|
|
Post by kingrig on Apr 26, 2024 16:58:20 GMT -5
Just a reminder… Transocean Ltd. Announces First Quarter 2024 Earnings Release Date STEINHAUSEN, Switzerland, April 10, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that it will report earnings for the first quarter 2024 on Monday, April 29, 2024. last negative quarter before breakeven/profitville |
|
|
|
Post by rajiv on Apr 28, 2024 18:31:35 GMT -5
Any predictions on eps and top line revenues? The two guys who run this forum have been quite bullish and making all sorts of claims about huge eps turnaround this year.
Well, it’s time to put up or shut up…
|
|
|
|
Post by Blitz on Apr 28, 2024 19:03:20 GMT -5
Any predictions on eps and top line revenues? The two guys who run this forum have been quite bullish and making all sorts of claims about huge eps turnaround this year. Well, it’s time to put up or shut up… I have made zero predictions regarding eps. That said, I do think there is a turnaround coming this year. That said, I also thought the stock would be $9 to $12 by now and there would be more long term contracts signed. I am dismayed by the dearth of drillship contracts so far this year. |
|
|
|
Post by kingrig on Apr 28, 2024 21:11:30 GMT -5
Any predictions on eps and top line revenues? The two guys who run this forum have been quite bullish and making all sorts of claims about huge eps turnaround this year. Well, it’s time to put up or shut up… Q1 is not put up or shut up time for Transocean, Q3 is |
|
pete
Dealer
Not a Waitress
Posts: 19
|
Post by pete on Apr 28, 2024 21:43:49 GMT -5
Don’t see how they can avoid questions about the purpose for the funds in the ER, especially not the call.
|
|
|
|
Post by bjspokanimal on Apr 28, 2024 23:52:03 GMT -5
@ pete; they may get questioned about the funds but beyond the stated tenders for redemption, I wouldn't expect a straight answer if they have strategic intent for the money that could tip off anything to a competitor. I see almost no chance of them buying another stranded rig, given what they ended up doing with Aquila sans Liquila and given the CEO's recent comments about the cost advantages of reactivating a stacked rig vs either a stranded or scratch newbuild. As I speculated previously, I think the money raise, at a time when all the major drillers with stacked drillships are acting more stingy with them, is a sign of increased negotiation toward a reactivation, especially with lead times and contract durations marching steadily longer. For example, I could see them contracting Athena for a 3 to 5 year term at $475k to $490k with Transocean covering 35% of reactivation costs and the client covering 65%.
|
|
|
|
Post by kingrig on Apr 29, 2024 0:40:23 GMT -5
@ pete; they may get questioned about the funds but beyond the stated tenders for redemption, I wouldn't expect a straight answer if they have strategic intent for the money that could tip off anything to a competitor. I see almost no chance of them buying another stranded rig, given what they ended up doing with Aquila sans Liquila and given the CEO's recent comments about the cost advantages of reactivating a stacked rig vs either a stranded or scratch newbuild. As I speculated previously, I think the money raise, at a time when all the major drillers with stacked drillships are acting more stingy with them, is a sign of increased negotiation toward a reactivation, especially with lead times and contract durations marching steadily longer. For example, I could see them contracting Athena for a 3 to 5 year term at $475k to $490k with Transocean covering 35% of reactivation costs and the client covering 65%. sure smells like you just might be on to something spok |
|
|
|
Post by rajiv on Apr 29, 2024 13:48:44 GMT -5
Any predictions on eps and top line revenues? The two guys who run this forum have been quite bullish and making all sorts of claims about huge eps turnaround this year. Well, it’s time to put up or shut up… I have made zero predictions regarding eps. That said, I do think there is a turnaround coming this year. That said, I also thought the stock would be $9 to $12 by now and there would be more long term contracts signed. I am dismayed by how slow drillship contracts have been so far this year. I see you have changed your tune mightily over the last four months. Go back and read some of the threads from 3-4 months ago. You sure were popping off a lot. Nice to see that you’ve come down to reality along with the rest of us. |
|
|
|
Post by Blitz on Apr 29, 2024 15:40:17 GMT -5
I have made zero predictions regarding eps. That said, I do think there is a turnaround coming this year. That said, I also thought the stock would be $9 to $12 by now and there would be more long term contracts signed. I am dismayed by how slow drillship contracts have been so far this year. I see you have changed your tune mightily over the last four months. Go back and read some of the threads from 3-4 months ago. You sure were popping off a lot. Nice to see that you’ve come down to reality along with the rest of us. I can change with circumstances. I adapt to dynamic facts. If I had a Magic 8-ball that worked, you'd be reading about me on my 500' yacht surrounded by hotties making people wish upon a star. Popping off seems pretty pugilistic. I mostly just post facts and sometimes I opine on them in the macro. If I'm wrong... well, you got what you paid for. |
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:00:24 GMT -5
I agree that a good investor must change with the circumstances that surround one's basic
investing philosophy. I'm a contrarian who invests in turnaround candidates, but I know
successful investors who utilize very effective momentum strategies, as long as they're
disciplined, or income strategies. MPW, which I highlighted last week, is both a
turnaround AND an income strategy.
