The challenge permalink
We worked with an operator of oil rigs that drilled on behalf of major oil companies. They had a high-quality fleet with diversification of deep water floater and shallow water jack-up capacity, and crews with higher average time working together than peers. Despite this, their performance at the edges of the business cycle lagged competitors.
The Virtuoso approach permalink
We built scenario model that provided insight into the future of the industry from which to drive forecasts: From this, we developed 4 options to improve value creation:
- Acquire dock space for the construction of two new deep-water rigs
- Shift location of jack-up rigs closer to lower quality competitor’s fleets to draw their day rates
- Polish the fleet and try to sell to closest peer
- Shift crews from older rigs to better ones and seek sale-leasebacks
The results permalink
- Used dock space as a real option that generated a tremendous uptick in value
- Began discussions with potential acquirers and provided analytical and execution support leading up to the sale
Now is the Time permalink
Virtuoso Strategic Group is a boutique consulting firm formed to deliver extraordinary value to its clients. We pride ourselves on alignment with the fortunes of our clients and an unwavering commitment to their success. We welcome you to start the conversation today.