I still find it notable that their newest built rig, Var, continues to remain warm stacked since a Nov 2024 delivery. Why no analyst ever asks about it on the calls? Presumably they're tendering it at higher day rates on longer duration contracts ... but 18 months of no revenue! What does that say about the high spec jackup market?
Yeah that’s a great question: get you on the call! Honestly I think it’s the impact of Aramco dropping 20-30+ rigs from the peak when decision to deliver was made. Aramco really swung the jackup market.
I have thought about emailing IR. Not a sell-side analyst from a known bank, so I'd be screened out of a call. Vali, the sister rig, is offshore Libya. I'm assuming the math is that keeping Var at the shipyard (or nearby?) & waiting for a top dollar longterm deal adds up in the long run but 1.5 years unbilled for one of the newest global jackups seems unreasonably long & worthy of a question. Were they not marketing it in the year before it was completed?
I still find it notable that their newest built rig, Var, continues to remain warm stacked since a Nov 2024 delivery. Why no analyst ever asks about it on the calls? Presumably they're tendering it at higher day rates on longer duration contracts ... but 18 months of no revenue! What does that say about the high spec jackup market?
Yeah that’s a great question: get you on the call! Honestly I think it’s the impact of Aramco dropping 20-30+ rigs from the peak when decision to deliver was made. Aramco really swung the jackup market.
I have thought about emailing IR. Not a sell-side analyst from a known bank, so I'd be screened out of a call. Vali, the sister rig, is offshore Libya. I'm assuming the math is that keeping Var at the shipyard (or nearby?) & waiting for a top dollar longterm deal adds up in the long run but 1.5 years unbilled for one of the newest global jackups seems unreasonably long & worthy of a question. Were they not marketing it in the year before it was completed?
There’s a lot of sell side conflicts with equity coverage, so unfortunately there’s not much to gain from public calls.
I hear you. Aramco was a big swing in demand — it was more than 10% of marketed supply demand gone in a few months