Ocean Rig presentation from yesterday's Goldman Sachs conference...
available on the website. Two points I got from it are: 1. UDW rigs are now taking work from DW rigs due to new safety standards that the DW rigs can't meet. Many are over 20 years old, 80% almost, and getting obsolete. This will insure that the young UDW fleet is working for many years to come. Nobody build DW drillships or semi subs anymore. 2. The number of rigs which will be open for new contracts peaks next year. In a recent Seadrill presentation, they suggest that there is work for nearly double the amount of rigs on order at this time, regardless of year of delivery.
Another interesting tidbit is that the backlog for the ORIG fleet is now at $584 million per vessel. So debt is hardly an issue at all. This backlog will easily handle the debt and a healthy dividend when the time comes. And the backlog will go up 40% as the new drillships come out of the yards and existing rigs get new deals.
yyou must be speaking of the $4 billion consolidated debt. I as a holder of the drys convertible bond which matures in 12/14-- am very worried. Seems that drys does not denerate enuff free cash to make the payment and they admit to covenants of other bank loans which need to be changed ( at a cost) in order to continue to be in compliance. They can declare a dividend from ORIG but that would not begin to cover the need. THey will most likely have to sell some ORIG shares and hope that lender banks will come to their rescue. Thebonds are selling at about $960 -- somewhat under par and are not rated.