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https://seekingalpha.com/news/3528131-seadrill-shoots-higher-rig-wins-north-sea-work
That's true PoC.
They are also in a pretty dire way financially though... banks are selling their debt at 50% discount right now.
Dutch - I agree that we need some reassurance, though to be fair the article does not state they are down and out - well at least not yet. They have orders but not enough to cover all of their current debt. They will need to restructure to ensure they continue to be viable.
With regards to BPC - our commitment is to drill Q1 which should mean that if the doors are going to close of Seadrill we should already have the drill bit in the seabed before anything is decided.
Seadrill have $1.4Bn in cash and an order backlog of $1.8Bn.
I posted the artical as no onei else had or picked up on this...
and why no news from BPC
This needs reassuring answers asap !!
Dutch
Fatal,
I did not call you a 5 knuckle shuffler. I merely implied that you were frustrated. Don't lose your only mate! You might need me one day....
The specific issue of Seadrill was under discussion, as the header suggests. Jimtheknow quite rightly points out the article inititiating this thread, was primarily focused on Seadrill from an investment perspective.
Linton in his post discussed the the key point about debt maturity and as encompasses in the following ""Seadrill Cash is now $1.445 billion which included restricted of $229 million. Seadrill has no debt maturities before June 2022."
In conclusion, there should be no issues that we can reasonably establish at this juncture, to cause issue regarding the rig - emotive rhetoric on aboriginal issues doesn't cut it, imo, from a rational assesment of the investment case.
Discussion on methods of personal gratification, whether alone, with the butler or in any other form, are best kept private Fatal.
Atb
Seadrill Chapter 11! Dick Cheney! Halliburton! Bahamas fund! Contracts not signed off by deadline! Nobody worried?
When I mentioned they might decide to raise more money and, by implication, a dilution, I was called a 'w*nker' by my old pal Laallee.
Having raised so much more money by getting the loyal small investors to buy even more shares in the latest issue, because we all believed in the ability of the board to deliver, I hope you will remember I raised my concerns about Halliburton, dilutions of shares, the shills on this site etc etc etc and I then got a torrent of abuse from friends like Laallee who suggested I should go into a quiet corner and have a w*nk.
I may be living in the land of clouds of cuckoos, raising concerns but having a belief in this board, but you and your ilk are living in the twilight zone where any set back is pumped as a positive. Bonum does it here Uncas does it elsewhere.
No news releases from the company for quite a while. In view of the concerns posted on this board, countered by the shills, I am beginning to think, sadly, that this is not the time for the board to rely on their own posters and they should come out with a news report to assuage our concerns, else once again, as history shows, the small people, the American Indian, the Aboriginals, and any other indigenous peoples you care to mention over the last thousand years will be sacrificed at the hands of the big business Mafia.
How did the board manage to align themselves with a bunch of dodgy geysers and failing multinationals? How did I, and all of you, fall for it? We believed in them. Not always good idea.
you were boring enough on ii
As it stands the Seeking Alfa article needs to taken and understood in exactly the manner it was presented without extending to tenuous possibilities.
The article is warning investors to be cautious about putting money into Seadrill at this moment in time and a good example of why can be found in recent history.
Around September 2017 Seadrill filed for Chapter 11 in the US, the result of this was a massive debt restructuring program with the big losers (as always) being the ordinary shareholders where the existing share equity was effectively wiped out and replaced by new shares, of which existing holders came out with less than 2% of their previous holding. This restructuring created free cash flow and pushed debt off into the future. Seadrill emerged from Chapter 11 around the summer of 2018. As far as I’m aware though there was little impact on actual operations and during the 2018 period Seadrill still engaged in campaigns with the likes of Repsol, BP, Eni, Statoil, etc.
I believe Seadrill still has access to immediate free cash flow and I don’t think anyone is suggesting it is on the verge of imminent collapse but because they are currently not generating profit in these troubled times that future debt burden is looming.
