NEW YORK (TheStreet) -- Hercules Offshore (HERO) stock is dropping on Friday after providing a fleet status report in which it said it would voluntarily forgo a three-year contract previously received in Angola.
"Due to the failure of Sonangol officials to accept a local representative that meets the Company's international legal compliance standards, the Company has experienced delays in obtaining Angolan visas for required crewmembers and delays in importing required parts and equipment into Angola to support operations under the drilling contract for the Hercules 267," the company said in a SEC filing.
By midmorning, shares had dropped 9.9% to $4.45. Trading volume of 10 million shares was nearly triple its three-month daily average.
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Separately, TheStreet Ratings team rates HERCULES OFFSHORE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERCULES OFFSHORE INC (HERO) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."