Global Hunter Maintains Neutral Rating On Hornbeck Offshore

According to Global Hunter Securities, Hornbeck Offshore HOS posted its second quarterly loss since 2001 as the lag in deepwater drilling from the permitting slowdown intersected with the first full quarter without the benefit of any cleanup work. Global Hunter said that the company's new vessel contracts outside the GOM and recent reactivation of five vessels infer positive overtones, but risks remain on MPSV usage and margin compression related to 12 vessels operating in Brazil (by September, upon arrival of the most recent group of four). “With similar expectations for utilization and rates, but on a higher vessel count exiting 2011, we are modestly improving our 2012 estimates and increasing our price target to $26 from $23. We are maintaining our Neutral rating.” Hornbeck Offshore closed yesterday at $25.17.