Offshore drilling giant,
), recently issued a Fleet Update Summary for the period
commencing May 15, 2013 to date. The value of all the new deals
and extensions in contracts, in the same time frame, is estimated
to be roughly $262 million. The update covers the company's
offshore drilling rig status and contract information.
Per the report, GSF Explorer, an Ultra-Deepwater Drillship, got a
contract to operate offshore India for a year. The dayrate is
expected to be around $412,000. Previously, the rig was not
operational. The contract is expected to add $150 million to the
Sedco 704, a semi-submersible rig, got a contract extension offer
to work for 6 months. The unit will operate at a dayrate of
$373,000. The contract is estimated to add $80 million to the
backlog of Transocean. The company added that, the dayrate of the
current contract of two years has been improved from $353,000 to
Additionally, Falcon 100, a midwater floater, got a contract to
operate offshore Congo for 35 days. The dayrate is expected to be
roughly $300,000. The contract is estimated to add $11 million to
the backlog of Transocean. Previously, the rig was out of work.
Included in the report, the expected out-of-service time in 2013,
will be up by 138 days.
In addition, Transocean Andaman, a high-specification jackup, has
started operating offshore Thailand on May 17, 2013. The jackup
is in a three-year contract.
Switzerland-based Transocean is the world's largest offshore
drilling contractor and the leading provider of drilling
management services worldwide. With less oil being discovered on
land and with companies having to dig deeper to get to their
reserves, Transocean is poised to benefit from a market with
robust multi-year demand trends. Its technologically-advanced and
versatile drilling fleet is a promising growth driver.
On the flip side, Transocean conducts operations in various
regions throughout the world, with a substantial portion of its
total revenues and earnings coming from international markets. As
such, the company is exposed to risks associated with operating
in international markets. Such risks include embargoes and/or
expropriation of assets, exchange rate risks, terrorism and
political/civil sentiment, etc.
Transocean currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, firms in the energy sector that are expected to
perform better in the broader U.S. equity market over the next
one to three months are
Ferrellgas Partners LP
EQT Midstream Partners LP
). All the firms sport a Zacks Rank #1 (Strong Buy).
EQT MIDSTRM PTR (EQM): Free Stock Analysis
FERRELLGAS -LP (FGP): Free Stock Analysis
INTEROIL CORP (IOC): Free Stock Analysis
TRANSOCEAN LTD (RIG): Free Stock Analysis
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