Transocean Increases Backlog By 16.5% Sequentially – Buy


  • Company releases its latest fleet status report with backlog up by an impressive 16.5% sequentially but most awards had already been announced by the company in recent months.
  • To continue its winning streak, Transocean will have to increasingly rely on securing work for its cold-stacked drillships but reactivation costs might prove prohibitive for some rigs.
  • Cold-stacked drillship Ocean Rig Olympia has been contributed to a new deep-sea mining endeavor in return for a non-controlling interest. The disposal might result in a material impairment charge.
  • Transocean surprisingly decided to cold-stack the 5th generation semi-submersible rig Deepwater Nautilus which likely means the end for this 23-year old unit.
  • 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 oil rig ships anchored off Elefsina, Greece


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

After Thursday’s market close, leading offshore driller Transocean released an impressive new fleet status report with

Major Contract Awards

Fleet Status Report / Company Press Releases

Cold-Stacked Drillships

Fleet Status Report

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.

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