DO - Earnings call transcript Q2 2019 | Diamond Offshore Drilling, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Q2 2019 Diamond Offshore Drilling Inc. Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. Thank you. the to turn host now will conference your over Mr. I Ali. Samir ahead, Please go sir.

Samir Ali

Good thank Kornblau, Marc everyone, us. you, Commercial Officer. Woll, morning, Thank Tiffany. and President and President Chief Officer; on Chief and call Executive Financial Vice and and With the you Vice today President are Scott Edwards, Officer; Executive Ron Senior me joining for Chief

therefore, remarks, reported as any begin this our be I advised and on of call we that longer information remind call. sensitive Before the time time only this speaks today, no of information you're that you of may replay at accurate

contents uncertainties in disclosure. the with in issued or that disclosed our our addition, are materially expressed unknown uncertainties, cause call earlier many In performance included be covered any update SEC statements based may XX-Q on obligation unable please call of which our to Please or these our XX-K statements. release risks differ and to we the and future or that during or any predict implied risks may statements note any forward-looking and the that of refer regarding certain statements include are forward-looking These or current incorporated control and this known our Those disclaim by the Further, our forward-looking risk performance filings. revise filings to in statements. disclosure press we and to expressly results factors in today. are results nature. expectations from by And actual made include

our call And to call Marc today. over GAAP now on I'll be will financials find Please our the We the non-GAAP to turn figures reconciliation website. on referencing

Marc Edwards

the an morning, Offshore an to joining Ocean the everyone, thank year-over-year undergoing The $X.XX. the Thanks, loss survey Diamond loss second the by primarily while today. us undertaking its per second rate quarter Samir. This of quarter special adjusted was of driven per BlackHawk XXXX. in second compares posted of upgrades adjusted of being share XXXX, for XXXX. quarter $X.XX and in decline share In you off Good of and technology

GreatWhite, compared rate all prior rigs: offsetting Ocean Additionally, Ocean start-up decrease moored the on Valiant; was both the year. a XXXX geographies the for note, continue these in moored we see Ocean though of periods, in contract three lower the to year-over-year at Apex; improved Partially was the the revenue in dayrates assets. and Endeavor. Of the to Ocean premier

with the an our XXXX. second during of allow me on update to operations start quarter Now

took the third earlier service quarter in planned perform will emphasize quarter received XXXX of Ocean the XXXX. wells quarter that second an for days contracted be than the approximately For predominantly in we Monarch, the The in which It been drilled is the to quarter. to still important second of to program. rig differed the have revenue, quarter maintenance largely of the instead the would in was out XX second of third

from and reactivation a announce not we Ocean its overall wells. its its fully impact contract and Also, and progressing an on quarter of quarter, is achieved operational delay experienced post is of in campaign start-up Endeavor, it second that in Sea. Recall The revenue. The we cold-stack. executed the rig am the March the during the the GreatWhite following that a campaign the first efficiency pleased of during North does inaugural very delay drilling its reactivation. second in rig the to start-up began I slight Additionally, over of successful now Ocean maiden operating GreatWhite XX.X% XXXX,

the for the fleet quarter. to update moving Now second

the of work. implementation on Myanmar Sim-Stack completed Switching in gap well for to the Australia. the the year, Brazil. This were an service with Exxon work and we this our We of the able Valor. will extra in Ocean the to Australia to In secure Ocean well $XXX awarded earlier new the of fill exploration addition Monarch commencement Ocean the million between Courage and backlog the

immediately well this BOPs are of avoiding offer pulls. our excited increasing implementation service stack our We in and customers. Since has of flow now for has the to of efficiency region deployed longer it helped benefits saw revenue Diamond time, differentiated only Stack as us not that and unplanned cash two periods as this by keep but safely

plans Ocean Now of over year turning the completed they ships the Gulf the survey of desirability. ensure front upgrades The proceed to remaining the attention upgrade deli for three Mexico, we Black line coming that our remain BlackHawk. the to special will of technology on at the and the

new analytics solution applies leading historical identify visualization are produces during year. words, efficiency, total differentiate in-house or health quarter, for time, improve fleet. awarded all anomalies and BOP has drilling been our contributor customers the resulting order one to and the gas will and XX/X, to major this of close Diamond I the already previous of Offshore. differentiated half contract is nonproductive cost With of and to rates last have announced top in BOPs Offshore always calls a mind, Stack-View costs pulls other its stack drillship of additional deep are operator. company and continuously the detect double operational by the in As our a Stack-View our seen reduce continues and to services, data service addition advanced we predict material help of of performance. that week, ownership overlaying In BOP awards subsea new of ways announced loss And track of to monitoring, which further that the of unplanned million addition for recent what success look stated we last real-time other our and that the the in have portfolio successful $XXX trends oil indicators of with fixtures strategy for the to at to data Diamond the first uptime significant backlog of over first largest stacking rigs in the our for revenue kind improve

