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Rig Utilization News

13 Jun 2022

Demand Grows for OSVs in the Offshore Floating Production and Storage Energy Sector

Copyright Igor Kardasov/AdobeStock

Over the last year we have seen an upswing in floating production and storage systems ordering after many years of low activity. According to our colleagues at World Energy Reports, “The global oil and natural gas markets are contending with rebounding energy demand on top of supply disruptions from Russia’s invasion of Ukraine. As a result, activity and business sentiment in the floating production sector has seldom been stronger.”  This increased activity in the floating production…

01 Mar 2022

Offshore Energy: Are Decommissioning Costs set to Spiral?

Supply chain innovation: Allseas’ Pioneering Spirit is currently having its 20,000-tonne capacity jacket lifting system installed. Load tests took place in late January. The first commercial project is due in April. The jacket lift system means that no barges are needed. Pioneering Spirit will be able to lift large jackets from the seabed in one piece, tilt them on deck and transport them to shore for dismantling. The illustrations show how the system will work. Image courtesy Allseas

As offshore market activity recovers and continues to increase through the next decade, as we expect it to, oilfield service (OFS) capacity is expected to tighten.As offshore market activity recovers and continues to increase through the next decade, as NorthStone Advisors expect it to, oilfield service (OFS) capacity is expected to tighten. In NorthStone Advisors’ view, this will create a period of increased scarcity and cost inflation, presenting significant cost and schedule risk to decommissioning programs.Many eyes are on the UK…

08 Dec 2019

Offshore: OSV Market Report

Photo courtesy Ulstein Group/Marius Beck Dahle

The environment in oil patches onshore and offshore alike has been challenging throughout 2019; worries about an economic slowdown – whether cyclical or induced by a trade war – have weighed heavily on oil prices, even in the face of reduced production by the big producers. Though storm clouds persist, there appears a clearing on the horizon.The fate of Offshore Service Vessels (OSVs) is, naturally, closely tied to the price of oil. Seacor Marine’s John Gellert, in reviewing its Q2 results, said: “Activity levels in the U.S.

15 Oct 2019

Four Steps to Successful Rig Intake

© Mike Mareen / Adobe Stock

After a period of dormancy, drilling activity and rig utilization is up. Yet despite an increase in demand for rigs, there is still an oversupply. Few long-term fixtures, gaps in schedules and rigs moving between different regulatory regimes create new rig intake challenges.What does this mean for your rig intake strategy? Your preference may be to contract a hot rig, as the operational risks are significantly less when compared to contracting a rig which has been nonoperational. But are the hot rigs actually “hot”?

13 Nov 2018

BY THE NUMBERS - Offshore Supply Vessels: Balanced Continued Pressure with Gradual Recovery

Global consulting firm AlixPartners, in a new paper entitled, “Too many ships, too few rigs: why recovery is still a distant dream for the OSV sector,” warns that companies counting on a quick return to stability in the OSV sector are in for a rude awakening.The September report goes on to say that OSV companies continue to face pressure due to a radically changed oil industry and must take quick and decisive action in order to survive in what should be considered the ‘new normal.’Separately, VesselsValue.com’s Head of Offshore, Charlie Hockless told MarineNews, “I would agree that there are murmurs of a potential market recovery brewing…

01 Nov 2018

Cautious Consolidation for OSV Companies Brings Market Change

A Gulfmark offshore support vessel (CREDIT: Gulfmark)

Will a rising tide in the offshore oil markets float all the boats? In the U.S. Gulf of Mexico, that remains to be seen.Offshore services, exploration and production are on a roll. In early October, yet another business combination of big drillers was announced. In a sign of optimism, Ensco announced its plan for an all-stock acquisition of Rowan Offshore, worth around $2.4 billion. The new company will be domiciled in the United Kingdom, but will have a large presence in Houston.

25 Feb 2016

Transocean 4Q Revenue Up

Transocean Ltd. Revenues were $1.85 billion, up from $1.61 billion in the third quarter of 2015; Operating and maintenance expenses were $794 million, down from $880 million in the prior period; Adjusted net income was $615 million, $1.68 per diluted share, excluding $4 million of net unfavorable items. - Contract backlog was $15.5 billion as of the February 11, 2016, Fleet Status Report. ZUG, SWITZERLAND-February 24, 2016-Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported net income attributable to controlling interest of $611 million, $1.66 per diluted share, for the three months ended December 31, 2015. * $22 million, $0.06 per diluted share, related to restructuring costs; and $1 million in discontinued operations.

15 May 2015

Maersk Drilling's Strong 1Q Performance

Maersk Drilling delivered a profit of USD 168m (USD 116m) in the first quarter of 2015. The result was positively impacted by fleet growth and continued good operational performance, but partly offset by two rigs being idle. The underlying profit for the quarter was USD 195m (USD 109m) generating a ROIC of 8.5% (8.1%). “Maersk Drilling continues its strong operational performance, and once again deliver a good result. The result is especially impacted by the many new rigs that were added to our fleet during the last year, all of them have shown good operational performance, since commencing on their contracts,” says Claus V. Hemmingsen, CEO in Maersk Drilling and member of the Executive Board in the Maersk Group.

