RIG - Earnings call 4 2023 | Transocean Ltd.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Q4 2023 Transocean Earnings Call. [Operator Instructions]. Please note today's call will be recorded, and I'll be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Allison Johnson, Director of Investor Relations.

Alison Johnson

Thank you, Todd. to Quarter welcome Call. Earnings and morning, Transocean's XXXX Fourth Conference Good regarding are copy covering deepwater.com. schedules, statements disclosures release our including financial results, and A press supporting financial of website on posted our along with reconciliations non-GAAP at measures and

me Vice are Sigman, President McKenzie, Financial and Officer; morning's and Chief Operating Officer; Executive call and Roddie and Officer. Adamson, Chief President Chief this Chief Vice Mark on Executive Joining Jeremy Keelan Mey, Commercial President Executive Officer;

actual of impact Transocean Please company to certain Such call, factors please make results. filings uncertainties. for not results expectations our forward-looking SEC statements course therefore, materially. forward-looking assumptions, revise may could our regarding the note more to the related During and information facts. matters undertakes statements this and and to statements. current that Many to are our certain future differ management statements for based uncertainties historical regarding no that upon subject various refer certain forward-looking duty and risks company are to update Also, or and that and business are could risks cause certain

and team. a will comments, prepared session with question-and-answer our Following we Keelan Jeremy Mark's conduct

call During to please one one the opportunity initial I'll Jeremy. to follow-up. much. more question Thank to this over time, limit participants turn an now and give speak, yourself to you very

Jeremy Thigpen

on analysts you, call. our Thank and customers, participating today's to Alison, and welcome investors employees,

adjusted of As XX%. on delivered million drilling $XXX for in revenues, contract reported adjusted EBITDA EBITDA fourth approximately yesterday's in of earnings $XXX margin million release, an of the Transocean adjusted quarter, resulting

$X.X on approximately revenues, contract an drilling EBITDA resulting of adjusted EBITDA of For the full adjusted XXXX, year of billion margin $XXX adjusted in million XX%. delivered approximately we

contract XXXX financial year his the around for the various in announcements XXXX. $XXX performance As January detailed company. will remarks These of environment of revised in with provide in that for a more world. backlog. harsh prepared ground a significant year included jurisdictions approximately million a during guidance the very was number and provide our fixtures the hit running We added review always, Mark ultra-deepwater productive and

We about improvement from raised secured X PSI Titan, debt include quarter Chevron transactions our the the were of position. XX,XXX the positively our of for higher by the operating fourth in comfort Gulf $XXX,XXX senior timely first X-year in year, certain investors, X contract. per U.S. May, totaling ultra-deepwater by investors revenue-generating second to share the generation average additional in and of which day the eighth both Mexico. daily million the $XXX refinanced also the and to $XXX,XXX approximately in phase XXXX operations secured opportunistically in we world, as commenced debt market. Deepwater in improving in billion, more transition drillships provided rigs, reality widespread the marked fleet to day in Deepwater the part the only per drilling revenue $X.X reflecting maturities, Key opportunistically fields quarter. price of Titan's notes our By we coms. of contributors from increased the the of These Atlas Throughout and the with beginning Deepwater investors offshore our beginning received the also appropriately liquidity resulted our addressing the joining this

X total rates to in ending leading-edge Included billion add $X.X contracts the Titan, the In fourth new incremental day with this throughout XXXX are with of in addition quarter. added fixtures we to continue the backlog. year, an

initial in $XXX,XXX the duration. for Romanian ra at each XXX the to fully operates for increase term, we including plus a paid day te mobilization periods OMV a day Sea. the First, for The per $XXX,XXX into the option Barents Transocean Black of Sea secured includes X rate contract beyond day of a a the with a day rig SA per contract minimum Black Petrom

with X-well few investors the rate rate. awards the Angola the that by meaningfully U.S. rose the contract term is we Second, for estimated higher at Mexico request a of contract an is operator prior at recognize independent Ski over the at the signed an strong energies deepwater deepwater past XX-day through well with In a current $XXX,XXX increasingly the that that of concern, months. opportunity The undisclosed to XXX a Despite have per our times some firm focused on than this day at XXXX note rate a lead to longer pace extension duration Invictus day concerned important it's In of extended rate was commitment. a in of are of of the May been January in Gulf we the extends awarded customer. their that the year, year effort with ease Total day. contracting, contract to customers rig

