Fredrik Stene

Fredrik Stene inquired about Seadrill's strategic positioning of its US Gulf fleet for short-term versus long-term work, potential movements to other regions like Africa or Southeast Asia, and the company's exposure to Brazil. He also asked for updates on the stacked fleet, specifically the West Aquarius, West Phoenix, and West Eclipse.

Answer

Samir Ali, Executive Vice President and Chief Commercial Officer, explained that fleet positioning decisions are economic, and rigs are mobile assets that will be moved to geographies generating the highest cash flow, noting they are not married to one region. He also mentioned not planning to send more rigs to Brazil due to existing exposure. Simon Johnson, President and CEO, and Samir Ali provided updates on the stacked fleet, with Simon noting the West Eclipse is low-spec and least likely for reactivation, while the Phoenix and Aquarius require significant capital investment and a material customer contribution to justify reactivation. Samir added that they are actively marketing these rigs and aim to cluster more assets in Norway.

Fredrik Stene of Clarksons Securities inquired about near-term contracting opportunities, particularly for the Sonadrill rigs and the Buzios tender, and asked if there was a work pipeline for all non-stacked rigs. He also followed up regarding the potential for prolonged idle time between contracts.

Answer

EVP & Chief Commercial Officer Samir Ali confirmed Seadrill is in advanced dialogues for all three rigs in Angola, noting political unrest had caused some administrative delays. He affirmed an active dialogue exists for all non-stacked rigs, with a market recovery expected in late 2026 and 2027. President & CEO Simon Johnson added that rig performance is the company's best advertisement and that the team is diligently working to minimize idle gaps between contracts by building a continuous backlog.

Fredrik Stene of Clarksons Securities asked for more detail on the decision-making process for stacking the West Capella versus keeping it warm. He also questioned if this move implies other rigs might be retired and asked about the company's confidence in its maintained full-year guidance.

Answer

Executive Simon Johnson reiterated Seadrill's disciplined approach, stating they will not burn cash on warm-stacked rigs for extended periods without a clear line of sight on profitable work. He noted that the fact rigs like the Capella are not yet cold-stacked indicates active contract pursuits. Executive Grant Creed addressed the guidance question, explaining that where the company lands within the provided range will primarily be driven by securing work for rigs with open capacity, such as the Louisiana and Vela.

Fredrik Stene asked for high-level thoughts on Seadrill's position in the M&A landscape and whether the recent equity selloff impacts deal-making. He also asked if the heightened regulatory scrutiny in Brazil is a new standard under new leadership.

Answer

CEO Simon Johnson expressed support for industry consolidation but stated that a period of market stability is needed for any deal-making to occur. On Brazil, he noted some leadership changes at the regulator are still pending and that it's too early to tell if the current environment is a new standard, but they are adapting.

Fredrik Stene asked about Transocean's fleet placement strategy for the next year, specifically if many rigs are expected to move regions due to market shifts in the US Gulf, West Africa, and Asia, and how the Valaris acquisition might impact competing in long-term tenders. He also followed up on the Deepwater Asgard's contract ending in June.

Answer

Keelan Adamson, President and CEO, and Roddie Mackenzie, Chief Commercial Officer of Transocean, confirmed global market opportunities and the ability to move high-spec rigs to meet demand in active regions like Africa and Asia. Mr. Mackenzie did not comment on specific new work for the Deepwater Asgard but stated any developments would be announced.

Fredrik Stene (Clarksons Securities) followed up by asking if the Deepwater Asgard, which runs off contract in June, was expected to secure new work shortly, given the guidance included idle time for other rigs (KG2, Proteus, Skyros).

Answer

Roddie Mackenzie (Chief Commercial Officer, Transocean) stated he could not comment on specific rig contracts at this time but would announce developments in due course.

Fredrik Stene sought clarification on the announced cost savings program and asked for an update on the status of rigs held for sale and plans for the cold-stacked fleet.

