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May 11, 2021CITI 2021 GLOBAL ENERGY CONFERENCE
LEGAL DISCLAIMERForward-Looking Statements
The statements described in this presentation that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the future prices of oil and gas, the intention to scrap certain drilling rigs, the success of our business following the acquisitions of Songa Offshore SE and Ocean Rig UDW Inc., and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2020, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
This presentation, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”). Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
2
OUR LEADERSHIP POSITION
Unmatched UDW & HE Experience
$7.4 Billion in Backlog**
39 Floaters* – 100% UDW & HE
Liquidity of $2.5B***
3
* Includes 2 newbuilds under construction and the Transocean Norge (33% JV ownership interest)** As of April 28, 2021*** As of March 31, 2021.
TRANSOCEAN’S PLAYBOOK
44
PRESERVE LIQUIDITY
DELIVER SAFE, RELIABLE, & EFFICIENT
OPERATIONS
HIGH-GRADE FLEET
29 28 30 27 31 28 29
7 7 7 1214 14 10
8 5 3 2
1711 6 6 4
3
10
1010
0
20
40
60
2015 2016 2017 2018 2019 2020 2021
5
2015 2016 2017 2018 2019 2020 2021*
71 61 56 47 49 45 3917 11 14 9 10 7 -
21 years 19 years 17 years 17 years 14 years 14 years 10 years
Total **
Scrapped
~ Average Age
FLEET TRANSFORMATIONDivesture
Borr Drilling
Acquisition Acquisition
* Includes Deepwater Atlas and Deepwater Titan under-construction** Does not include units classified as held for sale
AcquisitionTransocean
Norge
FLEET TRANSFORMATION SINCE 2014
6
15 Ultra-Deepwater
75 Divestitures
Songa Offshore
Value-Added Enhancements
15 Jackups
45 Deepwater /Midwater
Deepwater TitanDeepwater Atlas
Ocean Rig
Transocean Norge
FLEET TRANSFORMATION TO UDW AND HE FLOATERS
7
41
15
34~45%
UDW & HE
39
100%UDW & HE
UDW & HE Floaters
Mid / Deep Water
HS Jackups
* Includes rigs under construction and the Transocean Norge (33% JV ownership interest); reflects the retirement of the Leiv Eiriksson
January 2014 May 2021*Average Age Floaters – ~21 years Average Age Floaters – ~10 years
(UDW – ~9 years)
BACKLOG ~3x NEAREST COMPETITOR
8
USD
Bill
ions
Source: Latest company filings* Includes Seadrill Limited and Seadrill Partners
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
RIG ODL Maersk NE / PACD SDRL* VAL DO
TRANSOCEAN’S INDUSTRY-LEADING BACKLOG
9
1.0 0.9 0.9 0.9
2.0
0.6 0.70.4
0.0
0.5
1.0
1.5
2.0
2.5
2021 2022 2023 2024 2025-28
Harsh Environment
Ultra-Deepwater
USD
Bill
ions
*As of April 28, 2021**Contracted operating dayrate multiplied by the contract duration for future periods as of latest company filings
Estimated $7.4 Billion* Contract Backlog **
94% with Investment Grade Companies
$1.6 $1.6
$1.3
$0.9
$2.0
BACKLOG CONVERTED TO CASH
10
40%
50%
60%
70%
80%
90%
100%
2018 2019 2020
REVENUE EFFICIENCYThree-year Average - 96%
10%
15%
20%
25%
30%
35%
40%
0
600
1,200
1,800
2,400
3,000
3,600
4,200
4,800
5,400
6,000
6,600
7,200
2018 2019 2020
REVENUE & EBITDAAdjusted
Adj Revenue Adj EBITDA Adj EBITDA Margin
USD
Mill
ions
No ‘Lost Time’ Incidents
TRIR of 0.24 (second lowest in RIG history)
97% uptime (new best)
Adj. EBITDA $1.2B
Adj. EBITDA Margin 36%
2020 Highlights
PATH TOWARDS DE-LEVERAGING THE BALANCE SHEET
11
-Industry Consolidation -Fleet Rationalization-High cost to reactivate
Rig Supply DecliningOil Demand Increasing
0
5
10
15
20
25
30
2000 2010 2020 2030 2040 2050
2020history projections
U.S. petroleum consumption*million barrels per day
*EIA -High Economic Growth Scenario
Driller Pricing Power
Increasing oil demand and decreasing rig supply leads to higher dayrates and ability to
de-lever
11
PRESERVE LIQUIDITY
12
USD
Bill
ions
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Cash & Short-termInvestments at
3/31/21 (1)
Revolving CreditFacility
Operating Cash Flowsthrough 2022
CapEx / Investmentsthrough 2022 (2)
Debt Due through2022
Projected Liquidity @12/31/22 (3)
~$1.2B -$1.4B
(1) Includes approximately $200M of restricted cash for debt amortization(2) Includes approximately $30M investment in the Transocean Norge joint venture. (3) Excludes an additional $200M of revolving credit facility permitted as part of the facility’s $500M accordion feature.
