Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Offshore drilling giant, Transocean Ltd. (RIG - Analyst Report), recently issued a Fleet Update Summary for the period commencing Jul 17, 2013 to date. The value of all the new deals and extensions in contracts, during the aforesaid time frame, is estimated to be roughly $2.5 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 reduced by 172 days, while for 2014 the projected out-of-service time rose by 119 days.

Per the report, Discoverer Inspiration, a dynamic positioning drillship, got a contract extension of five years at the U.S. Gulf of Mexico. The rig will operate at an expected dayrate of $585,000, higher than a previous dayrate of $521,000. The contract is expected to add $1.1 billion to the existing backlog.

Discoverer Clear Leader, which is a dynamic positioning drillship, received a contract extension of four years at the U.S. Gulf of Mexico. The rig which was operating at a dayrate of $566,000, will work at a higher dayrate of $590,000. The contract is estimated to add $861 million to the backlog of Transocean.  

Moreover, GSF Galaxy I, an independent leg cantilever jackup, got a contract to work for three years at North Sea’s U.K. sector. Initially, the rig is expected to operate at a dayrate of $215,000. Earlier, the rig was working at a dayrate of $133,000. The contract is expected to add $244 million to the backlog of the company.  

Included in the report, Transocean Barents, a 6th generation semi-submersible rig, has received a contract to operate for a year. The rig will work at a dayrate of $601,000 in the North Sea’s Norwegian sector. Previously, the rig was operating at a dayrate of $580,000. The contract will add $219 million to the backlog.

Additionally, Henry Goodrich, a 4th generation semi-submersible rig, has been awarded a contract for nine months. The rig will operate off the coast of Eastern Canada at an expected dayrate of $476,000, as against the previous dayrate of $347,000. The contract is expected to add $129 million to the Transocean’s backlog.

Transocean added that Transocean Amirante, a 3rd generation semi-submersible rig, is presently out of work. The company also said that it has sold Transocean Richardson, which is a deepwater floater.

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 market over the next one to three months.

Meanwhile, one can look at oil field machinery and equipment suppliers like Dril-Quip Inc. (DRQ - Analyst Report), Natural Gas Services Group Inc. (NGS - Snapshot Report) and PowerSecure International Inc. (POWR - Snapshot Report) that offer value. Dril-Quip sports a Zacks Rank #1 (Strong Buy), while Natural Gas Services and PowerSecure International carry a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%