Transocean (RIG) Stock Jumps on New Contract Awards
Transocean (NYSE:RIG) stock is rising on Thursday after announcing new contract awards from a national oil company.
These new contracts include its ultra-deepwater drillships, Deepwater Corcovado and Deepwater Orion. The contracts will have them working offshore Brazil. Deepwater Corcovado was signed for a four-year contract and Deepwater Orion for a three-year contract.
The total amount of backlog for the two contracts sits at $1.04 billion. That includes $583 million in backlog from Deepwater Corcovado and $456 million in backlog from Deepwater Orion. The Deepwater Corcovado starts in the third quarter of 2023 and the Deepwater Orion starts in Q4 2023.
How This Affects RIG Stock
Investors are celebrating today’s news as it lines the company up with work for the next four years. This likely has them hopeful Transocean’s earnings report will reflect these new contracts once service starts.
As for RIG stock movement today, some 11 million shares have changed hands as of this writing. That’s still a ways off from the offshore contract drilling services company’s daily average trading volume of 25.9 million shares.
RIG stock is up 7% as of Thursday morning and is 25.8% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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