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.
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.
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.
The big slide in the oil price comes as a setback to the recovery in the rig sector, which is already becoming protracted. This could at worst trigger restructurings, ABG Sundal Collier's analyst 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.
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.
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.
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.