Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more detail on the opportunities for the Black Rhino, Voyager, and Valiant drillships? A: Robert Eifler, President and CEO, explained that while specifics about customers or tenders cannot be disclosed, there are numerous opportunities for these drillships, primarily starting in 2026, with some in 2025. These opportunities span across the "Golden Triangle" regions, involving both tenders and direct negotiations.
Q: What factors influence the rate range for 6th generation rigs, and how do you expect the market to evolve later this year? A: Robert Eifler noted that the rate range is influenced by the specific technical needs of opportunities. For example, D-class submersibles may need to bid at a higher discount compared to 7th generation rigs unless their specific capabilities are required. The market is expected to experience some softness this year, with asset quality being a key differentiator.
Q: What was the rationale behind retiring the Meltem drillship, a high-spec 7G unit? A: Robert Eifler explained that despite potential scenarios where the Meltem could be profitable, the near-term demand for stacked capacity has diminished. The rig had never drilled a well and was activated twice without being used, leading to the decision to retire it rather than compete against active fleet units.
Q: Do you expect other companies to retire their 7G cold-stacked drillships, and how many reactivations do you foresee in the next three years? A: Robert Eifler suggested that while it's difficult to predict, the demand for reactivations has diminished. He anticipates that the market will need time to absorb active supply before considering reactivations, with optimism for demand growth in late 2026 and 2027.
Q: How does the 2025 guidance relate to fleet optimization, and what is the status of the Globetrotter I and II rigs? A: Richard Barker, CFO, stated that over 90% of the 2025 revenue guidance is backed by current contracts. The Globetrotter rigs are being targeted for the intervention market, with several multiyear opportunities being pursued. They are not being bid for standard drilling markets unless in niche situations.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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