reports
Transocean Ltd: 1 director
A director at Transocean Ltd bought 2,000,000 shares at 6.010USD and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clea...
- Martin Huseby Karlsen
- Martin Huseby Karlsen
Odfjell Drilling (Buy, TP: NOK65.00) - Investment case intact
After several quarters with results in line or above expectations, Q1 was slightly negative on somewhat higher capex for its upcoming 5-year surveys. Despite a NOK1.3/share effect compared to our estimates, the investment case remains intact, with an industry-leading cash-flow yield (17–26% yield to EV in 2025–2026e) and highly attractive multiples (adj. 2026e EV/EBITDA of 2.3x). We expect it to continue to outperform the sector, and maintain our BUY and NOK65 target price.
- Martin Huseby Karlsen
Seadrill (Buy, TP: NOK600.00) - Consensus needs to adjust
Q1 EBITDA (excluding a one-off for future tax credits) was in line with our forecast and Seadrill reiterated guidance, which included the same one-off. Key ahead is to get visibility and de-risk the rigs with a binary outcome, namely the West Phoenix in Norway, while we are more constructive on Sevan Louisiana and Capella. Despite our more conservative view than consensus on these rigs (we are 15–17% below on 2025–2026e EBITDA), we consider Seadrill among the most attractively valued large cap o...
- Martin Huseby Karlsen
Shelf Drilling (Buy, TP: NOK40.00) - Focus on re-contracting
Focus for the Q1 report is on revised 2024 guidance following the four Aramco rig suspensions, an update on re-contracting opportunities for those, and progress on an ONGC tender, where it is well placed to extend two incumbents. We consider the 2025e EV/EBITDA of 2.9x and cash flow yield to EV of 15% as compelling. Being among the most leveraged offshore drillers in our coverage, we reiterate our BUY and NOK40 target price.
- Martin Huseby Karlsen
Seadrill (Buy, TP: NOK600.00) - Focus on clarity for tier-2 rigs
While the high-end deepwater market is set to retain its momentum, and focus for the investment case relates to extending its late-2025 Brazil rollovers, we see investors seeking clarity for its tier-2 harsh & deepwater rigs. We have risked such rigs (West Phoenix in particular) in our NAV and estimates, which probably explains why we are c16% below consensus for 2025–2026e. Despite these deviations and the risks of near-term share price volatility and lower 2024 guidance, we consider Seadrill a...
- 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
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