Category Archives: Offshore

Image: Transocean Drillship Discoverer Inspiration

Note: All the data used for my charts are from InfieldsRig.com

Investment Thesis

The offshore drilling industry plays an important role in the oil and gas supply chain; no one can deny this basic principle. Did you know that oil production from offshore locations represented about 29% of the global crude oil production in 2015, according to the EIA? This percentage has been nearly constant since 2005.

The main locations are in Saudi Arabia, Brazil, Mexico, Norway/UK and the USA and represent a total of approximately 27 million BOE/d.

The bulk of the crude production is still in the "shallow waters," which are generally cheaper and less technically challenging when compared to other offshore segments.

"Shallow waters" require a rig less expensive anchored to the rock floor, called a jack-up. This category can be classified into four sub-categories:

However, the move toward "deep waters" and "ultra-deepwaters" projects is clear the past 5 to 10 years, and has required other types of rigs.

Exploratory drilling in "deep waters" and "ultra-deep waters" is naturally more costly and complex for oil majors, but technology advancements and the near exhaustion of shallower prospects left no choice to the oil majors who are turning increasingly to the deeper waters, particularly in Brazil, West Africa and in the Gulf of Mexico.

The rigs required to drill in the "deep waters" segment are called floaters or mainly Drillships or Semi-submersibles. The cost of building such a rig stands in the range of $600 million to over $900 million.

Construction Costs estimated, indicated by Transocean (NYSE:RIG) for the five UDW are:

Semi-submersibles and Drillships can be classified under three sub-categories:

The day rate paid by oil majors depends on the rig specifications, and also the location and duration of the work. The range in day rate can be from $45k/d to as high as $450k/d or more. Day rates have been going down the past three years, due to the crash in oil prices and rig oversupply.

IHS Markit for May 2017 indicates a record low:

Graph overview of the Offshore fleet status Worldwide, as of June 12, 2017 compared to April 8, 2017.

The total rigs stands at 844 as of June 12, according to InfieldRigs (excluding 135 rigs under-construction). The number of rigs actually contracted is 436, which represents 51.7% of the total rigs (Up from 50% in April).

Below are the number per categories.

Global charts study of the Offshore drilling fleet (click graph to enlarge):

The total rigs including the "under construction" is now 979.

436 rigs are actually classified as "operational". Below is the detail per segment:

Details per category: Drillships, Semisubs, Jack-ups and tenders.

Conclusion:

Looking at the Offshore drilling fleet, the numbers confirm that we are still in a serious oversupply situation but signs of balancing start to show up in specific locations.

Utilization which is the percentage of rigs actually working compared to the total rigs in the market -- excluding under-construction -- is 51.7%, which is low and slightly better than in April.

See detail per class below:

The Semi-Submersible segment is the more affected with a utilization rate of 36.1% only, and the jack-up segment is doing better with 57.7%.

One interesting development is the North Sea deepwater location that is now facing a shortage of HE rigs according to Bassoe Offshore:

Harsh-environment rigs compliant with its strict operating standards as demand rises for premium units to carry out an increasing pipeline of drilling work while older rigs are set to be scrapped, according to vessel broker Bassoe Offshore.

The midwater harsh-environment segment is seen as ripe for recovery despite a market slump caused by a lack of demand from oil companies due to low oil prices...

This quick analysis explains why companies such as Noble (NYSE:NE), Ensco (NYSE:ESV) and Rowan Companies (NYSE:RDC) may have a slight advantage in this market, compared to pure floater players such as Atwood (NYSE:ATW), Diamond Offshore (NYSE:DO) or even Transocean (NYSE:RIG).

Jack-up utilization is rising slightly in the jack-up market whereas floater utilization is still shrinking. However, higher utilization for the jack-up group is not translating to a better outlook for day rates which are still below the breakeven level in some cases.

My recent article about the last ONGC tenders for 3 floaters is a good reminder. Please click here to read it.

It also provides an explanation as to why the "distressed" rig market focuses now primarily on the jack-ups. The jack-up segment has been more active recently with a number of acquisitions from newly created companies such as Borr drilling (acquisition of Hercules Triumph and Hercules Resilience and acquisition of the entire Jack-up fleet from Transocean) or Northern Drilling, created by John Fredriksen in relation with Seadrill (NYSE:SDRL), and acquisition of the semisub West Mira.