While drilling about for services. Transocean's assets markets negotiations, the demand this tends and it in offshore the cycle With current their to and I'll what to demonstrates around of up Keelan? our are commitment confidence in customers' market. to in the contract Keelan that, seeing also encouraged and extremely the short, the we In result this remain prolonged discuss longevity we world. ask future offshore

Keelan Adamson

as everyone. our provide of we morning, ahead point, last a commencements. reminder XX-month an good historical available also includes perspective. a The our To listening, presentation expand corporate and and website, opportunity floater on look those Jeremy's to on slide Jeremy, in Thanks,

the XX programs have increase in nearly tendered rig number Over period, the increased number of XX% programs to we our customers' X quarters, same increased and with past the Overlaying have time over the continue observed to duration. this rig years. of years

year alone we continue and looking Now tendering demand each Equinor programs. for region in the to X from with closer region. Last lines, at rig and see awarded Petrobras long-term strong Brazil, Petrobras

are awarded Sepia expected, in including on based X rigs ongoing. will mobilizing opportunities, expected the in more Mexico negotiations rigs there count for Petrobras' of X as next several come steady will XX lines the the quarter from the to of rig outside award X of tenders including which we of awarded XXXX. be Over continues rigs from contracts second anticipate that We today and open Brazil the to rig end work, between materializes XX expect to If tenders, U.S. the the least be this X of region. Roncador by year. months, XX X currently for increase preparing demand at of with source this a Gulf and The previously and

rigs the region introduction requirements adding XX in capacity and next most the demand the met currently to anticipate months don't expect that We over by area significant since will the be time shifting already Evolution of a contracts. U.S. duration characterized market the short time, lead Atlas Gulf lead is longer longer Titan to market. opportunities by short a duration and Stena from

for from developments. E&P XX-month several major of long-term seek horizon, as demand high-specification work the this right additional has to they their companies the for ongoing secure materialized Beyond assets

Gulf we and and discoveries rig continue issue extended. ExxonMobil there include multiyear with And least Namibia tender, that presently we in by in will expect Energies, be significant expect in Nigeria, and contract of next be Angola, XX Africa Total at the half potential West We of Chevron to this announced issued by in duration. to to Notably, on year. programs the years programs multiyear that currently encouraged exhibit are Shell the their recently and expect its commence In lastly, to operators X Energy, these half most venture, X up demand has Azul in Energies, the rigs and Exxon on currently XX Shell continues Total BP and joint will of X months. first tenders are Energy. with contract E&I in country rigs

remain primarily these through will rigs will contract in expect existing and extended that country We options. be

of market. XXXs, and Moving fully therefore, to of supply in the utilized the semisubmersibles through Norway recent been currently now the are environment high and XXXX. trend. harsh fixtures increase to have until in constructive Day end contracted environment high-specification harsh the majority rates, Local a XXXX continue largely is

set supply second start beginning of XXXX. the a We expect remained XXXX. half to programs The for strong a there in outlook additional to be need Australia of with number in incremental

Transocean XXXX, positioned for the respectively, of are well these Transocean Equinox and and options opportunities. strategically contracted some with Our and early through future are XXXX Endurance rigs,

In valued by highly our highly performance the high executing customers operational of requires our large-scale capability programs operations, a level complex of and safety range addition specification positions of well is wide to operational fleet, to completion a drilling Transocean that our opportunities. and strong Flawlessly discipline. consist of commensurate and contract secure

reliability, significant these assurance we've offices, our our in Stavanger these of and Houston our in time, steps completed of an the with organization. years operational on of for now, of performance resulting teams with week level introduction acutely workforce. our X XX are this and provide to what footage in by Equipped In offshore company capability, real during become key been and tools have both in ability as verification strive Located offshore real-time to we For centers. processes, confidence a improving implementation our seen performance assurance we in a XX.X% a the communicate of uptime focused call our operations a hours fleet the operations. we centers record highly our reliable critical matter we XXXX, and day, XXXX. crews live improvement subject global monitoring experts from a days critical Since directly additional from of the these teams staffed several

Titan took BOP normal the second XX,XXX day-to-day the Deepwater eighth delivery installed of Atlas. brought into generation the Titan In Aquila, Deepwater we service and sister drillship, addition ship, our the operations, Deepwater on to the

X, the projects different completed programs The also Equinox to Transocean with rigs. Deepwater Transocean driller different regions around X mobilized customers the KGX, Barents, subsequently Endurance Orion, preparation in the Duravit new world. and We Deepwater and contract Transocean development

