The bull and the bear: Transocean and Valaris report Q1-2020 earnings

Transocean’s strong backlog and high utilization is in stark contrast to Valaris, who have struggled to get their balance since merging into the world’s largest offshore driller. We believe the deep-water drilling market is about to enter a second wave of the downturn. The global pandemic and recent oil price crash have led to numerous programs being delayed or cancelled, which changes the trajectory of a potential recovery. This insight will: • Compare the two companies on market sentiment, strategy, and challenges ahead • Share Wood Mackenzie’s current view on demand and the impact to contractors • Discuss some of the key challenges ahead for offshore drilling contractors • Point out four key things that drilling contractors cannot control For more information on the state of the deepwater drilling and rigs market please refer to our April report available on the Wood Mackenzie portal.