Offshore drilling giant, Transocean Ltd. (RIG), has provided a fleet status report for the period commencing Aug 21, 2014 to date. The value of all the new deals and extensions in contracts, during the aforesaid time frame, is estimated at roughly $115 million. The update covers the company's offshore drilling rig status and contract information.
Transocean disclosed that the expected out-of-service time for 2014 has increased by 17 days. However, for 2015 the projected out-of-service time has declined by 140 days.
Per the report, Transocean Honor – an independent leg cantilever jackup – has got a contract extension offer for one year in Angola. The rig’s current dayrate is $194,000, higher than the prior dayrate of $155,000. The award is expected to add $71 million to the existing backlog.
Jack Bates – a fourth generation semisubmersible rig – has won a contract to operate one well. Transocean has not disclosed the location of the well. The dayrate of the rig which is currently $440,000, improved considerably from the previous dayrate of $380,000. The deal is estimated to add $26 million to the backlog of the company.
Moreover, MG Hulme Jr. – a third generation semisubmersible rig – has received a contract to work for one well, situated at an undisclosed location. Previously the rig was idle. Transocean stated that the award will add $18 million to the backlog.
Presently, GSF Jack Ryan – an ultra-deepwater floater – is out of contract.
Switzerland-based Transocean currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the same industry like Patterson-UTI Energy Inc. (PTEN), Pioneer Energy Services Corp. (PES) and Ocean Rig UDW Inc. (ORIG). Patterson-UTI and Pioneer Energy sport a Zacks Rank #1 (Strong Buy), while Ocean Rig holds a Zacks Rank #2 (Buy).
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