RE:RE:RE:RE:RE:Completely undervaluedHi,
On summer activity and cyclicality : note the rainy season runs during May to September in West Africa. This is why their third quarter is slower. So factor this in your projections. I also understand that mobilisation takes less time/costs when you are based in Western Africa and get a contract in the region. These costs are bound to increase when they add other continents.
Note also that FAR/GEO/MDI operations are more Canadian oriented with their lows in the winter months. OGD CEO was mentioning 14 drills mounted on barge (out of memory) that would be drilling in the summer months. If you look at their last quarter, all of them show the impact of higher mobilisation costs for contracts they are getting. So their short term results are depressed as revenus (drilling) will be recognized later on. And their utililization rate will never run to 100%. Still pretty bullish sign for the next quarters.
You might want to look at Foraco also : quite indebted but this is due in march/April next year and they are renegociating. When a cycle turns, the most indebted company have the wildest swing unless they go bankrupt like Energold or quasi bankrupt like Boart Longyear.
BTW OGD has 30 million debt, so not debt free for some time but it is manageable.
GLTA