Activity in the North Sea and Gulf of Mexico is heating up, and that's a good thing for Gulfmark Offshore (GLF)
as it gets about 85% of its revenue from those regions. Gulfmark may
not be the biggest fish in the marine vessel sea, but it has a solid
position in the high-spec market for vessels in the North Sea and Gulf
of Mexico, where utilization and dayrates have been picking up and where
expectations call for several years of double-digit growth in rigs.
Gulfmark has outpaced Tidewater (TDW)
in the stock market over the last year, but may yet still offer more
upside with its newbuild and upgrade programs. I'm giving Gulfmark some
premium to its historical multiple, as I believe those newbuilds are
going to add value and Southeast Asian operations have bottomed, and
doing so suggests double-digit undervaluation for the year to come.
Follow this link for more:
Is There A Gulf In Gulfmark's Valuation?
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