RE:Hi, FrozeninOntarioIf you read the NR or the Q&A of all drillers, business have been booming up to June 30 and all were bullish about the short and medium term. MDI will offer us a glimpse of the July numbers. So I am quite hopeful that they will book super good numbers as north America is posting quite good numbers.
As to their margins, well, they will take care of themselves, if not this quarter, next quarters. Think about it : they are not getting squeeze by their clients or by their competitors but basically because the ressources (drillers) are scarce after such a long downtime. And they incur mobilisation fees on contracts which is a very good sign. How long do you think until they can increase their prices with their clients swimming in cash ? Rates are firming up. What you could see are rate increases over and above costs increases when the clients will be fighting for rigs. A rebound in an industry after such a long downcycle can exceed historical results. So this story is just beginning.
Have you taken a look at OGD ? Will report in a couple of weeks for their June quarter as this is their year end. Pure play in North America (80%). Results should also be quite good.
GLTA