Within the oil and gas offshore value-chain, Great Offshore is among the most diversified players owning drilling units, offshore and other port support vessels. The company is a good long-term play in the growing international and domestic E&P (exploration and production) business. In the near term, too, higher crude oil prices should help in better demand and prices for its fleet. It is in the process of expanding its current fleet of 47 to 49 vessels by end-2012. On the back of higher demand, relatively better day rates, improvement in margins and lower interest cost (led by reduction in debt), the company is expected to post strong results over the next two years. The stock is available at a reasonable five times its 2011-12 estimated earnings.
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