NEW YORK (AP) -- Shares of Transocean Ltd. surged Thursday after the offshore drilling rig contractor said it leased four rigs at higher day rates.
The Zug, Switzerland, company also said that its backlog associated with new contracts or contract extensions since July 18 is approximately $600 million.
Transocean said late Wednesday it was awarded one-year contract extensions for two deep-water rigs in the United Kingdom's sector of the North Sea.
The day rate was $395,000 for the Sedco 714, compared with the previous day rate of $253,000. The day rate for the Transocean John Shaw was $360,000, compared with the previous day rate of $318,000.
A third rig was put under contract for one year for work off the shore of Nigeria at a day rate of $311,000. Its prior day rate was $275,000.
In addition, contract extensions were signed for two jack-up drilling units.
Raymond James analyst Darren Horowitz said Thursday that the rates were "well above" his estimates for work in West Africa and the United Kingdom's sector of the North Sea. Transocean's out-of-service time was flat from the previous month, Horowitz wrote in a research report.
Shares of Transocean rose $2.07, or 4.3 percent, to $50.09 in afternoon trading. The stock has traded between $38.21 and $60.09 in the past 52 weeks.