You left out some words...
"In light of the current environment, the Company is encountering and may in the future
encounter situations where counterparties request relief to contracted dayrates or seek early
contract termination. In the event of early termination for the customer's convenience, an
early termination amount is typically payable to the Company, in accordance with the terms of
the drilling agreement. While the Company is confident that its contract terms are
enforceable, it may be willing to engage in discussions to modify such contracts if there is a
commercial agreement that is beneficial to both parties."
AS the older rigs of the other drillers have their contracts end, they will be cold stacked or probably scrapped. This is "rebalancing" the overall rig fleet, but does take time. With virtually zero new orders in a year and no more likely for another year yet to come, the result will be SDRL's fleet in very high demand and able to command rates similar to those achieved in the last couple of years. Takes time, but it looks like it won't take as much time as many thought.
You are correct. The two afras. Thing about Afras is they can spike very high if the Bosphorus gets shut in due to weather. But maybe they see the "bird in the hand" aspect of the charters as appealing.
Seems like a weird thing to do.
as expected. Algos doing all the trading now for the whole sector.
For the few minutes this A.M. that some investors are focused on the report, maybe. But if oil falls back under $50 this a.m. and stays under, SDRL will turn red. NADL report sucked and Rosneft still a huge ? for the group.
that can end up being horrific or terrific.
Maybe they are liars after all and were just trying to talk down the price. New contracts were NOT $250k as they said, much closer to $500k as I said. Lots of wood still to chop, but they sure look stupid now.
Depends entirely on the price of oil. SDRL is 100% traded now on the price of oil. The algos to which it is tied don't read quarterly reports.
that roll off or will be delivered in 2015. Not looking too bad so far...
Book value? You mean what they paid for the rigs less accumulated depreciation? Does that have anything to do with current market value of their old and uncontracted fleet?