Offshore drilling giant
) recently issued a Fleet Status Report for the period commencing
Sep 18, 2013, to date. The value of all the new deals and
extensions in contracts, in the same time frame, is estimated at
roughly $2.0 billion.
The update covers the company's offshore drilling rig status
and contract information. Transocean informed that the expected
out-of-service time for 2013 has risen by 52 days, while for 2014
the projected out-of-service time was down by 119 days.
On Oct 15, the company got a contract from
), to deliver a dynamically positioned ultra-deepwater drillship
by second quarter 2016. The drillship is expected to start
operation from the fourth quarter of 2016 at a dayrate of
$599,000. The deal is expected to add $1.1 billion to the
Per the Fleet Status Report, on Oct 10, Transocean Ao Thai,
the high-specification jackup, initiated its 5-year contact,
offshore Thailand. It works at a dayrate of $135,000.
Additionally, the Polar Pioneer rig got a 3-year contract. The
rig will be working at a dayrate of $620,000, higher than its
previous rate of $522,000. The deal is expected to add $679
million to the existing backlog.
Also included in the report is a contact extension of one and
half years awarded to Transocean Winner, to work in the North
Sea. The rig will be working at a dayrate of $499,000, higher
than its previous rate of $453,000 and adding $272 million to the
Furthermore, Transocean disclosed the sale of the standard jackup
GSF Rig 134.
Switzerland-based Transocean is the world's largest offshore
drilling contractor and the leading provider of drilling
management services worldwide.
However, the introduction of new and more stringent regulations
due to the oil spill has made deepwater drilling activity
prohibitively expensive for exploration and production companies,
making many projects marginal. Moreover, the company's
international exposure also increases its risk quotient.
Transocean currently holds a Zacks Rank #4 (Sell), implying
that it is expected to underperform the broader U.S. equity
market over the next one to three months.
CHEVRON CORP (CVX): Free Stock Analysis
OCEAN RIG UDW (ORIG): Free Stock Analysis
PIONEER EGY SVC (PES): Free Stock Analysis
TRANSOCEAN LTD (RIG): Free Stock Analysis
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Meanwhile, there are other oil and gas drilling firms that offer
value and are worth considering. These include
Ocean Rig UDW Inc.
Pioneer Energy Services Corp.
) with a Zacks Rank #1 (Strong Buy).