Transocean LTD (NYSE:RIG) issued a comprehensive Fleet Status Report which provides the current status of and contract information for the company’s entire fleet of offshore drilling rigs. The total value of new contracts since the March 18, 2015 Fleet Update Summary is approximately $26 million.
The report includes the following:
- Sedco Express – Awarded a 45-day contract extension offshore Nigeria at a dayrate of $300,000 ($14 million estimated backlog).
- GSF Galaxy II – Awarded a two month contract extension in the U.K. sector of the North Sea at a dayrate of $190,000 ($12 million estimated backlog).
- Sedco Energy – The customer has elected to release the rig; the contract provides for a payment to the company in the event of an early termination.
- The Discoverer Enterprise, Sedco Energy, Transocean Amirante, and GSF Galaxy III are idle.
Estimated 2015 out-of-service time decreased by a net 59 days primarily due to GSF Rig 140. The company is currently committed to approximately 48 days of planned out-of-service time in 2016.
The company intends to scrap the GSF Explorer in an environmentally responsible manner; the rig is classified as held for sale. As a result, second quarter 2015 results are expected to include a related estimated non-cash charge of $100 million to $120 million, net of taxes. To date, Transocean has indicated its intent to scrap a total of 19 floaters.
Shares of Transocean closed today at $18.60, down $0.3 or 1.59%. RIG has a 1-year high of $46.12 and a 1-year low of $13.28. The stock’s 50-day moving average is $15.47 and its 200-day moving average is $19.83.
On the ratings front, Transocean has been the subject of a number of recent research reports. In a report released yesterday, Susquehanna analyst Charles Minervino assigned a Sell rating on RIG. Separately, on April 2, Canaccord Genuity’s Alex Brooks maintained a Sell rating on the stock and has a price target of $10.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Charles Minervino and Alex Brooks have a total average return of -11.4% and -6.2% respectively. Minervino has a success rate of 33.3% and is ranked #3508 out of 3572 analysts, while Brooks has a success rate of 20% and is ranked #3001.
The street is mostly Bearish on RIG stock. Out of 21 analysts who cover the stock, 11 suggest a Sell rating , 7 suggest a Hold and 3 recommend to Buy the stock. The 12-month average price target assigned to the stock is $23.31, which represents a potential upside of 24.3% from where the stock is currently trading.
Transocean Ltd is an international provider of offshore contract drilling services for oil and gas wells. The Company has two operating segments; contract drilling services and drilling management services.