Transocean Sedco Forex Inc. Reports First Quarter 2000 Results
Transocean Sedco Forex Inc announced that net income for the three months ended March 31, 2000 was $32.5 million on revenues of $300.8 million. The results include a cash settlement of $25.1 million, relating to the previously reported agreement with BP Amoco to cancel the remaining 14 months of firm contract time on the semisubmersible Transocean Amirante. Net income for the corresponding three months in 1999 was $11.3 million on revenues of $189.2 million. Operating and maintenance expense for the first quarter of 1999 included charges for severance costs and provisions for potential legal claims totaling $42 million. The December 1999 merger of Transocean Offshore Inc.
Transocean Sedco Forex’s COO Retires, Management Changes
Transocean Sedco Forex Inc., announced that W. Dennis Heagney, executive vice president and chief operating officer, will retire from the company in June 2002, after 33 years of service. Heagney began his career in 1969 with The Offshore Company, a predecessor of Transocean Sedco Forex and has worked in a variety of operating and marketing roles in both the United States and International locations. The board of directors has appointed Robert L. Long as president of Transocean Sedco Forex Inc., effective immediately. Long will also assume the role of Chief Operating Officer upon the retirement of Heagney in June 2002. Long joined the company in 1975 and has held numerous operational and financial roles over his 26-year career including division engineer…
Transocean Sedco Forex Merger Establishes World's Largest Offshore Driller
Transocean Offshore Inc. has completed its merger with Sedco Forex, which was spun-off from Schlumberger Limited. The resulting company, Transocean Sedco Forex Inc., is now the world's largest offshore drilling contractor and third-largest oilfield services company in terms of equity market capitalization, based on closing market prices on Dec. 30. In the merger, approximately 109.6 million ordinary shares of Transocean Offshore are being issued to stockholders of Schlumberger. The number of new shares issued is equivalent to 0.1936 shares of Transocean Sedco Forex for each outstanding Schlumberger share. Following the merger, Schlumberger stockholders hold about 52% of the approximately 210.1 million outstanding shares of Transocean Sedco Forex.
Transocean Closes R&B Falcon Merger
Transocean Sedco Forex Inc., recently announced the close of its merger with R&B Falcon Corporation, creating an offshore drilling contractor with unprecedented fleet and enhanced geographic diversity, technical expertise, financial strength and equity market liquidity. Pursuant to the merger agreement, Transcocean Sedco Forex will issue 106 million ordinary shares to R&B Falcon shareholders at the exchange ratio of 0.5 shares of Transocean Sedco Forex for each share of R&B Falcon, Following the exchange, the company's ordinary shares outstanding will total approximately 317 million. The company also announced that Victor E. Grijalva would continue to serve as the chairman of the board of directors of Transocean Sedco Forex…
Shareholders Approve Transocean Merger
At its extraordinary general meeting held Dec. 12, 2000 in Houston, Texas, holders of ordinary shares of Transocean Sedco Forex Inc. approved all proposals presented at the meeting, including those relating to the company's pending merger transaction with R&B Falcon Corporation. Shareholders approved an increase in authorized ordinary share capital, the issuance of ordinary shares in the merger, anincrease in the maximum size of the company's board of directors to 13 persons and an increase in the number of ordinary shares reserved for issuance under the company's Long-Term Incentive Plan and Employee Stock Purchase Plan. On Aug. 21…
Transocean Reports GOM Incident
Transocean Sedco Forex, Inc., announced its second-generation semisubmersible drilling rig, Transocean 96, experienced an apparent anchor winch failure while under tow. An anchordropped and damaged the Poseidon Pipeline in Ship Shoal Block 332 in the U.S. Gulf of Mexico. Oil was observed on the surface at the site, approximately 75 miles south of Houma, La. All appropriate government agencies were notified, and the pipelne was shut in by Equilon Pipeline Company, which operates the pipeline. Transocean Sedco Forex worked with Equilon's emergency response team and with all appropriate governmental agencies with respect to remediation efforts. The company expects insurance will substantially cover any potential liability associated with the matter.
