Core Viewpoint - Vantage Drilling International Ltd. reported a significant increase in net loss for Q1 2025 compared to the same period in 2024, indicating ongoing financial challenges for the company [1]. Financial Performance - The net loss attributable to shareholders for the three months ended March 31, 2025, was approximately $18.9 million or $1.42 per diluted share, compared to a net loss of approximately $2.9 million or $0.22 per diluted share for the same period in 2024 [1]. - As of March 31, 2025, Vantage had approximately $76.4 million in cash, which includes $15.5 million in pre-funding for upgrading the Tungsten Explorer, $3.3 million in restricted cash, and $5.8 million pre-funded by Managed Services customers for near-term obligations. This is an increase from $67.0 million in cash as of March 31, 2024, which included $10.8 million of restricted cash and $11.1 million pre-funded by Managed Services customers [2]. Business Operations - The company received a Conditional Letter of Award for the Platinum Explorer for work later in 2025 and is focused on completing the sale of the Tungsten Explorer. Additionally, Vantage is expanding its Managed Services segment through a marketing agreement with Eldorado Drilling [3]. - Vantage operates as an offshore drilling contractor, primarily contracting drilling units and related equipment on a dayrate basis for oil and gas wells globally, serving major, national, and independent oil and gas companies [3].

Financial Data and Key Metrics Changes - The company reported revenues of $193 million for Q1 2025, with an EBITDA equivalent cash flow of $116 million. The EBITDA equivalent over the last twelve months was $545 million [4][20] - A net loss of $32 million was recorded for the quarter, translating to $0.24 per share, compared to a net profit of approximately $20.2 million or $0.15 per share in the previous quarter [4][24] - The company has returned over $2.8 billion to shareholders through dividends over 85 consecutive quarters, with the latest dividend yielding approximately 13% based on the share price [4][27] Business Line Data and Key Metrics Changes - The container fleet generated approximately $85 million in gross charter hire, while the car carrier fleet contributed about $25 million, and the tanker fleet generated approximately $43 million [20] - The seven dry bulk vessels employed in the spot market contributed approximately $4.4 million in net charter revenue, down from $7.2 million in the previous quarter [20] - The overall utilization of the shipping fleet was 98.6%, with adjusted utilization at 99.8% when excluding unscheduled technical off-hire [12][13] Market Data and Key Metrics Changes - The charter backlog stands at $4.2 billion, with more than two-thirds of this backlog attributed to customers with investment-grade ratings, providing cash flow visibility [7][27] - The company anticipates that approximately 27 vessels in its fleet will be affected by new U.S. tariffs on Chinese-built vessels, primarily impacting car carriers and tankers [14][15][87] Company Strategy and Development Direction - The company aims to enhance its fleet through investments in new technology and vessel upgrades, focusing on organic growth and compliance with stricter regulatory demands [11] - The strategy includes maintaining long-term charters with strong industrial players, which provides resilience against market volatility [47] - The company is exploring strategic opportunities for its rigs while remaining cautious due to recent market volatility and oil price fluctuations [6][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about finding new employment for the Hercules rig despite current market challenges, emphasizing the rig's capabilities in harsh environments [6][36] - The management noted that recent market volatility has led to longer decision-making processes among customers, but discussions for long-term charters are picking up again [47] - The company is well-positioned with strong liquidity and a diversified fleet, allowing it to pursue new investment opportunities [27] Other Important Information - The company has been active in share repurchases, buying back $10 million worth of shares below $8 per share [5][27] - The company has approximately $174 million in cash and cash equivalents, along with undrawn credit lines of about $48 million [24] Q&A Session Summary Question: Inquiry about vessel and rig operating expenses - Management indicated that this year is a busy dry docking year, with up to 17 vessels scheduled for dry docking, which is above the average of 10 [30] Question: Update on Hercules rig - The Hercules rig remains warm stacked in Norway, with ongoing discussions for new contracts, but no specific timeline can be provided [36] Question: Long-term distribution potential and share repurchases - The dividend is set quarterly based on long-term sustainable cash flow, and the board aims to maximize long-term distribution per share through a combination of investments, debt repayments, share buybacks, and dividends [68] Question: Impact of new tariffs on vessels - Approximately 27 vessels are estimated to be affected by new U.S. tariffs, primarily impacting car carriers and tankers, but the costs will likely be passed on to charterers [15][90]