24 Apr 2014

Diamond Offshore Shares on the Rise

Photo courtesy Diamond Offshore

Diamond Offshore Drilling Inc, one of the world's top five offshore rig contractors, reported a better-than-expected quarterly profit as it cut drilling costs and hiked prices, sending its shares up as much as 10.5 percent. The company - owned 50.4 percent by hotel, energy and financial services conglomerate Loews Corp - also said it would pay a special cash dividend of 75 cents per share on top of its regular quarterly dividend of 13 cents. Diamond Offshore, which has one of the oldest fleet of rigs…

24 Apr 2014

Diamond Offshore profit falls as rig demand softens

Diamond Offshore Drilling Inc, one of the world's top five offshore rig contractors, reported a 17 percent drop in quarterly profit as demand fell for rigs used in deep water drilling. Contract drillers face a tough year as vessels ordered during boom times are delivered just as energy companies are tightening spending on offshore exploration. Diamond Offshore, whose competitors include Ensco Plc , Transocean Ltd and Helmerich & Payne Inc , has two rigs due for delivery in 2014 but has yet to land contracts for them. While the fall in rig demand and utilization is likely to affect the entire sector, analysts expect Diamond Offshore to fare worse than rivals, given the age of its fleet.

27 Feb 2014

Transocean Estimates 18-24 Months to Recovery

Reuters - Transocean Ltd, owner of the world's largest offshore drilling fleet, said it could take up to 18-24 months for demand to recover as customers delay drilling programs. Demand for offshore rigs is tapering as major oil companies trim exploration and production budgets in the face of investor demands for higher returns. Transocean, whose deepwater fleet is relatively older than that of its competitors, said about 19 of its deepwater and ultra deepwater rigs will be up for contracts in 2014. In comparison, rival Ensco Plc will have eight rigs available for contract, while Seadrill Ltd will have five in 2014. A lease normally runs for five years or more.

27 Feb 2014

Transocean Profit Slides on Lower Rig Demand

Image courtesy of Transocean

Reuters – Transocean Ltd, owner of the world's largest offshore drilling fleet, said on Wednesday that fourth-quarter profit fell 49 percent from a year ago, hurt by lower rig utilization. The company's net profit attributable to controlling interest fell to $233 million, or 64 cents per share, from $456 million, or $1.26 per share, a year earlier. The driller for the oil industry said about $34 million in unfavorable charges affected its profit in the latest quarter, and that its year-ago profit was boosted by $126 million in favorable items.

23 Jan 2014

Noble Reports 2013 Results

Noble Don Taylor

Noble Corporation has reported fourth quarter 2013 net income of $174 million, or $0.68 per diluted share. Results for the fourth quarter included an after tax charge of $36 million, or $0.14 per diluted share, relating to an impairment taken on the FPSO Seillean. Excluding the impairment charge, net income for the fourth quarter would have totaled $210 million, or $0.82 per diluted share. For the third quarter of 2013, the Company reported net income of $282 million, or $1.10 per diluted share, which included after tax gains totaling approximately $63 million, or $0.25 per diluted share.

07 Aug 2013

Transocean Reports Q2 2013 Revenue Increase

Photo courtesy of Transocean

Transocean's second quarter 2013 revenues were US$2.397-billion, compared with US$2.197-billion in the first quarter of 2013. Second quarter 2013 net income attributable to controlling interest was $307 million, which included $85 million of net unfavorable items. Second quarter 2013 net income attributable to controlling interest was $0.84 per diluted share. Revenue efficiency(2) was 93.1 percent in the second quarter, compared with 88.0 percent, in the first quarter of 2013. Contract backlog was $27.3 billion as of the July 17, 2013 Fleet Status Report.

17 May 2011

Diamond Offshore Drilling, Two New-Build Drillships

Diamond Offshore Drilling, Inc. (NYSE:DO) today announced that a subsidiary of the company has entered into two term drilling contracts with Anadarko Petroleum Corporation. The contracts, which will utilize Diamond Offshore's two new-build drillships now on order, are expected to generate combined maximum total revenue of approximately $1.8 billion and represent 10 years of contract drilling backlog. In addition, Anadarko and Diamond have mutually agreed to dismiss all claims related to the Ocean Monarch.

