John Fredriksen's strained drilling company Seadrill has settled a comprehensive restructuring agreement with a majority of its lenders, which among other things reduced the company's debt liabilities by almost USD 5 billion.
The fossil energy industry must begin to wind down operations immediately, and the wind and solar build-out must rapidly accelerate, shows the IEA's new roadmap toward climate neutrality – and the goal can still be reached, the agency says.
Oil companies are headed for recovery thanks to rising oil prices, but their appetite for new investments is restrained. As a result, the troubled drilling sector must exercise patience as it waits for activity levels to improve, two stock analysts tell ShippingWatch.
The hard-pressed drilling sector is now seeing the first signs of a consolidation that has been long called for among drilling companies, several of which have had to seek bankruptcy protection under Chapter 11. Drilling companies Noble and Pacific Drilling have now agreed to merge.
Despite a reduced deficit in the fourth quarter, rig operator Borr Drilling exits 2020 with another deficit of more than USD 300 million. The company, which recently secured approval for a rescue plan, still projects a stronger market.
Odfjell Drilling beat tough market conditions in offshore to deliver significant growth in earnings in 2020, but the company fears that future financing opportunities are impacted by sliding values and overcapacity.
Seadrill has filed for Chapter 11 bankruptcy protection in the US for a series of Asian subsidiaries, in an effort to ensure the offshore company's financial restructuring. The company also requests help from authorities to pay employees' wages.
John Fredriksen's struggling rig operator Seadrill cancels an interest rate payment on a loan through company Seadrill New Finance. The company is working on a comprehensive restructuring plan, which could go through court.
Pacific Drilling becomes the latest drilling operator to file for Chapter 11 in the US to get time to handle a large debt. The company thus follows behind Valaris, Diamond Offshore and Noble Corp, who have made similar moves.
Drilling company Transocean has received a warning from the New York Stock Exchange, as the company's equity has been trading below USD 1 for a period of 30 days. The company now has six months to correct the price before its listing becomes at risk.
Over the coming years, a double-digit amount of new rigs are set to be delivered to the crisis-stricken drilling sector, in which chief executives want to scrap up to 40 percent of the existing fleet. Many newbuilds will likely never hit the market.
Odfjell Drilling is prepared to participate in a large-scale consolidation wave of the hard-strained drilling sector. But there is one major bump in the road. "The consolidation we've seen so far has been a pure catastrophe for shareholders," CEO tells ShippingWatch.
The loss grew to almost USD 110 million in the second quarter at drilling company Borr Drilling, which also lost revenue due to the coronavirus crisis. The company sees a need for consolidation in the strained offshore industry.
Seadrill Chairman Glen Ole Rødland sees a US Chapter 11 filing as "an alternative" in the restructuring the company has heralded. The rig operator expects to "slim down in every way," he tells Finansavisen.
Rig operator Borr Drilling has reached an agreement with its lenders and yards, which ensures the company's operations until mid-2022. The deal includes postponement of the delivery of five rigs by two years.