Transocean Sedco Forex Gets BP Amoco Contract
An operating subsidiary of Transocean Sedco Forex Inc. has entered into a contract with BP Amoco for the semisubmersible Transocean Rather. The agreement covers one well, with a minimum duration of 120 days, plus an option to drill two additional wells in direct continuation. The drilling program is expected to commence in the U.S. Gulf of Mexico on or around April 1, 2000 and will generate an estimated $9.6 million in revenues. Also, the company said its semisubmersible Transocean Richardson has completed a drilling program in the U.S. Gulf of Mexico with Kerr-McGee Corp. and is now under contract to Anadarko Petroleum to drill two wells over an estimated 60-day duration.
Transocean's Third Deepwater Rig Ready to Begin Work
Transocean Sedco Forex Inc.'s ultra-deepwater drillship Discoverer Deep Seas has completed acceptance testing and has commenced a five-year contract valued at an estimated $374 million for Chevron U.S.A. Production Company in the U.S. Gulf of Mexico. The Discoverer Deep Seas is the third Discoverer Enterprise-class drillship to join the Transocean Sedco Forex fleet, following the delivery of the Discoverer Spirit to Unocal in September 2000 and the Discoverer Enterprise to BP in December 1999. All three rigs are designed to drill in water depths of up to 10,000 ft. and possess the company's patented dual activity drilling process, comprised primarily of two complete drilling systems within one derrick.
Transocean Sedco Forex Reports Rig Damage
Transocean Sedco Forex Inc., the world's biggest offshore driller, said one of its rigs was damaged by a gas blowout while drilling a well offshore Indonesia for Australia's Santos Ltd. Transocean said all 92 crewmen aboard the jack-up rig Trident IX were evacuated without injury to a service vessel. It said it expected insurance to cover the cost of the damage that appeared to be limited to the drill floor area. The incident which occurred on Thursday in the Madura Straits, offshore East Java, was caused by an uncontrollable release of natural gas which subsequently ignited.
Transocean Buys R&B Falcon In $5.3B Stock Deal
Transocean Sedco Forex Inc., already the world's biggest offshore oil-drilling contractor, agreed to buy R&B Falcon Corp. in a $5.3 billion stock deal that will make it the dominant deepwater driller. Under the agreement, approved by the boards of both companies, R&B Falcon stockholders will receive 0.5 shares of newly issued Transocean Sedco shares for each R&B Falcon share. Transocean will also assume approximately $3 billion in R&B Falcon debt, putting a total value on the deal of some $8.3 billion. The combined company would have a market capitalization of about $16.5 billion, almost three times as much as its biggest competitors, and would rank only beneath diversified oilfield services giants Schlumberger Ltd. and Halliburton Co. as a contractor to the global oil and gas industry.
Schlumberger And Transocean Offshore Combine Forces
Schlumberger Limited and Transocean Offshore Inc. have signed a definitive merger agreement under which the offshore contract drilling business of Schlumberger (Sedco Forex Offshore) will be spun off and promptly combined with Transocean Offshore in a merger of equals. The resulting company, Transocean Sedco Forex, will be the world's largest offshore drilling company and is projected to become the fourth largest oilfield service company in terms of market capitalization. The transaction, which should close by December 31, 1999, is anticipated to be modestly dilutive to Transocean Offshore's current earnings expectations for 2000 and accretive thereafter.
S&P Raises Transocean Offshore Ratings
Standard & Poor's raised its ratings for Transocean Offshore Inc., renamed Transocean Sedco Forex Inc. (See chart page 2, related story page 8) At the same time, Standard & Poor's assigned to the company an 'A-1' short-term corporate credit rating, an 'A-1' rating for its $500 million commercial paper program, and a single-'A' rating for its $400 million term loan maturing December 2004. The company's ratings are removed from CreditWatch with positive implications, where they were placed on July 12, 1999, upon the announcement that un-rated Schlumberger Ltd. would spin off its marine drilling unit and combine it with Transocean. That merger was completed on Dec. 31, 1999. The outlook is stable.
