OceanPact Shares Surge as Petrobras RSV Auction Yields Promising Results

OceanPact’s stock price soared by 8.89% to R$ 5.39 on Wednesday morning. The surge followed the release of preliminary results from Petrobras’ remote-operated vehicle (RSV) auction.

Three OceanPact vessels secured favorable positions in the bidding process. Timbebas claimed the top spot in lot A1, while Reis and Meros ranked fifth and sixth in lot A2, respectively.

The company anticipates Petrobras will invite all qualified bidders for negotiations. During these talks, Petrobras may request additional discounts or halt negotiations if price expectations don’t align. More auction results are expected throughout the week.

In addition, OceanPact hopes to see two or three more of its RSV fleet vessels among the qualifiers. OceanPact’s bids exceeded Bradesco BBI’s projections for contract renewals.

This suggests a strong likelihood that final daily rates will meet or surpass estimates. Other bidders also submitted competitive offers, with bids exceeding $100,000 per day for lot A1 and $120,000 per day for lot A2.

However, this alignment in bidding strategies may limit Petrobras’ ability to negotiate lower rates. The Meros vessel’s bid stood out as an outlier. It factored in the cost of renewing the vessel’s lease, which expires in late 2025.

OceanPact’s Positive Outlook

Bradesco BBI doubts Petrobras will agree to such a high daily rate. They expect the vessel to be removed from the fleet by year-end. Despite this, Bradesco BBI maintains a “buy” recommendation with a R$ 10 target price.

Itaú BBA expressed excitement over the preliminary auction results. They believe these outcomes reinforce OceanPact‘s medium-term profit outlook. Significant contract renewals are scheduled for 2025 and 2026.

Itaú BBA estimates that using the lowest daily rates from each lot for new contracts could boost OceanPact’s 2026 EBITDA by 12% to R$ 702 million. Both financial institutions remain optimistic about OceanPact’s prospects.

Itaú BBA reaffirmed its “buy” rating with a R$ 8 target price. The auction results have instilled confidence in investors and analysts alike, pointing towards a promising future for OceanPact in the offshore services sector.

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