OSX Brazil deal for 11 MR Tankers boosts backlog, prospects for Growth

[LEFT]2:52 12 March (Dow Jones) Oilfield services company OSX Brasil’s (OSXB3.BR) deal to build 11 medium-range tankers for Kingfish, boosts the company’s backlog and prospects for growth, Credit Suisse says. Oil tankers are the easiest product to build and are “a good way to build track record in the shipyard with a less-risky revenue stream,” firm says. Tankers also won’t take up shipyard space that could be devoted to higher-value projects, such as FPSOs, in the future, Credit Suisse says. Investors are pricing in “little growth” beyond backlog to sister company OGX, firm says. OSX shares up 0.7% recently in Sao Paulo.

  • Jeff Fick, Dow Jones & Company[/LEFT]