Transocean Estimates 18-24 Months to Recovery

MarineLink.com
Thursday, February 27, 2014

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.

Transocean's customers are delaying drilling programs and increasingly sub-letting rigs, Terry Bonno, senior vice president of marketing, said on a conference call on Thursday, a day after the company reported a near 50 percent drop in profit due to weak rig utilization.

The company's stock fell nearly 4 percent to $41.44, its lowest in more than 18 months, on the New York Stock Exchange.

Transocean is aiming at lowering the age of its fleet, and said on Wednesday that it had placed orders for 2 new build ultra deepwater drillships for $1.24 billion.

However, analysts cast doubt on the timing of the new orders.

"Given current market sentiment the announcement of the company adding new capacity may be poorly received," Wunderlich Securities analyst Todd Scholl wrote in a note.

Transocean is planning to create and take public a unit that will hold three or four of its rigs, while also looking at divesting some of its rigs.

Chief Executive Steven Newman on Thursday identified the company's North Sea mid-water rigs a potential target for separation.

"We continue to pursue a variety of options for divestiture of non-core rigs to improve the overall age and capability profile of our fleet and to fund high return reinvestment."

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SUNY Maritime College Names ABS Chairs

The State University of New York (SUNY) Maritime College has selected Dr. Richard Burke and Dr. Christopher Clott as its inaugural ABS chairs following a comprehensive

Austal Starts Next US Littoral Combat Ship

Austal and the U.S. Navy held a keel-laying ceremony today for the future USS Manchester (LCS 14), marking the first significant milestone in its construction.

Conference to Delve into Hybrid Power & Propulsion

The first international Hybrid Marine Power & Propulsion Conference will be held at the RNLI Lifeboat College, Poole UK from October 6-8, 2015.   Shock Mitigation

Finance

Multimodal Freight Bill Introduced in US Senate

Cantwell, Booker, Murray, Markey introduce freight investment legislation aiming to eliminate chokepoints at critical highway, rail, port and intermodal facilities to support economic growth,

Crowley Acquires 4,300 Pieces of Liner Equipment

In response to continuing high customer demand, Crowley Maritime Corporation’s liner services group has placed orders for additional equipment, including hundreds

DPE is New Majority Shareholder in INTERSCHALT

Deutsche Private Equity GmbH (DPE) is set to become the new majority shareholder in INTERSCHALT maritime systems AG, the maritime software and services provider

Energy

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

FUGRO, Cross Group Awarded Multi Well GoM Contract

Fugro’s dynamically positioned multi-purpose drilling, well intervention and geotechnical vessel, Fugro Synergy, will showcase her capabilities on a multi well

Baltic Exchange Eyes Move into Commodities

Baltex reaches breakeven level since start of 2015; Baltic previously faced broker opposition over platform. London's Baltic Exchange is studying a potential

News

HMS Queen Elizabeth Powers to Life

U.K. Royal Navy aircraft carrier HMS Queen Elizabeth has produced power from her onboard diesel generators (DGs) for the first time, marking a significant stage in the program.

Maritime, Migration Heads Pledge Joint Action

The heads of the International Maritime Organization (IMO) and the International Organization for Migration (IOM) on Monday, June 29 reaffirmed their commitment

SUNY Maritime College Names ABS Chairs

The State University of New York (SUNY) Maritime College has selected Dr. Richard Burke and Dr. Christopher Clott as its inaugural ABS chairs following a comprehensive

Offshore Energy

FUGRO, Cross Group Awarded Multi Well GoM Contract

Fugro’s dynamically positioned multi-purpose drilling, well intervention and geotechnical vessel, Fugro Synergy, will showcase her capabilities on a multi well

ICS: U.S. Approach to LNG 'Protectionist'

According to the Internatinal Chamber of Shipping, the United States Congress signaled last week its intention to approve major free trade deals with Asia and Europe.

Northern Offshore acquired by Shandong Offshore

Offshore oil and gas drilling firm Northern Offshore Ltd. has reached agreement on the terms of a recommended $165m cash acquisition by Shandong Offshore International Company Limited.

 
 
Maritime Contracts Maritime Security Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2691 sec (4 req/sec)