() is one of the leading providers of shallow-water drilling and marine services to national, major integrated and independent energy firms ranging from state-owned oil giant to the American oil major . The company boasts of the "third largest worldwide fleet" of jackup rigs and the "largest international fleet" of lift-boats. Hercules has clearly come a long way since its formation in 2004. This year, Hercules has upped its stake in Discovery Offshore S.A, an ultra-high-specification-jackup-drilling-rigs company which was formed by Hercules a couple of years ago, from 32% last year to 100% by the end of September 2013. Hercules currently has 18 rigs at the Gulf of Mexico which makes Hercules one of the biggest suppliers in the region; but it is also eyeing significant growth in international markets.
Hercules has not posted an annual profit in the last five years while its top line growth has been modest. Its shares have also underperformed this year. However, all of that could change as the company is on track to post an annual profit in 2013, followed by a significant increase in revenues and income in 2014. This turnaround could propel the company's stock which, so far, has largely been ignored by equity analysts. With the new price target, I believe the company's stock has a potential upside of more than 60%. So let's dig deeper.
Through the Discovery acquisition mentioned in the introduction, Hercules has added some new assets …. Read full article at Seeking Alpha