Simon Johnson: Look, I think it’s always difficult to predict precisely the pace of industry consolidation. I think it’s going to be a continuing theme within the industry. In our view to be resilient on a through cycle basis, drillers simply have to have scale and we believe that Seadrill along with our 3 larger peers obviously have achieved that minimum efficient scale. So we’re pretty skeptical about the possibility of sustained success for smaller players so we argue that there’s room for further consolidation. I think the problem that we’re seeing is that the market’s improved rapidly in a relatively short space of time and as the day rate environment improves, so too to the underlying asset values. So it takes a longer time to get some of those deals done and we continue to survey the market and see how that sort of plays out.
So am I surprised there hasn’t been more? Yes, possibly. But I’m sure that it will continue to be a feature of the landscape in the months and years ahead.
Ben Nolan: Okay. And then I guess if I could follow up on just maybe related to Greg’s question and the potential and maybe the bringing back some of the cold-stacked rigs. I know that you talked about having your customers pay to have those reactivated for a while now. Has the tenor of that conversation changed at all or do you feel like maybe the ice is starting to thaw and your customers are becoming a little bit more open to that idea or is it still a pretty big ask?
Simon Johnson: Well, I mean we’ve had sort of sporadic interest in those rigs through time so there hasn’t really been a clear pattern to that. What I would say is that obviously it’s probably headed up a bit of late because of the renewed interest in the semi-submersible market particularly with the opening up of the opportunities offshore Namibia. What I would say is that we continue to work with our customers to think creatively about how they can be successful in executing their work and how we can be successful in generating good returns for our shareholders. And there’s quite a big sort of Venn diagram to explore there. Instead of sort of people pushing the balance of power from 1 group to the other, I think we need to think differently about how we can work together.
And as I’ve said continuously, it’s really about the relative cost of capital. When you’re faced with big capital events, I mean really the person who has the best ability to apply that capital through the cheapest cost of funds, they should be the ones who are footing the big bills. But equally we’re just as excited to talk to our customers about putting performance at risk in our contracting arrangements as well. So the industry has been very staid about how contractors are being remunerated for the work that they deliver. This issue clearly I would say there isn’t much long-term visibility in the market today. And so one of the ways that we can sort of bridge that real constraint that we face on the investment front is for the customers to think differently about how they remunerate us and how we share risk of capital investment.
So I’ve talked at length about that. My view hasn’t changed and we’ll continue to pursue opportunities that kind of reflect that belief. I don’t know what our competitors will do. They’ll have to make their own choices about that. But I think in the long run the sense of our approach will prevail.
Operator: Our next question comes from Fredrik Stene from Clarkson Securities.
Fredrik Stene: Simon and team, congratulations on the strong quarter. I wanted to touch a bit on the capital allocation side here. As you announced in conjunction with this report, you’re initiating a $250 million share repurchase program as well. And I was wondering kind of on the back of your comments, Grant, about the priorities with the cash that you have, if you would be able to give a bit more color on how you in the future would weigh the different way of paying shareholders either through share buybacks, which is kind of in place today, but also when you potentially would start thinking about cash out through dividends? And also in relation to this 50% or more FCF target of distributions, I’m sorry if I missed this in the prepared remarks, but do you have like a time frame of when you’re paying out that 50% or more since FCF can differ widely from quarter-to-quarter?
Grant Creed: Look, I think I’m not going to go through the whole sort of waterfall of the capital allocation again because it’s laid out there in the speaker notes, which by the way we’ll include on our website. But in a nutshell looking out for our existing fleet, then it’s looking for accretive opportunities and of course all the while ensuring the balance sheet is strong and if that’s the case, then we’ll look to return cash to shareholders. For now we have concluded the share buyback is the most attractive and value maximizing form of return for the company at this juncture. Going on to your next question on will we consider dividends. I mean yes, we’ll consider all forms of shareholder returns and we continue to consider those as we move forward and we’ll make decisions at that point of time on what’s going to maximize value for our shareholders.
I’m not going to go into more specifics than that for now, Fredrik. And then on the 50% of free cash flow as it relates to timing, we’re still going to work through with our Board exactly what time period that commitment will relate to. But I hope the market sees this facility of $250 million as a strong start upon which we look to build.
