BY THE NUMBERS - Offshore Supply Vessels: Balanced Continued Pressure with Gradual Recovery
Global consulting firm AlixPartners, in a new paper entitled, “Too many ships, too few rigs: why recovery is still a distant dream for the OSV sector,” warns that companies counting on a quick return to stability in the OSV sector are in for a rude awakening.The September report goes on to say that OSV companies continue to face pressure due to a radically changed oil industry and must take quick and decisive action in order to survive in what should be considered the ‘new normal.’Separately…
OSV Companies Running Out of Options -Study
As oil continues to sell below $50 per barrel, 2017 could be one of the toughest years in decades for Offshore Supply Vessel (OSV) companies, according to a study of 44 companies in the industry by AlixPartners. The firm’s analysis highlights these companies’ rising debt burdens, making it increasingly unlikely that most of them can maintain solvency. The industry faces grave financial pressure, which is clear from recent bankruptcy filings and distressed mergers.
SunEdison's Yieldcos Exploring Strategic Options, Including Sale
TerraForm Global Inc and TerraForm Power Inc, the "yieldcos" of bankrupt solar company SunEdison Inc, said on Monday they were exploring strategic alternatives, including a sale of their entire business. TerraForm Power's shares were up 3.4 percent at $13.49 in early trading, while TerraForm Global was up 7.4 percent at $3.65. The two companies said on Monday they are also considering replacing SunEdison with a new sponsor, by negotiating new sponsorship arrangements or by assuming SunEdison's existing sponsorship agreements.
Pentair Names Cassidy President, Valves & Controls
Pentair plc (NYSE: PNR) announced today that it has named Dennis Cassidy as president of its Valves & Controls segment (V&C) and an officer of the company, effective April 11. Cassidy joins Pentair with more than 20 years of industry experience with a primary focus on leading strategy-based transformation programs for global oil, gas, and chemical companies. Prior to joining Pentair, Dennis was a managing director at AlixPartners Enterprise Improvement Group and co-leader of the Energy practice.
U.S. Refinery Cuts Quicken, Impact Crude Markets
For the past six years, U.S. refiners from Texas to Philadelphia have bought every barrel of crude they can lay their hands on to cash in on a golden era of healthy margins. Now, at least five refiners - including two of the country's largest - have voluntarily cut output of gasoline and distillate in the most widespread cuts since the global financial crisis, moves that may deepen crude's prolonged rout as storage tanks at Cushing, Oklahoma, the main U.S. oil hub, near capacity.
U.S. Energy MLPs May be Running Out of Road
Investment vehicles that funneled more than $100 billion into U.S. pipelines, storage and other facilities during the shale boom now face an existential crisis after oil tumbled so low that it upended assumptions about risks and returns they offer. Those tax-protected structures were the Holy Grail of energy investing during the upswing, combining hefty payouts made possible by fast growing energy bloodstream with some protection against oil's ups and downs offered by the "midstream" segment.
Afrens Putting Company into Administration
Oil producer Afren Plc said its board has decided to put the company into administration after failing to secure support for a refinancing and restructuring plan. Afren, whose shares have been suspended since July 15, said talks with bondholders, banks and its partners were scuppered after the company cut its production forecast for the year. "Whilst the overall capacity of the assets to deliver field life production remains broadly unchanged, the near-term deferral of production revenues has undermined the immediate liquidity position of the business…
Oil Analysts, Experts Weigh In On Iran Nuclear Deal
Iran, the United States and five other major powers reached an agreement to restrain the Iranian nuclear program in exchange for relief from economic sanctions. Q: Can you outline the timeline from here? "The P5+1 will now work on a UN resolution to endorse the deal; separately, domestic legislatures and other processes will review text, in the U.S, that includes a 60-day review period; 90 days from today the deal goes into implementation mode in which Iran does a number of nuke steps…
US Oil Scrambles to Retain Talent
After 20 years in the oil business, Craig Reed, 62, is thinking about winding down his career just as a second downturn in six years rocks the industry. Reed is part of the baby boomer generation that forms the backbone of the U.S. oil workforce and now weighs retirement as energy firms cut spending and shelve projects. That is a worrying prospect for company executives keen to keep their most experienced workers while they ride out the oil market slump.
Veteran Energy Consultant Besland Joins AlixPartners
Business advisory firm, AlixPartners say that Louis Besland has joined the firm’s global Energy Practice as a managing director and will be based in the consultancy's Dubai office. AlixPartners add that Besland has deep experience in the worldwide oil, gas and chemical sectors. In total, he brings 27 years of consulting experience to his new position, including, in addition to his expertise in energy, significant strategy and operations expertise in logistics, infrastructure and government entities. Besland joins AlixPartners from A.T.
