Great view. If rate and utility next 3 years anywhere near 2007...

First 12 Last

Share
Profile

Follow
nguyendz

898 Posts.

90

26/02/23

15:19

Post #: 66470924
Share

Originally posted by bcc_100: ↑

You can sort of tell when the BJ analyst finally clicks over that demand is going to be strong for a few years before any new supply arrives...

OperatorWe have a follow-up question from [ Sam Wick ] of Barrenjoey.

Sam Wick I might follow up that question as well. If it's 3 years lead time to you, I'm just trying to get a sense of -- on the Slide 8 that you've provided. Obviously, it's a different cycles in this industry, but expecting rates to go materially higher. I mean demand, it feels like we're setting up for a pretty extraordinary sort of period in FY '24, '25, '26 and beyond potentially. And when 3-year lead times seem incredibly -- really incredible, we get this market pretty tight. So what's your expectation on pricing sort of over the next 6 or 12 months to the extent you've got that kind of visibility?

David Ross You're pretty much on top of it there, Sam. I mean we have limited growth on the supply side, demand increasing in offshore wind in oil & gas. This whole sovereign security around gas around the world is a real driver to that. I don't see that going away in the short term.Rates, as you say, on Slide 8 and the index are continuing, but we haven't got back to '14 peak as yet, and we haven't got anywhere near December '07 type peak. So this market, in our opinion, has got some length to run here.Where it actually ends up, where that final destination is, we're not 100% sure, but we do feel that we've got the fundamentals of both supply and demand certainly in our favor as a vessel owner at the moment.

Expand

Great view. If rate and utility next 3 years anywhere near 2007 peak, earning can be 100-200 millions/y.
multiply by P/E of 10, (debt free, hot industry), share price can be at $2-$4.

MRM Price at posting: $1.12 Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The winners & losers on market if negative gearing were gone

The market's shrugged at China's stimulus measures all year. Why is this one different?

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

There are more pages in this discussion • 7 more messages in this thread...

First 12 Last

Add MRM (ASX) to my watchlist

Great view. If rate and utility next 3 years anywhere near 2007...

Top Stories

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The winners & losers on market if negative gearing were gone

The market's shrugged at China's stimulus measures all year. Why is this one different?

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ACCC seeks Olam divestments before it can buy Namoi Cotton

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

KalGold rolls out detailed aeromagnetic survey across Pinjin project

Featured News