Offshore drilling growth and war fuel energy demand
Activity in the offshore drilling industry has returned to pre-Covid-19 levels, the chief executive of a Bermudian-based oilfield services company has revealed.
Patrick Schorn, CEO of Borr Drilling Limited, said: "The significant amount of contracts awarded recently, in combination with a sustained demand for additional rigs has put the offshore drilling industry on a strong growth trajectory.
“The previously projected increase in utilisation levels, day-rates and contract durations is now coming to fruition and based on current tendering activity we expect this trend to continue.
“The number of contracted jack-up rigs has now recovered to pre-Covid levels and we expect several new awards to be nearing conclusion. This will bring the total number of contracted jack-ups back to levels last seen in 2015.
“Particularly in the modern jack-up segment (build after 2000), marketed utilisation has now reached the 90 per cent mark and the visible incremental demand is bound to outstrip available supply in the coming quarters.”
Mr Schorn added: “In the past few weeks we have been awarded significant new contracts with top-tier operators in core markets, and our contract revenue backlog is now at an all-time high of $853.3 million (including mobilisation revenues and contracts through our drilling joint ventures on a 100 per cent basis) and we have 20 rigs contracted, with the majority of our available capacity for 2022 contracted.
“We reiterate our guidance for 2022 with revenue between $375-$400 million and adjusted ebitda between $115-$140 million.
“Based on the development of the day rates we have seen thus far in the year, and our forecast of having our remaining three delivered rigs employed by the end of this year, our preliminary outlook for 2023 indicate an approximate doubling of headline revenues year-on-year and adjusted ebitda to more than double from the 2022 forecast. "
The Russian invasion of Ukraine has had a profound impact on the energy industry, according to Bermudian-based Nordic American Tankers Ltd.
A spokesman for the oil tanker company said: “The uncertainty created by the Russia-Ukraine conflict is reshaping the energy map of the world long term.
“Oil will have to be sourced from a myriad of places, often involving longer (ton-mile) and thus more lucrative voyages.
“The NAT fleet of versatile suezmax tankers is ideally situated to take advantage of these changing circumstances. We have not carried Russian oil during the last year.
“New oil tankers joining the global fleet are in short supply going forward. Major shipyards are reporting they have little or no capacity to build suezmax tankers before 2026.
“This is a very bullish data point both for the market over the long run and for NAT.”