reports
- Martin Huseby Karlsen
- Martin Huseby Karlsen
Consensus back in focus and tier-2 deepwater risk
With the start of the Q1 reporting season for Offshore Drilling, we sense increased investor attention on the risk to consensus. Although we like the investment case for its valuation in the out-years (2026), our estimates remain below consensus. We see potential for share price volatility as near-term consensus is revised lower, while investors gradually underwrite 2026 valuations. We also believe the gaps between contracts and increased idle-time risk for tier-2 deepwater rigs are not properly...
Transocean Ltd. Announces Consent Solicitation for 8.375% Senior Secur...
Transocean Ltd. Announces Consent Solicitation for 8.375% Senior Secured Notes due 2028 STEINHAUSEN, Switzerland, May 01, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that its wholly owned and indirect subsidiary, Transocean Titan Financing Limited (the “Company” and, together with Transocean Ltd., “Transocean”), is soliciting consents (“Consents” and, such solicitation being referred to herein as, the “Consent Solicitation”) from holders (the “Holders”) of its outstanding 8.375% Senior Secured Notes due 2028 (the “Notes”) as of 5:00 p.m. New York City time, on Apr...
- Martin Huseby Karlsen
Valaris (Buy, TP: USD100.00) - Closer to earnings ramp-up
Ahead of the Q1 report, we are on a par with guidance and consensus for EBITDA. Being a tad more conservative than consensus for Q2, we believe the significant ramp-up in EBITDA from Q2 would benefit the investment case. As focus shifts to 2026, we expect the NAV gap to close and the intrinsic value to crystallise. We reiterate our BUY and USD100 target price.
Transocean Ltd. Reports First Quarter 2024 Results
Transocean Ltd. Reports First Quarter 2024 Results Three months ended March 31, December 31, Sequential 2024 2023 change(In millions, except per share amounts and backlog) Contract drilling revenues$763 $741 $22 Adjusted contract drilling revenues$767 $748 $19 Revenue efficiency(1) 92.9 % 97.0 % (4.1)% Operating and maintenance expense$523 $569 $(46) Net income (loss) attributable to controlling interest$98 $(104) $202 Diluted earnings (loss) per share$0.11 $(0.13) $0.24 Adjusted EBITDA$199 $122 $77 Adjusted EBITDA...
- Martin Huseby Karlsen
Transocean Minor model adjustments
We have updated our estimates, primarily due to Transocean’s recent fleet status report. Despite having small delays included in the fleet status report, we remain just above the guidance and largely in line with Bloomberg consensus ahead of the Q1 results (due today after market close). We expect Q1 EBITDA of USD195m, largely in line with consensus (USD190m) and just above the guidance (USD188m). We do not consider these changes to be material, and we have not changed our HOLD recommendation. W...
- Martin Huseby Karlsen
- Martin Huseby Karlsen
Shelf Drilling (Buy, TP: NOK40.00) - Set to maintain liquidity
For Shelf Drilling (parent), we consider the proposed refinancing of its 60%-owned subsidiary SDNS a likely relief as investors have been focused on its capital structure and liquidity situation post the recent Aramco suspensions. The proposed USD300m bond offering in SDNS would be a complete refinancing that is set to address both the earlier announced short-term liquidity requirement in SDNS (cUSD50m) as well as pushing debt maturity in SDNS from 2025 to 2028. Although Shelf Drilling has suffi...
- Martin Huseby Karlsen
Transocean Ltd. Announces Results of Tender Offers
Transocean Ltd. Announces Results of Tender Offers STEINHAUSEN, Switzerland, April 18, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today on behalf of Transocean Inc., its wholly-owned subsidiary (the “Company” and, together with Transocean Ltd., “Transocean”), the results of the Company’s previously announced tender offers to purchase for cash (collectively, the “Offers” and each, an “Offer”) any and all of its outstanding 11.50% Senior Guaranteed Notes due 2027 (the “2027 Super Priority Guaranteed Notes”) and 7.25% Senior Notes due 2025 (the “2025 Priority Guaranteed N...
Transocean Ltd. Provides Quarterly Fleet Status Report
Transocean Ltd. Provides Quarterly Fleet Status Report STEINHAUSEN, Switzerland, April 17, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today issued a quarterly Fleet Status Report that provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs. This quarter’s report includes the following updates: Deepwater Asgard – Awarded a 365-day contract extension in the U.S. Gulf of Mexico at a rate of $505,000.Deepwater Skyros – Customer exercised a three-well option in Angola at a rate of $400,000. The aggregate incremental backlog assoc...