~$0.8B-$1.0B
~$1.2B
~$1.3B
~$0.7B-$0.9B ~$1.5B
~$0.9B
Estimated ~$350M secured financing capacity on the Deepwater Titan
Patented HaloGuard℠ Drill Floor Safety
System
6 Additional Floaters Scheduled for
HaloGuard℠ Upgrade
INVESTMENT IN TECHNOLOGY
13
Deepwater Conqueror Transocean Enabler
Automated Drilling Control
ADC Upgrade for 3 Remaining Cat-D Rigs
+ Spitsbergen + Norge
Drilling Safety Drilling Efficiency
Transocean Spitsbergen
Reduced Emissions
Patented Hybrid Power System
SEA – Smart Equipment Analytics installed on 19 rigs
HALOGUARD℠ DRILLFLOOR SAFETY SYSTEM
14
Industry-first technology that provides ability to locate and track personnel on drillfloor and alert them when in close proximity tomoving equipment, and if necessary, halt moving equipment to protect the crewmember
14
INDUSTRY FIRST – HYBRID POWER
15
Currently Installed on the Transocean Spitsbergen
Provides Ability to Run Rig Thrusters off Battery Power
Reduces Fuel Consumption & Emissions
SMART EQUIPMENT ANALYTICS
16
Smart Equipment Analytics (SEA): Customized analytics that evaluate real time data through sensors, operational and maintenance data that help ensure our rigs operate at optimum levels
19 Rigs Live in SEA: Energy awareness, power consumption and emissions monitoring applications running with real time data
16
Emissions: Real time GHG emissions monitoring system
Energy Awareness: Provides detailed understanding of main power consumers and how they respond under different operational conditions
Power Consumption: Engine data monitored against its design to provide awareness for optimum operation of power plant as well as uses of power
ENERGY AWARENESS – FUEL CONSUMPTION AND GHG EMISSIONS
Power Consumers Dashboard
Emissions Dashboard
Energy Awareness Dashboard
17
FLOATER OPPORTUNITIES – START DATE NEXT 18 MO.
# Number of programs
<6 months
6-12 months
>3 years
1-3 years
Source: IHS Markit May 2021: Open Floater demand incl. pre-tender, tender + Transocean Marketing
51 rig years to be awarded74 programs
Benign
Harsh7
25
1 1
4
2
2 12
0255075
100
Rig Years # Programs
Opportunity Trend (TTM)
Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1'21
4
1
1
1
1
2
2
1
11
11
10
4
3
1
11
1
21 1
18
OUR LEADERSHIP POSITION
Unmatched UDW & HE Experience
$7.4 Billion in Backlog**
39 Floaters* – 100% UDW & HE
Liquidity of $2.5B***
19
* Includes 2 newbuilds under construction and the Transocean Norge (33% JV ownership interest)** As of April 28, 2021*** As of March 31, 2021.
May 11, 2021CITI 2021 GLOBAL ENERGY CONFERENCE