Stock Update (NYSE:RIG): Transocean LTD Provides Fleet Status Report

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 added since the October 26, 2015, Fleet Status Report is approximately $500 million.

In February, the newbuild ultra-deepwater drillship Deepwater Thalassa commenced operations on its 10-year contract in the U.S. Gulf of Mexico at a dayrate of $519,000. The rig is designed to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet. It features Transocean’s patented dual-activity drilling technology, industry-leading hoisting capacity, Transocean’s designed and patented Active Power Compensation hybrid system and a second blowout preventer (BOP). The drillship is upgradeable to accommodate a 20,000 psi BOP system.

The report includes the following:

  • GSF Rig 140 – awarded a one well contract offshore India at a dayrate of $158,000 ($18 million estimated backlog).
  • Jack Bates – customer exercised a 90 day option offshore Australia at a dayrate of $195,000 ($18 million estimated backlog).
  • M.G. Hulme, Jr. – awarded a one well contract in an undisclosed location at a dayrate of $163,000 ($16 million estimated backlog).
  • Sedco 702 – awarded a 45 day contract extension offshore Nigeria at a dayrate of $275,000 ($12 million estimated backlog).
  • Cajun Express – awarded 80 days offshore Ivory Coast; the dayrate is not disclosed.
  • Transocean Arctic – awarded three contracts with three separate customers in the Norwegian sector of the North Sea as follows:
    • one well contract at a dayrate of $179,000;
    • four well contract at a dayrate of $170,000; and
    • one well contract; the dayrate is not disclosed.
  • Estimated 2016 out-of-service time increased by a net 126 days due primarily to the reactivation of the Henry Goodrich. The rig is expected to commence its two year contract in Canada at a dayrate of $275,000 in the second quarter of 2016.
  • The Deepwater Navigator and GSF Grand Banks are classified as held for sale. (Original Source)

Shares of Transocean closed today at $8.61, down $0.17 or -1.94%. The stock’s 50-day moving average is $10.53 and its 200-day moving average is $13.29.

On the ratings front, Transocean has been the subject of a number of recent research reports. In a report issued on January 19, Deutsche Bank analyst Mike Urban maintained a Hold rating on RIG, with a price target of $12, which represents a potential upside of 39.4% from where the stock is currently trading. Separately, on January 5, KLR Group’s Darren Gacicia maintained a Buy rating on the stock and has a price target of $19.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mike Urban and Darren Gacicia have a total average return of -59.6% and -18.4% respectively. Urban has a success rate of 30.6% and is ranked #3569 out of 3569 analysts, while Gacicia has a success rate of 19.1% and is ranked #3438.

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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