Answer

EVP & CFO R. Vayda confirmed the cost savings target is $100 million in 2025 and a similar amount in 2026, achieved without significant upfront costs through vendor renegotiations, new technology, and optimized crewing. President & CEO Keelan Adamson stated the DD3 and Discoverer Inspiration are still held for sale, and the company reviews its cold-stacked fleet quarterly, maintaining them for optionality at minimal cost. Vayda added there are no debt covenants or accounting policies that would hinder transactions involving these assets.

Fredrik Stene questioned the company's confidence in the 2026-2027 outlook, citing investor fears of program delays. He also requested a repeat of the full-year 2025 liquidity guidance and an update on the Inspiration and Development Driller rigs.

Answer

CEO Jeremy Thigpen and EVP & CCO Roddie Mackenzie expressed confidence, citing direct customer discussions on multi-year programs and very strong fleet utilization of 96% for 2025 and 93% entering 2026. An executive confirmed the year-end 2025 liquidity forecast is $1.35 billion to $1.45 billion and stated the two rigs remain held for sale after a prior deal was canceled.

Fredrik Stene of Clarksons Securities asked how Transocean weighs fleet quality against the benefits of scale in potential M&A. He also requested an update on the sale of the Development Driller III and Discoverer Inspiration rigs.

Answer

CEO Jeremy Thigpen explained that while no acquisition could be accretive to Transocean's superior fleet quality, a transaction could add valuable, marketable assets and create value through synergies, balance sheet growth, and marketing expertise. Regarding the rig sales, CFO Thad Vayda stated the transaction is expected to close by year-end, pending buyer financing, and that the probability of competing against these specific assets in the future is low.

Fredrik Stene asked for more details on Noble's optimism regarding the Norwegian market, particularly for its CJ70 jackup fleet and the GreatWhite floater, and the outlook for 2027-2028.

Answer

Robert Eifler, CEO of Noble Corporation, clarified that while not 'too much' optimism, the company has contracts for its CJ70s (some in the UK) and multiple customers considering Norway jobs, indicating a market expanded beyond Equinor. He believes the market feels flat or up for Norway. Mr. Eifler also provided an update on the Noble Globetrotter I, which is being bid into intervention or niche drilling applications, and noted less on the horizon for the Ocean Apex.

Fredrik Stene asked for more details on the optimistic outlook for the Norwegian market, particularly for the CJ70 jackup fleet, and how to think about the jackup fleet in 2027-2028. He also requested commentary on the future of the Noble Globetrotter I and Ocean Apex within Noble's floater fleet.

Answer

Robert Eifler (CEO) clarified that while Noble has contracts for its CJ70s, including in the UK sector, he doesn't foresee a renaissance in shallow water Norway, but the market feels flat or up. He noted multiple customers considering jobs in Norway. For the Noble Globetrotter I, Mr. Eifler stated they are bidding it into intervention or niche drilling applications. For the Ocean Apex, he indicated less on the horizon but that they would continue to look hard at opportunities for that rig.

Fredrik Stene inquired about the demand outlook for specific rigs like the Noble Globe Quarter One and the 'D rigs' (Deliverer, Developer, Discoverer), including potential divestment for the GT1. He also asked about the strategy for idle harsh environment floaters (Great White, Apex, Endeavor) and the possibility of moving the Great White to Norway.

Answer

President and CEO Robert Eifler stated that the Noble Globe Quarter One is being marketed for intervention work and is also a divestment candidate. For the 'D rigs,' he noted increased work opportunities, expecting at least two to be working. Regarding the Great White, Apex, and Endeavor, Robert Eifler confirmed they are being marketed globally, with any opportunity needing to be financially self-sustaining. He acknowledged the Great White was not built to Norwegian spec, implying significant CapEx for a Norway move.

Fredrik Stene inquired about the outlook for specific rigs like the Noble Globe Quarter One and Noble Deliverer, including potential divestment for GT1. He also asked about the strategy for idle harsh environment rigs (Great White, Apex, Endeavor) and fleet size considerations.

