2-1 ratio.
Big percentage gains were posted by Transocean, Rowan and Trinity Industries.
Transocean gained more than 22% in October. The company had a good third quarter, reporting adjusted net income of $316 million, or 87 cents a share on $1.6 billion in revenues.
Jeremy D. Thigpen, Transocean’s president and CEO, said the results “reflect the strong emphasis we continue to place on operating performance and cost management.”
Thigpen told analysts during the company’s Nov. 5 earnings call that he expected challenging conditions for offshore drilling companies in the next 12 to 24 months. “However, our customers remain committed to their offshore properties and the future production that they represent. The currently depressed oil and gas price environment has stymied investment in the near term, but the need for future reserve replacement remains critical.”
Hornbeck Offshore Services treaded water during the month. The company announced third-quarter earnings of 21 cents a share, missing estimates by 8 cents.
Company president and CEO Todd Hornbeck, said that despite the current down market, he strongly believes a recovery will come. “We also believe that when it comes, it will have a pronounced effect on our core markets, particularly the Gulf of Mexico,” he told analysts during the company’s Oct. 29 earnings call. “The more protracted this downturn lasts, the greater the need will be for our customers to restore their reserve portfolios.”
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