Transocean has stepping up its game in the offshore oil business. They are playing to their strengths and it seems to be really paying off. Interested in learning more? Let’s look to Agustino Fontevecchia for more information.
Transocean has been struggling with a heavy debt load that has put pressure on its credit rating. Total long-term debt has grown to $13.9 billion while current liabilities hit $5.4 billion in Q4, on $35.1 billion in assets. The company decided to discontinue its dividend in 2012 in order to pay down debt and strengthen its balance sheet, according to RBC Capital Markets.
The Macondo accident is also slowly being resolved. Court proceedings were expected to start on Monday but were delayed as the Swiss rig-operator negotiates with BP over a possible settlement. Two recent rulings by Judge Carl Barbier “significantly reduce[d] RIG’s financial exposure to the Macondo trial,” explained RBC’s analysts, noting total liability could fall in the lower end of their $1 to $3 billion estimate.
Oil companies have had a mixed earnings season in Q4. While some large integrated companies like Exxon Mobil did well, peers like Chevron suffered on downstream weakness. On the services side, Schlumberger delivered a solid performance as Halliburton saw revenues surge.
We aren’t real big on offshore oil, but this stock is worth bringing to your attention. They are upping the ante and could potentially make investors some solid money.
Quotes taken from report by Agustino Fontevecchia
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