Transocean Ltd. Provides Quarterly Fleet Status Report

Rhea-AI Summary

Transocean issued a quarterly Fleet Status Report, highlighting contract updates for offshore drilling rigs. Key updates include contract extensions and new awards in the U.S. Gulf of Mexico and Angola, contributing to an incremental backlog of $248 million. The total backlog as of April 17, 2024, stands at approximately $8.9 billion.

Positive

• Transocean reported contract updates for its offshore drilling rigs in the quarterly Fleet Status Report.
• Deepwater Asgard secured a 365-day contract extension in the U.S. Gulf of Mexico at a rate of $505,000.
• Deepwater Skyros had a three-well option exercised in Angola at a rate of $400,000.
• The incremental backlog from these fixtures amounts to around $248 million.
• The total backlog for Transocean is approximately $8.9 billion as of April 17, 2024.

Negative

• None.

Insights

Financial Analyst

Transocean's latest Fleet Status Report signals a substantial fortification of their financial position with the extended contract for Deepwater Asgard and the exercised option for Deepwater Skyros. The disclosed $248 million of incremental backlog is a significant addition to their already robust total backlog of $8.9 billion. This positions the company favorably in terms of revenue visibility, which is a vital aspect for investors seeking stability in their investments.

The daily rates disclosed, $505,000 for the Asgard and $400,000 for the Skyros, are above industry average, reflecting a strong market demand for deepwater drilling services and Transocean's ability to command premium pricing due to its advanced fleet. This should contribute positively to the company's EBITDA margins, assuming operational costs remain controlled. Investors should monitor future reports for signs of cost inflation that could erode these margins.

Market Research Analyst

The focus on expanding activities in key geographical regions such as the U.S. Gulf of Mexico and Angola highlights the strategic approach Transocean is taking to optimize its fleet's deployment. A 365-day extension in the Gulf of Mexico underscores the region's ongoing potential and Transocean's commitment to leveraging its assets in a high-activity area.

Investors should appreciate the importance of the contract extension and option exercise as indicators of client confidence and a predictable revenue stream. Such extended contracts in the offshore drilling industry suggest a backlog stability that can shield the company from the sector's cyclical nature.

STEINHAUSEN, Switzerland, April 17, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today issued a quarterly Fleet Status Report that provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs.

This quarter’s report includes the following updates:

• Deepwater Asgard – Awarded a 365-day contract extension in the U.S. Gulf of Mexico at a rate of $505,000.
• Deepwater Skyros – Customer exercised a three-well option in Angola at a rate of $400,000.

The aggregate incremental backlog associated with these fixtures is approximately $248 million. As of April 17, 2024, the company’s total backlog is approximately $8.9 billion.

The report can be accessed on the company’s website: www.deepwater.com.

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 36 mobile offshore drilling units, consisting of 28 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 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

What updates were provided in Transocean 's quarterly Fleet Status Report?

The report highlighted contract information for the company's offshore drilling rigs, including contract extensions and new awards.

What contract extension did Deepwater Asgard secure and at what rate?

Deepwater Asgard secured a 365-day contract extension in the U.S. Gulf of Mexico at a rate of $505,000.

Where was the three-well option exercised for Deepwater Skyros and at what rate?

The three-well option for Deepwater Skyros was exercised in Angola at a rate of $400,000.

What is the total backlog for Transocean as of April 17, 2024?

The total backlog for Transocean is approximately $8.9 billion.

Where can the full Fleet Status Report be accessed?

The full report can be accessed on Transocean 's website: www.deepwater.com.