Transocean Ltd RIG shares are trading higher premarket Wednesday. On Tuesday, the company disclosed a 365-day contract for the Deepwater Atlas with BP p.l.c. BP in the U.S. Gulf of Mexico.
The program is set to begin in the second quarter of 2028. The contract, including a 365-day option, is expected to add around $232 million to the backlog, excluding mobilization fees, with no additional services provided.
Last week, the company announced that a subsidiary has agreed to sell the Development Driller III and associated assets for $195 million and the Discoverer Inspiration and related assets for $147 million.
The company stated that the total sale amount of $342 million will result in a non-cash charge of $630 million—$645 million in the third quarter due to asset impairment.
In July, the company reported an adjusted EPS of $(0.15), missing the estimate of $(0.10), and sales of $861 million, falling short of the $862.6 million estimate.
As of July 2024, Transocean’s backlog stood at $8.64 billion.
Investors can gain exposure to the stock via Exchange Traded Concepts Trust Range Global Offshore Oil Services Index ETF OFOS and SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF XES.
Price Action: RIG shares are up 4.59% at $4.10 premarket at the last check Wednesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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