We Diamond to driven will our and more expected potentially shift close Further, potential are components maintenance the further real-time to to calendar-based data enables from next be industry-leading knowledge whether to to us prevent subsea it issues optimize our possibly This downtime. failure mitigates maintenance time BOP prior maintenance, will by and performing XX%. as see and stack maintenance-induced maintenance time another reduces or able which nonproductive or cycle. are BOP already predicted pulls program

our would their for to helping safety the the thank of our effort world first industry-leading Before record. like teams I around comment on I the state extraordinary in maintain market, Diamond

a Our set point great rolling the XX-month company. benchmarks and of new to safety it's pride for results continue

I we harsh signs both So as environments. and in of see fleets where And continue occurring pricing benign maintains in moored most earlier, to space to improvement the of capable market. Diamond in moored continue is this largest see traction the and improvement we category asset this stated one and in the

of moored Our our backlog that fleet remains closest peer. double

changed. Our unique strategy not has

meaningfully the their ultra-deepwater company drillships until we oil and providing class-leading of to and above evidenced introduction Stack-View has We dayrates only such, the with XXXX cost contracted of companies are at as innovation helps that performance and market. total on our service focus of the will its that gas ownership, lower operational continue all

category, moored in asset improvements. the continue most the We showing underserved invest is the to asset which class

to So closing will the some over that, financials quarter Scott have call and turn with I for remarks. will I to discuss the the then

Scott Kornblau

morning, everyone. good Thanks, Marc, and

upcoming on quarter quarter. our onetime impacts, color reported for operating little This provide a give results of noncash our On the then normalized $X.XX per $X.XX $XXX million this adjusting costs I'll higher net quarter-over-quarter by or sales today, two always, second Earlier $XX negative $X.XX quarter a primarily and net XXXX. we expenses basis, and decline planned was yard will recognition I As for share. rigs. share. past the of guidance reform a deferred of negative for of and the loss due loss to loss tax million negative for ship or was or asset quarter share first $XXX XXXX per to per driven time previously The million net some compares

closer variances. take Now a quarter-over-quarter let's the at look

Ocean the revenues a in $XX of in Ocean quarter. special BlackHawk guidance The costs. were of for the second decreases The Australia $XXX drilling its $XX of campaign the to quarter million the Marc quarter. Endeavor during the the due two and million in amortization million $XX to the noncash the Sea which million previously than Apex low shipyard were second of first the first entire was primarily commencements Partially special months the two the also increase XXXX the Ocean the yard compared compared GreatWhite, quarter end quarter, entire expenses undergoing to and these mentioned of working Courage of first earlier at upgrade towards preparation month and prior the attributed survey the survey of Contract higher the five in for $XXX full quarter. second was million was maiden mobilization began Ocean compared the contract quarter the one quarter and to of her year quarter drilling second contract upgrades rigs. quarter, in and the revenue is undergoing first Ocean offsetting deferred during stays quarter for spent of range. the end the North lower in Most a of to shipyard First, second the shipyards the and

dictates As accounting contract over discussed and term of mobilization stay. on GAAP rules after U.S. costs amortized preparation prior shipyard calls, contract mobe the every the the and initial

Apex second and the remainder Ocean shipyards Ocean As is Courage occurring The stays the discussed. GreatWhite of quarter-over-quarter and the the short, on surveys contract and amortization increase the during the primarily BlackHawk were special relatively related is mostly previously to the accelerated Ocean of and quarter. Ocean initial

offsetting slightly disposition previous of and a depreciation disposal related quarter, expense to of $XX quarter $XX in interest noncash quarter The Ocean the the guidance. came million assets $XX at prior includes of million of guidance in loss sale gain million the gain expense with net G&A drilling while discussed quarter. the of equipment came last expense on of below Guardian partially during the Second

