The delayed delivery of two ultra-deepwater drillships, Deepwater Atlas and Deepwater Titan might have a beneficial impact on Transocean Ltd. (RIG)’s stock, which is progressively rising in price, now trading at roughly $4.15. Will Transocean’s current upward trend continues in the run-up to its next earnings announcement?
These rigs were originally ordered from Jurong Shipyard and are the world’s first eighth-generation ultra-deepwater drillships with a hook-load of 3,000,000 pounds. Transocean will pay Jurong Shipyard $50 million upon delivery, with the remaining $370 million to be paid over a five-year period.
Deepwater Titan, the other drillship, will be delivered in May 2022. Upon delivery, Transocean will pay Jurong Shipyard 80% of the outstanding money, or almost $350 million. Following delivery, 20% of the outstanding debt will be postponed and paid over a five-year period, according to a delayed payment arrangement with the shipyard. It’s worth noting that Transocean is ranked No. 3 by Zaks. In the next months, we predict the stock will return to the line.
Finance and Entertainment Reporter
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