Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
not sure this will be true at day's end, but yesterday and today:
tnk up,
pxd up,
cvx up,
xom up,
shel up,
slb up,
sdrl up,
kmi up,
eqnr up,
rig up.
ccj up (just threw this one in)
NONsense
why do these guys keep bringing up memristors? They have nothing to do with VCSY (a software company) outside of having that clown on the Board. Incidentally why is he on the board?
They are starting to hedge their bets on the February Trial results. It just never end.
At least you didn't have to cut and paste that to establish your pseudo bona fides or live vicariously through your offspring
my copy is 40 years old, and it doesn't take much to see through BS. Not much to catch there
This is kind of funny. Perhaps, buy Jacobson's two volume set or Topics by Herstein
So basically the FAQs page is giving incomplete information.
Next, the real way to increase shareholder value is through trading. When will that happen?
I really don't know. I doubt it can be done for years without reporting it on a 10 Q/K. My best assessment is look at the individuals in charge and ask yourself about trusting men of that ilk. just mt opinion. At some point it will all come out. I guess
If there is an agreement signed (invoiced or not). Then it exists. If they wish to dice it up with the IRS or SEC. That's there choice
failure to report the intrinsic value of an asset
Can't hide money or debt. That is the (AA/ Eron) FASB response
FASB Standards issued in 2023
https://www.fasb.org/page/PageContent?pageId=/standards/accounting-standards-updates-issued.html#2023;
I see nothing about hiding income. I thought that kind of stuff went away with Arthur Anderson and Enron
3 years no trading and this is the status update from the "Board"
" The purpose of this letter is so that the Board of Directors of the Corporation (the “Board”) and
management of the Corporation can update its stockholders as to material facts with respect to events involving
the Corporation. The Board wishes to continue to uphold its fiduciary due to the Corporation and its
stockholders.
The Board believes that, overall, the dismissal of the litigation and related transactions are in the best
interest of the Corporation and its stockholders.
While there are limitations on what the Board and the Corporation can disclose, we wish to give you a
meaningful update. "
"The Board wishes to continue to uphold its fiduciary due to the Corporation and its
stockholders. "
This is questionable given that this is the first official update concerning this matter
I doubt if any brokerage firm is holding certs. Most are held as an electronic entry in street name.
3 years with no trading is a fact, (Not speculation) and no amount of Journals copied here can change that.
exaggerated claims couched as questions (?? wags) is just puffery
Quotes from "The Board's" letter:
" The Board believes that, overall, the dismissal of the litigation and related transactions are in the best
interest of the Corporation and its stockholders. "
" While there are limitations on what the Board and the Corporation can disclose, we wish to give you a
meaningful update. "
" On November 30, 2023, after years of litigation, all parties to the litigation filed a request for the
complete dismissal of the all claims and cross-claims in the litigation. It is anticipated the California court will
formally dismiss the entire case, with prejudice. A case dismissed “with prejudice” cannot be tried again. "
No amount of Pseudo Scientific blather can change this. 3 years no trading
Absolutely right.
you are Right. However, it was my Understanding that this (suit) was the stumbling block to getting some sort of outside funding. So now we shall see whether or not that was true
So the "Board" issued a statement officially confirming the (already known) status of the LA case.
My understanding is that this was the only legal proceeding involving VCSY and NOW.
"Transocean Bags Rig Contract for Romania's Neptun Deep"
https://www.rigzone.com/news/transocean_bags_rig_contract_for_romanias_neptun_deep-14-dec-2023-175053-article/
He's arguing with people who never heard the saying "a little learning is a dangerous thing" and I use the term "little" loosely
(Alexander Pope)
Nice. Pretty upbeat
"EIA Revises Permian Oil Outlook"
https://oilprice.com/Latest-Energy-News/World-News/EIA-Revises-Permian-Oil-Outlook.html
If the Marginal cost for the effort is < then the monthly/annual salary
"Iran’s Proposed Embargo Could Cause Chaos In Oil Markets"
https://oilprice.com/Energy/Crude-Oil/Irans-Proposed-Embargo-Could-Cause-Chaos-In-Oil-Markets.html
"A Less Hawkish Fed Could Jumpstart The Oil Price Rally"
https://oilprice.com/Energy/Oil-Prices/A-Less-Hawkish-Fed-Could-Jumpstart-The-Oil-Price-Rally.html
"While Transocean endured another quarter of losses, the company doesn’t need to be haunted by ghosts of quarters past, as a robust market plus increasing rig counts and day rates point to a successful fourth quarter and 2024.