The semi-submersible group is also an opportunity for a different reason. While the jack-up group is experiencing some new activities, the floaters market - particularly the semi-submersible market - is, conversely, still battling a terrible downturn. This is probably because the deepwater projects have a longer time length with a large initial cost, and oil majors are still reluctant to commit large amount of cash in exploration capex, especially with oil prices now below $50 a barrel.

Unfortunately, the recent wave of bankruptcies and reorganizations that the offshore drilling industry is now facing will not solve the rig oversupply problem and perhaps may aggravate and prolong the struggling battle by adding more competition and misery.

After Hercules offshore we have now Paragon Offshore (OTCPK:PGNPQ), Ocean Rig UDW (NASDAQ:ORIG) and soon SDRL/NADL and probably Pacific Drilling (NYSE:PACD).

A new trend may have started recently with Ensco (NYSE:ESV) acquiring Atwood Oceanics (NYSE:ATW) in a all-stock merger. Please click here to read my article.

As I have explained in another article, bankruptcy is not the end of the road but, in fact, it is the beginning of the new one and an increase in competition.

Finally, I am totally convinced that the offshore drilling industry will emerge from this downturn as it has always. Investors and traders will have to analyze the fundamental seriously to eventually pick the right time for investing in this sector (versus trading the sector).

I do not see it immediately, but I believe the sector will bounce back in about 12 to 18 months (depending on the oil prices, of course). This situation will affect the market and it will create some sharp volatility for the next 8 months, which is appealing to traders.

Important note: Do not forget to follow me on the offshore industry. Thank you for your support.

Disclosure: I am/we are long RIG, ESV.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am actually trading and day trading the sector exclusively for the last two years. I trade most of the stocks indicated in my article, but still hold a few long positions.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

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Offshore Drilling - All You Need To Know About A Shrinking Fleet, As Of June 12, 2017 - Seeking Alpha

Three workers died of burn injuries received after a Petroleo Brasileiro SA (PBR) offshore drill rig explosion Friday, the Wall Street Journal reported.

The Brazilian state-run oil company's unions said the accident, which is the worst since 2015, is proof that recent layoffs and cost cuts aimed at reducing Petrobras' heavy debt load have impacted safety.

Petrobras hasn't commented on the cause of the explosion. A commission has been formed to investigate.

Petrobras stock traded down over 1% in early afternoon trading.

What's Hot on TheStreet

Apple and all of tech remains in focus: European tech shares such as SAP SE (SAP) , Infineon Technologies AG (IFNNY) and ASML NV (ASML) fell sharply on Monday after last week's late Nasdaq rout. Not helping matters was a rare downgrade on Apple AAPL on Sunday on fears the stock may be too richly valued.

Walmart is under siege from a German rival: Aldi is coming after Walmart's (WMT) grocery market share, as the German discount retailer says it will invest $3.4 billion to expand its U.S. presence. The privately-held German grocery store said it plans to increase its store base to 2,500 by 2022. Aldi currently operates 1,600 U.S. stores.

GE's CEO is stepping aside: Industrial conglomerate General Electric (GE) said Jeffrey Immelt, chairman and CEO, plans to step down. Immelt has been with GE since 1982 and has served as chairman and CEO since September 2001. John Flannery, the current president and CEO of GE Healthcare, was named chairman and CEO. He will become CEO effective Aug. 1, and also take over the chairman role effective Jan. 1, 2018, a day after Immelt officially retires.

TheStreet reported last week that General Electric may sell additional businesses as investor Trian Partners pressured Immelt to meet aggressive performance targets.

Apple and General Electric are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL and GE? Learn more now .

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Three Petrobras Workers Die After Offshore Explosion - TheStreet.com

Offshore wind advocates cheered recently at news that a German wind farm is going to be built entirely without government subsidy. That said, however, it seems likely that government supportwhether in the form of direct subsidies or more generally favorable policy/planning policiesis likely to be a major factor in the success (or not) of offshore wind for some time to come.

That's why it's encouraging to hear from Steve Hanley over at Cleantechnica that three nationsGermany, Denmark and Belgiumhave signed on to an agreement to support a 5-fold increase in installed offshore wind capacity in the next decade. They're not just talking about their own capacity eitherthe target is a global one, meaning an increase of capacity from today's 13.8 gigawatts to more than 60 gigawatts.