But circumstances during the execution of any strategy can alter how one approaches the
strategy. Transocean, or Transocean's industry, could adopt dozens of different approaches
toward debt, newbuilds, tenders, stranded rigs, reactivations, fleet makeup, etc. that
could change my outlook which, in turn, could change my expectations, approach to strategy,
or how I look at metrics or estimates.
Re: the opposite of change and adaptation, rigidity, is a dangerous way to pursue
investing. I see people every day who say "when this stock hits $10, I'm going to sell it".
What if circumstances change in a positive direction (which for contrarians, is often seen
by many as a "negative" direction) before the stock hit's $10, or in a negative direction
while it's still below $8?
|
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:09:28 GMT -5
They used to do a better job of reporting within an hour of the closing bell.  |
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:30:45 GMT -5
www.deepwater.com/news/detail?ID=28546Excerpt: Backlog as of the April 2024 Fleet Status Report $ 8.9 billion STEINHAUSEN, Switzerland, April 29, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported a net income attributable to controlling interest of $98 million, $0.11 per diluted share, for the three months ended March 31, 2024. First quarter results included net favorable items of $120 million, $0.14 per diluted share, primarily due to $121 million discrete tax items, net. After consideration of these net favorable items, first quarter 2024 adjusted net loss was $22 million, $0.03 per diluted share. Contract drilling revenues for the three months ended March 31, 2024, increased sequentially by $22 million to $763 million, primarily due to increased activity for rigs that returned to work or were fully active this quarter after undergoing contract preparation, higher dayrate and higher reimbursable revenue. This was partially offset by lower revenue efficiency across the fleet, particularly on Deepwater Titan which experienced significant unscheduled downtime related to its blowout preventer, and one less day in the quarter. Deepwater Titan has since resumed dayrate operations. Contract intangible amortization represented a non-cash revenue reduction of $4 million, compared to $7 million in the prior quarter. The contract intangible assets are now fully amortized. Operating and maintenance expense was $523 million, compared with $569 million in the prior quarter. The sequential decrease was primarily due to cost savings on rigs that were idle in the first quarter, reduced contract preparation expenses, and lower in-service maintenance cost on the operating fleet. This was partially offset by higher reimbursed expenses. After consideration of the favorable adjustment of $10 million and $145 million in the first and fourth quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds, interest expense net of capitalized amounts was $127 million, compared to $142 million in the prior period. Interest income was $15 million, compared to $10 million in the previous quarter. The Effective Tax Rate(2) was 206.0%, up from (25.0)% in the prior quarter. The increase was primarily due to changes in deferred taxes related to rig ownership changes, rig movement and contract expirations across multiple jurisdictions. The Effective Tax Rate excluding discrete items was 76.9% compared to (30.0)% in the previous quarter. Cash used in operating activities was $86 million during the first quarter of 2024, representing a decrease of $184 million compared to cash provided by operations in the prior quarter. The sequential decrease was primarily due to increased payments that regularly occur in the first quarter of each year for payroll-related costs and interest expense. First quarter 2024 capital expenditures of $83 million were primarily associated with the newbuild ultra-deepwater drillship Deepwater Aquila. This compares with $220 million in the prior quarter. “Over the first months of 2024, Transocean has achieved some fairly significant milestones. First, we secured a 365-day extension on Deepwater Asgard at a rate of $505,000 per day, once again demonstrating the sustained tightness in the high-specification floater market as well as Transocean’s ability to command industry-leading dayrates,” said Chief Executive Officer Jeremy Thigpen. “Additionally, earlier this month we finalized a $1.8 billion debt refinancing transaction, enabling us to improve near-term liquidity and start the process of simplifying our balance sheet. We also completed the extension of our revolving credit facility to mid-2028, further enhancing our financial flexibility.” Thigpen concluded, “Looking ahead, we remain encouraged by the demand outlook and expect to see numerous long-term contracts awarded over the next several months. As we work to secure those contracts, we will remain acutely focused on operational execution across our fleet, as we endeavor to maximize the conversion of our industry-leading backlog to cash.” Non-GAAP Financial Measures We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP. All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com. About Transocean...
