Jefferies Is Reducing Its RIG 2011 EPS Estimate

Jefferies is reducing its 2011 EPS estimate for Transocean Ltd. RIG. “We are reducing our 2011 EPS to $5.01 from $6.22 primarily to account for higher op cost guidance of $5.4-$5.7 Bn (vs our prior $5.2 Bn) as well as a higher tax rate (17-19% vs 16% prior),” Jefferies writes. “We are also trimming our 2012 and 2013 EPS to $6.43 and $6.46 from $6.78 and $6.97 to account for the roll through of higher costs, which is partially offset by modestly higher UDW dayrate assumptions.” Transocean Ltd. closed Thursday at $80.62.