Offshore drilling contractor Transocean has secured work worth $137 million for its Transocean Equinox in Australia. The agreement with a “main operator” includes five wells, with the price tag excluding the full mobilization payment and a demobilization fee.
The company said in its statement that the estimated 300-day contract is expected to start in the first quarter of 2024. The contract also provides for a one-well option, which could hold the harsh semi-submersible environment in Australia during the first quarter of 2025.
The deal follows the company’s first-quarter loss of $465 million, which was hit hard by $190 million in losses on asset disposals and debt retirements. After considering these net unfavorable items, adjusted net loss for the first quarter of 2023 was $275 million.
Contract drilling revenue for the three months ended March 31, 2023, increased sequentially by $43 million to $649 million, primarily due to increased rig activity that returned to operating after being inactive in the fourth quarter and the daily rate increase for two platforms, partially offset. by two fewer calendar days in the first quarter, the company’s report says.
Speaking about the results, CEO Jeremy Thigpen noted that the company “delivered an outstanding quarter of safe, reliable and efficient operations, with an adjusted EBITDA margin of 33 percent on adjusted revenue of $667 million.”
“The strong performance is the result of excellent revenue efficiency of nearly 98 percent and exemplifies our commitment to operational excellence,” he said. “Furthermore, the contracts we secured during the quarter, which were predominantly for our harsh environment fleet, complement the wave of ultra-deepwater installations we announced in recent quarters, providing a more than a broad and sustained cycle”.
It is worth remembering that Transocean is venturing into offshore wind foundation installation activities through a joint operation with Eneti. The two companies have signed a non-binding memorandum of understanding that would allow them to form a joint venture to explore opportunities in the sector.
The formation of the joint venture remains subject to the successful negotiation and execution of the definitive agreements.
To contact the author, please email andreson.n.paul@gmail.com