Answer

President and CEO Robert Eifler stated the Noble Globe Quarter One is being marketed for intervention work and is a divestment candidate. For the 'D rigs' (e.g., Deliverer), he sees increased work opportunities, with a good line of sight for at least two working. Regarding idle harsh environment rigs, he noted the Great White is marketed globally (not Norwegian spec) and that opportunities for Apex and Endeavor must stand on their own.

Fredrik Stene inquired about recontracting opportunities for Noble's rigs in Brazil and sought details on the rigs held for sale, asking if they would be retired and if other rigs could be candidates for retirement.

Answer

President and CEO Robert Eifler stated that rig demand in Brazil is expected to be flat to slightly up, driven by Petrobras and other operators. Regarding asset sales, he confirmed the Noble Highlander will continue drilling, but the Noble Reacher and Globetrotter II are not expected to be sold for drilling purposes. He emphasized that the fleet rationalization strategy is driven by maximizing cash flow and avoiding the high cost of holding idle rigs.

Fredrik Stene sought clarification on comments suggesting more contracts could follow the Shell and TotalEnergies awards, asking if this implied similar long-term programs. He also asked whether the incentive-based revenue was purely high-margin day rate income or included lower-margin services.

Answer

President and CEO Robert Eifler clarified his earlier comments were primarily about addressing near-term white space in the fleet through active conversations. However, he added that strong performance in new basins like Suriname can unlock further work. Eifler confirmed that the performance bonus potential is entirely day rate revenue with a 100% margin, and the different contract wording was simply a result of negotiations.

Fredrik Stene questioned the 2025 guidance, seeking clarity on revenue coverage versus available days, and asked about plans for warm stacking assets and the future of the Globetrotter rigs in the drilling market.

Answer

CFO Richard Barker clarified that over 90% of the 2025 revenue guidance midpoint is secured by backlog, with the guidance assuming some idle time for 7th-gen assets. President and CEO Robert Eifler added that the Globetrotter rigs are being bid into the intervention market and will not compete for standard drilling work, outside of niche opportunities, to avoid cannibalizing the core fleet.

Fredrik Stene of Clarksons Securities requested more geographical detail on the contracting opportunities emerging for late 2025 and beyond. He also asked how management currently ranks the floater versus jack-up segments and whether synergies from the Diamond integration could surpass the $100 million target.

Answer

President and CEO Robert Eifler stated that opportunities are global but most concentrated in the "Golden Triangle" (US GoM, South America, West Africa), with future growth expected from Suriname and Namibia. He noted that while the company's growth focus is on floaters, the jack-up market has remained resilient. Regarding synergies, Mr. Eifler confirmed there is a "good chance" of exceeding the $100 million target, citing the precedent set after the Maersk Drilling acquisition.

Fredrik Stene asked for regional granularity on Tidewater's 2026 guidance, identifying regions with more open capacity versus those with solid contract coverage. He also inquired about the split between firm revenues and options within the 69% booked figure and sought an update on the Venezuela case, including potential $80 million owed and verdict timing.

Answer

Quintin Kneen, President and CEO, explained the confidence in early guidance. Piers Middleton, COO, specified Africa and Asia as having more exposure, particularly in the second half of 2026 for Africa and nearer term for Asia, while other regions showed solid coverage. Mr. Middleton did not have the exact firm/option split but expressed high confidence in option exercise. Mr. Kneen acknowledged the difficulty in predicting timing for the 12-year-old Venezuela case but indicated they feel "really close" to a settlement.

Fredrik Stene inquired about the regional breakdown of Tidewater's 2026 guidance, seeking granularity on which regions had more open capacity versus those with solid contract coverage. He also asked for a split between firm revenues and options, and the likelihood of options being exercised. Additionally, Mr. Stene asked for an update on the Venezuela case, including the potential for a verdict by year-end and the collectability of the $80 million owed.

Answer

President and CEO Quintin Kneen explained the early 2026 guidance reflects increased confidence. COO Piers Middleton specified that Africa and Asia had more exposure to open capacity, particularly in the second half of 2026 for Africa and nearer term for Asia, while other regions had solid coverage. Mr. Middleton expressed confidence that existing options would be taken. Mr. Kneen commented on the Venezuela case, noting its long duration but feeling "really close" to a resolution, though timing remains difficult.

