Offshore drilling giant Transocean Ltd. (RIG) has provided its fleet status report for the period commencing Dec 18, 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 time frame is estimated at $24 million.
Transocean disclosed that the expected out-of-service time for 2014 has been lowered by a net 66 days. The company has also lowered its out-of-service time for 2015 by 30 days.
Per the report, Transocean Searcher – a third generation semisubmersible rig – received a contract to work on one well in the Norwegian sector of the North Sea. The rig, previously working at $368,000, is expected to operate at a dayrate of $340,000. The deal will likely add $14 million to the company’s backlog.
Moreover, the fleet update status includes M.G. Hulme, Jr. – a third generation semisubmersible rig – which received a one well contract to work offshore Malaysia. The rig is anticipated to work at a dayrate of $174,000, lower than the prior rate of $200,000. The award will add $10 million to Transocean’s backlog.
Transocean added that three of its rigs – The Discoverer Spirit, Deepwater Frontier and Sedco 707 are currently idle.
Furthermore, Transocean stated that the floater Discoverer Seven Seas will be scrapped. This will take its total count of lower-specification floaters to be scrapped to 12. Also, Transocean Rather, which was previously stacked, is currently held for sale.
Switzerland-based Transocean currently carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity markets over the next one to three months.
Better-ranked players in the energy sector include Seadrill Partners LLC (SDLP), Exterran Holdings, Inc. (EXH) and Cheniere Energy Partners LP. (CQP). All the stocks sport a Zacks Rank #1 (Strong Buy).
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