Factors that impact firm value

Document Type

Article

Publication Date

1-1-2013

Abstract

The value of any company is derived from its cash flow and earnings, which are dependent upon the quantity of sales, sales price, and cost structure. The value of a drilling contractor is derived from the use of its fleet of rigs and the dayrates received, utilization, and operational cost in each region of the world in which it operates. The purpose of this chapter is to describe the primary factors that impact contractor value. Fleet size and value, age, and diversity, revenue, geographic and customer concentration, contract backlog, operating costs, operating margin, financial structure and business strategies are discussed.

Publication Source (Journal or Book title)

Lecture Notes in Energy

First Page

127

Last Page

137

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