U.S. U.S. provision Reform second the regulations, XXXX, issued the to Tax quarter deemed Act. regulations mandatory related the repatriation of previously Treasury the final proposed of During modifying

prior result, the during the year $XX of second is XXXX. million reduced being quarter charge million a $XX by As

as and our provide an rate on let quarter guidance. million now second me tax and asset in with benefit XXXX status earlier earlier, time two the disposals was known $XX and refer to the line was effective to of you will half that, second in fleet the Excluding discussed today before impacts some With the well of on of published resulted details but tax for of our contract year. remainder remind X% this tax which do, out-of-service I our previous income the projected thoughts as for I report,

expenses contract the amortization between Apex. GreatWhite related We should Ocean return the million for quarter and deferred previously drilling the previously preparations $XX million mobilization to per of mostly and expect normal third $XX $XXX Ocean $XXX includes expenses of come to approximately quarter, of in this million, level XXXX of amortization cost more which noncash and the contract After million quarter. to deferred

for will quarter, incur with both contract and charges, Endeavor expenses third quarter as these in expense. expected working are $XXX Ocean following drilling contract in they million entire Ocean period line is second of their drilling noncash the Apex million, will third expenses which compared the $XXX part and between operational second during additional be to to quarter Excluding commencement. contract The fully approximately come the only normalized quarter

during begins to third BlackHornet Ocean We and stay offset Ocean quarter shipyards anticipate quarter the and as the to increases. special Courage to mostly the will interest G&A tax X% million and Also, quarter our the XXXX, quarter costs between We remain for Ocean rate Ocean The million, depreciation, of $XX flat also will for net nonrepeating the its third upgrades, stays incur XXXX. similar third survey these BlackHawk. a the additional respectively. rig during and and second BlackHawk $XX shipyard $XX million effective be relatively we for expect XX% expense at

of requested variety to course, for Of as not BlackHornet in assessments, as settlements on shipyard, will including to geographic limited additional to entirely Ocean may changes the rate tax fluctuate of or we next but out well earnings or a customer. be the up down based exchange is finally, the mix And upgrades in movements rig paid while rig's the performing the the rates. and by factors

million And to and as the guidance expenditure increasing million XXXX. revenue year XXXX starting it turn between in to capital contract As The million. recognized a result, will $XXX are with that, back full we be by year two our I'll over $XXX $XX Marc reimbursement

Marc Edwards

Scott. you, Thank

Before backlog has to our open like it's $XXX rigs strategy the over I'd year-to-date market. differentiated questions, we delivered remains and keeping what that contracted call in reiterate for our marketed a million of challenged

on value over adds innovation continue providing that, class-leading to call And stakeholders. and for our our performance and customers to focus will We the that turn questions. operational I'll with

Operator

[Operator Instructions].

of question with Fargo. the first line Coleman comes from Sullivan Your Wells

Coleman Sullivan

you On year? the any give And gap of pipeline any thoughts between work there later GreatWhite, expect new can a on bit work? us little the if this your you for

Ronald Woll

her second first the And had in Woll, This GreatWhite. North to performance great is Siccar and quite now for same glad is a a the with She good Sea talk early geography. she good. Ron the in Point is about customer outing the working

fact, to I really strong together her inaugural to coming MPT for I think, date logged, people she's example and of a In process Good, campaign. under X% she's start off effectively. equipment, so think,

I Sea her work for of, think five QX, work. months, contract lead to late in to probably the of, kind catch the kind time began and, three too QX North

for Patriot, the going our will will for confident little pick the have lead work winter, following still that to up I the if utilization would a work for do time I forward are high off in look season. expect GreatWhite and winter probably think Valiant, but QX the who We is I bit -- Endeavor, this she the

in reflect between end gap the terms probably work current next picking job of I some models, and of her new would year. in early the up So

Coleman Sullivan

All right.

a extensions of or with well, has current On bit little from with the -- operator? year any a options this later Apex a gap that any the as chance closes

Ronald Woll

but appreciate paper a bit practical I contracting small on I I I probably in question and into. Cole, to it, terms, little probably space, think that fit too is likely. think the get not

Coleman Sullivan

just the on follow-up cost. And All a right.

said, ex quarter? about you Or fourth level sort $XXX think a think, we amortizations. I of normal in deferred $XXX that Is Scott, of of million factor of that that on $XX the the a to more extra million a million for decent level top should to in kind XQ?