Just imagine what would happen if every nation with suitable shoreline made a similar commitment. (I'm looking at you, USA.)

According to Steve, there's hope that the agreement will eventually be signed on to by a broader coalition of ten nations who had previously pledged their support for offshore wind energy expansion. At least one of those nations, Great Britain, is currently in a state of political and environmental uncertainty as the world waits to see what its surprise election results really mean for government policy.

Either way, with China and India making more progress on emissions reductions than originally expected, France jockeying hard to seize climate leadership and large swathes of the United States still pledging to honor the Paris Agreement, this is one more encouraging sign among many that a coalition of the willing could keep climate action well on track, even if there are efforts to sabotage progress in other parts of the world.

Read more from the original source:

Three nations plan 500% increase in global offshore wind - Treehugger

Published on June 12th, 2017 | by Joshua S Hill

June 12th, 2017 by Joshua S Hill

Up to a quarter of the European Unions electricity demand could be met by onshore wind energy at an average of 54 per megawatt-hour in the most favorable locations, according to a new report published this month, which also suggests offshore wind could generate between 2,600 to 6,000 terawatt-hours per year.

These are the key findings from a new report published this month by renewable energy consultancy BVG Associates, for WindEurope, the wind energy trade body for the European Union. Specifically, the report looked at the economically attractive resource potential of offshore wind in the EU as well as the location for lowest cost resource, assessing them on two policy scenarios a baseline scenario based on current frameworks and assumptions, and an upside scenario based on what could happen if governments responded positively to cost reductions, as well as if there are positive developments on grid access, market support mechanisms, site development and supply chain development.

The report found that offshore wind could, in theory, generate anywhere between 2,600 and 6,000 terawatt-hours (TWh) per year at a competitive cost of65 per megawatt-hour (MWh) or below, including grid connection, based on the use of technologies that will have been developed by 2030 technologies such as 13 MW wind turbines (as compared to the largest currently ready for manufacturing, 9.5 MW). Amazingly, this would represent between 80% (for the baseline scenario) and 180% (for the upside scenario) of the EUs total electricity demand.

Further, focusing solely on the most favorable locations, 25% of the EUs electricity demand could be met by offshore wind energy at an average of 54/MWh. This assumes seabed-fixed foundations and includes grid connection, and in the baseline scenario would see development focused inUK, Denmark, the Netherlands, Germany, and France. Meanwhile, in the upside scenario, additional offshore wind capacity could also be added in Ireland, Poland, Latvia, and Lithuania.

Installed capacity in the baseline scenario to the end of 2030 for the EU member states in all sea basins

Installed capacity in the upside scenario to the end of 2030 for the EU member states in all sea basins

However, these are the best-case scenarios we could hope for, and WindEurope is currently focusing simply on EU governments working to see offshore wind account for between 7% to 11% of the EUs electricity demand by 2030. To hit this target, the authors of the new report are calling on EU governments to:

The report has been welcomed by wind energy advocates across the EU, especially in the (Brexiting) UK. The report specifically highlighted that the UK could install a total of 25 gigawatts (GW) of offshore wind energy by 2030, which is enough to power 75% of all UK households. Meanwhile, the report predicts that Germany could install up to 14 GW of new offshore wind capacity by the same time.

Cumulative installed capacity by country by the end of 2030

This report shows what our innovative offshore wind industry can deliver in the years ahead, securing economic growth and cheaper electricity, said Emma Pinchbeck, RenewableUKs Executive Director, in response to the reports findings. The Government can help us by continuing to hold fiercely competitive auctions for financial support, as well as putting offshore wind at the heart of its upcoming Industrial Strategy. Clear, bold, modern energy policy will attract billions of pounds of investment.

The report confirms that the cost reduction seen in offshore wind over the last two years could translate into significant volumes of clean, competitive and reliable power for the UK by 2030, added Giles Dickson, CEO WindEurope. The UK should factor this into their long-term energy planning. We need to see a deployment of at least 4 GW per year in Europe for offshore wind to maintain its cost reduction trend. This would allow offshore wind to be competitive with conventional power before very long.

