Random Friday afternoon thought… Borr and McKinsey….

They both can’t be right can they?

From a downbeat McKinsey view on the jackup and floater market:

McKinsey jackup demand 1.0.png

From a recent Borr Drilling presentation:

Borr Jackups business.png

I know you can argue high-end jackups will recover etc… it’s just not a booming market if you have this much uncontracted capacity:

Borr fleet status.png

And maybe you would prefer less analysis like this from McKinsey:

After seeing rig activity stabilize during the first half of 2017, it resumed a declining trajectory in the second half of the year, hitting record low levels (estimated at about 300 units for jackup rigs and 140 for floaters). This will keep downward pressure on day-rates, with the few rigs that are finding new contracts, doing so at a sharp discount to the rates earned prior to the oil price decline (about 25 percent for jackups and about 75 percent for floaters from 2014 levels). This means lower margins for rig owners, even though they have reduced operating costs by around 70 percent since 2014.

Roll the dice!

 

One thought on “Random Friday afternoon thought… Borr and McKinsey….

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s