Drilling company Transocean sees signs of increased activity, which is now manifesting in new contracts, CFO Mark Mey tells ShippingWatch. "If you look to the first half of 2020, we are very excited," he says.
The drilling industry's combined debt is six times higher than the market value, says Maersk Drilling CEO Jørn Madsen. It is important to differentiate between short- and long-term debt, Transocean CFO tells ShippingWatch.
There is improvement in the drilling market, but contracts remain "relatively short," says Maersk Drilling in a trading update for the third quarter, in which neither operating result nor bottom line is included. The company maintains expectations for its operating result.
Borr Drilling nearly doubled its bottom line deficit in the second quarter, reveals the company's financial report. The drilling company also secured a major credit facility in the quarter and presented the new price of its stock on the New York Stock Exchange.
Rig operators have yet to benefit from the latest oil price surge, which has otherwise caused optimism elsewhere in the industry. Ahead of Maersk Drilling's interim report Friday, ShippingWatch has taken a look at what investors in five of the world's largest companies have gained from this year's investments.
Oil companies were living beyond their means before the downturn. As such, rig companies should not count on the market ever becoming as good again. Meanwhile, capital sources have largely dried out – though there are subtle signs of improvement.
Rig operator Seadrill finished the first quarter of the year with a bigger deficit than in the previous quarter, even though revenue grew in the period. Last year the rig company was fighting for its survival.
Far more drilling rigs need to be taken out in order for the market to significantly improve, analyst Lukas Daul tells ShippingWatch. He projects that 150 rigs will leave the market in the coming years.
There are many players vying for projects when the oil companies select rigs and drilling vessels for their projects. Rig rates remain low and "favorable" to oil companies, French oil major Total tells ShippingWatch.
Big rig companies such as Seadrill and Transocean have expressed optimism about the future of the rig market, but players should not start celebrating too early, evaluates analysis firm IHS Markit, according to Norwegian media Dagens Næringsliv.
Fundamentals are better than they have been in a long time, say some of the world's rig majors, such as Transocean and Seadrill. But there is still some way to go and fierce competition for jobs, and one thing is needed in particular.
As the oil market upturn is gradually solidifying, there will be a bigger need for consolidation in the offshore drilling market, several CEOs predict at an oil conference in Norway. But one chief exec warns investors against staying too long in the drilling industry.
Northern Drilling, born just one year ago in the shadow of the offshore crisis, has won a contract with German Wintershall. The company hopes to buy rigs in a market which currently offers some appealing prices.
Oil service companies have been in the doldrums ever since the oil price plunge in 2014 reached their business. But as the oil companies are now beginning to increase investments, drillers are set to rise.