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Earnigs call at 9 am today. Hopefully good news going forward
TRANSOCEAN LTD. REPORTS SECOND QUARTER 2023 RESULTS
https://www.sec.gov/Archives/edgar/data/1451505/000145150523000093/rig-20230731xex99d1.htm
Total contract drilling revenues were $729 million, compared to $649 million in the first quarter of 2023 (total adjusted contract drilling revenues of $748 million, compared to $667 million in the first quarter of 2023);
Revenue efficiency(1) was 97.2%, compared to 97.8% in the prior quarter;
Operating and maintenance expense was $484 million, compared to $409 million in the prior quarter;
Net loss attributable to controlling interest was $165 million, $0.22 per diluted share, compared to $465 million, $0.64 per diluted share, in the first quarter of 2023;
Adjusted EBITDA was $237 million, compared to $217 million in the prior quarter;
Cash flows from operations was $157 million, versus $(47) million in the first quarter of 2023; and
Contract backlog was $9.2 billion as of the July 2023 Fleet Status Report.
STEINHAUSEN, Switzerland—July 31, 2023—Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $165 million, $0.22 per diluted share, for the three months ended June 30, 2023.
Second quarter results included net unfavorable items of $55 million, or $0.07 per diluted share as follows:
$53 million, $0.07 per diluted share, loss on impairment of assets; and
$2 million, other discrete items, net.
After consideration of these net unfavorable items, second quarter 2023 adjusted net loss was $110 million, or $0.15 per diluted share.
Contract drilling revenues for the three months ended June 30, 2023, increased sequentially by $80 million to $729 million, primarily due to increased activity for rigs that returned to work after being idle in the first quarter, the commencement of operations of the newbuild Deepwater Titan and $19 million of revenues associated with the early termination of Transocean Endurance and Transocean Barents, partially offset by reduced activity for two rigs that were idle in the second quarter of 2023.
Contract intangible amortization represented a non-cash revenue reduction of $19 million. This compares with $18 million in the prior quarter.
Operating and maintenance expense was $484 million, compared with $409 million in the prior quarter. The sequential increase was primarily due to rigs that returned to work after being idle, the commencement of operations of the newbuild Deepwater Titan and higher costs associated with two rigs undergoing contract preparation.
Interest expense, net of amounts capitalized, was $168 million, compared with $249 million in the prior quarter. Interest expense included a non-cash loss of $46 million, compared with $133 million in the prior quarter, associated with the fair value adjustment of the bifurcated exchange feature embedded in our exchangeable bonds issued in September of 2022. Interest income was $11 million, compared with $19 million in the previous quarter.
The Effective Tax Rate(2) was 8.8%, up from (12.3)% in the prior quarter. The increase was primarily due to updates to our forecast to include losses on revaluation of our exchangeable bonds. The Effective Tax Rate excluding discrete items was 11.7% compared to (29.0)% in the previous quarter.
Cash provided by operating activities was $157 million during the second quarter of 2023, representing an increase of $204 million compared to the prior quarter. The sequential increase is primarily due to increased collections from customers, reduced payments for payroll-related items, and reduced payments for interest.
Second quarter 2023 capital expenditures of $76 million decreased primarily due to reduced spending for our newbuild rigs under construction. This compares with $81 million in the prior quarter.
“During the second quarter, we continued to benefit from increased demand for our fleet of high-specification floaters. As of our latest fleet status report, we secured an additional $1.2 billion of backlog at a weighted average dayrate of approximately $456,000,” said Chief Executive Officer, Jeremy Thigpen. “As evidenced by our customers contracting rigs well in advance of their programs and committing to long-term contracts, the outlook for our high-specification assets and services remains robust.”
Thigpen concluded, “In addition to securing contracts at market-leading rates, our focus remains on the flawless execution of our offshore operations to maximize the value of our $9.2 billion backlog for our shareholders.”
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
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-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 37 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and nine harsh environment floaters. In addition, Transocean holds a noncontrolling ownership interest in a company that is constructing one ultra-deepwater drillship.
For more information about Transocean, please visit: www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference starting at 9 a.m. EDT, 3 p.m. CEST, on Tuesday, August 1, 2023, to discuss the results. To participate, dial +1 785-424-1222 and refer to conference code 623461 approximately 15 minutes prior to the scheduled start time.
The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.
A replay of the conference call will be available after 12 p.m. EDT, 6 p.m. CEST, on Tuesday, August 1, 2023. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7343, passcode 623461. The replay will also be available on the company’s website.
me too. Hoping for a top and bottom-line beat. Something to take us over 10 bucks..
