Asset quality remains the key driver that will keep the 2011 outlook for global drilling and oilfield services stable, says Fitch Ratings.
Offshore staff
CHICAGO – Asset quality remains the key driver that will keep the 2011 outlook for global drilling and oilfield services stable, says Fitch Ratings. Fitch expects cash flows and credit protections will remain healthy in 2011, supported by contract backlogs, high oil prices, and modest improvements in U.S. and global economic conditions.
Fitch says additional themes continuing into 2011 include supportive industry fundamentals/commodity prices, increased M&A and newbuild activity, continued strong liquidity, heightened counterparty credit issues, improvements in cost structures stemming from 2010 cold-stacking, regulatory uncertainty related to the GoM and shale drilling, and increased share repurchases/dividends.