XXXX. changes, XXXX, a target Additionally, of process operational And for and annual approximately performances, safety recordable more one employees our importantly, incurred of our beating Despite Transocean X,XXX has injury. in life-changing delivered these our much occupational employees we rates. strongest offshore onboarded injury none new in

a We drive for results, it of by our It our shareholders. foundational status the challenge improve improve to our results chance. to the This to are constantly our customers. holistic operations. reliability our the creates relentless principle direct performance how and positive our invest at Innovation very we our efficiency on optimizing the is financial is ultimately and proud to not value deliver which technologies and and operational impact in we our operational Transocean, result performance has superior safety, of is willingness of continuously for approach quo

the fleet exposure the our of As we rig during on riser robotic the example, system Weiser on equipment certain XXXX, Titan. reducing to automates deployed personnel This Deepwater bolting the floor. third activities in system in significantly an our operations, drill moving

control, drilling well the our with repetitive of We automation to focus sequences. consistency This predictability more tasks and are control where our further replaced drillers itself. have affording the to while on improves also continued advance the machine time of operation

making that in third of the a closed we interest floaters. with strategic recently to asset continue was proactively for agreed Aquila, and moored In the is with hook to the entered position high of to of Aquila exiting to which ultra-deepwater selected quarter a the second look Paul the operating also into The automation Mexico work the joint to the currently the semisubmersible environment conduct ultra-deepwater further rig owning asset on additional owns contract our which the harsh effectively drillship a acquired focus Lloyd load fleet an the rigs. Transocean sell we and commence Junior for week. perspective, The trial last an West ton high-specification, forward Petrobras, From and X-year In preparations midyear. is solution in Leader, fourth-generation quarter, its class. an fleet year, Gulf strengthening company We Be outstanding to transaction and agreement it venture we X,XXX contract deepwater the eighth Brazil, this last composition in in our the undergoing expanding our and market. to manage expected in

transition could the of then newbuild the that result when of work comes preparation performance. cold accumulated assets, are the and highest level assets to and confident that our number operations of and have we a so efficiently the opportunities cold-stacked substantial at continues have As stacked experience will reactivate we do we over reactivation we and to grow. delivery justify safely The time the we years, start of contract the performed into

call to I'll As plus always, the we will remain decisions that so disciplined required will and our shareholders. to hand contracts these recover generate Jeremy. do appropriate in return the back to investment now an for reactivate only

Jeremy Thigpen

as remembered group challenges international value significant our navigate successfully be peer publicly ensuring for year company to of great of drilling offshore the shareholders. a Thanks, sole our XXXX in being take for downturn, pride contractor traded Keelan. will the of Transocean. among We the the preservation financial

through billion selective provide strike backlog Our actively us gaps utilization. fleet rate in we need is we our flexibility $X confidence utilization seek largely work to will XXXX, fill in to constantly the that, pursue contracted continue Having as and be and between the any balance with endeavor and we to to superior and assets right opportunities day said the we optimization.

we mentioned, dates encouraged well see future. we're previously start programs materialize into As with the by longer-term the

performance acute impacts sustained uptime on to our our move directly what first, industry-leading overall into we into across efficiency. up do to by focus our We'll maintaining As converting revenue be backlog our appears and cash. which a safety cycle, remain: XXXX the priorities and fleet, further this

Second, deleveraging the balance sheet.

we will serves that while best a cash over generate to is few growing we that shareholders. years. flow a the a with be free our in recognize market significant sure we the two Assuming balance as the we manner fleet next deleveraging, materializes competing operating expect, will priority And

repurchases of the Third business either shareholders, with to share value the returning finally, ultimate our more dividends. goal and through manage or

financial team operations operational Before thank to to to and constantly the for and strong delivering call each like dedication I efficient our the Mark, for member I contributing Transocean of hand would their our safe, and to over customers and improving performance. reliable

to in improvement future With and forward XXXX. in XXXX, outlook. I now will results all look did and discuss job our Mark that, continuous financial great a You Mark?