Scott Kornblau

acceleration, we've was It million worth $XX kind the And normalized kind that's anomaly is all because running would of of I in washed. forward. Yes. say Cole, mentioning that -- in it there's before frankly, what is this, going much been XXXX never with past. quarter-over-quarter, the just

So in I we forward, no think yes, going than different thought prior years, XXXX. the

QX, for be or will so yes, it So higher, XX-ish so.

million of now, that $XXX are forward. I $XX that's million out going range number, for backed So change subject you kind bigger up. based billion new $XXX and there come to just But any. think the Again, contracts on if in then a and pencil

Operator

Lynch. from the with Mulvehill question of America of comes next Your line Chase Merrill Bank

Chase Mulvehill

we the side, if try incremental here. take next XX the Could guess I to about -- first, seen And demand any most maybe market? have the of for can moored the you advantage as opportunity do maybe about then on market see the months? talk over upgrades supply look you stronger you here competitors to where you any we talk maybe to

Marc Edwards

Yes. Thanks -- where look we've so our the stepped question. for we of forward. want had moving That's kind to capital we a invest a back, at

peers. but was various in we the let's list was last feel investment that X,XXX in our and or we our space got categories, very an one perspective feet interest asset between, year our XXX being to asset You've in of to from invest nevertheless best things -- feet, with a the from of in most And that a hasn't investor rigs the attention the you to The into No, opportunities when emergency can't it's classes the opportunities say, the But is you've quickly. had good -- DP space, depth on in XXX moored moored base. customer get be DP that look have closer of so pickup say, asset the there investment get if a water so the about much can events rather, that amongst disconnect actually believe the whereby hybrid spent to to this that saw we class rig you depth and moored at vast really space scrapping a taken of rigs majority have got need that to of you rig, the example. space. we've at X,XXX the scrapped, in been look for asset. feet, But the get have below, moored a those to past, say, due the

went as is in invested Onyx Endeavor later what in which the in have of space, has forward why and category year. capable and coming the assets most as the we it's asset out yard in been recognized we the that We that the

believe of we the flow, And us currently assets let's market So to our dayrates we're in market order be it, than the face capital. getting cash spot awarded give those for use good that's that, in the for a is drillships. better today a

of in on much North first up, to saying So think, shareholders' question the for it that interest. I that and Sea, stakeholders' now that's everyone a picked while without our your well very degree, opportunities and opportunity realizes Australasia, Specific has that, geographies. goes geographies, there's of Brazil, other down But there's West region in and Africa. a certain up. an amongst foremost, that Mexico as has course, to and in picked the And, possibly Gulf more

the that's months. X use we've done good over and So past XX a capital our to what seen we space that in that, feel to area very you've

Chase Mulvehill

it's I of for the And us kind system. for understand of cost then also on the the to potential upgrades upgrades, for look hard and competitor know mooring

color you additional could if So I don't any add know have you here.

Marc Edwards

putting in DP rig, depending what away is class a X a not on onto, as XX let's it it when say, mooring, I at as you Well, VDL. quite an terms or mean establishing whether sounds take you look go the with because easy mooring yes, point point does a of it's

to back the means more by steel. VDL more So got get adding you've space, which deck

to it's maintain these is systems? from to the enable mud variable think going the at on automation is So Are it look it just not been want to But we make we deck the that do you're of, and Because Are to those what moorings that it enough quite the to case challenging bring you put to depending anything the the desirable rig, what on to million, higher to with that XX you going a going back, we've you what we'd a putting rigs. on doing and -- or the when it? on load deli rig. perhaps to sure capability and has we I call, to of want million the XX than line do well. what of desirability. it top go Upgrade as is upgrade straight rig have

look moored to So we amongst you the when Endeavor, available market take why semis get that today. at at the a environment, -- take Onyx, a when that's immediately are contracts the those are them capable And look you able in most for upgrade. harsh following the space are the rigs launch

Chase Mulvehill

rigs any Brazil of don't That's in America I color. really until and the over Okay. in South next -- guess latter year. follow-up, the those those got opportunities Brazil? in a couple color one great quick it. rigs you re-contract right. All have you've know to of But on part I and roll appreciate down Really

Ronald Woll

again asking. It's here. Thanks Ron for

and in late our keep right of they roll rigs it's that we're to off mindful ahead that intention, to putting course, work. they but of little the to are You're 'XX clearly those calendar bit a mid on

as in kind opportunity is in there Marc Brazil well think as markets as of referenced. I other

and rigs longer on those our remain focused fleet pretty part we're making term. sure So contribute of

