Transocean Ltd. (NYSE:RIG) Q4 2023 Earnings Call Transcript

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So, we do have a little bit of flexibility on when we start the rig in the Black Sea. So, as Keelan pointed out, we will basically make a call at some point if we can slot in a whale or two, between now and the start of the project to take it in, then we would be very interested to do that. And we do have a couple of baits on that. So, anyway, we will let you how that pans out soon.

David Smith: Very much appreciated. That’s all I got. Thank you.

Operator: Thank you. Our last question will come from Noel Parks with Tuohy Brothers. Please go ahead.

Noel Parks: Hello. Good morning.

Jeremy Thigpen: Good morning. Thanks.

Noel Parks: Hello. I am just interested in just getting some thoughts from you on what you are seeing in this supply chain for components at this stage just over the last quarter. Do you have a sense that it is improving, loosening up, are you still seeing tightness or the interest rate there that’s sort of going to be the new normal going forward, given what we have as far as the limited capacity in the marketplace?

Keelan Adamson: Yes. Noel, it’s Keelan here. I would say from operational support from our key vendors, they have been doing a very, very good job of keeping us apprised of their delivery times from their suppliers. I would say that our perception is that that has actually improved over the last few months, and a lot more predictable in terms of delivery times, which is typically nearly more important to us at this point in time. The cost inflation hasn’t been that significant to that point. It’s been more that we have been focused on the lead times needed to get those components. So, it’s improving. It’s obviously a challenge, but we are working with our partners to ensure that we get the components when we need them and we work with them to understand the components that we are going to need so that we are always prepared for that eventuality.

Noel Parks: Great. And do you have any sense of how to characterize how that might be useful either in terms of your contract visibility or I don’t know if you just have any more confidence about timing also helps you as far as actual rate negotiations, but any thoughts on that would be great.

Jeremy Thigpen: No, I would say that we carry a lot of capital spares in our fleet that based on the size of our fleet and the nature of our fleet, we keep good installed base available to us to be able to lever for opportunities when we need to. We have reasonably good visibility to the opportunities that Roddie talks about. And when we are looking at the rigs that we are bidding into those jobs, clearly we understand the work that needs to be done to those. And we build in a project plan in terms of addressing the work and any upgrades that are needed. So, to that point, we are not really constrained from a price perspective to be able to capitalize on opportunities that are coming.

Noel Parks: Great. Thanks a lot.

Operator: Thank you. I will now turn the call back over to Alison Johnson for any additional or closing remarks.

Alison Johnson: Thank you, Todd and thank you everyone for your participation on today’s call. We look forward to talking with you again when we report our first quarter of 2024 results. Have a good day.

Operator: This does conclude today’s call. We thank you for your participation. You may disconnect at anytime.

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