Mark Mey

Jeremy, to all. day you, Thank good and

XXXX. in had mentioned Jeremy As a the year his very remarks, in capital in we've active markets tech

killer XXXX. and the we January by $XXX refinancing the debt discussed due addition secured secured are million upgrade a The secured purchase October issuance notes senior issued support notes In of to X% deepwater to of XXXX, in rig. and XXXX the we

efforts XXXX, year. collateral completion several previously sincere work retirement for as team the exchangeable of These principal in transactions you Transocean equity remaining January $XX management to XXXX. the May during secured million million the will and million of I of entire as our due for at the bonds now I our the we XXXX, the expectations to releasing capital an of executed extend Equinox the liability notes a also bonds outstanding provide XXXX, recap the the We quarter year X.X maturity exchangeable exchanges with maturities update $XXX first results X.XXX% senior The include approximately for in then fourth the for XXXX of Transocean Endurance. thank with optimize briefly structure. issued and in XXXX. your Transocean continued guidance mainly $XXX of quarter and give full as on rigs, well repayment

Lastly, end on I'll the update provide liquidity forecast an our through of XXXX.

controlling loss release, details of in on the includes Say's attributable we reported sustained additional per adjusted net net which XXXX, we to million reported or $X.XX adjustments certain release, million. press diluted in our After of of quarter interest press share. reported loss $XX fourth for As our results, $XXX

cash During translated the million, generated operations quarter, approximately from adjusted $XXX we which flow $XX of EBITDA million. of into

negative free killer, the Our with the upon the of shipyard shipyard. the million rig of flow reflected CapEx the delivery $XXX milestone taking cash final from Deepwater payment associated including

we of per revenue quarter, adjusted value $XXX delivered during and approximately an day. million average fourth at closely our $XXX,XXX results Looking the contract-driven revenues of

to for maintenance higher revenue Conqueror, expense contract and is $XXX fourth expenses. than million. offset expense anticipated fees in fourth now indirect late and our guidance, start primarily slightly below on efficiency. administrative the due This South MoneyPass lower-than-anticipated our mainly is mostly to million. Operating certain than fleet-wide incurred for s, with quarter professional America. mainly Petrobras revenue in costs customs guidance, the duties, was of drilling by guidance, legal to reported lower This Mykono which higher for due and and Deepwater partially was Our our revenue $XX quarter and Deepwater below taxes due services, litigation is the is primarily the General

for quarter comprises We $XXX million unrestricted approximately and of cash flow the sheet. of $X.X and cash the balance of total $XXX quarter equivalents provide credit to liquidity our I billion ended now service Turning from million approximately year our cash $XXX cash approximately which on fourth revolving XXXX XXXX. facility. and restricted expectations with million, debt first our financial for approximately will and guidance update full the for

center listed our based fleet-wide an is as guidance contracts average fleet primarily and Our revenue in of revenue on efficiency XX.X%. support firm

of expect quarter revenue For drilling we contract million. the first XXXX, $XXX of approximately adjusted

rigs, increased vectors This a People and This Mykonos, contract Mediterranean Transocean by activity following Gulf of Brazil in contract Endurance the to and activity and the in which in the Barents, on Transocean concluded quarter-over-quarter increase pareto due the in deepwater largely its in the on Deepwater Australia next is KGX Mexico. including in partially the Orion, February, is offset Eastern India. lower KGX, the its in

Jr., In B revenue the Thursday, which closed last $XX addition, sale of of Loyd in the Paul lower results million. approximately

This from KGX the more mechanize, in the in quarter will American the less Jr We for costs the ingurance Paul for reduced aforementioned to operating be the in preceding B. the contracts. of and million. which be Transocean Barents, than operating fleet reported costs we Brazil expense South XXXX by lower new fourth This first Orion Australia, approximately sale Deepwater the commenced $XXX for incurred and Transocean days higher partially the is Lloyd maintenance expect Deepwater generally, the mainly operating quarter. for costs offset quarter activity and O&M of relating the their resulting to

first the quarter for expense of We $XX expect G&A million.

revenue revenues $X.X billion $X.XX and we estimate adjusted also full XX.X% our For contract will year between drilling based on billion, that efficiency. the be XXXX,

provided and guidance and portion XX,XXX lower than following: Orion third free anticipated Equinox preparation Endurance Deepwater call, activity. the are quarter Atlas Lower the customers' prolonged are longer mobilization changes Deepwater the XX requiring as and we on for reflected commencement a capabilities anticipated. mainly were prelim changes originally running expectations revenue include Transocean than of delayed contract activities. in fleet contract Transocean our due status PSI reports to on is contract the the to XXXX due February the the earnings for These Our

the contract. the prior of on Changes the day rigor for option expectations G&A line with As a East. the wells $XXX rig's its to million. included prior rate XXXX a the anticipating result, full our not O&M prelim contract, partially in $X.X transitioned in In under higher yet forgo year year activity variance expense approximately customers of we're decision to the reasons billion its in full versus and security guidance, Middle be expense has segment Transocean approximately to our

noncash third Excluding exchange the exchangeable fair any of value the with associated $X interest of approximately adjustment embedded interest the our first quarter is approximately quarter XXXX. issued of changes $XXX capitalized million. the bonds includes basic This in to million. forecasted expense for Net in feature be

