Company Update (NYSE:RIG): Transocean LTD Provides Fleet Update Summary

Transocean LTD (NYSE:RIG) issued a monthly Fleet Update Summary, which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service time of 15 or more days since the May 18, 2015 Fleet Update Summary. The total value of new contracts since the last report is approximately $109 million.

The report includes the following:

  • Transocean Andaman – Awarded a one year contract extension offshore Thailand at a dayrate of $115,000 ($42 million estimated backlog).
  • Deepwater Champion – Awarded a three month contract extension in the U.S. Gulf of Mexico at a dayrate of $395,000 ($36 million estimated backlog).
  • GSF Galaxy II – Awarded a one well contract extension in the U.K. sector of the North Sea at a dayrate of $190,000 ($17 million estimated backlog).
  • Sedco Express – Awarded a 45 day contract offshore Nigeria at a dayrate of $300,000 ($14 million estimated backlog).
  • The company has amended its construction contracts with Sembcorp Marine’s subsidiary, Jurong Shipyard, to delay the delivery of its two newbuild, ultra-deepwater drillships by 24 months. The two drillships are now expected to be delivered in the second quarter of 2019 and the first quarter of 2020, respectively.
  • The GSF Monarch and Transocean Spitsbergen are idle. The Spitsbergen’s well program concluded 45 days early due to efficient performance of the rig; the contract provides for a payment to the company in the event of an early termination.
  • The GSF C.R. Luigs is stacked; the rig was previously idle.
  • Estimated 2015 out-of-service time increased by a net 45 days.

The company has classified the GSF Celtic Sea and the Transocean Amirante as held for sale. The Amirante will be recycled in an environmentally responsible manner; the Celtic Sea will either be sold for use in a non-drilling capacity or recycled. To date, excluding the Celtic Sea, Transocean has indicated its intent to scrap a total of 20 floaters. (Original Source)

Shares of Transocean LTD closed today at $16.955, up $0.305 or 1.83%. 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 $18.99 and its 200-day moving average is $17.31.

On the ratings front, Transocean LTD has been the subject of a number of recent research reports. In a report issued on June 19, Wells Fargo analyst Judson Bailey assigned a Sell rating on RIG. Separately, on June 18, Argus’ Michael Burke maintained a Hold rating on the stock .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Judson Bailey and Michael Burke have a total average return of 2.3% and 3.6% respectively. Bailey has a success rate of 47.1% and is ranked #2073 out of 3638 analysts, while Burke has a success rate of 50.9% and is ranked #1466.

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.

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