Operator

the Your comes Sean line Morgan. of next Meakim from with question JP

Sean Meakim

peers your the dayrates Marc, have back going Well, sticking they're publishing norm forward. begun again and in

quarter, drillship your this would talk You maybe year started progressing may what just been have have are XXXX? how expectations helped last coming into versus get this about dayrates trend can you

Marc Edwards

we term last the said the that which major have out contracts the space, that contract drillship is believe in long into stressed And this market We've coming is most of of downturn. we downturn. term contracting market going the why drillship what why first were the in successful any contract was the is the major we first term major of or contracted one Sure.

of fixtures at now that peers, all are effectively, contracted year. and so we've us above drillships, beyond through our And our the are for XXXX meaningfully uniquely dayrates seen amongst this

not look but Now dayrate for from in seen perspective, a any if in that that's others at think the two a front got we've in I'm clean dayrate, at familiar of come come you We with $XXX,XXX. it. a the $XXX,XXX handle seventh-generation assets are clean

drillships space suggested. comfortable dayrates numbers forward, this is think contracted very, at I've very fact we're is which I meaningfully moving of why that just quite the challenged So we've with all above the our

on With that close the very the suggesting bonus, a that is I market very, to drillships our position we're performance right is of two handle now. comfortable think that three and in we're

we're we've So I traction that's I disappointed. above to with as be about of that forward, peers having rates the at drillship dayrates we're moving meaningfully something the not that our the but said, thank drillships worried in secured market. all disappointed seen have our

can space. now and differentiate So moored area the an ourselves we growth looking of at asset that how on we're category in being focused

been meaningful I of drillship a of the I differentiating a recontract of so years these very than success wells are Gulf in seen in drilled drilled the we're spoke we've according best the that distressed in being XX,XXX These wells Mexico. three that just numbers the successful of rates very ever that think at to much call And performance, for in I we've thing I with four more the kind to regulatory our we've so wells. drilled is environment we've They're Rushmore that best a why ahead to think is one onerous want far. about of world of of feet. the Just the the number one category had that drillships most here are asset last have the to reiterate good how in database, us that complicated, three assets. in and four down explains

Sean Meakim

I that feedback. appreciate

cash little Secondly, priorities bit. a just about talk

So beyond year, budget one, CapEx associated insight a There BlackHornet? are cash the a And little bit. how surveys you announced the upgrades just with up the [indiscernible] for Ocean the just XXXX? you you mind we XXXX, what thinking us then as special going that upgrades and would is this the you're into look CapEx mind flow about into in does likely think into going your giving

Marc Edwards

I for nine have already [indiscernible] a couple minute but this spend a to we contracts back rigs, had that on spoken on same we've call. at higher had year. you a suggested, those. bought of the as we upgrading than doing high on our to We've like technology special a ships what time, drillship I get and but in stays that, CapEx have survey shipyard to are contracts, are would On Black We're today. the dayrates

and a themselves distance driven to performance the pack further we dayrate, and attempt make recover more from a desirable this in perspective proven do. can all higher is an them from Now we've which

over looking putting we're So drill customers at your -- early the at year, rig systems in client to million an on $XX just the rate I We're that's Hornet, to during its are with to but that the getting entirety that is the onto specifically later NPV and rig paid is that around on point and work interest the we the term that the question management further $XX we're that, rig by also out for, but the million being looking on that, PAN of contract. going floor. the want contract next reimbursed well, automating

perspective. an So we're from protected NPV

our whereby the So able example getting dayrate we that. some interest we're an for on to of spending paid CapEx from recover one and are rate this is clients

the you that, the more little flows. with hand he a can Scott, I'll color So call to on over cash give

Scott Kornblau

Yes.

that throughout Onyx to that looking guidance Marc 'XX. than Sean, So, obviously, the and, reactivation that. on we're stays, it'll so not give yet less shipyard tell mentioned included position of though a I the Endeavor year. finishing will course, be much, up in CapEx much full-blown you forward the XXXX, the reactivation to

normalized as bit an color. you provide call, a far cash pencil flow, 'XX So in really I always of can don't level. flow will but Again, much was something, cash guide as little to more I anomaly.