|
|
|
|
Post by rajiv on Apr 29, 2024 16:31:14 GMT -5
Huge revenue miss at 767 million. This management team is so inept.
|
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:35:31 GMT -5
Interesting that they missed on revenues but beat on earnings.
At first glance, I think I see more of a drop-off in expenses
than expected. I haven't read further yet, but I think they were
a little later than expected getting some of the contract-prep
rigs out there drilling as quickly as originally expected.
|
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:42:11 GMT -5
Nice to see that the "bifurcated exchange feature related to the 4.625% exchangeable bonds"
had a minimal impact on the earnings efficacy this quarter. It still irks me that this is
not shown somehow as an extraordinary item instead of us having to know to adjust for it
ourselves. With only a $10 million impact, it only impacts the reported EPS by a little
more than a penny.
|
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:44:25 GMT -5
The drop off in expenses was pretty much directly a result of rigs that weren't drilling
yet that they expected WOULD be drilling a bit sooner. It appears that to the extent
that drilling revenues fell short, so too did the expenses that WOULD have been associated
with the expected higher drilling revenue also come in lower. That appears to be why
EPS did OK despite lower than expected drilling revenues.
|
|
|
|
Post by bjspokanimal on Apr 29, 2024 16:55:11 GMT -5
Finally, I'd like to "speculate" on something the CEO said:
"Thigpen concluded, “Looking ahead, we remain encouraged by the demand outlook
and expect to see numerous long-term contracts awarded over the next several
months. As we work to secure those contracts..."
Transocean only has 2, warm, idle rigs, the Inspiration and the DD3. I think an
industry analysis company also mentioned more than a half dozen tenders that would
be awarded within the next 2 months, which aligns with the CEO's verbage above.
Transocean has 3, stacked, 7th generation drillships and neither the Inspiration nor
the DD3 are nearly as new nor as high-spec as those 3 ships.
With the big, new private debt issuance, they've got some money (well over and above their
announced debt tenders) to possibly nudge a customer over the line with a reactivation this
quarter. They are very close to being done with their last big cap-ex expenditure with the
Aquila so we are at kind of a "what next" crossroad.
He definitely sounds like he's going after those contracts by characterizing it in this way...
"as we work to secure those contracts". That almost sounds like he's suggesting an
inside track towards getting more than one.
It'll be interesting to hear Mr. Thigpen elaborate some tomorrow morning.
|
|
|
|
Post by rajiv on Apr 29, 2024 17:52:33 GMT -5
Revenue efficiency was 92%. Typical is 97%……so that explains the light revenue. But that will be pushed into 2Q. Was clearly unexpected. DW Titan needed an unexpected repair for its Blowout Preventer.
So, most people will be OK with pushing $20M in revs, as the alternative could be a BP style oil spill. But once again - poor operation execution. Clown management team that always seems to find a way to damn things up.
