MARKET TALK: Songa Offshore More Exciting, New Contracts with Statoil

[Dow Jones] Songa Offshore (SONG.OS) becomes a more exciting company now with four new rigs in operation, says Pareto analyst Frank Harestad, following the company’s $2.66 billion contract to provide Statoil (STO) with two new rigs. That comes on top of a prior two-rig deal. Songa “has some financing issues, but could sell rigs and talk to banks,” says Harestad. Statoil has a lot of business with Songa and so it’s also in Staoil’s interest that Songa succeeds, says Harestad. “I think it will work out,” Harestad says. Songa shares are 9.7% higher at NOK22.70. Pareto’s rating is overweight with a NOK38.30 target.

[I]- Kjetil Malkenes Hovland, Dow Jones & Company[/I]