Transocean Bags Another High-Margin Drillship Contract – Buy


  • Company extends its recent winning streak by adding another high-margin contract offshore Brazil for the currently idle drillship Dhirubhai Deepwater KG2.
  • Earlier this month, the company successfully replenished liquidity and extended near-term debt maturities at reasonable terms.
  • Going forward, market participants are likely to focus on Transocean’s ability to find work for at least some of its cold-stacked drillships.
  • With dayrates in a healthy uptrend and high-specification drillships basically sold out, operators might be increasingly required to award contracts with terms sufficient for the costly and time-consuming reactivation of cold-stacked assets.
  • While shares might be ripe for a breather following the impressive 200% run from September lows, investors should consider adding on any major weakness.
Transocean drillship at the entrance of Guanabara Bay


Note: I have covered Transocean (NYSE:RIG) previously, so investors should view this as an update to my earlier articles on the company.

Shares of leading offshore driller Transocean have been on a tear recently with the stock up an impressive

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Leave a Reply

Your email address will not be published. Required fields are marked *