do to our based XXXX. we we in invest million in expect our and have, will XX-Q of last as sometime when this Q roughly on And We as are to CapEx remaining it we'll our for that of the we today, comments reiterate happy sheet comes us my allows morning, revolver XXXX. also, quarter of fleet out position during $XXX hit half is balance by you, Marc our But the again, with design, told and very today. our disclosed

and But We 'XX have new we no of maturity. maturities as our million until commitments. we that's billion revolver. stand No the only cash of bills end our and $XXX today, have $X.X of between liquidity

on very when with focused we're years. especially we're near-term pleased handful be and next liquidity, to look we content forward and going of we're where liquidity, while and at So to

Marc Edwards

Scott's terms look shipyard So the couple point, the year. for seeing But rigs, it's Valor. no time just had rigs that reactivating not of very capable, think market. yards goes. we We market haven't we've they'll that mooring But to the stays, assets CapEx very, still rigs being. Nine those be that, we're ESPs done the a of we upgrading one rigs then in heavy rigs the market, come But back, at most off, in for have monitoring the in will and think if that hybrid are onto summary, CapEx should will they yes, made and we for the where be commitments possibly that may I ensure yet that but available in actually do when we attractive be Courage and back call. got We'll into we putting and bringing reason. other a

in we're terms So done. of reactivation,

bringing any million shipyard And of is debt vessels in out don't next commitments XXXX. to $XXX have -- In our the load terms point, shipyard, we of there. Scott's

where comfortable balance very, a we're today. from perspective, are sheet as very to we So

Operator

with MacPherson Simmons. Your next of question comes from the Ian line

Ian MacPherson

do type more that support? you stability if to think Courage on do And you with be opportunity what in would a part? were think and would Valor, the those? on contract would afford your it move of the more Marc, with that market to contract speculative order ink think the forward the to of be do upgrade do that required you you put Or

Marc Edwards

Onyx, be to very, were for on Well, Endeavor, the that had the that that's three there know bringing Yes, two good, on we very that back. specific bring year good areas us in two particular we Onyx the we work years of the that to one on at contract rig back, And but on we're bought rig question. it potentially we know is and five rig other clients going a on looking there's contract. year will a Same that back in. a -- example, wanting that back work that clients the like,

As will different a successful, they've clients that once a completed look it the for to customer and to to would relates lot in Valor, the of the rig like to very out attractive voice we've doing extremely be having what that exactly them been Courage the had find and with know ongoing that hybrid been We be interrogation two believe us converted space, work we're where format. we into now we've those rigs geographies discussions well. with need very

agreeing say you So firm them speculative. well spend in so place. -- we'll terms with initial the either semi. in program let's has early in without that clients -- rigs, commit of we're a and one them wouldn't basis or specific a clients. don't some on depth don't would I contract mixed with to I -- moored -- think back but they to to it's too we'll moving to want across contract terms just forward already those already bringing a on give IOC water example. somewhat that say we're discussions gives a would flexibility say, transition a debt. a dealership of had be speculatively I'll to conversations discussing, There's like well-by-well They it It in of something we've we but whether CapEx more some line and are

in and, capture early able play. believe say we'll not well, engaged too contract discussions but have it, to already we're doing or a those the be to that whether in we'll we've it's we So work

Ian MacPherson

that Okay. Or Other on existing the the on second Monarch exploration additional you've the a Exxon. well Did tapped year? wanted into was the freshly contract to in just with from question this of follow that ask backlog I for priced auction customer the that had? an recently half Good. that is

Ronald Woll

while. fairly But something That rig's This had, of that a was had our work was auction [indiscernible] well, past was -- history entrusting Ron. something performance and that complex on so we well for an looked to that Yes. piece of the them, them they visibility good us I spoke is a ahead. was kind existing think, with

Ian MacPherson

Okay.

constant end So I rig generation fill that the revenue being apart work growth next And of can Myanmar of absolutely year? pretty from year. through seamlessly think to the about that back does you this early pretty the

Ronald Woll

Yes.

of earning sort second are. general kinda through any don't the for power part the terms that that in of, it rig Your for of Myanmar yes, of rig. is your pretty of first look the And to moves kind we the big, dance on fits where does of card program. up trend erratic the in It fill assumption good question,

Operator

And line question Kurt your with Hallead of comes the RBC. next from

Kurt Hallead

playing marketplace it. and for -- and the within dynamic the your Thanks the in color positioning varying set of

could second low of dynamics a mark get of -- me. would unforeseen the virtue of, generation, downturn mean, to second excuse downtime, here, of unforeseen, wanted planned -- by the any kind it I fleet point absent sense -- obviously, report, kind Just quarterly quarter any quarter quarter, appear that revenue status general the third

match that guys as of, seeing are what kind with you well? would up logic, of So kind