Fredrik Stene from Clarksons Securities asked if management's increased optimism on M&A was due to better market stability. He also questioned why full-year guidance was only reiterated despite a strong H1, implying a weaker H2 outlook, and asked about the timing for 2026 guidance.

Answer

President & CEO Quintin Kneen confirmed that a general settling of expectations has made M&A conversations more constructive. SVP Wes Gotcher explained that while H1 2025 outperformed, expectations for H2 have moderated, particularly for utilization improvements, leading to the decision to reiterate, rather than raise, full-year guidance. He added it was too early to commit to a timeline for issuing 2026 guidance.

Fredrik Stene questioned the decision to reiterate full-year guidance despite the strong Q1 outperformance, asking if the outlook for the remaining quarters had weakened. He also asked for an update on the 2026 backlog progression.

Answer

Executive West Gotcher explained that while 88% of the year's revenue is covered by backlog, there are still open days to contract, justifying the reiterated guidance. CEO Quintin Kneen added that Q1 benefited from lower-than-expected down-for-repair days, and this outperformance might not repeat. Regarding 2026, West Gotcher noted they do not provide specific backlog details but that the outlook remains constructive.

Fredrik Stene of Clarksons Securities AS asked about contract visibility for 2026-2027 and the potential for a financial uplift. He also inquired about organic fleet adjustments through vessel sales and attrition.

Answer

CCO Piers Middleton noted that while firm tenders are not yet out, discussions for 2026 work are increasing, fueling confidence in a future market uptick. President & CEO Quintin Kneen stated the company will continue to divest older, uneconomical vessels and prefers acquiring existing fleets over ordering newbuilds.

Fredrik Stene asked how Tidewater's stock price volatility impacts M&A discussions with private companies and whether those sellers adjust their price expectations with market sentiment. He also requested the company's contracted backlog for 2025.

Answer

CEO Quintin Kneen explained that while price volatility complicates M&A, they deal with sophisticated sellers who understand market fluctuations, though it takes time for expectations to align. Executive West Gotcher provided the 2025 revenue backlog figure, stating it was approximately $855 million.

Fredrik Stene of Clarksons Securities asked for the current amount of outstanding receivables from Pemex, inquired about the outlook for rig demand in Saudi Arabia following recent market reports, and questioned the company's strategy for balancing utilization versus day rates for its 2026 coverage. He also asked for specifics on a rig swap involving the 'NAT' rig.

Answer

CFO Magnus Vaaler stated that outstanding receivables from Mexico are approximately $60-65 million. CCO Bruno Morand commented that while discussions with Aramco have been operational, not contractual, positive signs for future demand are emerging. He affirmed that the 2026 strategy prioritizes utilization. Regarding the rig swap, he explained it provides flexibility to potentially accelerate a contract start date, which would be beneficial for both Borr and the customer.

Fredrik Stene from Clarksons Securities asked for details on the commercial opportunities for the newbuild rig 'Var', queried Borr's strategy for maintaining high day rates in a bifurcated market, and sought clarity on what factors would lead to results at the high or low end of the full-year EBITDA guidance.

Answer

Executive Patrick Arnold Schorn highlighted that Borr's global footprint provides a competitive advantage outside of Asia, expressing confidence in securing work for the 'Var'. Chief Commercial Officer Bruno Morand added that Borr's limited rig availability and the unique capabilities of its fleet support strong pricing power. Regarding guidance, Schorn affirmed the $500-$550 million range, stating that while they are confident, the volatile nature of the business prevents them from narrowing the forecast at this time.

Asked for details on the contracting prospects for the newbuild rig Var, the company's strategy on day rates in a bifurcated market, and the key variables that will determine the final position within the 2024 EBITDA guidance range.

