Transocean (Sell, TP: USD7.00) - Backlog build confirmed
Transocean’s fleet status report included several new contracts, in particular for its high-spec UDW drillships. Although most of these have been known to the market for a while, we welcome the confirmation. In our view, focus within the UDW segment for the next few years should be on utilisation ahead of dayrates and we believe its effort to build backlog is the right strategy. As we believe dayrates for most of its new contracts for high-spec UDW rigs are in the USD120–150k range, we believe there is potential for some disappointment for consensus, which seems to expect higher dayrates.
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