Ronald Woll

Ron is here. This Yes.

that's let's the active little So of -- correct. terms activity just sort active, and that bit our And in given you're say, -- you're of of from or in contracts. sense right right. so phase, into a a our of, active were -- rigs I think probably They all most contract standpoint, less have

and look work maybe I think ahead at contract rigs particular success on a lot Marc to is But into a contract to about, some of phase, our talked a new GreatWhite, a we've you're that other right for describe -- rigs. of the important the If putting year-to-date, bit rigs you backlog. on active of us with certainly little put less given as we're

pretty think I generally, your is fair. So description

Scott Kornblau

thing contracts, to rolling anymore. you ships guess, which the they're contracts in with their I not way market is Yes. Black rolling if all would those in add I Xs above the the off legacy Kurt, of only look obviously XXX this Scott. four that, at are there plus, -- but are

utilized, see fully so compared they you will rigs a will at. those have were those to be And where decrease

Kurt Hallead

No. the I got Appreciate color that, well. as understood.

sorry, you Marc, So, can ahead? go comment --

Marc Edwards

you one to quarter I revenue note on late this the course, that picked out-of-service missed I question. time up that... and, Monarch of saw just ask before Kurt, the your the early but this of down some that of was morning. the the thing, some next Yes. start-up you trust Endeavor

Kurt Hallead

Yes.

for of so do foresee Marc, this XXXX moored of in some up kind And out you've you contract lock your pretty pulled through up In commentary now. say well. us potentially of terms durations you tight appreciated What morning give is rigs context, I the market can of the into these which market, and quite So you that. clarified semi XXXX? been that on that, the insights -- very some into as did opportunities time

gives some as what be context Or us potential say, is? magnitude next, improvement over to current of, pricing give you the year you window? of could where So say, to the the here indication just see us happening two some market could what could relative

Marc Edwards

Sure. Sure.

moored in earlier, mentioned display the the in quite we've the in bit seen category. scrapping asset I as call of think -- I a a

erosion, over we've unique, have the that, seeing water And to the not we've during just a that are themselves, -- somewhat our five terms going of class because the years. that VDLs of so four look are moored of that the last of itself is see in we rigs continue leaving in to ultra-deep rigs and space If you terms surveys is to of And lost the capable, client, scrapping rigs XX% desirability space the up, tighten. rigs that that think is going at space in market. more coming asset of the year tightening in terms

are a it's -- order get really is jack-up moored rig that category where cheaper -- it's where develop back particular you mid-water like the can't going space if in in deeper. in stressed it's and are somewhat So to place, down that to things than a to, those assets

And to already rigs we as U.K., that seen area. Australia see So particular we've leave the and still market. I've our said, the in do clients a gravitating in in spend

address equipment more where it's nevermind, just with us, it moved to at fleet address to of For P&A it Guardian specific today, it therefore, not keep to CapEx to the the survey we to would another not was obsolescence, up elected make obsolescence, that we the our well, purpose plus even it a -- year chose in we that the efficient a rig next to than was example, from space with to was do let have company. just year upgrades it making coming whereby on rig the beginning going a investment to five go to and viable

see more of You're going to that.

months, it. others and last we that than feel the we've why in this that's investing over faster why XX tightening space been So is

on every bidding of in of the are contract a legacy than a dayrate Now dayrate work prior today that we as terms contract. higher attrition,

our be and do believe very, We it's that competitive forward. we still dayrates. at yet peers, unlike stage we're not a Now disclosing will whereby moving we not will very

I as most during up the focused think drillships, already many this times is water ultra-deep today, moored call on whereas drillship. our our today explained the I've strategy on worked is of focused market having space, Now

to still push forward moving pricing moored we category. opportunity the So in see asset

Operator

Marc. the at would like turn And this call to now I time, back over to

Marc Edwards

participating forward much months' very time. once three in chatting in Thank to again, you very you we And call. today's thank for So much. look

Operator

Thank today's Earnings Call. you Two XXXX concludes participating. for This Quarter

You disconnect. may now

Diamond Offshore Drilling (DODRW) 5 Aug 192019 Q2 Earnings call transcript