The new report was accompanied by a WindEurope report which highlighted the fact that floating offshore wind energy technology is no longer a demonstration technology, and is ready for the big time. Specifically, the report highlighted a current pipeline of floating offshore projects totaling nearly 350 MW, and an estimated European potential of 4,000 GW.

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Tags: BVG Associates, Denmark, EU, EU offshore wind, europe offshore wind, European offshore wind, European Union, France, Germany, ireland, Latvia, Lithuania, Poland, the Netherlands, UK

Joshua S Hill I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

Continued here:

A Quarter Of EU's Electricity Demand Could Be Met By Offshore Wind At 54/MWh - CleanTechnica

The government today said that the mines ministry is closely working with its law counterpart to evolve an enabling framework which would result in auction of offshore mineral blocks quickly.

"We are working with the Law Ministry to work on what enabling framework can be quickly brought up by which we can quickly start that auction," Mines Minister Piyush Goyal said while addressing a press conference here.

As far as the current law is concerned, Goyal said, there are some restraints because of which the mines ministry is not able to auction these offshore mineral blocks.

These offshore blocks contain minerals such as zirconium, titanium, thorium, tungsten and rare earth elements.

"The current law as it stands, I will have to give it out on a literally first come first serve basis which you know is not in my scheme of things. So the department (mines ministry) is working with the law ministry to see how we can make requisite legal framework because I would like to start that auction quickly," the minister said.

The government had said in January that it will soon come out with redrafted rules with regard to exploration and mining in offshore mineral blocks and allot 60 blocks under auction route in first phase.

Offshore Areas Mineral (Development and Regulation) Act, 2002 will be redrafted soon, the government had said.

Once the Act is redrafted, the allotment of offshore mineral blocks would be done through auction route.

In the present Act, there is no provision for auction of offshore mineral blocks. Earlier, the offshore mineral blocks were given through allotment route. Applications were invited and allotment of blocks was done which was not transparent.

The Geological Survey of India (GSI) carries out surveys in the Exclusive Economic Zone (EEZ) and Territorial Waters (TW) of India to assess the offshore mineral resources.

TW is the belt of coastal water that extends up to 12 nautical miles (around 22 km) from the coast of a country.

EEZ is a sea zone on which a country has special rights regarding exploration as well as the use of marine resources, including energy production from water and wind.

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Govt working on legal framework for quick offshore auction - Business Standard

Massachusetts' bid to become the nation's leader in offshore wind power is ramping up.

The state's electric utilities National Grid, Eversource and Unitil are slated to release by June 30 their requirements for projects seeking to develop the state's first ocean-based wind farm.

That sets in motion an ambitious effort to put Massachusetts ahead of states like New York, New Jersey and Maryland also seeking to establish their presence in the nascent U.S. industry. Here's a primer on where things stand:

NEW ENERGY LAW

A state law passed last year to boost Massachusetts' use of renewable energy outlines the process for developing offshore wind power.

The law calls for generating at least 1,600 megawatts of power, roughly enough electricity to power 750,000 homes annually, from offshore wind by 2027.

To accomplish this, the utilities are required to secure long-term contracts with wind farm developers in at least two phases: a bid request this June and another in 2019.

The law also calls for generating up to 1,200 additional megawatts from other clean energy sources, including hydropower, onshore wind power and solar power by 2027.

KEY PLAYERS

At least three companies have expressed interest in the bid: Rhode Island's Deepwater Wind, Denmark's DONG Energy and Vineyard Wind of New Bedford, Massachusetts.

Those three have already taken the key step of securing federal leases to develop offshore wind farms miles of the coasts of Martha's Vineyard and Nantucket, where the state is focusing its offshore wind efforts.

Each firm comes with its industry bonafides.

Deepwater Wind opened the nation's first offshore wind farm off Block Island last year a five-turbine project generating 30 MW.

DONG Energy has installed hundreds of turbines in waters off Europe and has partnered with Eversource on its Massachusetts venture.

And Vineyard Wind is partly owned by Portland, Oregon renewable energy developer Avangrid Renewables and Copenhagen Infrastructure Partners of Denmark.

ROUGH DRAFT

The utilities in concert with state agencies have been developing their bid requirements for months.