Stewart Joins Board at Hornbeck-Leevac
Hornbeck-Leevac Marine Services, Inc., announced that the board of directors has unanimously appointed Bernie W. Stewart to fill the recently created board vacancy. Stewart served in a variety of senior management positions with R&B Falcon until its merger in January 2001 with Transocean Sedco Forex, Inc., most recently as Senior Vice President, Operations of R&B Falcon Corporation and President of R&B Falcon Drilling US, its operating subsidiary. Previously, he served as senior vice president and chief operating officer of the original Hornbeck Offshore Services, Inc., and prior to that as President of Western Oceanics, Inc. Christian Vaccari…
S&P Raises Transocean Offshore Ratings
Standard & Poor’s raised its ratings for Transocean Offshore Inc., renamed Transocean Sedco Forex Inc. (See chart page 2, related story page 8) At the same time, Standard & Poor’s assigned to the company an ‘A-1’ short-term corporate credit rating, an ‘A-1’ rating for its $500 million commercial paper program, and a single-’A’ rating for its $400 million term loan maturing December 2004. The company’s ratings are removed from CreditWatch with positive implications, where they were placed on July 12, 1999, upon the announcement that un-rated Schlumberger Ltd. would spin off its marine drilling unit and combine it with Transocean. That merger was completed on Dec. 31, 1999. The outlook is stable.
Transocean Sedco Forex Reports Rescue
Transocean Sedco Forex Inc. announced that its drillship, Peregrine III, has safely rescued the nine-member crew of the survey-and-recovery vessel ALOHA, which was lost at sea about 100 nautical miles northeast of Cozumel while under way to a historical and bullion wreck. The ALOHA reported that it had lost power and was taking on water on Thursday, February 7. Also responding were a German container vessel, MV Libra Houston, and a Norwegian cruise ship, Rhapsody At Sea. The ALOHA crewmembers, including four U.S. citizens and five Filipinos, were taken aboard the Peregrine III from an ALOHA life raft. No medical problems were reported among the rescued crewmembers. The ALOHA, a dynamically positioned ROV (remotely operated vehicle) survey ship, belongs to Deepsea International (DSI).
Transocean Sedco Forex Awarded Contracts
Transocean Sedco Forex Inc., announced that it has been awarded new contracts for its high-specification semisubmersible rigs Cajun Express and Sedco Express. Ocean Energy Inc. for ultra-deepwater drilling operations on the company's South Titan prospect located in approximately 6,200 feet of water in the U.S. Gulf of Mexico. The contract should commence following the completion of the rig's current drilling assignment with Ocean Energy in the U.S. Gulf of Mexico. Revenues to be generated over the estimated 40-day contract period could total approximately $6 million. The Sedco Express has been awarded a three-well, estimated 130-day contract from a unit of BP for drilling operations in the Eastern Mediterranean offshore the coast of Egypt in waterdepths between 2,600 feet and 3,280 feet.
Sembcorp Marine Acquires A 50 Percent Stake In PPL Shipyard
SembCorp Marine has signed a Sale and Purchase Agreement with PPL Holdings Pte Ltd to acquire a 50 percent equity stake comprising 10,000,000 shares of $1.00 each in PPL Shipyard Pte Ltd. (PPLS) for $16 million. PPLS' business is primarily in oil rig and vessel construction as well as steel fabrication. It has recently secured a contract for the construction of two jack-up drilling rigs, each having a value of $125 million, from Sante Fe International Corp., with a construction period of 24 months for each rig. There are also options for four additional jack-up drilling rigs to be built for Sante Fe International Corporation. Last year, PPLS delivered a semi-submersible drilling rig named Cajun Express to U.S. offshore drilling company, Transocean Sedco Forex Inc.
