FBR Capital Says Sell-Off In Transocean (RIG) Marianas Issue Overdone, Sees No Possibility of an Oil Spill
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Price: $5.76 +0.70%
Rating Summary:
12 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterated their Outperform rating on Transocean (NYSE: RIG) after the close of trading Wenesday, saying the share weakness on news that the Transocean Marianas was in danger of sinking is overdone.
FBR sees no possibility of an oil spill based on information they have.
"We understand the Transocean Marianas rig developed a crack in one of the
pontoons while it was hoisting anchors. Based on this, it seems that the rig was moving locations and likely not hooked to a well when the problem with the rig arose, implying no possibility of an oil spill."
FBR said the rig is currently earning $450,000 per day. While it is unclear how long repairs would take, if the rig is out of service for the rest of Q3 this could translate into a $0.09 EPS hit.
For more ratings news on Transocean click here and for the rating history of Transocean click here.
Shares of Transocean closed down 3.2% today to $62.23.
FBR sees no possibility of an oil spill based on information they have.
"We understand the Transocean Marianas rig developed a crack in one of the
pontoons while it was hoisting anchors. Based on this, it seems that the rig was moving locations and likely not hooked to a well when the problem with the rig arose, implying no possibility of an oil spill."
FBR said the rig is currently earning $450,000 per day. While it is unclear how long repairs would take, if the rig is out of service for the rest of Q3 this could translate into a $0.09 EPS hit.
For more ratings news on Transocean click here and for the rating history of Transocean click here.
Shares of Transocean closed down 3.2% today to $62.23.
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