The company suffered from a loss in revenue in the third quarter, but Transocean argues that the company is not in the grave but in the early stages of a multi-year upcycle.
“With our fleet of the most capable high-specification ultra-deepwater drillships and harsh environment semisubmersibles, Transocean is uniquely positioned to capitalize on current and future opportunities,” CEO Jeremy Thigpen said in a press release."
https://finance.yahoo.com/news/despite-spooky-start-transocean-walking-170500331.html
Prior to the opening of the markets and any trading the "Day's Gain" (in your account) is negative. Upon further review the source of that is the VCSY position, it has been given a value equal to it's cost basis instead of a value equal to # of shares times its current price (zero)
At this point I'm assuming it's the cost basis
E-Trade has started posting it in your portfolio total as a complete loss (negative value, instead of having zero value). I wonder if this is the first step towards removal.
Earnings Call transcript: Also Benchmark Co. issued a "Buy" target $12
"Contract with Petrobras was particularly important as it facilitated the acquisition of the outstanding interest in our joint venture Liquila Ventures Limited through which we assumed full ownership of the Deepwater Aquila. Transocean now owns and with the commencement of the Achilles, contract will operate eight of the 12 globally competitive 1400 short ton hook load dual activity, ultra-deepwater drillships in the world. The acquisition of the Achilles is consistent with our strategy of continuously hydrating our fleet. A strategy which has proven very effective, particularly over the last 18 to 24 months as we have secured market leading day rates with these high-specification assets.
As an example, since the fourth quarter of 2022, our ultra-deepwater fleet average day rate has increased by approximately 33% to $416,000 per day. By the third quarter of 2024. Based upon current firm backlog, we expect this average rate to increase to $437,000 per day. Based upon the status of discussions with customers, we expect that the Transocean bearings will be contracted for new work starting in mid to late 2024 until initially late 2026 and the Deepwater Skyros will be similarly committed until early to mid 2025.
Details of these prospects will be forthcoming assuming execution of fully binding customer commitments. Not only did we have significant backlog over the past several quarters, but we also substantially lengthened contracting term during this period. In April of 2022, 12 of our rigs were contracted for durations greater than 12 months. Six were contracted for greater than 24 months and only five were contracted for more than 36 months.
By comparison, today, 17 of our rigs are contracted for durations greater than 12 months, a 42% increase, 15 are contracted for greater than 24 months, a 150% increase, and 13 are contracted for more than 36 months, a 160% increase of our 2023 contracted backlog. Just over 80% now consists of programs of more than one year in duration. Another clear indication that our customers believe in the longevity of this upcycle and in the capability of Transocean. The significant increase in contract commitments is reflected in the size of our industry leading backlog from the beginning of 2022 to the present, we have added approximately $6.8 billion in backlog.
When building our backlog, maximizing EBITDA and associated margins remains our goal and these data points clearly demonstrate the effectiveness of our long-standing asset strategy and portfolio management approach to placing our assets on contracts of appropriate and meaningful value. We take decisions that make the most economic sense for the company and our shareholders. It means that at times we may seek the highest day rate possible for a specific asset or job, a consequence of which may be that we accept short periods of idle time on individual assets. In other instances, we may determine that maintaining high utilization has the optimal long term financial impact, meaning that we fix an asset at prevailing or otherwise acceptable market rates for a longer duration.
Securing high-quality backlog, meaningful EBITDA generation and longer-term visibility to future cash flows as reflected in their budget processes. Our customers continue to be disciplined in their allocation of capital. The result of this behavior is exhibited in the lumpiness of the timing of contract awards. We have observed over the last couple of years.
We expect this trend to continue. Our sizable backlog in portfolio approach to fixing our assets minimizes our exposure to this natural ebb and flow of customer activity while best ensuring we achieve the best margin possible. Notwithstanding the timing of announced contracting activity, our customers are securing rigs for longer and longer duration and for programs expected to commence well into the future. This is evidenced by the increase in average contract award lead times, which have increased significantly since 2021.
Drillship contracting lead times have increased by approximately 53% to 319 days and semi-submersible contracting lead times have increased approximately 38% to 284 days. The number of global floater opportunities continues to expand reflecting very strong demand and further encouraging our view of the longer-term sustainability of this cycle. Indeed, overall demand remains on the rise with 84 years of activity expected to be awarded for 77 discrete programs starting in 18 months. Looking closer at each region, the U.S.
