Transocean (RIG) Wins New Contracts for 2 Semi-Submersibles
Transocean Ltd. RIG recently announced that it has won contracts for two of its semi-submersibles – Transocean 712 and GSF Development Driller I. The company expects to add a total of $233 million to its backlog from these two contracts.
Transocean 712
This midwater rig received a 13-well contract from ConocoPhillips COP, which is expected to last for 580 days. The deal is expected to add around $75 million to Transocean’s backlog. The contract, to be carried out in the U.K. North Sea, is expected to start off in March 2019. Moreover, the deal incorporates a one-well option.
Transocean 712 was inducted into service in 1983 and is equipped to drill wells up to 25,000 feet.
GSF Development Driller I
This ultra-deepwater semisubmersible won an 11-well contract from the Australian unit of Chevron Corp. CVX, which is expected to last for 955 days. The deal is expected to add around $158 million to Transocean’s backlog. The location for the contract, which is expected to begin in the first half of 2019, will be off the coast of Australia. The deal also incorporates four one-well options.
GSF Development Driller I was constructed in Jurong, Singapore shipyard and has a maximum drilling depth of 37,500 feet. The rig can operate at a water depth of 7,500 feet.
Notably, Transocean had $12.5 billion of backlog til mid-May, which is one of the highest recorded in the industry.
Price Performance
Transocean has gained 52.4% in the past year compared with 13.6% rise of its industry.
Zacks Rank and a Stock to Consider
Currently, Transocean carries a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for a better-ranked stock such as BP p.l.c. BP, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
London-based BP is an integrated energy company. The company’s top line for 2018 is anticipated to improve 12.6% year over year, while its bottom line is expected to increase 77.7%.
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