The most recent draft calls for proposals generating between 400 to 800 megawatts of power and outlined key dates, including a December deadline for submitting applications and a May 2018 deadline for picking a winner or winners.

But the utilities have also sought input from offshore wind companies and other stakeholders, so it remains to be seen if those specifics are further tweaked.

SIZE MATTERS?

As the utilities have drafted their bid requirements, there's been some debate about the right size for the wind farms.

DONG Energy argues that larger projects generating up to 800 megawatts provide "efficiencies of scale" that would lead to lower electricity costs for ratepayers.

Vineyard Wind believes the more practical approach is developing four projects of 400 megawatts each. And Deepwater Wind has argued for a range of projects of varying sizes.

"We think a more gradual approach makes the most sense," said Jeffrey Grybowski, Deepwater Wind's CEO. "You need to walk before you run."

TOO SLOW?

Timing also has been a concern among some stakeholders.

The Conservation Law Foundation, a nonprofit environmental advocacy group, has advocated for an accelerated timeline that would allow construction to start as soon as next summer and the wind farm to be operational by 2023.

Vineyard Wind CEO Erich Stephens warns that a prolonged selection process makes it harder for firms to maximize their benefit from federal investment tax credits that are gradually being phased out. That, he said, could ultimately impact costs passed to ratepayers.

"Even just a few months makes a huge difference," Stephens said.

THE TRUMP EFFECT

Offshore wind developers seem united on at least one point: they're not overly concerned about President Donald Trump's policies on renewable energy just yet. Trump was a vocal critic of offshore wind technology as a candidate and businessman.

The companies note that states play a vital role in setting the nation's energy priorities since they regulate utilities, and Massachusetts' Republican Governor Charlie Baker has reaffirmed the state's commitment to its clean energy goals despite the country's withdrawal from the Paris climate change agreement.

"There's no pause for us," said Thomas Brostrom, president of DONG Energy's North American operations. "We're remain really committed to the market here in Massachusetts and the U.S."

Follow Philip Marcelo at twitter.com/philmarcelo.

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Competition for offshore wind ramps up in Massachusetts - ABC News

The local market for office space experienced a big boost in the first quarter, thanks mainly to strong demand from offshore gaming operatorsa subsector of the business process outsourcing (BPO) industry that is growing rapidly with the help of new government regulations.

In a recently published research note, international property consulting firm Pronove Tai described offshore gaming companies as a strong but beleaguered driver in the Philippine office market.

While the office market is still largely driven by the information technology and business process management industry, offshore gaming companies as of end March have been the second single industry demand driver, accounting for 20 percent or 56,000 square meters of the pre-leased office space scheduled for completion in the second quarter, the firm said.

This demand is equivalent to three dedicated high rise office buildings out of the 18 buildings slated for completion in the second quarter of this year.

The property analyst said that a slowdown in the accreditation process by the Philippine Economic Zone Authority for new buildings has resulted in developers taking a second look at offshore gaming clients.

Offshore gaming companies are classified by the Philippine Amusement and Gaming Corporation as either service providers or licensed operators, both of which are technology-driven enterprises.

Service providers are gaming and software/platform providers, BPO providers, data/content streaming providers and gaming support providers.

Licensed operators, meanwhile, are gaming agents and those classified as special class BPOs which provide marketing and customer relation services only to duly licensed gaming operators overseas, must not handle betting activities for gaming operators and do not service any Pagcor Philippine Offshore Gaming Operator (Pogo) licensee.

To date, the Philippines is the first and only country in Asia to license offshore online gaming. Pagcor believes it can net an additional P10 billion in annual revenues from its Pogo licensees.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

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Offshore gaming boosts demand for PH office space - Inquirer.net

Refresh for latest: Universals The Mummy has risen from Saturdays projections to an estimated $141.8M weekend launch in 63 international box office markets. The estimated worldwide total is on track for $174M through today. Those figures give star Tom Cruise his biggest offshore and global openings ever. With No. 1s in 46 markets, the monster movie is also tops for Cruise in 26. China leads with $52.2M, putting the start in the company of such titles as San Andreas and Star Wars: The Force Awakens.

As noted over the weekend, it might seem improbable that Cruise would clear his top overseas and global bows ever given the critical bashing this Dark Universe-starter has taken domestically. But internationally, Cruises star power is combined with growth in key and emerging markets and the fact that the initial rollout of this pic includes China.