Petrobras killer anticipating contract paid to $XX $XX capitalized year approximately to in for including to For $XX the approximately million. preparation $XX Capital in interest for $XXX its including and the are forecasted million the million Cash the to approximately of for first full approximately are first expense be with Brazil. expected taxes be XXXX. be quarter million, the of the we're capitalized Deepwater X-year approximately interest million, quarter full million $XXX year, net of approximately expenditures, interest including

which of the million Aviva Our facility in and our This be reserved approximately of our $XXX Deepwater including and to service. cost the credit including XXXX debt $XXX to includes $XXX and is guidance our reflecting December billion, related expectations liquidity approximately expected XXXX capacity revenue cash forecast is $X.XX million $XXX killer. million, liquidity of mainly approximately projected restricted million, CapEx for

to across in for contracts. expect year. last in we briefly on total, In than mentioned of quarter the new rigs had our we preparation we only XXXX, have had XXXX, days As detail XXX earlier In contract we X and preparing preparation spent activities amount approximately third days discussed more half contract significant XXXX.

focus these different we ensure of maximize is on our continue operational revenue. rigs backlog to commence programs, to their execution As our to respective version

balance to our We returning longevity we deleveraging billion our continue shareholders. sheet manage of reducing satisfy opportunities Jeremy? debt sheet liability that to regard, our concludes of of will the runway, backlog, proactively and and interest reducing believe contract $X ability debt, support comments. continue This of this my meet prepared our the cycle the maturities cash extending various up this strength the to our and priorities combined with evaluate balance simplifying structure to signet In we liquidity our management expense. and objectives of

Jeremy Thigpen

Mark. Thanks,

transition within we moment I'd to for Before our Q&A, our preparation a to transition team. a announce like take executive to

come know this organization. I years leadership is our this he will deserving succession already will team part -- key joined our member his since and all, of more of Corporate and prepared no for that him for to who Needless of unbelievably opportunity, our planning, Many, been as our he delighted role this of executive move As as Treasurer. from investors Finance that assumes Vice be the Tad has of and Officer if Financial soon beta, analysts May, likely executive investor not Mark his Transocean could many Chief President say, of transition our finance leading of a to Senior XXXX not surprise. so and

which with ensure [indiscernible] will Over we the help to will finalize plan few quarter years Mark work during for the been that expect a development I in XXXX. smooth succession has take next transition, and place and of the months, second several

competitors in unbelievably As preserving community to enhancing consummate driving an significant Transocean's helping we has strategic already contribution throughout also Mark success been in leadership, tenure financial fleet fundamentally made company and transforming advantage downturn a Mark discipline bankruptcy, multiple better the divestitures. His cost and the forced is leading to cycle of helping From here. structure incredibly rigs role and through not his downturn take multiyear with shareholder critical to but markets up that a acquisitions, the offshore into and a transactions of only played and challenging that our and desirable drilling have a timely company of Transocean technically an strategic absolutely market capable into investment positioned industry. Transocean identify and all company joint and significant most and a thinking an capital primary many that numerous into liquidity value. to streamlined survived while instrumental in the ventures guide has know, opportunistic in the

these So call, employee thank and pause before we forward with Mark of move partnership you, he done. Thank look X think We for I the I Mark. behalf build and Transocean wanted continuing and helped years. the of his to upon financial rest forward on past create. his to enough and the his personally he the strong that every leadership, can't foundation his to to Board of what at service honestly dedication, discipline him for Directors, me has

Mark Mey

of motivation my gratitude. the past my and years dedication, at while can deepest extraordinary X Jeremy. they've working short decades privilege I have colleagues of challenging, extend Transocean, been team certainty with also last that the fulfilling drilling the day, Each some you, I an the Reflected most of Thank in and of whose offshore enriching industry, almost in say had the inspiring. my To present, alongside I've most talent at been X nothing both have career. my been and

whom contributed professionally to collective you incredible I'm and It trust, XXXX and with to of since a grow admiration privilege respect sense of learn always significantly personally within our with mutual profound worked and an our which team gratitude the to ready work [indiscernible] the success. afforded the for with will elevated team. and this collaboration way. look support, but that a Ted has unwavering smooth of has will opportunities and years. our you. you Todd, be rest It contribute we're facilitate friendship have transition, formed and To to closely the the collaboration me whithin you. our relationships stakeholders rewarding, to carry support questions. approach to Jeremy the over a both CFO. thank and success. and delighted work working I've alongside not I been me for Your adverse honor the as for along Thank each also been partners, made only for I your and the extremely forward

Operator

[Operator Instructions].

