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Client Id: 77 NOVEMBER 02, 2017 / 1:00PM, RIG - Q3 2017 Transocean Ltd Earnings Call As we look across the globe, we see a handful of near-term opportunities in the Gulf of Mexico driven by the independents. As you might expect, most of these opportunities are for short-to medium-term durations and are likely to be very competitively bid. Nevertheless, they could help to bridge the gap to the next long-term opportunity as we work towards an eventual market recovery. We also see some opportunities throughout Latin America, which includes Mexico where we anticipate the second licensing round for deepwater blocks to occur in December, as well as Trinidad, Colombia, Guyana, Suriname and of course, Brazil. Focusing on Brazil. With its large volume of undeveloped reserves, a reduction of breakeven levels below $40 per barrel on most projects and favorable legislation, which includes a reduction in the local content requirements and the extension of the special customs regime, we are seeing growing interest in Brazil from both the majors and independents, which we believe will drive a sizable increase in tendering activity in 2018 and 2019 for projects commencing in late 2019 and 2020. Moving to the eastern hemisphere, in the U.K. and Norway, we continue to see strengthening demand for mid-water and more specifically, for harsh-environment assets. As a testament to the tightening market, day rates for high-specification units have increased more than 50% from where they were a year ago. With rising customer demand driven by a $30 per barrel breakeven levels and a limited number of harsh environment assets available in the market, we would expect to see day rates for the higher-specification, harsh-environment assets continue to improve. In Africa, we are encouraged to see some longer-term contract awards in Nigeria, as they represented some of the first multiyear awards in West Africa in almost 3 years. [In] Angola, [Senegal] is taking steps to improve its petroleum and natural gas legal framework to support further development of Angola's natural resources. And we see the potential for future demand in Ghana, [Côte d'Ivoire], Ecuador, [New Guinea] and East Africa. In short, we are anticipating an increase in activity from several different operators and several different markets in Africa. In the Asia Pacific region, we've seen multiple awards in India, Myanmar, Malaysia and Australia, and we expect to pursue what we believe to be multiple floater opportunities in this region over the next 12 to 18 months. In conclusion, we are generally excited about the opportunities in the U.K. and Norway, where we are witnessing a tightening of supply and demand for mid-water and harsh-environment assets, which is leading to ongoing day rate improvement. We're encouraged by some of the opportunities that are surfacing in Australia and other parts of the Asia Pacific region. And for the first time in 3 years, we're actually seeing multiyear awards in the Golden Triangle. To be clear, day rates in the deepwater markets remain under extreme pressure today. However, as activity begins to tick up and asset availability becomes tighter, especially for those higher specification, more efficient drilling machines, we fully expect to see day rate improvement over time. While today's outlook is certainly more encouraging than it was 12 month ago, we recognize that we're still in the midst of a downturn. And since the price --precise timing and trajectory of the eventual recovery is still uncertain, we continue to take the necessary actions to best position Transocean. As an example, just last month, we opportunistically accessed the market and issued $750 million of unsecured priority debt, which effectively addressed all unsecured bond maturities coming to before 2020. And as Mark will discuss in just a moment, we have other levers that we can and will pull as we continue to extend our liquidity runway. Before turning the call over to Mark, I would just like to once again thank the entire Transocean team for your efforts so far this year. We have significantly improved the overall quality of our fleet. We are making substantial strides in creating an incident-free workplace. We are moving closer to our goal of 100% uptime. We are delivering wells for our customers more efficiently than ever before. As evidenced by our strong, normalized adjusted EBITDA margins, we're managing our business more efficiently than ever before. And because of our consistent and efficient operating performance, and a great work by our finance and legal teams, we have built liquidity to continue to invest in our people, our assets, despite the challenging and uncertain market conditions. Well done, and thank you. Mark? Mark-Anthony Lovell Mey - Transocean Ltd. - CFO & Executive VP Thank you, Jeremy, and good day to all. During today's call, I'll recap our third quarter results and discuss our balance sheet and liquidity position. I'll also provide an update to our 2017 guidance, an early look at our 2018 cost expectations and discuss our liquidity forecast. Finally, I will provide an update on the Songa offshore acquisition. 5 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2017 Thomson Reuters. 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