His previous top international and worldwide openings were with Steven Spielbergs 2005 sci-fi thriller War Of The Worlds ($102.5M/$167.4M). That films first rollout suite did not include such key markets as Korea or France, but did include Germany and Japan (China was not a major factor back then). France and Japan have yet to unwrap The Mummy.

Korea, which has a fondness for showing Cruise the money, is the 2nd best Mummy opening market this frame with $17.8M. The opening day Tuesday holds the record as the biggest launch day ever for any film at $6.6M. Russia follows for the full frame with $7.6M; Mexico is next at $5.1M; and the UK rounds out the Top 5 at $4.4M. (More details and analysis to follow).

Warner Bros.

Other notable milestones this weekend include Disneys Pirates Of The Caribbean: Dead Men Tell No Tales crossing $600M at the global box office. Theres $464.4M in the international treasure chest through June 11, led by China with a strong $161.2M to make it the No. 7 grosser of the year there.

Also, from Universal and Blumhouse, Jordan Peeles Get Out, hit $250M worldwide. In Korea, its $15.4M makes it the highest grossing foreign horror/thriller of all time.

Breakdowns on the above and more are being updated below.

NEW THE MUMMY

Universal

Along with the No. 1 start in China, The Mummy was tops in another 45 markets, and was Cruises best opening weekend in 26. Overall, this is the stars all-time biggest global ($174M) and international launch. Contrary to the domestic bow, his global star power combines with growth in key and emerging markets and the fact that the initial rollout of this pic included China.

While the domestic performance dinged the global outlook this weekend, some non-Universal execs see this as a strong performance internationally. The question now becomes its legs and thats where it gets dicey. Next weekend will be telling with no major new wide releases on deck. Some see at least a 2.2 multiple offshore. And, Cruise has a sizeable footprint in France and Japan where The Mummy has yet to unwrap.

Along with Asia Pacific, Latin America, Russia, Eastern Europe and the Middle East saw good openings this frame. The soft spot was Western Europe where the mercury was high and box office was low. There appears to be a battle for No. 1 with Wonder Woman in the UK on $4.4M. Also, Germany opened The Mummy to just $2.2M and Italy was $1.7M.

But looking back to Asia, Korea is the overall No. 2 market with a big No. 1 start at $17.8M for Cruises biggest opening weekend ever. This is a market that has plenty of time for the star and graced The Mummy with $6.6M on its holiday Tuesday bow to score the biggest opening day ever for any movie.

Russia likewise gave Cruise his biggest opening ever with $7.6M; followed by a similar scenario in Mexico at $5.1M.

Other major cumes include Taiwan ($4.9M), India ($4.6M), Indonesia ($4.5M) and Brazil ($3.6M).

In IMAX, The Mummy launched to $12M worldwide from 1,012 screens in 64 markets. Its the 5th best start in the format for a Universal title. Internationally, $9M came from 675 IMAX screens for the 5th best June start ever in the format and Universals 4th all-time best. From roughly 400 screens in China, IMAX delivered $4.6M of the total there.

There are seven more territories to release. France, French-speaking Switzerland, Greece, Israel and Trinidad open next weekend; Egypt on June 21 and Japan on July 28.

HOLDOVERS/EXPANSIONS WONDER WOMAN

Warner Bros.

The Patty Jenkins-helmed DC title has surpassed the lifetime gross of a key comp, Captain America: The First Avenger, in 13 days internationally. Regionally, Europe/Middle East/Africa saw a 41% drop and Latin America 43%. In Asia (outside China) Gal Gadots sword-wielding Diana Prince has topped the full runs (in local currency) of Suicide Squad, Man Of Steel, Guardians Of The Galaxy 1 & 2, Thor, Iron Man, Wolverine and Logan.

She also held No. 1 in Australia, Brazil and others although theres a question mark hanging over the UK right now with The Mummy.

France was a key opening this weekend where gorgeous weather had an impact on moviegoing. The launch estimate is $4.9M (4.4M euros) and 613K admissions on 655 screens for No. 1 and ahead of comps Cap 1 (+83%) and Ant-Man (+17%).