Thanks!
I am very curious to see what they report.
Gregory Lewis
BTIG
Buy
07/28/23 price target $12.00
It did? I didn't catch that one. Thanks.
Got an upgrade on 7/28 with a $12 price target
Todays our day. Let's see what those numbers are.
Transocean Ltd. (NYSE: RIG) will report earnings for the second quarter 2023 after the close of trading on the NYSE on Monday, July 31, 2023.
"Offshore Oil Stocks Flying As Investors Bet On A Deep Water Boom"
https://oilprice.com/Energy/Crude-Oil/Offshore-Oil-Stocks-Flying-As-Investors-Bet-On-A-Deep-Water-Boom.html
"Stocks of offshore oil and gas drillers and producers have gone on a tear after recent contracts broke records, reversing their seven-year downturn that reached its nadir during the Covid-19 pandemic. Rising global petroleum demand, coupled with increasing deepwater exploration and drilling, has been keeping offshore contractors really busy.
Leading with impressive gains is deepwater drilling specialist, Transocean Ltd. (NYSE:RIG), whose stock has gained 99.1% in the year-to-date. RIG stock jumped nearly 10% over the past week after the company reported a three-year, $518 million contract to deploy one of its drillships in the Gulf of Mexico, the latest in a series of large transactions announced in recent months. The company has revealed that its aggregate incremental backlog associated with the latest contracts totals ~$1.2, bringing its total backlog to $9.2B. Meanwhile, rig rates have shot up to $480,000 a day, a 50%Y/Y increase and about triple the downturn’s lows.
"Last month, Norway’s government submitted to Parliament plans to open a large area to deep sea mining as it seeks to access and extract critical minerals from the seabed.
“We need minerals to succeed in the green transition. Currently, the resources are controlled by a few countries, which makes us vulnerable,” Norway’s Minister of Petroleum and Energy, Terje Aasland said."
https://oilprice.com/Latest-Energy-News/World-News/UN-Fails-To-Reach-Agreement-On-Deep-Sea-Mining-Regulation.html
"Oil Prices Climb To Multi-Month High As Market Eyes Tightening"
https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Climb-To-Multi-Month-High-As-Market-Eyes-Tightening.html
This quarter’s report includes the following updates:
Seventh Generation Ultra-Deepwater Drillship (Deepwater Invictus, Deepwater Thalassa, or
Deepwater Proteus) – Awarded a 1,080-day contract in Mexico at a rate of $480,000.
Transocean Equinox – Awarded a five-well contract, plus a one-well option in Australia at a rate of
$455,000.
Transocean Equinox – Awarded a sixteen-well contract in Australia at a rate of $485,000, plus 21
one-well options at rates between $485,000 and $540,000.
Transocean Endurance – Awarded a two-well contract in Norway at a rate of $385,000.
Transocean Barents – Awarded a one-well contract in Lebanon at a rate of $365,000, plus 3 onewell options at rates that may vary between $350,000 and $390,000.
Transocean Encourage – Customer exercised six one-well options in Norway at a current rate of
$464,000.
Transocean Norge – Customer exercised a one-well option in Norway at a current rate of $365,000
and 3 one-well options at a current rate of $420,000.
Transocean Barents – Customer exercised a one-well option in the East Mediterranean Sea at a rate
of $370,000.
The aggregate incremental backlog associated with these fixtures is approximately $1.2 billion. As of July19, 2023, the company’s total backlog is approximately $9.2 billion. Assuming all contract options are exercised, the potential incremental backlog associated with the contract options is approximately $480 million to $500 million.
we will get earnings at the end of the month. Hopefully a top and bottom beat
They are just rocking it right now!
Thanks for the update!
I wonder if this will ever again reach the all-time high of $171?
DJ Transocean Deal Shows Rate and Term Possible in Tightening Market -- Market Talk
9:13 AM ET 7/18/23 | Dow Jones
0913 ET - The world's largest offshore oil driller Transocean says it's made a three-year deal with an "independent operator" to do work in the Gulf of Mexico offshore Mexico for $518M, and will begin as early as 4Q 2025. "While some investors have been anticipating that the drillers could trade rate for term in order to fill their backlogs, this contract points to a sufficiently tight market for high spec assets for the Drillers to secure both rate and term," says Citi's Scott Gruber in a note. "For Transocean specifically, the ability to build long dated backlog at leading edge dayrates further improves their deleveraging prospects." Transocean shares jump 3.7% pre-market. (dan.molinski@wsj.com)
Barcharts opinion: Current direction = top 1% (strongest)
"“This award is especially encouraging on numerous fronts,” said Chief Executive Officer Jeremy Thigpen. “The fact that our customers are securing rigs well in advance of their programs and committing to long-term contracts clearly demonstrates the tightness of the market. Additionally, our ability to designate the specific rig closer to the commencement of the program provides us with increased flexibility to optimize the utilization of our high-specification fleet of ultra-deepwater drillships.”
