Transocean LTD (RIG) Delivered a Strong Quarter From an Operational Perspective: Steven Newman


Transocean LTD (NYSE:RIG) Peaked yesterday and the second quarter results helped a lot. However the oil and gas industry as a whole is not in a very good position and this stock has managed to gain in such position as well.

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Steven Newman, the CEO of Transocean LTD (NYSE:RIG), was on Fox Business and discussed about the new opportunities the company was looking to focus on. He said that the last quarter was a very strong one for Transocean from an operational perspective and he added that he was happy with the efforts of the employees.

“[…] From an operational perspective, I think we delivered a very strong quarter.” Newman said.

He said that Transocean LTD (NYSE:RIG) currently has 12 rigs under construction, out of which seven are ultra-deepwater floaters and the other five are high-spec jackups. He said that the company would continue to re-invest in the fleet as he feels that is the only way for a drilling contractor can deliver good returns to the customers.

Newman said that the company sees growth in the places where it has been growing so far such as Gulf Of Mexico, West Africa and Brazil, which he referred as the golden triangle for Transocean LTD (NYSE:RIG). However, he also sees opportunities for their customers in places like East Africa, India and the South China Sea and a few other places, which will become an opportunity for Transocean LTD (NYSE:RIG).

“[…] Our objective is to manage the company to compete effectively, regardless of what the external environment is with respect to supply and demand to drilling rigs […],” he stated.

He said that to be competitive for the long term, any drilling contractor would need to renew the fleet continually and also reposition the company regularly towards the higher end of asset classes and Newman thinks that Transocean LTD (NYSE:RIG) is doing a better job there than anybody else.

He added the company moved the headquarters to Switzerland only to stay closer to the places where most of their business comes from.

Disclosure: None

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