China continues to lead offshore plays for the Themyscira native. An additional $12.6M on 9,000 screens landed her No. 2 for the weekend with a cume of $68.4M (RMB 469.9M) to pass Man Of Steel, Iron Man, Thor and Cap 1.

In the UK, the cume is $16.1M, followed by Brazil at $15.8M for a 31% dip. With R$ 51.4M, Wonder Woman has exceeded Cap 1, Man Of Steel, Ant-Man, Iron Man, Thor and the first Guardians. Mexico has also topped those Marvel and DC comps, as well as Doctor Strange on $15.5M (Ps 286.2M). Koreas cume is $13.4M (won 15B), and Australia rounds out the Top 5 with $10.7M (A$14.4M) and a drop of just -19%.

Wonder Woman further continues to top comps in the Philippines ($8.2M/PHP 408.6M cume); Taiwan (7.4M/NT$ 222.6M); Indonesia ($7.1M/IDR 88.4B); and Russia ($6.8M/Rbl 386.5M).

On deck this week is Germany, followed by Spain on June 23 and Japan in August.

PIRATES OF THE CARIBBEAN: DEAD MEN TELL NO TALES

Disney

The 5th Pirates installment added $34.8M in its 3rd frame in 54 markets. Holds were good in parts of Europe where the Johnny Depp-starrer stayed on the No. 1 course in Germany, Belgium, Finland, Lithuania and the Netherlands, (all ahead of The Mummys debuts); Denmark (ahead of the 2nd weekend of Wonder Woman); and also Poland.

In Asia Pacific, China added $7.6M for $161.2M to date. Russia is now at $35.7M, the 2nd biggest play on POTC5 - as well as the No. 1 release of 2017 there, the top Disney Live Action pic ever as and the No. 4 release of all time.

Family-friendly Latin America dipped 48% across the region with particularly strong holds in Chile (-23%), Uruguay (-25%) and Argentina (-34%).

Looking at the same suite of markets at todays rates, POTC5 is currently running 15% ahead of Pirates 4 and 31% ahead of Pirates 3.

Behind China and Russia, Germany ($21.4M), Korea ($21.1M) and the UK ($20.5M) round out the Top 5. This is all ahead of Japans July 1 bow the market has typically been major for the franchise.

BAYWATCH

Paramount

Germany (where the film is No. 2) and the UK (where its No. 5) are tied to lead overseas hubs with $9M each. Germanys 2nd frame was $2.4M from 567 locations. In Britain, Dwayne Johnson, Zac Efron and the gang delivered $1.5M at 495.

Other key totals include Australia ($5.1M), Russia ($3.1M), Austria ($1.9M), Italy and Switzerland (both $1.5M), the Netherlands ($1.4M) and Malaysia ($1.2M).

Up next weekend are Brazil, Mexico and Spain; followed by France on June 21.

GUARDIANS OF THE GALAXY VOL 2

Disney

BEAUTY AND THE BEAST

Disney

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'The Mummy' Unearths $142M Offshore, $174M Global; 'Wonder Woman' Flies To $230M At International Box Office - Deadline

The word is that the shortfin corvina and halibut are on the chew in the bays. San Diego Bay and Mission Bay can be excellent fisheries for spotted bay bass and sand bass through the summer, but late springtime is when the shortfin corbina and halibut start working the edges before the water warms up and the halibut slide back into the cooler troughs. The corvina tend to move with the bait as the fry grow and move out of the bay over the summer. I have read many accounts of quality shortfin corvina to over 8 pounds from either bay. The current IGFA record is 10.6 pounds.

Shortfin corvina are often mistaken for juvenile white seabass, but there are a few telltale differences that are hard to miss. The white seabass doesnt have the inner fangs at the roof of the mouth that the corvina sports, and white seabass tend to have vertical broad bars on its side and a ridge along its belly called a "zipper." Shortfin corvina are excellent table fare, akin to the other fish in the croaker family with white flakey meat and a mild natural flavor. These fish generally feed in the mid to upper water column and respond well to medium running crankbaits, spoons and swimbaits.

Shortfin corvina first appeared in San Diego Bay around 1990 due, probably, to moving in with warm El Nio water and remaining due to the plethora of baitfish. At first, most caught were smallish, 14 inches or so. Now, after a quarter-century in the bays, they are averaging much larger and towards their max length around 36 inches.

