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Transocean's (RIG) Deepwater Aquila Begins Work Offshore Brazil

Zacks Equity Research
·2 min read

Transocean Ltd. RIG has begun its first drilling assignment with the Brazilian state-owned energy giant Petrobras S.A. PBR, offshore Brazil. The company’s newbuild ultra-deepwater drillship, Deepwater Aquila had won a three-year contract with Petrobrasin September 2023.

The three-year contract was scheduled to begin in June 2024 and continue till June 2027. The day rate for the contract was fixed at $448,000. Following the addition of Deepwater Aquila to Transocean’s fleet, the company now owns and operates eight of the 12 ultra-deepwater, 1,400 short-ton hookload drillships in the world.

The offshore driller inked a purchase agreement for Deepwater Aquila from Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering (“DSME”), at the end of 2022. To partially fund the construction, acquisition and improvement of the Deepwater Aquila ultra-deepwater rig, Transocean initiated a private offering of senior secured notes, due in 2028.

Deepwater Aquila was initially ordered by Seadrill Ltd. in 2013. However, the company later delayed the delivery and ultimately canceled the deal in 2018.

Zacks Rank and Key Picks

Currently, both RIG and PBR carry a Zacks Rank #3 (Hold).

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Some better-ranked stocks in the energy sector are Sunoco LP SUN and SM Energy SM. Sunoco presently sports a Zacks Rank #1 (Strong Buy), while SM Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.

SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.

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Transocean Ltd. (RIG) : Free Stock Analysis Report

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SM Energy Company (SM) : Free Stock Analysis Report

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Zacks Investment Research