Gulf of Mexico continues to be defined by direct negotiations with our customers with operators engaging contractors of choice for specific opportunities. We see a steady stream of demand for short-term programs with independent operators amid a solid market with a limited supply of high-specification and ultra-deepwater assets. Notably, we are engaged in discussions for follow on work for the Deepwater Atlas upon completion of its current contract and are already having conversations with numerous customers regarding additional 20 programs, many of which are not expected to start for up to three years. Once again, demonstrating our customers belief in a prolonged upcycle.
The Invictus is currently competing for multiple local campaigns, including one which we believe will require a high hook load, seventh-generation Drillship, the available supply of which is very limited. We are also actively marketing the inspiration in various jurisdictions around the world. As you well know, Brazil continues to be a source of strong demand and based upon open tenders, we expect the active rig count to continue to decline over the next 12 months from the 29 rigs operating today. Over the past year, there have been 27 awards made in Brazil, 18 rigs already in country, and nine that brought new rigs into the country.
Between the open tenders including [Inaudible], [Inaudible], and BM-C-33, They're expected to be another eight rig awards which should require two incremental rigs from outside of Brazil. This brings the addition of non-Brazilian rigs to 11 since the cycle began. Furthermore, it's widely expected that more tenders in 2024 will keep all of the incumbent rigs busy, and pending exploration success could demand a further call on the global market to add yet more rigs to Brazil. Clearly, Brazil is set to remain a pivotal long-term consumer of ultra-deepwater rigs with active rig count expected to reach at least 36 in, 2024, 2025.
Just by fulfilling today's known tenders across the Atlantic, we see an excess of 20 opportunities scattered throughout Africa and the Mediterranean. Commencing in the next 18 months. For the first time in nearly a decade, Nigeria following its national election is showing significant signs of revival. We expect between two and four long-term programs to be tendered over the next six months including three from international oil companies in Angola, Chevron, Exxon, and other large operators have a mixture of short and multi-year opportunities currently expected to commence in 2024.
Additionally, Namibia may require more rigs as TotalEnergies has confirmed future development. While Chevron Shell have programs expected to be awarded in 2024, The Namibian Ministry of Mines and Energy recently confirmed that projects requiring as many as five rigs are set to commence in 2024. And finally, in Mozambique, we expect tenders for both TotalEnergies [Inaudible]in the coming months. In Australia, regulatory requirements continue to drive demand for plug-in abandonment work.
Additionally, several operators have indicated interest in securing rigs for additional multi-year programs. At this point, we anticipate formal tenders will be released in 2024 and expect our two rigs currently active in the region to be competitive for these tenders following their existing programs. As such, we expect both the Transocean Endurance and Transmission to remain in country for the foreseeable future. There have also been promising developments elsewhere in the Eastern Hemisphere.
We anticipate that will soon require a rig for follow on development for its recent discovery in the Thai basin. In Indonesia, I also has an open tender for approximately 18 months of work in multiple countries in the region and in Malaysia. We expect PTTEP and Petronas will come to market in the near future for an ultra-deepwater drillship with a commencement in 2024. Finally, we expect the high-specification harsh environment market to remain tight as active supply in Norway is now fully utilized in large part due to the departure of numerous rigs to other markets.
As witnessed recently in a couple of public announcements, many incremental programs will require operators in Norway to mobilize rigs from other regions. And since many, if not all, of the recently departed rigs, will likely continue their active utilization outside of the Norwegian market. We expect this region to remain tight for the foreseeable future. In addition to the fact that our customers are fixing contracts with start date two years in the future, the broader fundamentals also support our views of a sustained industry recovery beyond the 18-month time horizon.
Rystad recently reported that oil inventories in developed countries are approximately 115 million barrels below their five-year average, while the International Energy Agency reported global crude stocks have also fallen to their lowest level since 2017. Meanwhile, the IEA forecasts increasing oil demand through 2028, while OPEC projects a steady increase through at least 2045. These predictions are supported by population and GDP growth projections, particularly for developing nations where renewable infrastructure is in its infancy. We continue to believe that much of new hydrocarbon development will come from deep water basins as these have consistently shown to yield superior investment returns and produce some of the lowest carbon intensity barrels available today.