Transocean Ltd. (RIG) has officially commenced operations for British energy major BP p.l.c. (BP) in the Gulf of America (formerly the U.S. Gulf of Mexico). This milestone marks the beginning of a significant ultra-deepwater drilling project to further tap into the region’s hydrocarbon potential.During the first quarter of 2025, Transocean, currently carrying a Zacks Rank #3 (Hold), reported total adjusted revenues of $906 million, which increased 18.7% from the prior-year figure of $763 million. The improv ...

Financial Data and Key Metrics Changes - Seadrill reported total operating revenues of $335 million for Q1 2025, an increase of $46 million from the prior quarter [24] - Adjusted EBITDA was $73 million, up from $28 million in the previous quarter [26] - Economic utilization for the quarter was 84%, impacted by downtime in three rigs in Brazil [7][8] Business Line Data and Key Metrics Changes - Contract drilling revenues increased by $44 million sequentially to $248 million due to additional operating days [24] - Total operating expenses decreased to $317 million from $323 million in the prior quarter [25] - Vessel and rig operating expenses rose by $15 million to $179 million due to additional operating days across the fleet [25] Market Data and Key Metrics Changes - Global macro uncertainty and OPEC's decision to increase supply are affecting commodity prices and client investment confidence [8][9] - The U.S. Gulf is expected to see increased competition with up to five rigs rolling off contract before year-end, exerting downward pressure on rates in 2025 [16] - Demand in Africa is projected to decline by two to four rigs in 2025 before rebounding in 2027 and beyond [18] Company Strategy and Development Direction - Seadrill focuses on high specification floaters and deepwater basins, believing that deepwater investments are compelling due to expansive reserves [11][29] - The company aims to prioritize margins and cash flow over utilization for long-term value creation [12][29] - Seadrill maintains a robust balance sheet with $430 million in cash and a backlog of $2.8 billion extending through 2028 and into 2029 [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future demand for deepwater drilling despite current market volatility [10][29] - Active dialogues with clients for opportunities in the second half of 2025 and 2026 are ongoing, with expectations for multiple contract awards [9][29] - The company is optimistic about the longevity of demand in Brazil, with Petrobras issuing a multiyear tender for rigs [19][20] Other Important Information - Seadrill is participating in voluntary mediation with Petrobras regarding delayed penalty notices [13] - The company has undertaken an initial review of the impact of tariffs, believing any impact is already reflected in current guidance [28] Q&A Session Summary Question: Shift in client interest towards performance-based contracts - Management noted that performance-based contracts are not new and they are open to larger performance-based contracts for the right clients [34][36] Question: Costs associated with stacking the Capella - Management indicated they are in a ramp-down mode and have not reached a long-term cold stacking rate yet [38] Question: Decision process for stacking versus keeping a rig warm - Management emphasized the importance of being decisive and disciplined about removing supply from the market when necessary [41] Question: Confidence in securing contracts for the second half of 2025 - Management expressed confidence in their contracting outlook, noting that they have not moved to cold stack certain rigs, indicating ongoing market opportunities [61] Question: Need to compete on price - Management stated that performance still matters significantly and they have historically been able to secure leading edge day rates [63][65]

