Company Update (NYSE:RIG): Transocean LTD Receives Early Termination Notice on GSF Development Driller I

Transocean LTD (NYSE:RIG) announced that the company has received a notice of early termination from Esso Exploration Angola (Block 15) Limited for the ultra-deepwater semisubmersible GSF Development Driller I. The rig’s drilling contract is expected to end in May 2016 with the demobilization completed in June 2016. In accordance with the terms of this contract, the company will not receive a payment compensating it for the remaining contract term.

The company does not have other contracts in its backlog that permit uncompensated cancellation for convenience.(Original Source)

Shares of Transocean are down nearly one percent in after-hours trading. RIG has a 1-year high of $21.90 and a 1-year low of $8.08. The stock’s 50-day moving average is $9.79 and its 200-day moving average is $13.07.

On the ratings front, Transocean has been the subject of a number of recent research reports. In a report issued on February 18, Citigroup analyst Scott Gruber maintained a Sell rating on RIG, with a price target of $2, which reflects a potential downside of -76.6% from last closing price. Separately, on February 12, Credit Suisse’s Gregory Lewis maintained a Sell rating on the stock and has a price target of $10.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Gruber and Gregory Lewis have a total average return of 2.3% and -10.0% respectively. Gruber has a success rate of 50.0% and is ranked #1092 out of 3638 analysts, while Lewis has a success rate of 37.5% and is ranked #3298.

The street is mostly Bearish on RIG stock. Out of 4 analysts who cover the stock, 2 suggest a Sell rating , one suggests a Buy and one recommends to Hold the stock. The 12-month average price target assigned to the stock is $2.00, which represents a potential downside of 76.6% 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.


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