Reliable third-party analysis suggests upstream offshore capex will increase materially over the next several years, crossing $200 billion next year and reaching 234 billion by the end of 2027. In summary, our outlook for a prolonged offshore deepwater drilling recovery remains firm and we will continue to manage our rig portfolio to maximize value. As always, we will continue to place paramount importance on the safe and flawless execution of our operations to minimize the conversion to maximize the conversion. In this regard, our performance is truly a team effort and I extend a sincere thank you to the entire transition team for their commitment every day to provide safe, reliable, and efficient operations."
looks like Utilization rates was the culprit here:
Here is how Transocean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Utilization - Total fleet average rig utilization: 49.4% versus the three-analyst average estimate of 58%.
Utilization - Ultra-Deepwater Floaters: 45% compared to the 55% average estimate based on three analysts.
Average Daily Revenue - Harsh Environment Floaters: $357.4 thousand versus the three-analyst average estimate of $290.05 thousand.
Average Daily Revenue - Total fleet average daily revenue: $391.3 thousand versus the three-analyst average estimate of $345.79 thousand.
Average Daily Revenue - Ultra Deepwater Floaters: $406.5 thousand compared to the $372.73 thousand average estimate based on three analysts.
Utilization - Harsh Environment Floaters: 63% versus the three-analyst average estimate of 65.1%.
Contract drilling revenues- Ultra-Deepwater Floaters: $516 million compared to the $519.87 million average estimate based on three analysts. The reported number represents a change of +19.2% year over year.
Contract drilling revenues- Harsh Environment Floaters: $197 million compared to the $195.72 million average estimate based on three analysts. The reported number represents a change of -23.6% year over year.
Less than impressive. (unfortunately)
"American Oil Giants Boost Domestic Footprint As Geopolitical Tensions Mount"
https://oilprice.com/Energy/Crude-Oil/American-Oil-Giants-Boost-Domestic-Footprint-As-Geopolitical-Tensions-Mount.html
"Toyota’s Solid-State Battery Boasts 745 Miles On A 10 Minute Charge"
https://oilprice.com/Energy/Energy-General/Toyotas-Solid-State-Battery-Boasts-745-Miles-On-A-10-Minute-Charge.html
thought you might find this interesting:
"Toyota’s Solid-State Battery Boasts 745 Miles On A 10 Minute Charge
https://oilprice.com/Energy/Energy-General/Toyotas-Solid-State-Battery-Boasts-745-Miles-On-A-10-Minute-Charge.html
Transocean RIG is set to release third-quarter results on Oct 30. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of 22 cents per share on revenues of $738.2 million.
Let’s delve into the factors that might have influenced the offshore driller’s performance in the aforementioned quarter. However, it’s worth taking a look at RIG’s prior-quarter results first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, the Switzerland-based rig supplier missed the consensus mark due to lower contributions from Harsh Environment floaters. Transocean had reported an adjusted loss per share of 15 cents, 3 cents wider than the Zacks Consensus Estimate of a loss of 12 cents. However, revenues of $748 million beat the Zacks Consensus Estimate of $724 million on the back of more days of work for RIG’s vessels.
The company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and beat the mark in one, delivering an average negative surprise of 53.22%.
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings has moved down 4.5% in the past seven days. This indicates a 266.7% decline year over year. However, the Zacks Consensus Estimate for revenues indicates a 1.1% increase from that recorded in the year-ago period.
Factors to Consider
Transocean is expected to have been hurt by a drop in utilization. As a reflection of the tepidness in the drilling landscape, our estimate for the third-quarter average utilization is pegged at 54.3%, down 5.1% year over year on the back of lukewarm activity. This might have impacted RIG’s revenues and cash flows.
Also, an increase in the company’s costs must have dented its bottom line. Going by our model, RIG’s total costs and expenses are likely to have gone up 21.6% year over year to $772.2 million in the third quarter. The upward cost trajectory could be attributed to the ongoing inflationary environment and tight labor market.
On a somewhat positive note, our model forecasts revenue efficiency of an impressive 96.5% in the to-be-reported quarter. This is an indication of minimal loss of revenues due to downtime and Transocean’s superior efficiency in translating its industry-leading backlog of $9.4 billion into cash.
What the Zacks Model Unveils
The proven Zacks model does not conclusively predict an earnings beat for Transocean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
Thanks. That is a good summary. Hopefully 10/30 will give us a boost on the PPS and an optimistic outlook going forward.( turning the backlog in current revenue)
The only thing I can get out of this FSR is that they have added .2 Billion to backlog