Financial Data and Key Metrics Changes - Seadrill reported total operating revenues of $335 million for Q1 2025, an increase of $46 million from the prior quarter [25] - Adjusted EBITDA was $73 million, up from $28 million in the previous quarter [27] - Economic utilization for the quarter was 84%, impacted by downtime in three rigs in Brazil [7] Business Line Data and Key Metrics Changes - Contract drilling revenues increased by $44 million sequentially to $248 million due to additional operating days [25] - Vessel and rig operating expenses rose by $15 million to $179 million due to increased operating days across the fleet [26] - Management contract expenses decreased by $6 million to $45 million, largely due to timing of project spending [26] Market Data and Key Metrics Changes - Global macro uncertainty and OPEC's decision to increase supply have negatively impacted commodity prices and client investment confidence [8] - Offshore sanctioning activity is forecasted to double in 2026 and 2027 compared to 2025, with a significant portion of projects being economically viable above $50 per barrel [11] Company Strategy and Development Direction - The company aims to prioritize margins and cash flow over utilization to create long-term value for shareholders [12] - Seadrill is focused on high specification floaters and deepwater basins, maintaining a strong balance sheet and durable backlog [30] - The company is actively pursuing opportunities in the second half of 2025 and 2026, despite current market volatility [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future demand for deepwater drilling, citing the need for investment to offset depletion [9] - The company is encouraged by ongoing dialogues with clients for upcoming contract opportunities [8] - Management acknowledged the current market's volatility but remains optimistic about securing contracts for their rigs [61] Other Important Information - Seadrill closed Q1 2025 with cash of $430 million and a backlog of $2.8 billion extending through 2028 and into 2029 [12] - The company is engaged in voluntary mediation with Petrobras regarding delayed penalty notices [13] Q&A Session Summary Question: Shift in client interest towards performance-based contracts - Management noted that performance-based contracts are not new and they are open to such arrangements for the right clients and rigs [36] Question: Costs associated with stacking the Capella rig - Management indicated they are currently reducing costs while pursuing contracting opportunities and have not yet moved to cold stack the rig [38] Question: Decision process for stacking versus keeping a rig warm - Management emphasized the importance of being decisive and disciplined in removing supply from the market when necessary [41] Question: Confidence in securing contracts for the second half of 2025 - Management expressed confidence in their assets and the ongoing market dynamics, indicating they are actively pursuing opportunities [61] Question: Need to compete on price - Management stated that performance remains a key differentiator and they are not feeling pressured to lower prices significantly [63]

Core Viewpoint - The analysis emphasizes the undervaluation of Transocean's stock and aims to highlight potential investment opportunities within the company's fundamentals, including financials, fleet, backlog, and management [1]. Financials - The article suggests that Transocean's financial performance is a critical aspect to consider when evaluating its stock value [1]. Fleet - The company's fleet is highlighted as a significant factor in its operational capabilities and overall valuation [1]. Backlog - The backlog of contracts is mentioned as an important indicator of future revenue and stability for Transocean [1]. Management - The management team's effectiveness is noted as a key element influencing the company's performance and investor confidence [1].

Dubai, May 08, 2025 (GLOBE NEWSWIRE) -- Vantage Drilling International Ltd. ("Vantage" or the "Company") today announced that it will host a conference call at 10:00 AM Eastern Time / 4:00 PM Oslo Time / 6:00 PM Dubai Time on May 15, 2025 to discuss operating results for the first quarter of 2025. Vantage will release earnings before the call on May 15, 2025. Vantage's earnings release will be posted to the Vantage website at www.vantagedrilling.com.To access the conference call, click on the Call Link foll ...

Contract Award - Valaris Limited has secured a contract for its ultra-deepwater Valaris DS-15 drillship for work offshore West Africa, with a total contract value of $135 million and an estimated duration of 250 days [1][2] - The contract involves drilling five wells for an undisclosed operator, expected to begin in the third quarter of 2026, and includes priced options for up to five additional wells with an estimated duration of 80 to 100 days [2] Rig Upgrades and Capabilities - As part of the contract, the Valaris DS-15 drillship will undergo upgrades to add an improved managed pressure drilling system, enhancing its operational capabilities [3] - The Valaris DS-15 drillship features a GustoMSC P10,000 design and can drill to a maximum depth of 40,000 feet, positioning the company well for future opportunities in the offshore West Africa region [3] Company Ranking and Comparisons - Valaris currently holds a Zacks Rank 4 (Sell), indicating a less favorable outlook compared to other energy sector stocks [4] - In contrast, Archrock, EQT Corporation, and Galp Energia have better rankings, with Archrock at Zacks Rank 1 (Strong Buy) and EQT and Galp at Rank 2 (Buy) [4]

