Transocean’s Earnings Suffer Due To Weak Drilling Demand; Diminishing Backlog Likely To Cause Further Damage

-70.72%
Downside
6.28
Market
1.84
Trefis
RIG: Transocean logo
RIG
Transocean

The sharp decline in commodity prices throughout 2015 resulted in a significant fall in the drilling demand globally. As a result, Transocean (NYSE:RIG) experienced a notable decline in its revenue during the year. The company’s contract backlog also dropped steeply over the last few quarters, which is likely to further pull down the company’s revenue in the coming quarters, if the commodity markets continue to stay depressed.

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Have more questions about Transocean (NYSE:RIG)? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Transocean

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