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

People & Company News

Rotterdam to Build New Indonesian Port

The Port of Rotterdam Authority has signed a partnership agreement with the Indonesian Port Corporation Pelindo I for the development of a new deep sea port at Kuala Tanjung near to Medan in Sumatra,

Alaska Marine Lines Reduces Fuel Surcharge

Alaska Marine Lines, a marine transportation company providing barge service to and from Alaska and Hawaii, informs it has filed with the U.S. Surface Transportation

SSI to Showcase Marine Information Model

SSI's CAD/CAM ShipConstructor software utilizes a Marine Information Model (MIM) to store a wealth of data that can be leveraged for maintenance, repair and lifecycle support.

Finance

China Merchants Profit up 29pct

While China’s ports continue to face growth pressure, the country’s largest port operator is reaping the rewards of years of investments in overseas projects.   China

Baltimore Port Shipments Hit New Record

Helen Delich Bentley Port of Baltimore's public terminals shipped a record 9.74 million tons of general cargo in the 2015 fiscal year ending June 30, it said Monday.

Alaska Marine Lines Reduces Fuel Surcharge

Alaska Marine Lines, a marine transportation company providing barge service to and from Alaska and Hawaii, informs it has filed with the U.S. Surface Transportation

News

China Merchants Profit up 29pct

While China’s ports continue to face growth pressure, the country’s largest port operator is reaping the rewards of years of investments in overseas projects.   China

Swire Upgrades Asia-Pac Coverage

Singapore-based liner trade division of The China Navigation Company (CNC) Swire Shipping has upgraded its multipurpose liner service coverage in the Asia Pacific region.

Baltimore Port Shipments Hit New Record

Helen Delich Bentley Port of Baltimore's public terminals shipped a record 9.74 million tons of general cargo in the 2015 fiscal year ending June 30, it said Monday.

Offshore Energy

Harkand: Expanding the Fleet, Growing a Global Business

International inspection, repair and maintenance (IRM) company Harkand aims to be a $1 billion company. MR’s Tom Mulligan recently met with John Reed, the company’s CEO,

HHI Orders Regasification Systems from Wärtsilä

South Korean shipyard Hyundai Heavy Industries (HHI) has ordered two seawater/propane based regasification modules from Wärtsilä. The systems are to be installed

Hitachi Gas Supply System Order for MHI

Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Hitachi Zosen Corporation for a high-pressure gas supply system enabling use of natural gas as fuel in marine engines.

 
 
Maritime Security Maritime Standards Naval Architecture Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 1.2678 sec (1 req/sec)