Fredrik Stene: That’s very helpful. And just as a follow-up to that, have you noticed in your own discussions with clients kind of versus where, for example, where you were six months ago. How have the other T&Cs of the contract structures changed in addition to just day rates going a bit up?
Simon Johnson: Well, I think you have to ask in order to be served. So what I would say is I don’t know if they’ve started offering massively different terms. I think the most obvious thing that we’ve seen is an understanding that they need to be much more flexible on intake windows and things of that nature, and that they have to plan further and further ahead. In so far as the contractual Ts and Cs are concerned, I mean really that requires adult behavior on the part of the people operating the market. And certainly for us, our concerns with things like supply chain inflation and the potential for country-specific changes in operating costs, we’re very focused on protecting margins. We’re very focused on protecting against changes in war and currency controls and things of that nature.
But you have to positively ask the customer to address those kinds of issues. And that’s a little bit that we hope will separate us from some other players. We’re not losing sight of the contractual asks. We’re looking to expand on that part of the commercial bargain. It’s through time that has proven to be far more important than a direct that exists for a moment in time.
Fredrik Stene: All right. Thank you so much for all your comments. And, again, congratulations on completing the acquisition.
Simon Johnson: Thanks very much, Fredrik. Have a great day.
Operator: Hamed Khorsand, BWS Financial.
Hamed Khorsand: Hi. So the first question I had was, is there any plan or any strategy behind some of the assets you’ve gained from Aquadrill? And if you’re looking to monetize them in any way, does it fit the larger profile what you will see Seadrill as in the next three years?
Simon Johnson: Yes, Hamed. Absolutely. Fleet compositions and active discussion within the management group from the Board at the moment. So as you rightly point out, we are acquiring a number of rigs through Aquadrill that aren’t sort of what I consider to be core assets in the form of the three tender assist rigs. Through time recently here, we’ve reduced our exposure to the jackup space as well. We still have three units that are leased to go through JV and on contract for the next couple of years with staggered expiration dates. And we have a stacked unit as well. So I think increasingly, as we go forward, you can see a shift in our focus to units that are basically focused on the ultra-deepwater and the harsh environment space.
But we’re in no rush also to sell those assets that have come to us either through acquisition or have been a part of our original fleet. We’re only going to divest if the terms are attractive to us frankly. So we’re going to be looking at opportunities there, both to kind of clean up the fleet that we’ve got to make for more consistent, nice metric profile. But then we’re also looking at opportunities for expansion as well. So we’ll continue to look around for assets that might be available on a one-off basis or where they might make sense in our fleet and not in somebody else’s. We have a lot of active discussions across the space there. So, yes, we’re looking to have a more, shall we say, a less wide-ranging profile across the fleet going forward.
But it will take some time to achieve that and constant surveillance and financial discipline on how we transact around achieving that outcome.
Hamed Khorsand: Okay. And my other question was regarding those synergies that you’ve highlighted in the past. How fast could that develop as the biggest portion of those synergies coming from you moving away from the management contracts that Aquadrill has?
Grant Creed: Yes, that’s right. Look, I think — So we’ve talked about $70 million annually. The vast majority of that is in relation to the MSAs. Aquadrill, as I think almost everyone knows, has only a small group of employees with small office space. So the G&A synergies are approximately $10 million or so of that $70 million. And then the rest is MSA related. Those MSAs base case is they continue with the current managers until the existing contracts expire, and then we’ll take over. And those are generally within the next year and in some cases slightly more than a year. But by in the next two years’ time that will be fully realized.
Hamed Khorsand: Okay. Thank you.
Operator: Matt Polyak, Hummingbird Capital.
