HOUSTON - Seadrill Limited (NYSE: SDRL), a key player in offshore drilling, and Oil States International, Inc. (NYSE: NYSE:OIS), known for its energy sector services, have announced a collaboration to improve the safety and efficiency of offshore managed pressure drilling (MPD) operations. This partnership aims to integrate Oil States' award-winning MPD Integrated Riser Joint (IRJ) system with Seadrill's fleet of floating drilling vessels, thereby streamlining MPD operations.
The MPD IRJ system developed by Oil States is engineered to enhance operational efficiency by reducing nonproductive time (NPT) and improving the handling of gas influxes encountered in deepwater MPD operations. Its design allows for on-deck function and pressure testing, featuring twin retrievable annular seals and a passive rotating control device (RCD) bearing assembly. This system is intended to minimize NPT and the need for unnecessary equipment retrieval, contributing to longer bearing and seal life.
Cindy Taylor, President and CEO of Oil States, expressed gratitude to Seadrill for their trust in Oil States' technology and looks forward to supplying multiple MPD IRJs for Seadrill's fleet. The focus of the collaboration is to optimize equipment for the safe and efficient extraction of oil and gas reserves.
Seadrill's Executive Vice President, Chief Commercial Officer, Samir Ali, highlighted the strategic nature of the collaboration, positioning Seadrill as a leader in the provision of safe, cost-effective deepwater MPD services. The company's aim is to offer customers simplicity in MPD drilling while maintaining high standards of efficiency and safety.
The collaboration is part of Seadrill's efforts to standardize MPD operations and offer enhanced services to its clients. The partnership is expected to support the industry's move towards safer and more efficient offshore drilling practices.
This initiative reflects Seadrill's ongoing commitment to utilizing advanced technology to meet the needs of its clients in various locations worldwide, and Oil States' dedication to providing engineered equipment and services to the energy sector. The information for this article is based on a press release statement.
In other recent news, Oil States International, Inc. reported a strong performance in the second quarter of 2024, with consolidated revenues rising by 11% and adjusted EBITDA growing by 38%. In the earnings call, the company's CEO, Cindy Taylor, emphasized increased activity in offshore and international markets and a focus on optimizing operations. The Downhole Technologies segment experienced a 16% revenue increase and a 42% jump in adjusted segment EBITDA, while the Well Site Services segment saw a slight 2% revenue decrease but a significant 30% rise in adjusted segment EBITDA. Taylor also projected a positive revenue trajectory and a book-to-bill ratio above 1 in the second half of the year. The company's adjusted EBITDA forecast for 2024 is set between $85 million and $90 million, with free cash flow anticipated around $40 million. These developments underline Oil States' commitment to strategic growth and operational optimization in the face of evolving energy sector dynamics.
InvestingPro Insights
Amidst the recent announcement of the collaboration between Seadrill Limited and Oil States International, Inc. (NYSE: OIS) to enhance offshore drilling operations, investors may find it useful to consider the financial health and market sentiment surrounding Oil States International. According to InvestingPro, two analysts have revised their earnings expectations downwards for the upcoming period, which may indicate a cautious outlook on the company's financial performance in the near term. Additionally, while the company's stock price movements have been noted as quite volatile, this could present opportunities for investors with a higher risk tolerance.
From a financial standpoint, Oil States International holds a market capitalization of approximately $297.89 million USD. The company, though not profitable over the last twelve months, is anticipated by analysts to turn a profit this year, which could be a positive signal for future growth. Moreover, Oil States' liquid assets have been reported to exceed short-term obligations, suggesting a degree of financial stability in managing its immediate liabilities. It is worth noting that the company does not pay dividends, which could influence the investment strategies of income-focused shareholders.
Investors interested in a deeper analysis of Oil States International's financials and market projections can find additional InvestingPro Tips by visiting https://www.investing.com/pro/OIS. With a total of seven tips available, these insights can provide a more comprehensive understanding of the company's current position and future potential.
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