Transocean Ltd. Announces $188 Million Ultra-Deepwater Drillship Contract Extension
Transocean (NYSE: RIG) has secured a 365-day contract extension valued at approximately $188 million for its ultra-deepwater drillship, Deepwater Asgard. The contract, with an independent operator in the U.S. Gulf of Mexico, will commence immediately after the current program ends. This extension includes additional services, significantly boosting Transocean's backlog.
- 365-day contract extension for Deepwater Asgard.
- Estimated contribution of $188 million in backlog.
- Immediate commencement after current program.
- None.
Insights
The 365-day contract extension for the Deepwater Asgard is a significant development for Transocean Ltd. The additional
From a financial perspective, this extension will likely improve cash flow and earnings visibility over the next year. Such contracts also help mitigate risks associated with idle periods and provide a more predictable revenue base. Investors should keep an eye on how this added backlog translates into quarterly earnings reports to gauge its real impact on profitability.
The extension of the Deepwater Asgard contract indicates robust demand in the ultra-deepwater drilling sector, particularly in the U.S. Gulf of Mexico. This region remains a critical area for offshore oil production and securing long-term contracts signifies confidence in the sector’s growth and stability.
This contract extension could also imply that the independent operator is satisfied with the rig's performance, potentially leading to future renewals or new contracts. The continuous utilization of the rig not only improves operational efficiency for Transocean but might also impact industry benchmarks for day rates and utilization rates positively, which are key metrics in the offshore drilling market.
STEINHAUSEN, Switzerland, June 26, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) (“Transocean”) today announced a 365-day contract extension for the Deepwater Asgard with an independent operator in the U.S. Gulf of Mexico. The program is expected to commence in direct continuation of the rig’s current program and is estimated to contribute approximately
About Transocean
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 35 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and eight harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship.
Forward-Looking Statements
The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are beyond our control, and in many cases, cannot be predicted. As a result, actual results could differ materially from those indicated by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, the cost and timing of mobilizations and reactivations, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
Analyst Contact:
Alison Johnson
+1 713-232-7214
Media Contact:
Pam Easton
+1 713-232-7647
FAQ
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