How could a vertically integrated offshore/onshore company serving the oil and gas industry NOT want a tanks and terminals EPCI that offers significant pull-through revenue?
6 replies (most recent on top)
The tank market is much more competitive than it was 40 or even 20 years ago. Anybody can be in the flat bottom business. You can buy fabbed tank kits, rent Mantis cranes, rent girth Welders, get on the internet and hire a dozen flat bottom welders (not tankies) that don't care about long term careers like the old school CBI/PDM hands and sh-- can them the minute the job is done. More player=lower margins. In big contracts it is the easiest work to sub out.
CBI did it all itself. Technology, tanks, pipes, equipment, labor, E&C, all if WE won the big bid, pieces of other people's project if THEY won. Fluor was our biggest pipes customer. Smaller gigs, much less risk, more reliable profits...which they said. We didn't fail because of it, we survived because of it. But now they say they don't want gig work, they only want the BIG E&C work. Less projects, big profits, maybe crippling losses. All or nothing. REALLY?!
Before they said the sale was not to raise cash. But the Goldman $$ is to raise cash which is not debt. So MDR need cash, right?
Now MDR say they would have sold later anyway as a portfolio review but selling now to get cash to pay banks.
So which is it?
If I yell BOLLOCKS now can I still get the 100 quid?
When you have a big debt & you get annoyed with the tiny tank contracts