Dayrates updated for June 2024

Looking at the charts above, the most curious aspect of them would appear to be the
utilization graphs.

Starting with the drillships, the main issue with the 5% drop is the number of
stranded drillships that have entered the fleet as "marketed" units, but do not
have contracts. Every formerly stranded drillship is now in some state of cold-
stacked, warm-stacked, or currently finishing up construction. All of the ones
I'm aware of have shifted from stranded to actively marketed.

2 were delivered to Valaris, the DS-13 and the DS-14. Both have been stacked but
it's unclear just how warm or cold-stacked they are. It's also believed that they
still have some topside features left to be completed, probably features that
relate more toward customer preference. The other 4 are the Dorado, owned by
Eldorado drilling, the Tidal Action, formerly the Libra, and owned by Hanwha Ocean,
the Can-do, owned by Seatrium, and the Draco, owned by Samsung. The last 3, the Libra,
the Can-do and the Draco, are all essentially shipyard-owned, but having not sold those
drillships, the shipyards are launching them and marketing them through drilling
contractors like Diamond Offshore.

In the semisubmersible category, the 61% utilization figure may be confusing when there's
so much buzz about how 6th generation semis, particularly HE semis, are completely sold
out thorough July of next year. The reason, is because there are a lot of 3rd, 4th, and
5th generation semis still stacked out there. In the industry, there are far more "old"
semis in existence than there are "old" drillships. Transocean has sold off 3 such older
semis, the cold-stacked Leader and Nautilus semis and the 34 year old Paul Loyd, which is
currently drilling for $175k/day on a contract that ends next month. Transocean still has
3 stacked (DD1, Luanda and Goodrich) and 1 idle (DD3) semis. All 4 are less than 20 years
old, with the only exception being that the Goodrich was upgraded in 2007 from an original
1985 launch year.

Scrapping of older semis continues as well. The Leader, which Transocean recently sold to
Dolphin, is currently being scrapped for parts worth around $5.5 million.