$10.00/share!
It would be nice to get June numbers, but we wait on that. If June is strong, we may get a favorable result in the second quarter
"Oil Demand Jumped By 3 Million Bpd In May To Near-Record Levels"
https://oilprice.com/Latest-Energy-News/World-News/Oil-Demand-Jumped-By-3-Million-Bpd-In-May-To-Near-Record-Levels.html
might be the best time to drill in the north sea---AKA NoRTH OF SCOTISH ISLANDS---------..........as the weather is calmer
"Oil Prices Jump As Libya’s Largest Oilfield Goes Offline"
https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Jump-As-Libyas-Largest-Oilfield-Goes-Offline.html
Tuesday, July 11, 2023
Oil prices have marginally moved beyond the $72-77 per barrel range for Brent and $67-72 per barrel for WTI, and there is a growing sense that the market is starting to feel Saudi Arabia’s production cuts and Russia’s export curbs. Hedge fund net positioning in the ICE Brent contract went up by the equivalent of 25 MMbbls last week, the largest week-on-week build in two months, pointing at a potential short-term pricing upside.
UAE Refuses to Commit to Voluntary Cuts. As Saudi Arabia extended its 1 million b/d production cut into August and is widely expected to do the same into September, the United Arab Emirates announced it would not join its OPEC peer and that Riyadh’s cuts are enough to balance markets.
Mexican Oil Disaster Hard to Contain. Mexico’s national oil company Pemex estimates that the fire that broke out at its Nohoch-A platform and spread to the strategic Cantarell compression complex - causing the death of three people in the process - has led to the loss of 700,000 barrels of crude oil production so far.
US-EU Minerals Pact Coming By End-2023. According to senior US officials, a deal between the United States and the European Union to allow critical minerals mined or processed in Europe, including lithium and graphite, to be compatible with US tax breaks will be signed by end-2023.
Norway Lauds Largest Condensate Find in Years. Norwegian upstream firm DNO (OSL:DNO) announced a major gas and condensate discovery at its Carmen prospect in the Norwegian Continental shelf, the largest condensate find in decades with 120-230 mmboe of reserves.
Iran Accuses US of Shielding Fuel Smugglers. Less than a week has passed since Iran tried to intercept a US-bound tanker chartered by Chevron (NYSE:CVX), Tehran now accused the US Navy of defending fuel smuggling in the Gulf as another tanker was seized despite US aircraft interference.
HRW Attacks Total’s Uganda Project. Human Rights Watch claimed that the planned East African Crude Oil Pipeline led by TotalEnergies (NYSE:TTE) will devastate thousands of lives of people that have received inadequate compensation for their land, adding to the overall pressure on Uganda’s upstream projects.
Kuwait to Speed Up Development of Disputed Field. As Kuwait and Saudi Arabia move closer to jointly developing the Durra gas field in the Gulf, Kuwait’s Oil Minister Saad al Barrak called on Iranian authorities to demarcate their maritime borders before claiming joint ownership of the asset.
Fukushima Water Release Triggers IAEA. Japan’s plan to release treated radioactive water from its Fukushima nuclear plant has kept the IAEA on its toes as South Korea criticized the UN body’s findings and China threatened legal action if the plans moved ahead as currently planned.
Venezuela’s Opposition Wants to Redraw Export Map. Venezuela’s opposition is now suggesting that the Latin American country should redirect 200,000 b/d of its exports to a selected trustee to pay a group of creditors, as Caracas fights tooth and nail to retain Citgo as its key asset.
Satisfying No One, IMO Revised Its Emissions Strategy. As the International Maritime Organization revised its greenhouse gas emissions strategy and adopted a 2050 net zero target after 5 years of protracted negotiations, with developing nations voicing their dissatisfaction over potential fines if countries fail to deliver.
South Sudan Postpones Oil Expansion. As South Sudan’s oil industry struggles to bounce back from the ongoing war in Sudan, the country has postponed its long-term production growth of 230,000 b/d by at least two years to 2026, yet oil field flooding and lack of investment remain structural shortfalls.
