Over concerns that Transocean's shallow water jackup rigs are only 69% committed for 2009, and only 30% committed for 2010, S&P cut the company's 2009 earnings estimate by $1.07 to $14.27 a share and its 2010 outlook by $4.54 a share to $14.10 a share.
Revenues for the quarter were $400M higher than expectations, but net income was $13M less than analyst estimates. Revenues jumped on rising demand for oil rigs.
On global economic weakness, the price of oil fell more than 30%. Falling oil prices lower demand for the company's rigs.
PBR announces a $1.2 billion deal with Eni S.p.A, causing JPMorgan to upgrade the company to "overweight".
Transocean announces the renewal of one and the signing of another contract for two ultra-deepwater rigs in which it has 50% ownership; the contracts are worth $900 million each over the next five years. Shares rise at the announcement.
Fourth-quarter net income jumped 70 percent as record crude prices and a scarcity of deepwater rigs lifted rents.
RIG completes acquisition of GSF, divesting two rigs in order to meet British anti-trust regulations, but causing the stock to spike anyway.