05 Nov 2008

Rowan 3Q Operating Results

For the three months ended September 30, 2008, Rowan Companies, Inc. (NYSE: RDC) generated net income of $114.1m or $1.00 per share, compared to $130.8m or $1.16 per share in the third quarter of 2007 and $120.6m or $1.06 per share in the second quarter of 2008. Revenues were $527.1m in the third quarter of 2008, compared to $502.2m in the third quarter of 2007 and $587.1m in the second quarter of 2008. The third quarter 2008 results included $21.4m, or $0.12 per share, of gains on asset sales, compared to $1.1m, or less than $0.01 per share, in the third quarter of 2007 and $1.5m, or $0.01 per share, in the second quarter of 2008. Rowan's offshore rig utilization was 95% during the third quarter of 2008…

15 Oct 2001

GLM Results Strong in Face of Weakening Market

Global Marine Inc. reported net income for the quarter ended September 30, 2001 was $62.1 million, or $0.34 per diluted share, on revenues of $314 million. For the corresponding 2000 quarter, the company reported net income of $32.3 million, or $0.18 per diluted share, on revenues of $272 million. $1.03 per diluted share, on revenues of $965 million. million, or $0.12 per diluted share, on the second quarter 2001 sale of a special-purpose rig. This compares to net income of $73.0 million, or $0.41 per diluted share, on revenues of $707 million for the nine months ended September 30, 2000. Bob Rose, Global Marine Chairman, President and CEO, said, "Global Marine's financial and operating performance was strong.

12 Oct 2001

Rowan Revises 3Q Business Outlook

With softness in the Gulf of Mexico and the U.S. apparently on the brink of war, Bob Palmer, Chairman and CEO of Rowan, said, "July earnings were better than expected and, through August, financial results were about as forecast. However, the outlook for September requires that we revise downward our 'best guess' for third quarter earnings to a range of 20-25 cents per share. "Rowan's offshore rig utilization for the third quarter is currently estimated to be 70%, down from 90% during the second quarter. Our average offshore day rate for the third quarter should be about $57,000, down from $61,000 during the second quarter. For competitive reasons, we will not provide specific information regarding contract terms or day rates unless such contracts are considered to be material.

18 Apr 2001

GLM Poised for A Strong 2001

Global Marine (GLM) is a holding company that provides offshore contract drilling services on a dayrate basis and offshore drilling management services on a dayrate or fixed-price basis. The company has an active fleet of 31 mobile offshore drilling rigs and two ultra deep-water drillships under construction. The company also participates in offshore oil and gas exploration and development projects: operations conducted mainly in the U.S., the U.K., Nigeria, Canada and other countries abroad. Contract drilling accounted for 64 percent of 1999 revenues; drilling management services 35 percent and oil and gas, one percent. On January 18 the company reported net income for the year ended December 31, 2000, of $113.9 million on revenues of $1 billion.

17 Apr 2002

GlobalSantaFe Reports 1Q Results

GlobalSantaFe Corporation reported net income for the quarter ended March 31, 2002, of $77.1 million, or $0.33 per diluted share, on revenues of $464.0 million. This compares to net income of $40.7 million, or $0.34 per diluted share, on revenues of $274.8 million for the quarter ended March 31, 2001. The 2001 financial results reflect only historical Global Marine, prior to the merger that formed GlobaSantaFe, so some comparisons to these results may not be meaningful. Santa Fe International into an industry leader," GlobalSantaFe President and CEO Sted Garber said. recording operating income of $97.5 million. largely insulated from the comparatively weak U.S. Gulf of Mexico drilling market.

31 Mar 2000

Offshore Rig Count

U.S. The Gulf of Mexico rig count continues to rebound, and this week reached its highest level since July 1998, according to Offshore Data Services' weekly mobile offshore rig count. The Gulf of Mexico rig count is expected to continue to rise as the year progresses. On March 24, 155 of the 198 mobile offshore drilling rigs in the U.S. Gulf of Mexico were under contract. The week's tally represents a four-rig increase over the previous week's count, and a nine-rig increase over the month-ago figure. The number of rigs under contract offshore Europe is unchanged, although European offshore rig utilization declined slightly due to the addition of a non-working unit to the area's fleet.

17 Apr 2000

DCR Optimistic About Future Of Offshore Drilling Sector

While it may be impossible to predict when offshore rig utilization will begin a meaningful recovery, Duff & Phelps Credit Rating Co. (DCR) has noticed certain industry developments that suggest improved conditions. Operating rates for drilling rigs have increased steadily over the past 12 months as drilling day rates for a shallow water jackup rig have risen from a low of $22,000 to current levels of approximately $50,000, the DCR report explains. Offshore drilling rig utilization has also steadily increased from a low of 72 percent during the summer of 1999, to 81 percent in February 2000. Yet, the report continues, utilization of the worldwide mobile offshore drilling fleet is only about 81 percent…

12 May 2000

Offshore Rig Count

Offshore rig counts continue to rise, according to Offshore Data Services' weekly mobile offshore rig count. The U.S. Gulf's offshore rig utilization rate jumped over 80 percent for the first time since late 1998 due to a net five-rig increase in contracted rigs in the region. This week, 161 of 199 rigs are under contract in the region. U.S. Gulf mobile offshore rig utilization is 81.0 percent. Worldwide rig counts rose as well, with a net seven-rig increase in the number of rigs under contract recorded on a week-to-week basis. The week, 517 of the world's 640 mobile offshore drilling rigs are under contract. Worldwide offshore rig utilization is 80.8 percent. A net one-rig increase in the European offshore rig count boosted fleet utilization in the region to 84.8 percent this week.

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