Dallas, Texas 08/07/2014 (FINANCIALSTRENDS) – Hercules Offshore, Inc. (NASDAQ:HERO) the mid-sized offshore drilling company has announced the latest status of its fleet as of July 2014, along with second quarter results. Though the results were not as expected and stocked moved downwards by 7%, the point working in its favor is the downward trend across the industry. Besides, several sweeping changes in the recent weeks are expected to bolster the driller in the quarters to come in this fiscal.
Hercules Offshore, Inc. (NASDAQ:HERO) reported an impressive line-up of shipping ware necessary for the high profile drilling contracts it handles.
With over three dozen drilling rigs, it includes two Keppel FELS super A meant to be optimized for high-risk environment conditions during jackup rigs. It also reported two dozen lift boat vessel of which 9 are leased from third party but operated by Hercules personnel. Most importantly, it now has 2 jackup drilling rigs with a third and fourth leased jackup rigs from Perisai Petroleum Teknologi BHP. The remuneration Hercules is able to make from third –party operations includes daily management fee (estimated at $4,000 for a rig) which it receives as pre-commencement payment. Later, it will also receive 125 of the operational fee at EBITDA figures.
Hercules declared that it recovers all incidental operating expenses besides recovering all capital expenditure with respect to the rig from Perisai from time to time.
Slump In Share Prices In July
Hercules Offshore, Inc. (NASDAQ:HERO) latest fleet numbers follow the fall in prices in the July 2014, to the tune of 4%. The drop was reported on the basis of fall in domestic demand for the quarter, while utilization rates too showed drop over the past year.