Company Overview - Valaris has the largest offshore drilling fleet, comprising 15 high-spec floaters and 34 jackups[4] - The company boasts a revenue efficiency of 96%+ for four consecutive years[4] - As of April 30, 2025, Valaris' contract backlog stands at $4.2 billion[4] - FY 2025 EBITDA guidance is projected to be between $500 million and $560 million[4] Fleet and Market Positioning - Approximately 70% of benign environment floater demand through 2029 is expected to come from the Golden Triangle[5] - Valaris has ~$2.2 billion of floater backlog with ultra-deepwater customers in key basins[7] - The company's jackup fleet is primarily positioned in the North Sea, Middle East, and attractive niche markets[12] - Valaris has ~$1.9 billion of jackup backlog with leading IOCs, NOCs, and independent operators[14] Operational Excellence and Safety - Valaris significantly outperformed the offshore peer group average on key safety metrics in 2024[17] - The company has maintained a revenue efficiency of at least 96% for each of the past four years[19] Market Outlook and Strategy - Deepwater production is expected to grow by ~23% from 2024 to 2030[23] - Subsea tree installations are expected to be more than 40% higher in 2026-2027 compared to 2024-2025[29] - Benign environment floater demand in 2026-2027 is expected to be ~14% higher on average compared to 2024-2025[31] Financial Strategy - The company has returned $325 million to shareholders since the start of the share repurchase program in 2023[43]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $621 million, up from $584 million in the prior quarter, reflecting a strong operational performance [32] - Adjusted EBITDA increased to $181 million in Q1 2025 from $142 million in the previous quarter, primarily due to more operating days and higher average daily revenue for the floater fleet [32][33] - Adjusted free cash flow for the quarter was $74 million, with cash and cash equivalents at $454 million, providing total liquidity of approximately $830 million [34] Business Line Data and Key Metrics Changes - The company added over $1 billion in new contract backlog since the last conference call, including significant contracts for drillships offshore West Africa and shallow water markets [6][10] - The total backlog increased to more than $4.2 billion, a nearly 20% increase from the previous backlog of $3.6 billion [19] - Fleet-wide revenue efficiency was reported at 96% during Q1 2025, indicating strong operational performance [7] Market Data and Key Metrics Changes - The global jackup fleet utilization stood at 90% at the end of Q1 2025, down from 94% in early 2024, indicating some downward pressure on day rates in certain regions [26] - Offshore Africa remains the most active area for future floater opportunities, with approximately 10 long-term programs expected to start in 2026 or 2027 [22] - The company is tracking around 25 floater opportunities, primarily related to drillships, with expected start dates in 2026 and 2027 [21][51] Company Strategy and Development Direction - The company is focused on delivering outstanding operational performance, executing its commercial strategy, and prudently managing its fleet and costs [14][18] - There is an emphasis on securing long-term contracts for high specification assets, particularly seventh-generation drillships, which are expected to be favored by customers for complex drilling solutions [14][15] - The company plans to continue managing costs for rigs expected to experience idle time and is willing to retire rigs when their economic benefit no longer justifies their costs [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic uncertainty has increased, offshore production is expected to remain a vital component of meeting global energy needs [12][18] - The company anticipates that most projects being evaluated by customers for near to medium-term commencement are expected to be economic well below current commodity prices [13] - Management remains optimistic about securing additional contracts due to the high quality of its fleet and operational performance [14][18] Other Important Information - The company received the 2024 Best Safety Performance Award for jackup rigs, highlighting its commitment to safe operations [7] - The company reported a net loss of $39 million in Q1 2025, adjusted for discrete expenses, net income was $128 million [34] Q&A Session Summary Question: Regarding the 25 floater opportunities tracked for 2026 and 2027, what percentage require seventh-generation drillships? - Management indicated that the overwhelming majority of the 25 opportunities are drillship-related, with customers likely preferring seventh-generation assets due to their efficiency and capabilities [51] Question: Are customers showing interest in performance bonus structures in contracts? - Management confirmed that performance incentives are part of current contracts and are generally targeted at drilling wells ahead of the customer's AFE or reducing the number of days [52] Question: Can you comment on the pricing levels for the five-year extensions on jackups in Saudi Arabia? - Management stated that while specific day rates cannot be disclosed, the rates for the extensions are above historic levels and are considered solid contracts [73] Question: Is there a Brent price level at which offshore FIDs could start to get pushed back? - Management noted that they have not seen any programs getting pushed back based on current Brent prices, as the economics for offshore projects remain compelling [78]