|
|
|
|
Post by bjspokanimal on Apr 29, 2024 19:31:50 GMT -5
Revenue efficiency was 92%. Typical is 97%……so that explains the light revenue. But that will be pushed into 2Q. Was clearly unexpected. DW Titan needed an unexpected repair for its Blowout Preventer. So, most people will be OK with pushing $20M in revs, as the alternative could be a BP style oil spill. But once again - poor operation execution. Clown management team that always seems to find a way to damn things up. Yes, I agree that the Titan issue with the BOP probably played a sizable role with the drop in revenue efficiency and clearly also cut into the Q1 revenue, especially since they say that Titan experienced "significant" downtime. I don't think the lost revenue will be "pushed into Q2" however, since the revenue was lost in Q1 and Titan was scheduled to be continuing to drill in Q2 under the current contract anyway. What it could do, however, is add the lost drilling days onto the END of the current contract. My concern about the downtime being due to a BOP problem, is that Titan and Atlas were the first rigs in the industry to receive the 20k psi BOPs so the problem could have had something to do with them being a new design and thus untested in real world applications until Titan and Atlas started deploying them. Hopefully, it's not some kind of problem or flaw that leads to more downtime for either ship. |
|
pete
Dealer
Not a Waitress
Posts: 19
|
Post by pete on Apr 29, 2024 20:41:45 GMT -5
Revenue efficiency was 92%. Typical is 97%……so that explains the light revenue. But that will be pushed into 2Q. Was clearly unexpected. DW Titan needed an unexpected repair for its Blowout Preventer. So, most people will be OK with pushing $20M in revs, as the alternative could be a BP style oil spill. But once again - poor operation execution. Clown management team that always seems to find a way to damn things up. Yes, I agree that the Titan issue with the BOP probably played a sizable role with the drop in revenue efficiency and clearly also cut into the Q1 revenue, especially since they say that Titan experienced "significant" downtime. I don't think the lost revenue will be "pushed into Q2" however, since the revenue was lost in Q1 and Titan was scheduled to be continuing to drill in Q2 under the current contract anyway. What it could do, however, is add the lost drilling days onto the END of the current contract. My concern about the downtime being due to a BOP problem, is that Titan and Atlas were the first rigs in the industry to receive the 20k psi BOPs so the problem could have had something to do with them being a new design and thus untested in real world applications until Titan and Atlas started deploying them. Hopefully, it's not some kind of problem or flaw that leads to more downtime for either ship. Down time for new design equipment is very common, they learned the cause of problem and this should not re-occur. Likely issue is missing spare parts. |
|
|
|
Post by Blitz on Apr 30, 2024 5:45:41 GMT -5
Revenue efficiency was 92%. Typical is 97%……so that explains the light revenue. But that will be pushed into 2Q. Was clearly unexpected. DW Titan needed an unexpected repair for its Blowout Preventer. So, most people will be OK with pushing $20M in revs, as the alternative could be a BP style oil spill. But once again - poor operation execution. Clown management team that always seems to find a way to damn things up. Yes, I agree that the Titan issue with the BOP probably played a sizable role with the drop in revenue efficiency and clearly also cut into the Q1 revenue, especially since they say that Titan experienced "significant" downtime. I don't think the lost revenue will be "pushed into Q2" however, since the revenue was lost in Q1 and Titan was scheduled to be continuing to drill in Q2 under the current contract anyway. What it could do, however, is add the lost drilling days onto the END of the current contract. My concern about the downtime being due to a BOP problem, is that Titan and Atlas were the first rigs in the industry to receive the 20k psi BOPs so the problem could have had something to do with them being a new design and thus untested in real world applications until Titan and Atlas started deploying them. Hopefully, it's not some kind of problem or flaw that leads to more downtime for either ship. Being the first with new tech often has teething issues. NOV is the best in the industry and RIG is the industries' biggest player. They'll figure it out. As a former Navy pilot, I used to see new tech in action first hand. Take the US Navy's newest aircraft carrier that eliminated steam based launching with an electromagnetic catapult launching system. It had teething problems and now works as advertised. Problems get solved quickly when there's a vital need. |
