Tuesday, March 8, 2016


ZURICH, March 8 (Reuters) - Transocean Ltd announced on Tuesday an agreement with Keppel Offshore & Marine Ltd's shipyard, Keppel FELS, to defer the delivery and related
payments of five high-specification jackups until 2020.
"The Super B 400 Bigfoot Class jackup drilling rigs are now scheduled to be delivered in two and three month intervals beginning in the first quarter of 2020," it said in a statement.

To add on:

- the deferment is expected after Transocean deferred on two drillships that were contracted to SMM. However, market sentiment could sour. Stock is now -4.9% from today's high of $6.31
- Transocean's balance sheet is now stretched and current charter rates does not justify it taking delivery
- Other high risk customers: Clearwater, Fecon
- Reiterating Sell on any rally.

MKE call: Sell, 12-mth TP: $4.24

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