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Transocean (RIG) Announces $184 Million Addition to Backlog
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Transocean Ltd. (RIG - Free Report) recently announced a 16-well binding award for its Transocean Equinox rig in Australia, adding approximately $184 million to firm backlog. This contract, excluding mobilization and demobilization costs, is set to span 380 days. Furthermore, the award comes with additional options that could extend the harsh environment semisubmersibles rig's operations in Australia until 2028.
These specialized units are purpose-built to operate efficiently in challenging environments. Designed to withstand the demanding conditions of these regions, they enhance the company's ability to deliver wells safely and efficiently to its customers.
For investors, the growth in backlog is of utmost importance as it directly influences Transocean's sales, earnings and cash flows. As the offshore driller secures new contracts, its financial outlook is bolstered, creating a positive trajectory for the company and its stakeholders.
The awarded project is expected to commence in the first quarter of 2025, following the rig's previously announced commitment of five wells over 300 days with a major operator in Australia, set to begin in the first quarter of 2024. These continued commitments reflect the confidence placed in Transocean's capabilities and the demand for its services in the region.
Transocean is a renowned international provider of offshore contract drilling services, specializing in technically demanding segments of the global offshore drilling industry. With a primary focus on deepwater and harsh environment drilling, the company boasts the most advanced fleet of floating offshore drilling units worldwide. Its fleet comprises 36 mobile offshore drilling units, including 28 ultra-deepwater floaters and eight harsh environment floaters. This diverse and technologically advanced fleet allows it to effectively cater to the evolving needs of its clients.
With its recent contract success and the anticipated growth in backlog, Transocean demonstrates its resilience and adaptability in an ever-changing industry. The company's ability to secure long-term commitments and leverage its advanced drilling fleet places it in a favorable position for sustained profitability and future growth. Investors can look forward to the company's continued success as it capitalizes on opportunities in the offshore drilling market.
Zacks Rank & Stock Picks
Transocean carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy space might look at operators like Profire Energy (PFIE - Free Report) , Evolution Petroleum (EPM - Free Report) and Smart Sand (SND - Free Report) , each carrying a Zacks Rank #2 (Buy) currently.
Profire Energy: The 2023 Zacks Consensus Estimate for Profire Energy indicates 125% year-over-year earnings per share growth. PFIE has a trailing four-quarter earnings surprise of 11.1%, on average.
Profire Energy is valued at around $57.1 million. PFIE has seen its shares drop 6.9% in a year.
Evolution Petroleum: It is valued at some $261.2 million. The Zacks Consensus Estimate for EPM’s fiscal 2023 earnings has been revised 20.7% upward over the past 60 days.
Evolution Petroleum, headquartered in Houston, TX, has a trailing four-quarter earnings surprise of roughly 38.4%, on average. EPM shares have gained 42.5% in a year.
Smart Sand: SND beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. Smart Sand has a trailing four-quarter earnings surprise of 183.3%, on average.
SND is valued at around $67.8 million. Smart Sand has seen its shares drop 23.3% in a year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Transocean (RIG) Announces $184 Million Addition to Backlog
Transocean Ltd. (RIG - Free Report) recently announced a 16-well binding award for its Transocean Equinox rig in Australia, adding approximately $184 million to firm backlog. This contract, excluding mobilization and demobilization costs, is set to span 380 days. Furthermore, the award comes with additional options that could extend the harsh environment semisubmersibles rig's operations in Australia until 2028.
These specialized units are purpose-built to operate efficiently in challenging environments. Designed to withstand the demanding conditions of these regions, they enhance the company's ability to deliver wells safely and efficiently to its customers.
For investors, the growth in backlog is of utmost importance as it directly influences Transocean's sales, earnings and cash flows. As the offshore driller secures new contracts, its financial outlook is bolstered, creating a positive trajectory for the company and its stakeholders.
The awarded project is expected to commence in the first quarter of 2025, following the rig's previously announced commitment of five wells over 300 days with a major operator in Australia, set to begin in the first quarter of 2024. These continued commitments reflect the confidence placed in Transocean's capabilities and the demand for its services in the region.
Transocean is a renowned international provider of offshore contract drilling services, specializing in technically demanding segments of the global offshore drilling industry. With a primary focus on deepwater and harsh environment drilling, the company boasts the most advanced fleet of floating offshore drilling units worldwide. Its fleet comprises 36 mobile offshore drilling units, including 28 ultra-deepwater floaters and eight harsh environment floaters. This diverse and technologically advanced fleet allows it to effectively cater to the evolving needs of its clients.
With its recent contract success and the anticipated growth in backlog, Transocean demonstrates its resilience and adaptability in an ever-changing industry. The company's ability to secure long-term commitments and leverage its advanced drilling fleet places it in a favorable position for sustained profitability and future growth. Investors can look forward to the company's continued success as it capitalizes on opportunities in the offshore drilling market.
Zacks Rank & Stock Picks
Transocean carries a Zacks Rank #3 (Hold) at present. Meanwhile, investors interested in the energy space might look at operators like Profire Energy (PFIE - Free Report) , Evolution Petroleum (EPM - Free Report) and Smart Sand (SND - Free Report) , each carrying a Zacks Rank #2 (Buy) currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Profire Energy: The 2023 Zacks Consensus Estimate for Profire Energy indicates 125% year-over-year earnings per share growth. PFIE has a trailing four-quarter earnings surprise of 11.1%, on average.
Profire Energy is valued at around $57.1 million. PFIE has seen its shares drop 6.9% in a year.
Evolution Petroleum: It is valued at some $261.2 million. The Zacks Consensus Estimate for EPM’s fiscal 2023 earnings has been revised 20.7% upward over the past 60 days.
Evolution Petroleum, headquartered in Houston, TX, has a trailing four-quarter earnings surprise of roughly 38.4%, on average. EPM shares have gained 42.5% in a year.
Smart Sand: SND beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other. Smart Sand has a trailing four-quarter earnings surprise of 183.3%, on average.
SND is valued at around $67.8 million. Smart Sand has seen its shares drop 23.3% in a year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.