Transocean Secures $111M Contract Extension From Reliance Industries

Transocean Ltd. RIG recently announced its $111 million contract extension with India-based Reliance Industries Limited, secured for its deepwater drillship, Dhirubhai Deepwater KG1. The contract lays down a 270-day program that will commence immediately after the existing contract. The immediate continuation of drillship services after the existing contract will minimize the idle time of the rig, enhance operational efficiency, optimize the rig’s utilization and strengthen Transocean’s foothold in the Asia-Pacific region.An Insight Into RIG’s Original ContractThe original six-well contract between Transocean and Reliance was announced in September this year. The estimated duration of the original contract was 300 days, with operations expected to begin in the second quarter of 2026 and will contribute approximately $123 million to the company’s backlog, excluding additional services.Long-Term Growth and StabilityTransocean secures operational stability through 2029 via Reliance’s contract extension of the ultra-deepwater drillship project. The contract will add $111 million to the company’s backlog, strengthen its cash flow predictability and position it as a major player in the drillship service-providing industry internationally.RIG’s Zacks Rank and Key PicksSwitzerland-based Transocean is the world’s largest offshore drilling contractor and leading provider of drilling management services. Currently, RIG has a Zacks Rank #3 (Hold).Investors interested in the energy sector might look at some better-ranked stocks like Gulfport Energy Corporation GPOR, ARC Resources Ltd. AETUF and Flotek Industries, Inc. FTK. While Gulfport Energy currently sports a Zacks Rank #1 (Strong Buy), ARC Resources and Flotek Industries each carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.U.S.-based Gulfport Energy Corporation is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.09% year-over-year growth.Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS (earnings per share) growth rate for the next year is 51.59%, which compares favorably with the industry growth rate of 11.70%.Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2024 earnings indicates 125% year-over-year growth.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transocean Ltd. (RIG): Free Stock Analysis Report Gulfport Energy Corporation (GPOR): Free Stock Analysis Report Arc Resources Ltd. (AETUF): Free Stock Analysis Report Flotek Industries, Inc. (FTK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks