Seadrill and Transocean Plan Different Strategies for Stabilization

NEW YORK, NY / ACCESSWIRE / March 29, 2017 / Two stocks that are looking to secure their futures after less than inspiring 4th quarter financials, Seadrill and Transocean both need to weather the current storm of low oil prices. Seadrill may be rescued by another oil and gas exploration company, while Transocean plans to move to riskier, yet potentially more lucrative, drilling fields to achieve stable financials.

RDI Initiates
Coverage:

Seadrill Ltd. https://ub.rdinvesting.com/news/?ticker=SDRL

Transocean Ltd. https://ub.rdinvesting.com/news/?ticker=RIG

Seadrill advanced 7.80% to close at $1.52 on Tuesday. The stock traded between $1.59 and $1.40 on volume of 19.07 million shares traded. Seadrill is a Bermuda owned company that has reported positive financial news recently. On February 28th, the company reported 4th quarter financial data, with revenues of $667 million and an operating income of $118 million. With nearly $3.4 billion of debt due starting from April 30th, and the delay in restructuring, ignited the possibility of both bankruptcy filings and also a rumor of another investor stepping up to assist the company with their debt. On Tuesday, a Bloomberg media outlet reported that the company’s debt may be taken over by Billionaire John Fredriksen, saving the company from its financial distress.

Access RDI’s Seadrill Research Report at: https://ub.rdinvesting.com/news/?ticker=SDRL

Transocean advanced 1.49% to close at $12.23 on Tuesday. The stock traded between $12.33 and $11.99 on volume of 10.75 million shares traded. The company is an international provider of offshore contract drilling services for oil and gas wells. The company’s current drilling areas are packed with very intense competition and as of February 9, 2017, the company’s contract backlog was $11.3 billion. Investor circles are looking for possibility for Transocean to explore using its existing cash reserves to explore further offshore, in ocean areas where the environmental conditions are harsher, but there is less competition for resources. The stock has fallen 14.3% since 23rd February as its 4th quarter earnings report was announced. Transocean’s last financial report included a quarterly revenue reduction of $974 million, which was down 47% compared to one year ago.

Access RDI’s Transocean Research Report at: https://ub.rdinvesting.com/news/?ticker=RIG

Our Actionable Research on Seadrill Ltd. (NYSE: SDRL) and Transocean Ltd. (NYSE: RIG) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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