The halibut are biting well, especially off the edges of the channel to the edge of the eelgrass as the low drops into slack. The reason is obvious; they are a broad, flat fish and hunting in the current is not their forte, they are ambush hunters that feed more during lesser tide swings and slacks, in spite of the many anglers out there that insist halibut bite better in a hard-running current. They are flat-wrong as wrong as folks that thought the world was flat. Think about it. If you were built like a kite and had to go catch a chicken, youd have a hard time putting bird on the table on a windy day. Its just that simple.

As the tide slows, the halibut move from their shelter up the edges to nail their prey as it passes. As the tide drops the bait gets pushed to the outer edges of the eel grass, over the holes. Ive caught more decent bay halibut at the edges of these ambush points, whether along the eelgrass cut, or deeper, along the channel cut near the shallower flats leading up to the eelgrass. As the tide slacks, Ill move closer to the eelgrass and cast to the deep edge, right at the edge, and let it sink as though I were flipping on a piling. If it gets hung in the eelgrass, I casted just a tad too far.

On the cast, I let sink and sit an extra count before slowly hopping it across the bottom back to whatever fishing platform I am angling from. I generally use grubs, twin-tail or single, in lighter colors with lots of flake on a plain bullet-style leadhead heavy enough to keep it low and work it back a hop at a time. Most of my bites come right on the sink or when nearly all the way back under the vessel. That method has flat out worked best for me over four decades of fishing for the flat ones.

Top performing boats of the week: The Pacific Queen ran two 1.5 day trips with a total of 65 anglers (32 & 33 respectively) for a total catch of 265 yellowtail, 2 bluefin tuna and 2 yellowfin tuna. The Chief scored well on their only run this past week, a 2.5 day trip wherein 21 anglers put 1 bluefin tuna, 1 yellowfin tuna and 108 yellowtail in the hold. The Pacific Voyager ran two trips this past week; a 3 day outing with 18 anglers aboard and a 2 day run carrying 16 anglers. Total catch for both trips was 11 bluefin tuna, 182 yellowtail, 180 rockfish, 20 calico bass and 64 barracuda.

Dock Totals 6/4 6/10: 2610 anglers aboard 109 boats out of San Diego landings this past week caught 148 bluefin tuna, 11 yellowfin tuna, 665 yellowtail, 670 calico bass, 187 sand bass, 3,180 rockfish, 111 sanddab, 24 lingcod, 104 bonito, 84 barracuda, 65 sculpin, 351 mackerel, 8 whitefish, 28 sheephead, 7 halibut and 1 mako shark.

Fish Plants: No plants scheduled this week.

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Offshore tuna cools a bit while the bays heat up for corvina and halibut - San Diego Reader

Morgan Stanley just torpedoed these tanker stocks. What happened

Shares of Teekay Corporation (NYSE:TK) and of its Teekay Offshore Partners (NYSE:TOO) subsidiary are down 6.1% and 19.5%, respectively, as of 12:15 p.m. EDT.

This morning, investment banker Morgan Stanley cut its rating on both stocks from "equalweight" to "underweight."

Citing Teekay proper's "fragile ... liquidity," Morgan Stanleyhoned in on the even greater vulnerability of the Teekay subsidiary, warning that "TOO's balance sheet remains under stress as the company has large unfunded liabilities and a considerable portion of its cash flow is at risk as many of its offshore contracts come to expiration." To keep itself solvent, Morgan Stanley believes Teekay Offshore may be forced "to issue large amounts of new equity [to raise cash] to meet its obligations," diluting Teekay Corporation's stake in the stock -- and individual investors' stakes as well.

Image source: Getty Images.

It gets worse. Citing a "sum-of-the-parts" valuation of Teekay Corporation's "three daughters," and subtracting "the net liabilities at the parent level and after applying a 25% discount on the $251m net claims from TOO," Morgan Stanley believesTeekay Corporation itself is worth only $3 per share (half of what the stock sells for today), while Teekay Offshore is worth only $1.50 (barely half what its stock sells for).

So, what's the upshot for investors today? Both of these stocks have roughly 50% downside risk to them.

No wonder investors aren't sticking around to find out if Morgan Stanley is right.

Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Why Teekay Corporation and Teekay Offshore Partners Got Fried on Friday - Motley Fool