By Sarfaraz A. Khan and Gohar Yousuf
The world’s largest offshore drilling contractor and one of the leading drilling management services providers Transocean (RIG) has joined the coveted S&P-500 Index on Monday. The company has replaced the struggling PC manufacturer Dell. This comes just a few days after Transocean announced a five-year contract with Chevron (CVX) to construct a new state-of-the art ultra-deepwater drillship. The delivery of the vessel is expected in the second quarter of 2016. The vessel will require investment of $725 million and will bring $1.1 billion as revenues. The construction of the drillship is expected to begin in fourth quarter of 2014 in Okpo, South Korea, where the company has a long history of operations. It has developed five enterprise-class drill ships at that facility and it currently has six other ultra-deepwater rigs under construction.
The world’s largest offshore drilling contractor and one of the leading drilling management services providers Transocean (RIG) has joined the coveted S&P-500 Index on Monday. The company has replaced the struggling PC manufacturer Dell. This comes just a few days after Transocean announced a five-year contract with Chevron (CVX) to construct a new state-of-the art ultra-deepwater drillship. The delivery of the vessel is expected in the second quarter of 2016. The vessel will require investment of $725 million and will bring $1.1 billion as revenues. The construction of the drillship is expected to begin in fourth quarter of 2014 in Okpo, South Korea, where the company has a long history of operations. It has developed five enterprise-class drill ships at that facility and it currently has six other ultra-deepwater rigs under construction.
Going Towards Efficiency
In its previous fleet status report for the month of October, Transocean revealed that since Sept. 18, it has acquired new contracts worth $2.0 billion, which includes the new Chevron contract mentioned above. Back in 2012, Transocean reported a massive backlog of $27 billion, the biggest in the industry. This has significantly improved the company’s visibility. This year, it has focused more on improving the profitability of its backlog.
Last year, Transocean started its initiative for improving its organizational efficiency by cutting costs and focusing on higher margin operations. The business has been selling non-core assets as it consolidates its operations. Last year, Transocean sold 38 older rigs for …. Read full article at GuruFocus
In its previous fleet status report for the month of October, Transocean revealed that since Sept. 18, it has acquired new contracts worth $2.0 billion, which includes the new Chevron contract mentioned above. Back in 2012, Transocean reported a massive backlog of $27 billion, the biggest in the industry. This has significantly improved the company’s visibility. This year, it has focused more on improving the profitability of its backlog.
Last year, Transocean started its initiative for improving its organizational efficiency by cutting costs and focusing on higher margin operations. The business has been selling non-core assets as it consolidates its operations. Last year, Transocean sold 38 older rigs for …. Read full article at GuruFocus