|
|
|
Post by Blitz on Apr 30, 2024 6:07:22 GMT -5
The drop off in expenses was pretty much directly a result of rigs that weren't drilling yet that they expected WOULD be drilling a bit sooner. It appears that to the extent that drilling revenues fell short, so too did the expenses that WOULD have been associated with the expected higher drilling revenue also come in lower. That appears to be why EPS did OK despite lower than expected drilling revenues. I would have liked it better if Thigpen and crew had mentioned the 20K BOP issue earlier. That said, I read this over on the Yahoo Board by one of their best contributors with the top post on their RIG Conversations board... RIG had been expected to post positive earnings in Q3 of this year and possibly post a positive EPS in the Q2 (current) quarter. Nobody expected the company to turn profitable in Q1 but Rig almost did, missing earnings profitability by just 3 pennies/share, excluding the discreet tax benefit. If Titan hadn't had it's unexpected BOP problem, RIG actually WOULD have been unexpectedly profitable in Q1. I'm not sure if Titan's downtime accounted for all of the company's revenue shortfall, but if it did, normalizing Q1 results for a fully functional Titan would've led to a beat across the board for RIG. Hopefully the BOP issue was a one-time issue (it's currently resolved and Titan is back out drilling) and Q3 will be another earnings beat. |
|
|
|
Post by Blitz on Apr 30, 2024 7:35:56 GMT -5
I looked up Deepwater Titan's location. It is in fact working in the GoM not too far off the coast of Louisiana. About a mile away, Deepwater Conqueror is also working. Both are on long term contracts with Chevron. Hmmm... You may have heard CVX just got bigger offshore Guyana via Hess. Perhaps that's an inroad for RIG in that area? CHEVRON USA INC GC 806 G31751 4,999 T.O. DEEPWATER CONQUEROR CHEVRON USA INC GC 807 G31752 GC 807 (Anchor Well) 4,961 DEEPWATER TITAN www.bsee.gov/sites/bsee.gov/files/2024-04/Deepwater%20Activity%20Weekly%20Report%2004-24-2024.pdf/////////////////////// CVX wants to grow in deepwater offshore Namibia too... Namibia: Chevron acquires 80 percent interest and operatorship of PEL 82, offshore Namibia 29 Apr 2024 www.energy-pedia.com/news/namibia/chevron-acquires-80-percent-interest-and-operatorship-of-pel-82--offshore-namibia-194964Sintana Energy has announced that Chevron Namibia Exploration Limited ('CNEL'), an affiliate of Chevron, has executed an agreement effective April 28th that provides for their entry into Petroleum Exploration License 82 ('PEL 82') with the assumption of an 80% working interest and operatorship. NAMCOR, the National Petroleum Corporation of Namibia, and Custos Energy will each maintain a 10% carried interest in PEL 82. Sintana maintains an indirect 49% interest in Custos.  PEL 82 governs blocks 2112B AND 2212A located in the Walvis Basin, offshore Namibia. PEL 82 is one of the Walvis Basin’s most attractive opportunities. Approximately 70% of total block area is covered by existing seismic – over 3,500 km of 2D and 9,500 km2 of 3D data. Previous drilling activity on PEL 82 includes the Murombe-1 and Wingat-1 wells. Results confirmed the regional extension and presence of the Barremian-Aptian oil-prone source rock (Kudu shale). The Murombe-1 penetrated the Baobab sands returning approximately 20% porosity. The Wingat-1 well recovered 38-41 degree API oil to surface. 'We are pleased to announce the continuing expansion of our in-country partnership with Chevron through their entry in PEL 82. This is one of the most advanced and interesting opportunities offshore Namibia outside of the Orange Basin.' said Knowledge Katti, Chairman and Chief Executive Officer of Custos, and a director of Sintana. 'We are pleased to see our efforts over the last decade on PEL 82 result in this important step forward adding further to Namibia’s world class offshore opportunity,' he added. 'The expanding partnership with Chevron in Namibia speaks to the quality of our Namibian portfolio,' said Robert Bose, CEO and Board Member of Sintana. 'The timeliness of our entry and the unmatched nature of our portfolio continue to be demonstrated as Namibia emerges as the world’s next great hydrocarbon province,' he added. In conjunction with the farm-in, Custos is pleased to announce that it has entered into a co-operation agreement with the Walvis Bay Poverty Reduction Trust (“WBPRT”) providing that the WBPRT will be the primary beneficiary of Custos’s corporate social responsibility efforts. Original announcement link Source: Sintana Energy |
|
|
|
Post by rajiv on Apr 30, 2024 10:33:15 GMT -5
Wow they wouldn’t address the question of as far as share count goes and said they wanted to take that off-line. Dicey.