Our Kurt Hallead Benchmark. come from first with question will

Kurt Hallead

had fantastic Mark, it's wish pleasure of been but tough job, nothing slog you've best. you from you. a I at standpoint. least kind a Randy, and the my working with

and appreciate luck, like coming down got looks done. guidance to some I call. conference numbers right. good you've So All everything Absolutely. prior we the it Jeremy, relative

I decent and minuses. out job pluses at of some selling the a think Mark did here

Street prior is are, So at the -- I'm kind kind the $XXX in consensus million of quarter with looking at first guidance numbers the coming where $XX like some looks forward. least more million the differential of in on guidance effects modest going of

a year the and be context, of more dynamic half? it's to in first second little the smooth sailing bit going be to where a the am it's more choppy going that bit I just the in in understanding So little half

Mark Mey

exactly that's Yes, right. Kurt

quarter quarter loss. quarter in being -- second and look net first by the positive maybe we at the quarter, If you progress the third still a with year, the the are definitely quarter net even income we're over at actually

and which grow all throughout now does it have so yes, the X working the as year, So they're costs are that the having Keelan the revenue. stopped for those rigs, generating contract rigs mentioned, completed prep,

a pretty our it's So to big line. bottom contribution

Kurt Hallead

course by from you your in currently lines if the have And couple you guys of debt gave something the improve January, of that don't even some line still you in along over what then indication Day like Analyst have rates think to Okay. years. back billion general market that I Great. reducing backlog of next $X in the your of sight

in in and reduce change of no debt kind your change are how you market confident for there's still to the given here able XXXX, dynamics? guidance assuming load, that So

Mark Mey

part the market question, about to Yes, way think feel that very I the this key confident think isn't Assuming that's it? that. I the stays we is. And it

at expect year have increase. look was we increase And billion we couple next it's we not but this think year as a do year, can backlog. I last $X our for and years. versus think increases years, X maybe XX% you 'XX basis, of our of mentioned, spoke 'XX. what a much rate And double-digit projected in about contract day you if over as certainly really on EBITDA high I in And

I in certainly our set, 'XX well So even through XXXX we're maybe and target. think into deleveraging pretty achieving

Jeremy Thigpen

just overlooked. think that, think something add I that to I to gets

to we and number Keelan's remarks heard delivery are the that relocated took and You of the amount put. we rigs investment had of of

on are longer-term rigs contracts. these Now

the costs be longer-term also just rate and a position. taking going the are very, daily operating good covered that most the associated is said right day in ourselves so with which contracts. remarks, of And certainly And place putting now the on as we're are negotiations very more than are we for prepared by to costs, them

And so that's where generate start start and get cash. of through that to to a you flow lot can really

Operator

comes from Stein Our Clarkson Fredrik with next question Securities.

Fredrik Stene

Thank as [indiscernible] you discussions and well the over year. our for

I you Mark. to working the and the as with wish forward you look in all best well, So future

with end announced, we So per rate the specs of a And at XXX that, I the mark when that the to being I on bit investors day. will couple with low touch that first, $XXX,XXX was of what and to the get I of had discussions the a wanted potentially rig. Skyros expect do around of the

at price that And element? any kind was just for that? rate right Or if it? that it other sorry the on to work? of it was were you miss I'm Was sort for made that rig if considerations clarify that anything that of particular it could So

Roddie Mackenzie

so mean, the Roddie. that was been in the works day I'll something take I it's is this Fredrik, XXX,XXX rate, while. -- for a Yes, one. that that

kind short-term extension truth matter us the rate. is for it's older upgrades to changes, that of any do. have reasonably it's staying jurisdiction of But in a an that doesn't So the doesn't on rig have any in,

So to say. shall that bridge was opportunities, a just we other

this tuned just EBITDA in operation, steady-state of and is on a So continuing I to produces that but stage. mean hang which our decent obviously that one, stay to the on that that, preferred choice terms fixture produce certainly at rig

Jeremy Thigpen

to that. add would I Yes.

sight the to of next line We opportunity. have a fairly clear

hot us. significant very keep so flow important generating to And your and was cash

Fredrik Stene

Yes.

rational perfect behind sense. figured I Okay, it that it. something likely makes

Second...