Transocean Ltd. Announces the Pricing Terms of Pending Tender Offer
Transocean Ltd. Announces the Pricing Terms of Pending Tender Offer STEINHAUSEN, Switzerland, April 17, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today the pricing terms of the previously announced cash tender offer by Transocean Inc., its wholly owned subsidiary (the “Company” and, together with Transocean Ltd., “Transocean”), for any and all of the Company’s outstanding 11.50% Senior Guaranteed Notes due 2027 (the “2027 Notes”) from holders thereof (each, a “Holder” and collectively, the “Holders”). The cash tender offers previously announced for the 2027 Notes and ...
- Martin Huseby Karlsen
- Martin Huseby Karlsen
Shelf Drilling North Sea (Buy, TP: NOK45.00) - Key contract win in the...
The niche market in the North Sea is less affected by the more competitive near-term jackup environment, in our view. The CJ70 extension with Equinor and additional options should help earnings visibility and crystalise its underlying value. Additionally, it should be helpful in assessing various alternatives in light of the previously highlighted temporary liquidity shortfall in Q2 2024. The stock is trading at a significant discount to underlying values and peers. Bridging the gap in implied a...
Transocean Ltd. Announces Pricing of Upsized Private Offering of Senio...
Transocean Ltd. Announces Pricing of Upsized Private Offering of Senior Notes Due 2029 and Senior Notes Due 2031 STEINHAUSEN, Switzerland, April 11, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that Transocean Inc., its wholly-owned subsidiary (the “Company” and, together with Transocean Ltd., “Transocean”), has priced its previously announced private offering, upsized to $1,800,000,000 in aggregate principal amount, of $900,000,000 aggregate principal amount of Senior Notes due 2029 (the “2029 Notes”) and $900,000,000 aggregate principal amount of Senior Notes due...
Transocean Ltd. Announces Cash Tender Offers
Transocean Ltd. Announces Cash Tender Offers STEINHAUSEN, Switzerland, April 11, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced that Transocean Inc., its wholly-owned subsidiary (the “Company” and, together with Transocean Ltd., “Transocean”), has commenced an offer to purchase for cash (collectively, the “Offers” and each, an “Offer”) any and all of its outstanding 11.50% Senior Guaranteed Notes due 2027 (the “2027 Super Priority Guaranteed Notes”) and 7.25% Senior Notes due 2025 (the “2025 Priority Guaranteed Notes,” collectively with the 2027 Super Priority Guaranteed N...
Transocean Ltd. Announces Proposed Private Offering of Senior Notes Du...
Transocean Ltd. Announces Proposed Private Offering of Senior Notes Due 2029 and Senior Notes Due 2031 STEINHAUSEN, Switzerland, April 11, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that Transocean Inc., its wholly-owned subsidiary (the “Company” and, together with Transocean Ltd., “Transocean”), commenced a private offering of $1,500,000,000 aggregate principal amount of Senior Notes due 2029 (the “2029 Notes”) and Senior Notes due 2031 (the “2031 Notes” and together with the 2029 Notes, the “Notes”) to eligible purchasers pursuant to Rule 144A/Regulation S. The...
- Martin Huseby Karlsen
Limited change in EP spending
After reviewing oil companies’ most recent spending plans, we estimate offshore spending growth of c7% YOY for 2024, in line with our November update. Growth is concentrated, with Petrobras being the key driver, favouring service companies with Brazil exposure. Looking ahead, further spending growth is likely to be partly limited by total spending already being on a par with operating cash flow. Delayed energy transition spending is seen as positive for oil services, while recent E&P consolidati...
SOC SUBSEA 7 S.A.
SDRL SEADRILL LTD
ARCHERO ARCHER
AKER AKER ASA CLASS A
TGS TGS-NOPEC GEOPHYSICAL COMPANY ASA
ODL ODFJELL DRILLING
AKSOO AKER SOLUTIONS ASA
DO DIAMOND OFFSHORE DRILLING INC.
RIGN TRANSOCEAN LTD.
BWO BW OFFSHORE LIMITED
CGG CGG
BORR BORR DRILLING
MSEIS MAGSEIS FAIRFIELD
PRS PROSAFE
SHLF SHELF DRILLING LTD.
VAL VALARIS LTD
NE NOBLE CORP NEW
OTL ODFJELL TECHNOLOGY LTD
SDNS SHELF DRILLING NORTH SEA
DDRIL DOLPHIN DRILLING
DOFG DOF GROUP ASA
- Martin Huseby Karlsen
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