Stock 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 April 16, 2015 Fleet Status Report. The total value of new contracts since the last report is approximately $52 million.

The report includes the following:

  • GSF Development Driller II – Awarded a contract extension for approximately 100 days offshore Romania at a dayrate of $315,000 ($28 million estimated backlog).
  • GSF Rig 140 – Awarded a contract extension for approximately 120 days offshore India at a dayrate of $156,000 ($19 million estimated backlog).
  • Sedco Express – Awarded a contract extension for 18 days offshore Nigeria at a dayrate of $300,000 ($5 million estimated backlog).
  • The Transocean Marianas, GSF Celtic Sea, and M.G. Hulme, Jr. are idle.
  • Estimated 2015 out-of-service time decreased by a net 27 days.

As announced on May 7, 2015, the company has amended its construction contracts with Keppel FELS to further delay the delivery of its five newbuild high-specification jackups. This is in addition to the six-month delay announced in February 2015. (Original Source)

Shares of Transocean closed today at $20.14, down $0.649 or 3.12%. 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 $17.66 and its 200-day moving average is $18.40.

On the ratings front, Transocean has been the subject of a number of recent research reports. In a report issued on May 13, Canaccord Genuity analyst Alex Brooks reiterated a Sell rating on RIG, with a price target of $10, which reflects a potential downside of 50.4% from last closing price. Separately, on May 8, Susquehanna’s Charles Minervino maintained a Sell rating on the stock and has a price target of $14.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alex Brooks and Charles Minervino have a total average return of -13.5% and -11.8% respectively. Brooks has a success rate of 33.3% and is ranked #3288 out of 3604 analysts, while Minervino has a success rate of 29.2% and is ranked #3542.

In total, 6 research analysts have rated the stock with a Sell rating, one research analyst has assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $20.15 which is -32.6% under where the stock opened today.

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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