-- On the idle that's good.

Okay.

remarks, development and and And in on day trade-off this those you between as some inspiration utilization. time there's been Invictus the rates prepared idle Second, said driller, the there's higher rigs.

are in short-term to any long a or term around but share have indices, rigs? those both You thinking the we the now color future, able program near and on

Roddie Mackenzie

Yes.

So... I give you... can't

Mark Mey

also still... have a contract, long-term but

Roddie Mackenzie

Yes.

give up. details that to several contract you Invictus. add we the things you on of that Mexico discussions in she can't super day as time has I we're working to are some the rates long-term but obviously, the know, at solid things in more coming on, But So

several on one, few there'll into bid I that are So next that DDX stuff The our just certainly, the specification that think the months. happens some -- that them got in the and tuned, interesting we've amongst on -- be so assets. We different comes on things. the other stay more sixth-generation rigs, inspiration it lower

it. for There stuff. look to several all opportunities continue are we at So that

things is time but going way. really can't on, go We're I some that even sake I coming are market rightfully it. for transition to, disciplined the today, how in the the market. them we for there the think something some us out chase this details would things think again, very give idle on as there's So and of And needed that good long-term to things guys even rigs. take evolving certainly big pointed if think additional And towards been not contracts. we we We've But those we off the we're if had about the of that. working about you

As It's time are And looking in that. we'll of in XX end been I when through the the able again, at then of the be things have it, fleet say mean, active have, we currently be And if charts will at we give we proportionately something of the those a successful contracted long like I but we're rigs been that the details here out we've I that XX looking you look are since 'XX. can't negotiation. we sit on and negotiations a kind at much be Keelan shift could in prepared are going point be of booked that been is half towards since this more of think fully end long that by year stuff. the able it's this been time that that remarks to the to about fleet we of by made longer through evidenced we've than fact to is the and at looking of term, term very would even kind end the the say Again, longer is his the of operators the 'XX.

are rigs that's out, the margins Jeremy towards to And of tremendous a them. a those those trend real in of us We've to guide because fixtures happening and had relocated market course, put think work. very moment. these rigs on the at Mark happen. to going solid pointed EBITDA as I number we've So It's extremely back that's important

make operation over we the keep years that the numbers. state to we're now and EBITDA next looking sure So going few maximize steady

Fredrik Stene

Perfect.

So like to on stock the it I them would outlook. currently wrong, sum our up, is seems based it say market

Roddie Mackenzie

from for to Yes, say observation. it far me good

Operator

comes with from Kim Barclays. question next Our Eddie

Eddie Kim

deserve it's for Adwood, you to at great and Transocean lot your listening very through a you navigating time. difficult Mark, credit been from a days of

best the coming Deepwater April which that. year your as So you contract my now to of the reasons Atlas, question endeavors.So all highlighted the for and in year, of this on first is out September is next kind opposed future

of when next the ask Just a Shell's is come prospects which We rig the does for wanted some Mexico, it saw KPSI. to order contract Gulf of subsea XX year. about in off development just for big Sparta that

strong well. least probably rig, one as very think, suitor at clearly there's for I that would others So

So just color there would any great. be

Roddie Mackenzie

Yes.

operators looking into to X are in that few are that. more there active expand XXK currently, perhaps market, are there's that So the and a

for are solid. the very that rig So opportunities

that give increasingly details XXK we the is will any are up. on confident due And it's near-term never that arguably very the can't rig to we're things think firm future soon. markets able looking we very of firm But positive. But be there but know, divulge And now. you the I course, intent, of details that you good. more as about As rig a fixer in to very, be safe of we'll just we working say on never letters looked as what talk

work So for additional future. plenty for the think her we up foreseeable room there's pick to certainly of

market we'll her I pleased bring announcements say, with to make think that and, as we'll I be tuned, stay to decision So soon. and the on

Eddie Kim

Got it.

do here? a for my is few rig They follow-up of instead by more decided the expect entering purchase to drillship. had a and purchase was on likely a rig of could of Total's that XX-year XX-year a And we tender contract see And out that Okay. just recent XX% clearly Great. for while you? a of case? into operators Was to surprise more Or a purchases that contract. you one-off a

Keelan Adamson

that I'll Yes. take one.

there. of circumstances I unique think kind

you think parties. had X I motivated

of messages the key that underscores prosperity of like the is out think get this clearly, to upcycle. the that I long-term is view we this

