Transocean Wins $300 Million ONGC Drillship Award for 2 Years
Updated
Updated · Yahoo Finance UK · Aug 22
Transocean Wins $300 Million ONGC Drillship Award for 2 Years
3 articles · Updated · Yahoo Finance UK · Aug 22
Summary
Transocean secured a two-year Letter of Award worth about $300 million from India’s ONGC for the Dhirubhai Deepwater KG2 drillship.
The award adds to Transocean’s roughly $7 billion backlog, strengthening revenue visibility as the offshore driller tries to convert contracted work into cash flow and reduce debt.
Shares at $5.92 have risen 11.7% over 30 days and delivered a 94.74% one-year total return, though the stock is still down 13.07% over 90 days and 23.32% over three years.
Analyst fair value cited at $6.58 implies about 10% upside, but that case still depends on tight offshore rig demand and is vulnerable to Transocean’s heavy debt load and volatile dayrates.