Oilfield Stocks Take A Hit As Crude Dips Below $30
Profit-taking hit oilfield service and drilling stocks on Monday as U.S. crude oil prices shed over a dollar to dip below $30 a barrel for the first time since February 28. On Monday afternoon, the Philadelphia Stock Exchange's oilfield service index was off 4.82 points or 4.6 percent at 100.03, while U.S. April crude oil futures were $1.23 lower at $29.68 a barrel. Halliburton Co., the world's biggest oilfield service provider, was off more than five percent at 36-3/8 while Schlumberger Ltd., the industry's No. 2, was down 3-12/16 at 70-9/16. Transocean Sedco Forex Inc., the world's largest offshore drilling company, saw its stock trade 3-5/8 lower at 39-3/8, a loss of more than eight percent on the day.
Moody's Ups Transocean Offshore
Moody's Investors Service upgraded the senior unsecured debt ratings of Transocean Offshore, Inc. to A3 from Baa1 to reflect the significant benefits that the company will likely derive from its pending merger with Sedco Forex Holdings Limited (Sedco). The rating action ends a review of Transocean's ratings initiated on July 12 in response to the company's announcement that it had signed a definitive agreement under which Sedco, the offshore contract drilling business of Schlumberger Limited, will be spun off and combined promptly with Transocean through the issuance of approximately $3.2 billion of Transocean stock and the assumption of about $435 million of debt. The combined company will be known as Transocean Sedco Forex.
Transocean Sedco Forex Reports Third Quarter 2001 Earnings
Transocean Sedco Forex Inc. announced that net income for the three months ended September 30, 2001 was $97.6 millionon revenues of $770.2 million. Net income for the quarter included a net after-tax gain totaling $7.5 million, resulting primarily from the sale of two Nigerian-based land rigs and the disposal of an inland drilling barge. Excluding the net after-tax gain, net income for the three months ended September 30, 2001 was $90.1 million. For the corresponding three months in 2000, net income was $49.3 million, and included a net after-tax gain of $7.1 million. Revenues for the three months ended September 30, 2000 were $314.5 million. For the nine months ended September 30, 2001, net income was $196.6 million, on revenues of $2,072.5 million.
ABN AMRO Raises 2001 Earnings Estimates For Offshore Drillers
ABN AMRO raised its 2001 earnings estimates for several offshore drillers and said the oil service industry was in the early stages of a multiyear growth phase. "We are raising our 2000 and 2001 upstream capital spending growth estimates,'' analyst Asit Sen said in a research note. "We note that our views are above the latest consensus expectations. To reflect higher-than-previously expected day rates/utilization rates, we are also raising our 2001 earnings estimates and price targets," he said. "We believe that the sector is in the early stages of a multiyear growth phase. Accordingly, we would use any periods of significant near-term weakness as buying opportunities," he added.
Transocean Sedco Forex Receives Contract Awards
Transocean Sedco Forex Inc. announced that it has been awarded contracts for two high specification floating drilling rigs and has received a contract extension on a third high-specification floating drilling rig. The semisubmersible Sovereign Explorer has been awarded a one-year primary term contract from Amerada Hess Corporation through its Triton Equatorial Guinea, Inc. business unit for drilling operations offshore Equatorial Guinea. The one-year contract, which provides for a one-year extension period, is expected to commence in early March 2002, following mobilization of the rig from the North Sea. Revenues expected to be generated over the one-year contract period, excluding mobilization and demobilization fees, could total approximately $33 million.
Houghton Offshore Awarded Five-Year Contract
Houghton Offshore has entered into a five-year contract with Transocean Sedco Forex for the supply of the following fluids for Transocean Sedco Forex's global fleet of mobile offshore drilling units: water/glycol based blowout preventer (BOP) fluids, as well as motion compensator, riser tensioner, and other water-based fluids. The new contract follows Transocean's recent world record for the deepest well drilled to date using Houghton's Stack Magic 200 blowout preventor fluid (BOP). The well was drilled in 9,687 ft. (2,952 m) below sea level in the U.S. Gulf of Mexico.