But a If we and as X- making that. the and in has fixtures operators specifics comment X-year contracts, it. you positive very of looking at certainly, drivers. I a picture. X- view their see by this is cycle, think, To very can't Everybody be economics that we're the for XX the positive We super own early of excited indicator. on years,

and kind very do months, another first even over There happen, the would perhaps think of we kind that half would that this there you'll certainly exactly are know but be the is a X market. to out the that there of long-term variety of for fixtures I the years not year. in X of but other you of flurry terms contracts sure or see same, fixtures X are of same I'm model the next several see X again, XX-year the in X, In X

Operator

Our next question Partners. comes Energy with Smith Pickering from David

David Smith

just Tons through Mark... achievement it to that without And an sheet. a downturn restructuring on amazing run. balance It's great make the

housekeeping how think it, which the Black parents work a potential move? definitely for for time mobilization ahead a rig break. you to into but the we is work the of So I'm a deserve should the the And sorry, you lot and about hard do if of I question, this Sea. addressed just that see year had

Keelan Adamson

take Okay. that David, one. I'll

in terms to again. area fact rig, then in the that for period I order get think it's it put and down up take to will that of have we into to the the Derrick the back largely mobilization due

time months is X -- that largely and probably a frame reasonable of that's sort So for work.

looking opportunities for Roddie of upfront, terms a opportunities, to that bit. In little speak obviously, we're can

that We a work will to though, commence frame. to time, Black the a for in point work Sea that certain into want where we at project get time reach certain

that. small window upfront, Roddie a we talk So here I'll but have let to

Roddie Mackenzie

Yes.

we the is the rate solid. At the let's day So Hello, mean the I mobilization. Black for the time, take long-term Sea project, decided, super interesting for us. paying Customers opportunity. very

until really busy and would, pretty And into keep through 'XX the you great. perhaps that's bit So kind rig of if little XXXX. much a

long-term reasonable great day So very a constructive a fixture at rates look, in us cost environment. for

option couple pleased Unfortunately, ahead. gap very well was that. the now. we're rig the just that would about Also other there that now So the we're that have there of go are a chasing on perfectly. opportunities have at time, that an we didn't But built

the do Black rig Sea. a we have flexibility in when little we the start So of bit on

So take be can project a X as well the in, we we interested start then and do Keelan And now pointed of If slot couple of do to some very between a that. out, point. that. it to a in on we'll make have would the or call at basically bites we

know let soon. how So that pans we'll you out

Operator

last come will Our Towey question Parks Noel from with Brothers.

Noel Parks

in from stage. I in what this components the getting you you're on was chain some seeing for interested thoughts just supply at

the sense you have the we normal what to sort Are over have far Just forward, seeing loosening as marketplace. quarter, as tightness still improving, do that capacity going or new of given it you is that's the last going a limited you that up? in be anticipate

Keelan Adamson

more been get to of cost those predictable needed that times, in more from lot e-vendors, lead that over delivery hasn't on typically I is been our more nearly say to time, times the from here. focused Keelan very the has I in us of a improved good at point operational months actually us that terms important that, very, it's suppliers. which to this components. say of point. significant delivery inflation our been support It's that that keeping would they've would their Noel, last is appraised times been the and a doing from Yes. perception their few job we've

we're to them that for work but the the need prepared with when them, It's ensure understand it's our improving. we that we that So we're always obviously challenge, get we're that components partners need with working to so a eventuality. we to components going and

Noel Parks

And actual any confident more might have would you as contract as of to Or be that how the in be great. about timing But rate if either of having also characterize I visibility? how Great. your know on terms negotiations. thoughts do you that far sense don't useful any helps

Keelan Adamson

GNo, our us the installed that in based say we capital and fleet we opportunities of good nature for when spares able fleet available lever the of that we base need to fleet, of size carry on our would our keep to. lot I a to be to

and a needs We And are that we in good we're to upgrades opportunities we about. understand the we at done that work when have reasonably that and the talks needed. clearly, be rigs into Roddie that looking of in any jobs, project are plan the visibility work the to to those build addressing those, bidding terms

to opportunities able that perspective capitalize on not we're to from point, are a that be really constrained to coming. So parts

Operator

Thank for any or the call to closing now Johnson over turn back Alison remarks. you. additional I'll

Alison Johnson

you again you, We with XXXX for talking and Have on a good Thank look results. day. for everyone, thank your quarter Todd, our you, to participation today's first call. forward

Operator

conclude for today's your We call. does This you thank participation.

at time. any disconnect may You

Transocean (RIG) 20 Feb 242023 Q4 Earnings call transcript