|
|
|
|
Post by Blitz on Apr 30, 2024 11:48:53 GMT -5
Transocean anticipates more long-term rig deals over next few months BUSINESS & FINANCE // April 30, 2024, by Melisa Čavčić www.offshore-energy.biz/transocean-anticipates-more-long-term-rig-deals-over-next-few-months/Offshore drilling contractor Transocean is looking forward to securing new assignments for its rig fleet, thanks to the high demand for offshore drilling services on the global oil and gas stage. The rig owner’s expectations of further long-term contracts are fueled by the current upcycle and deals awarded in the first quarter of 2024.  Deepwater Titan drillship; Source: Transocean Transocean’s most recent fleet status report shows that the rig owner’s aggregate incremental backlog associated with two contract extensions, which were obtained in 1Q 2024, is approximately $248 million, lifting the firm’s total backlog to around $8.9 billion as of April 17, 2024. Within its previous fleet status report, the company revealed more work for drillships and semi-submersibles, however, the latest one is all about drillship assignments. With the drilling market upcycle in full swing, the offshore drilling heavyweight raked in a $3.2 billion boost in contract backlog last year. The drilling giant’s results for 1Q 2024 display a net income attributable to controlling interest of $98 million, representing a loss of $104 million compared to $202 million in 4Q 2023. The results for 1Q 2024 entailed net favorable items of $120 million, primarily due to $121 million discrete net tax items. After consideration of these net favorable items, the first quarter 2024 adjusted net loss was $22 million, a difference of $74 million compared to a profit of $52 million in 4Q 2023. The firm’s adjusted EBITDA was $199 million in 1Q 2024, an increase of $122 million compared to $77 million in the prior quarter. In addition, the drop in capital expenditures to $83 million in 1Q 2024 from $220 million in 4Q 2023 is primarily associated with the Deepwater Aquila newbuild ultra-deepwater drillship. The rig owner’s total contract drilling revenues increased sequentially by $22 million to $763 million in 1Q 2024 due to increased activity for rigs that returned to work or were fully active this quarter after undergoing contract preparation, higher day rate, and higher reimbursable revenue. This was partially offset by lower revenue efficiency across the fleet, particularly on the Deepwater Titan drillship which experienced significant unscheduled downtime related to its blowout preventer, and one less day in the quarter. The drillship has since resumed day-rate operations. Furthermore, the drilling contractor’s total fleet average revenue efficiency was 92.9% in 1Q 2024, compared to 97% in the prior quarter and 97.8% in 1Q 2023. The ultra-deepwater floaters’ revenue efficiency for 1Q 2024 was 92.7%, compared to 96.8% in 4Q 2023 and 97.4% in 1Q 2023. On the other hand, the company’s harsh environment floaters recorded revenue efficiency for 1Q 2024 of 93.3%, compared to 97.6% during the previous quarter and 98.7% in 1Q 2023. Transocean’s total fleet utilization in 1Q 2024 was 53.7%, compared to 51.6% in the fourth quarter of 2023 and 51.9% in 1Q 2023. While the ultra-deepwater floaters’ utilization for 1Q 2024 was 51.2%, compared to 46.8% in 4Q 2023 and 52.5% in 1Q 2023, the harsh environment floaters’ utilization for 1Q 2024 was 62%, compared to 66.7% during the previous quarter and 50.1% during 1Q 2023. Jeremy Thigpen, Transocean’s Chief Executive Officer, commented: “Over the first months of 2024, Transocean has achieved some fairly significant milestones. First, we secured a 365-day extension on Deepwater Asgard at a rate of $505,000 per day, once again demonstrating the sustained tightness in the high-specification floater market as well as Transocean’s ability to command industry-leading dayrates. “Additionally, earlier this month we finalized a $1.8 billion debt refinancing transaction, enabling us to improve near-term liquidity and start the process of simplifying our balance sheet. We also completed the extension of our revolving credit facility to mid-2028, further enhancing our financial flexibility.” Based on Transocean’s results, the contract intangible amortization represented a non-cash revenue reduction of $4 million in 1Q 2024, compared with $7 million in the prior period while the operating and maintenance expense was $523 million, compared to $569 million in 4Q 2023, primarily due to cost savings on rigs that were idle in the first quarter, reduced contract preparation expenses, and lower in-service maintenance cost on the operating fleet, which was partially offset by higher reimbursed expenses. According to Transocean, the cash used in operating activities was $86 million during the first quarter of 2024, representing a dip of $184 million compared to cash provided by operations in the prior quarter. The sequential decrease is said to be the result of increased payments that regularly occur in the first quarter of each year for payroll-related costs and interest expenses. “Looking ahead, we remain encouraged by the demand outlook and expect to see numerous long-term contracts awarded over the next several months. As we work to secure those contracts, we will remain acutely focused on operational execution across our fleet, as we endeavor to maximize the conversion of our industry-leading backlog to cash,” concluded Thigpen. |
|
