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Analysts like Transocean’s (RIG -3.1%) decision to sell 38 older shallow-water rigs, but...

Analysts like Transocean’s (RIG -3.1%) decision to sell 38 older shallow-water rigs, but they’re not thrilled with the $1.05B price. Wells Fargo says the deal boils down to RIG netting ~$700M for rigs it values at $2.2B, and predicts RIG will end up realizing an $800M-$900M accounting loss on the sale. Hercules Offshore (HERO -1.3%), owner of the world’s largest shallow-water drilling fleet, also slides.
Comments (3)
  • on top of that, RIG is possibly planning ton construct 4 newbuilds late in the game. At the least, RIG should've done this 12 months ago.
    10 Sep 2012, 03:32 PM Reply Like
  • That should be good for HERO! taking over capacity out.
    10 Sep 2012, 03:33 PM Reply Like
  • Some of what isn't stated is that RIG gets rid of some cold stacked units that would cost $20-50 million each to put back in service. Those are essentially dead assets. They also get some preference items in the future owner entity. I expect this and the hiring annoucement today of Esa Ik (oh well never could spell his name) will be every bit as instrumental in RIG's turnaround.
    10 Sep 2012, 06:06 PM Reply Like
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