As we can see here, the utilization rate for ultra-deepwater drillships has been almost completely flat over the past year and a half. While it does appear that the rate has bottomed out, it also appears that we have yet to see a significant recovery here. The current utilization rate is also lower than the levels that we need in order to see significant positive pressure on day rates.
As far as the leading new contract day rate is concerned, here we see that it too has remained relatively static month-over-month. While it is above its September 2017 lows, we can see that the day rate on new contracts is otherwise lower than it has been at any time over the past few years. The current day rate is also barely above cash flow breakeven levels.
As was the case with the semisubmersible units the utilization rate still needs to recover significantly before day rates start to see demand pricing pressure.
Contact me to further discuss these market trends or to find out how Trelleborg Offshore is adapting our local presence and global reach to meet our customers’ needs.
For any questions about Trelleborg’s market outlook for offshore oil & gas, check out our interim report