Company Update (NYSE:RIG): Transocean Ltd. Takes Decision To Scrap Two Floaters
Transocean Ltd. (NYSE:RIG) announced that it intends to scrap, in an environmentally responsible manner, the following two rigs: GSF Aleutian Key and Sedco 707. These rigs are classified as held for sale. As a result of this decision, the company expects its first quarter 2015 results to include an estimated non-cash charge of $90 million to $110 million, net of taxes. Including these two rigs, Transocean has announced plans to scrap a total of 18 floaters. As the company continues to evaluate the long-term competitiveness of its fleet, additional rigs may be identified as candidates for scrapping. (Original Source)
Shares of Transocean LTD closed today at $14.84, up $0.17 or 1.16%. 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 $15.88 and it's 200-day moving average is $20.86.
On the ratings front, Transocean has been the subject of a number of recent research reports. In a report issued on March 30, Global Hunter analyst Mark Brown upgraded RIG to Hold, with a price target of $14, which represents a slight downside potential from current levels. Separately, on March 16, Canaccord Genuity's Alex Brooks reiterated a Sell rating on the stock and has a price target of $12.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mark Brown and Alex Brooks have a total average return of -8.3% and 23.5% respectively. Brown has a success rate of 48.0% and is ranked #3325 out of 3562 analysts, while Brooks has a success rate of 75.0% and is ranked #1637.
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.