From some basic research Seadrill have approx 52 rigs with an apparent 17 currently looking for work. The best way out of this for Seadrill is for it to come out fighting and take on all work that it can get and to me that means the BPC job is more likely to go ahead than not, everyone concerned needs to try and make this work.
As for any perceived delay in contract notice that could be a number of reasons but again from basic research there would appear to be two rigs in the region suitable for BPC. The Sevan Louisiana was pictured in the BPC presentation but I believe the West Sirius is also available and in close proximity. There may be some debate as to which they release for their own business reasons, who knows.
An important part to the Seadrill BPC story is that the agreed day rate is reflective of market conditions and fair, if it were too punitive to Seadrill they could very well pull up stumps and decide it’s not worth their time and be compounding their issues but a competitive day rate along with a minimum contract duration, which is what Seadrill and BPC have agreed, should benefit all parties.
These are all my own views based on easily available information. Do your own research if it’s your own money at risk.
And you with your spelling.
Wouldn't encourage him. He comes on here once every 3 weeks to take a dump.
Loving the positive outlook there Dutch.
that said, it is fair to question the partner choice. Much like Fatal did with the political alignment of Halliburton.
I am more concerned by a financial risk than a historic political one.
I would be surprised if BPC / Macquarie have no assurance from Seadrill as part of any contract negotiations, but it could as other have suggested explain the missed 30/11 date.
If there is a risk I am sure that the team have contingency options in place (I expect a higher cost if there is a back up plan) That could in turn re-shape any expectation to not use the Bahamas mutual fund as a cash raise?
All just guess work on my part.
He can't hear you - he's just 'Jack...t' himself, whilst running for the hills!
Lol
Dutch, this is a high risk high reward share with a number of things outside of the companies immediate circle of control that could conspire against it. It is right to raise concerns like this and for people to weigh up the risks and invest accordingly.
Can you back up why you ‘think’ BPC has done no or inadequate due diligence? By anyone’s understanding of business it would be thought unlikely BPC didn’t even do the basics here given that Seadrill’s previous Chapter 11 was so recent and public. It would be extremely unusual for people in the industry to not know what was required about this.
Thanks Jim useful info.
GL
LOL......you do that ;)
Tp me it lools like BPC havebdone as much Due Diligence as
Jack **** !!
Run for the hills
Dutch
To get a feeling for rig rates I would suggest the following links. BPC are highly likely to get a semi sub.
https://ihsmarkit.com/products/oil-gas-drilling-rigs-offshore-day-rates.html
If the link gets scrubbed it’s on ihsmarkit dot com. We’re about right.
Based on their published accounts Seadrill have plenty of free cash flow to see them through 2020. Yes the industry is in a downturn and we all know that, there’s nothing surprising there and it’s why companies like BPC can now pursue drilling at much lower costs. It’s a cyclical business.
As for the posts about how we have got an exceptional deal in the price for drilling, that is not exactly true if you look around the industry. From the BPC investor presentation we believe the day rate is $215k/day, I know of comparable drills that have been in the mid $100k and also ones in the $300k’s, so we got a deal that was about right. It’s certainly a lot cheaper than rates 10 years ago but in today’s climate it’s about fair.
BPC also knew what they were dealing with when they signed up with Seadrill with them recently coming out of Chapter 11 and BPC now have drilling offices open in mainland US and everything is moving at pace.
A reason we can afford to drill is due to companies like Seadrill struggling. Not sure we’d be on the same path if day rates were still over $600k+/day
That's some silver lining in the cloud, Lint.
Looks like Seadrill aren't the only ones in the industry that are struggling:
https://seekingalpha.com/article/4311291-bloodletting-begins-halliburton
"Seadrill Cash is now $1.445 billion which included restricted of $229 million. Seadrill has no debt maturities before June 2022."
Good enough to get our job done!
Thanks Dutch - an interesting but grim read.
Some of the big US banks are selling their debt via their distressed dealing desk in the 70’s right now.
The saving grace for us is that there are no debt maturities until 2022 and no financial covenants in place until 2021.
https://seekingalpha.com/article/4311186-seadrill-judgment-day-another-one