Falling Rhine Levels Scare Central Europe. Falling water levels on the Rhine River in Germany are increasing freight costs across Germany and increasing the likelihood of supply shortages as levels at the Kaub chokepoint stand at 105 cm currently and are expected to fall below 1 m by the end of this week, allowing for only half-loaded cargoes.
Iron Ore Lives Through Worst Day of 2023. Depressed by weak Chinese domestic demand and steel output curbs, the two key Asian iron ore futures in Dalian and Singapore recorded their worst day in 2023 so far on Monday, falling by almost 4% on the day to $109 per metric tonne.
Tom Kool
Editor, Oilprice.com
Morgan Stanley Reiterates Equal-Weight on Transocean, Maintains $8 Price Target
BENZINGA
10:12 AM ET Jul-06-2023
Morgan Stanley analyst Connor Lynagh reiterates Transocean (NYSE:RIG) with a Equal-Weight and maintains $8 price target.
So there are 2 upgrades 1 to $8 and 1 to $10. Another at CITI for $9.5
"Why Transocean (RIG) Stock Is Trading Higher Today
BENZINGA
8:54 AM ET 07/05/2023
Transocean Ltd (NYSE:RIG) shares are trading higher Wednesday following positive analyst coverage from Citigroup. The company also announced that $172 million in options have been exercised.
What Happened: Citigroup analyst Scott Gruber upgraded Transocean from a Neutral rating to a Buy rating and raised the price target from $6.50 to $9.50.
The upgrade comes after the stock rallied more than 50% year-to-date and more than 12% over the past week.
Last week, Transocean announced that it received a $184 million award for harsh environment semisubmersible. The new award is expected to commence in the first quarter of 2025.
On Wednesday, Transocean also announced that six one-well options have been exercised for the harsh environment submersible, which is estimated to contribute approximately $172 million in backlog. The work is expected to commence as a direct continuation of the current term and now extends through February 2026.
Transocean is an international provider of offshore contract drilling services for oil and gas wells."
Citigroup Upgrades Transocean to Buy From Neutral, Raises Price Target to $9.50 From $6.50
7:20 AM ET, 07/05/2023 - MT Newswires
07:20 AM EDT, 07/05/2023 (MT Newswires) -- Transocean (RIG) has an average rating of outperform and price targets ranging from $5 to $12, according to analysts polled by Capital IQ.
"OMV preparing to kick off drilling ops with Transocean rig"
https://www.offshore-energy.biz/omv-preparing-to-kick-off-drilling-ops-with-transocean-rig/
Transocean Ltd. Announces $184 Million Award for Harsh Environment Semisubmersible
June 28 2023 - 05:22PM
Transocean Ltd. (NYSE: RIG) (“Transocean”) today announced a 16-well binding award for the Transocean Equinox in Australia for a consortium of four operators. The estimated 380-day campaign contributes approximately $184 million in backlog, excluding full compensation for mobilization and demobilization. The engagement also includes options that, if fully exercised, could keep the Transocean Equinox working in Australia into 2028.
This new award is expected to commence in the first quarter of 2025 in direct continuation of the rig’s previously announced five-well, 300-day commitment in Australia with a major operator, currently expected to start in the first quarter of 2024.
"Norway Approves $18.5 Billion Investment In Oil And Gas Projects"
"The 19 projects approved today include new developments, additional development of producing oil and gas fields, and investments to increase resource recovery in producing fields, the Norwegian Ministry of Petroleum and Energy said. The projects are being led by Aker BP, Equinor, Wintershall Dea, and OMV"
https://oilprice.com/Latest-Energy-News/World-News/Norway-Approves-185-Billion-Investment-In-Oil-And-Gas-Projects.html
"But China is not the only country willing to drill to ridiculous depths in the pursuit of energy security.
Deepwater oil and gas production is set to increase by 60% by 2030, to contribute 8% of overall upstream production, according to a new report from Wood Mackenzie, as cited by Rig Zone.
