Looks like ECO is locked in with BP for another 3 years.
https://www.workboat.com/news/offshore/edison-chouest-inks-agreement/
Did BP announce a new $100 billion E&P budget? If not this just means they locked Gary down on super cheap rates for the next 3 years.
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who cares what the rate is so long as vessels and crews can continue to work for another three years.
It’s obviously good enough to be profitable otherwise the deal wouldn’t have been inked in the first place.
Not necessarily. Chouest could easily be giving the boats away at cost and not actually be making any money.
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I’m going to assume Gary isn’t going to build new unless it’s worth it.
Maybe he considers it worth it to have all costs covered. Then when the economy comes back he has one more new boat in circulation.
Chouest isn’t going to work a boat “at cost.”
I do believe their bottom price is much lower than other companies due to building the vessels in-house though, and that’s why they aren’t hurting like most other vessel operators are.
Exactly.
From what I gather, most of the vessels currently stacked were due to low day rates and not the ability or lack thereof to find work.
If he’s building new vessels, he’s going to profit from them.
Why not? He’s done it before.
Regardless of the propaganda coming from the 3rd floor everyone is working boats for cost or barely above cost. Gary is obviously an astute businessman but he’s not immune to what’s happening in this market. The only reason he gets so much work is he offers many other perks with the boats. It’s hard to compete when he will charge the same dayrate as a competitor and throw in use of a slip(s) at a Cport and discounts at Clean Tank, etc. If he was making so much money y’all wouldn’t be working even time at reduced dayrate you’d be back at 28/14 at the old dayrate and there wouldn’t be orange boats tied up 5 deep all over town that don’t move for months at a time.
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Haha I know 1 company that will stack boats and lay everyone off before working “at cost” or even making a little money!
a friend of mine is on one of the new 312’s that work for BP and the day rate is right around 9000-10k/day. Inked a 1 year contract at that price about 2 months ago
Hmmmmm if true sounds like cost or right above cost…
That sounds about right for the operational costs.
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$9,000-$10,000 per day? Then thats working for quite a bit more than cost, as crew costs aren’t factored into the dayrates of vessels that work for BP. At least that’s how it was when I worked for them.
Yea, me too!
No one said he was “making so much money.” And from what I gather, some positions have gone back, or are being allowed to work 28/14.
I have a good friend who is a manager there and he said the only boats in fourchon currently off charter are a couple of AHTS vessels, which are currently under bid for work. They’re still working 150+ boats, so they’re doing something right.
It’s still that way.
Of course it is all as you say Gary is king and only his boats are working and making money. Before summers end he will have bought all other companies and sold their fleets to the navy for target practice.
I know people who work there and we hire people from there every month. People that have recently resigned and are familiar with current ops tempo. Maybe even a long time employee who worked in the office. It’s all he said she said so you have your slant on the “facts” and I have mine. We can all agree shit is bad and no one is making a lot of money right now including us.