No, not for anything but war or natural disaster. They can't just say, "we won't make as much as we thought, so we quit."
No, I took the NET income and added back in non-cash depreciation. They will have higher next year with new rigs that are already contracted.
They do have $1.5 billion in cash flow. They were not paying the entire dividend from debt. And they added more with the contracts they got this Q. They are in preservation mode and will struggle if contracts become scarce if oil stays this low or lower.
I wonder about hedging. Some producers hedged their output. Continental recently took theirs off. Oops. But if they have guaranteed prices, why not pump all you can? I can see oil staying low for a year as the hedges go away. Who's on the other side of those and how bad will they get killed?
SDRL.ol is the symbol. It closed at 107 KR today when the Norwegian market closed. You can use yahoo, just put in that symbol.
Takes a lot of tankers to store the excess oil being produce now. 50 million barrels floating off shore W. Africa as of a month ago. Will likely grow as producers just keep on pumping.
Maybe they read this board and knew that the stock would crater so they decided to be ready for the low, low prices!
I think that what will happen is the marginal VLCCs will go first, then any available. This puts pressure on the rates for the smaller vessels for actually moving crude around. Could be a rising tide lifting all boats sort of thing.
Tankers. Crude oil stored at low prices on them waiting to sell at the contracts they have now for higher prices down the road.
Friday will still be thin, so it could get worse. Not until Monday will we see the whole group of traders in action.