Ultra-deepwater production is set to continue growing at breakneck speed to account for half of all deepwater production by 2030."
https://oilprice.com/Energy/Crude-Oil/China-Bets-On-Ultra-Deepwater-Oil-And-Gas.html
RIg rates strong $420 K a day and contracts extended
"Bulls, like ourselves, find comfort in the fact that end-use demand across the commodity complex has not shown recessionary signs and investment in supply remains elusive,” Goldman’s analysts said in the note at the end of May, as carried by Bloomberg."
https://oilprice.com/Latest-Energy-News/World-News/Goldman-Sachs-Slashes-Year-End-Oil-Price-Forecast-To-86.html
"Analysts Reiterate Calls For $100 Oil As Saudi Arabia Cuts Production"
https://oilprice.com/Latest-Energy-News/World-News/Analysts-Reiterate-Calls-For-100-Oil-As-Saudi-Arabia-Cuts-Production.html
"Saudis to cut oil production by 1 million barrels a day in July as OPEC+ extends output deal"
https://www.marketwatch.com/story/saudis-to-cut-oil-production-by-1-million-barrels-a-day-in-july-as-opec-extends-output-deal-8b7eac93?mod=home-page
I wonder what the July WTI futures contract will be tomorrow.
"Oil Prices Climb As U.S. Rig Count Sees Another Double-Digit Decline"
https://oilprice.com/Energy/Energy-General/Oil-Prices-Climb-As-US-Rig-Count-Sees-Another-Double-Digit-Decline.html
"Oil short sellers have been issued a warning: watch out for more “ouching”. Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, issued the threat earlier this week in his latest lashing out at oil’s short sellers.
Saudi Arabia’s energy minister is arguably holding the reins of OPEC, which could decide to cut crude oil production again, sending prices soaring in what would surely be a painful outcome to many speculators and short sellers out there.
“I keep advising them (referencing oil speculators) that they will be ouching, they did ouch in April, I don’t have to show my cards. I am not a poker player…but I would just tell them watch out,” the Prince warned.
Oil’s short positions are considerable, at 184 million barrels as of May 16. This is an increase of 140% from the number of short positions in play just a month earlier."
https://oilprice.com/Energy/Crude-Oil/Will-OPEC-Surprise-The-Market-With-Another-Output-Cut.html
"WTI Screams Back Up Past $70 Despite Crude Inventory Builds"
https://oilprice.com/Energy/Oil-Prices/WTI-Screams-Back-Up-Past-70-Despite-Crude-Inventory-Builds.html
Price projections? based on resistance levels
YES, and the Canadian PM is bullish on NAT GAS which is at a new year LOW
CALL the BFI
Chart has broken out for a nice swing here.
Hawk
"Oil Short-Sellers Might Be In For Another Big Squeeze"
https://oilprice.com/Energy/Crude-Oil/Oil-Short-Sellers-Might-Be-In-For-Another-Big-Squeeze.html
"Russia’s Deputy Prime Minister Sees Brent Oil Price Above $80 At Year-End"
https://oilprice.com/Energy/Energy-General/Russias-Deputy-Prime-Minister-Sees-Brent-Oil-Price-Above-80-At-Year-End.html
"Signs Of Strong U.S. Fuel Demand Should Boost Oil Prices"
https://oilprice.com/Energy/Energy-General/Signs-Of-Strong-US-Fuel-Demand-Should-Boost-Oil-Prices.html
"China’s Refinery Throughput Jumped 19% In April"
https://oilprice.com/Energy/Energy-General/Chinas-Refinery-Throughput-Jumped-19-In-April.html
"Huge Volumes Of Crude Oil Are Headed To China"
https://oilprice.com/Energy/Energy-General/Huge-Volumes-Of-Crude-Oil-Are-Headed-To-China.html
"3 Reasons Why Oil & Gas Is Goldman Sachs’ Favorite Sector"
https://oilprice.com/Energy/Crude-Oil/3-Reasons-Why-Oil-Gas-Is-Goldman-Sachs-Favorite-Sector.html
This form 4 is a little tough to read, but if you go to the SEC site:
https://www.sec.gov/Archives/edgar/data/1737912/000141588923006859/xslF345X04/form4-04252023_110406.xml
It looks like Perestroika (Cyprus) Ltd traded some debt for shares and upped their total share count from 48 million to 82.6 million.
I could be wrong that's what it looks like to me
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BUSINESS SUMMARY:
Transocean Inc. (Transocean) is the world's largest offshore drilling contractor and the leading provider of drilling management
services worldwide.
With a fleet of 139 mobile offshore drilling units plus three ultra-deepwater newbuild drillships under construction, Transocean's
fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of
the offshore drilling business.
Transocean owns or operates a contract drilling fleet of 45 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment
semisubmersibles and drillships), 26 Midwater Floaters, 10 High-Specification Jackups, 55 Standard Jackups and other assets utilized in the
support of offshore drilling activities worldwide.
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