Offshore drilling giant, Transocean Ltd. (RIG) has provided a fleet status report for the period commencing Oct 15, 2014 to date. The update covers the company's offshore drilling rig status and contract information. The value of all the new deals and contract extensions in the said time frame is estimated at $83 million.
Transocean disclosed that the expected out-of-service time for 2014 has been increased by one day. However, for 2015, the projected out-of-service time has been lowered by 225 days.
Per the report, Discoverer Enterprise – a fifth generation dynamic positioning drillship – got a contract extension to work for one well in the U.S. Gulf of Mexico. The rig is expected to operate at a dayrate of $399,000, which is less than the prior dayrate of $615,000. The extended contract will add $32 million to the company’s backlog.
Included in the fleet update status, GSF Galaxy III – an independent leg cantilever jackup – received a contract to work for four months in Denmark as an accommodation unit. The jackup will operate at a higher dayrate of $175,000. The four-month deal will add roughly $23 million to the backlog.
Moreover, Cajun Express – a fifth generation semisubmersible rig – got a contract extension to work for one well in Senegal. The rig will work at a dayrate of $487,000 against the prior rate of $596,000. The contract will add $15 million to the backlog.
Additionally, Discoverer Seven Seas – a dynamic positioning drillship – will work for one well at an undisclosed site as its customer has exercised the option. The dayrate of the rig is $400,000, which is same as the previous rate.
Transocean added that two of its ultra deepwater floaters, namely Deepwater Discovery and Sedco Express are now idle. GSF Arctic III − one of the company’s midwater floaters – is also out of work.
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 energy sector like SandRidge Mississippian Trust I (SDT), Sandridge Mississippian Trust II (SDR) and Murphy USA Inc. (MUSA). All these stocks sport a Zacks Rank #1 (Strong Buy).
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