Answer

Patrick Schorn explained that Borr's global footprint and expertise in complex regions create a competitive advantage, allowing them to maintain pricing power. He expressed confidence in securing work for the Var but declined to give specifics. Bruno Morand added that while some markets like Asia are more competitive, Borr's high-spec rigs are sought after. Regarding the guidance, Patrick Schorn stated that while they are confident in the $500-$550 million range, the volatile nature of the business prevents them from narrowing the bracket at this time.

Fredrik Stene asked for details on the commercial prospects for the newbuild rig 'Var', the company's comfort level in maintaining high day rates in a bifurcated market, and the key variables that would determine performance at the high or low end of the 2024 EBITDA guidance.

Answer

Executive Patrick Arnold Schorn expressed confidence in securing work for the 'Var' before its delivery, citing Borr's global footprint as a competitive advantage in less-pressured markets like the Americas and Africa. Chief Commercial Officer Bruno Morand added that Borr's limited availability and the unique capabilities of its rigs support strong pricing power, especially as most 2025 availability is in the second half of the year. Regarding guidance, Patrick Schorn stated the company would not narrow the $500M-$550M range due to the volatile nature of the business, despite high contract coverage.

Fredrik Stene inquired about the nature of emerging short-term "gap fill" work for drillships in 2026, asking about contract duration and potential impact on rigs with upcoming availability. He also asked about any unusual CapEx associated with recent contract awards.

Answer

CCO Matt Lyne noted the gap-fill opportunities are scattered across the Golden Triangle with varying durations. CEO Anton Dibowitz emphasized the strategy remains to secure long-term contracts first and only pursue gap-fill work that is economically and operationally sensible, avoiding high costs during idle periods. Dibowitz also confirmed there is no out-of-the-ordinary CapEx for the new contracts.

Fredrik Stene inquired about the nature and timing of shorter-term drillship contracts for 2026, the strategic trade-off between taking gap-fill work versus managing stacking costs, and whether any extraordinary CapEx was associated with recent contract awards.

Answer

SVP & CCO Matt Lyne confirmed short-term opportunities exist across the Golden Triangle. President & CEO Anton Dibowitz reiterated the strategy is to secure long-term contracts first to 'bookend' idle periods, only pursuing gap-fill work that is economically and operationally sensible without incurring high intermittent costs. He also stated no out-of-the-ordinary CapEx is tied to the new contracts.

Fredrik Stene questioned the confidence in the 2026-2027 demand pipeline materializing without delays. He also asked for insights into Saudi Aramco's future plans for jackups, specifically regarding the five Valaris rigs in extension discussions.

Answer

CEO Anton Dibowitz expressed strong confidence in the 2026-2027 demand, citing direct, in-depth conversations with major customers about their long-term development programs. Regarding Aramco, he noted discussions for extensions are 'constructive and advanced' and stated he is not aware of any plans for additional rig suspensions by the client.

Fredrik Stene asked for Valaris's perspective on its role in M&A and industry consolidation, and for an updated view on reactivating its high-spec stacked rigs (DS-11, 13, 14) given the current market softness.

Answer

CEO Anton Dibowitz stated that while Valaris sees room for more industry consolidation, the company already has the necessary scale and a high-quality fleet, so it is not compelled to pursue M&A but will evaluate value-accretive deals. He confirmed that reactivating the high-spec stacked rigs is on a 'slightly delayed timeline' as the immediate priority is keeping the active fleet utilized. He also suggested the current environment could accelerate the scrapping of less capable assets across the industry.

Fredrik Stene asked about Valaris's position in the M&A landscape amid industry consolidation rumors. He also questioned how the current market softness and warm stacking of active rigs would affect the timeline for reactivating high-spec sidelined assets and potentially accelerate the scrapping of less capable rigs.

Answer

President and CEO Anton Dibowitz stated that Valaris already has the necessary scale and a high-quality fleet, so it is not compelled to pursue M&A but will consider value-accretive deals. He confirmed that reactivating sidelined assets like the DS-11 is now on a 'slightly delayed time line' as the priority is the active fleet. He also suggested the current environment could lead to scrapping of less capable assets across the industry.