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Dec 28, 2018
Transocean (RIG, $6.71) Signs $830 Million Contract With Chevron (CVX, $109.32)

Transocean (RIG, $6.71) Signs $830 Million Contract With Chevron (CVX, $109.32)

Transocean Ltd. landed a major contract with Chevron USA Inc., part of Chevron Corp. The deal includes rig design and a construction management contract, along with a five-year drilling contract with Chevron USA for one of its two ultra-deepwater drill-ships under construction in Singapore. The drilling contract has an estimated backlog of $830 million, excluding mobilization and reimbursables.

Should the contract be terminated for convenience by the customer, Transocean will be compensated for its incremental 20,000 psi subsea investment in the rig. Also, a termination for convenience occurring after April 2020 would be subject to a substantial termination fee.

Related Ticker: RIG

RIG in downward trend: price dove below 50-day moving average on May 26, 2026

RIG moved below its 50-day moving average on May 26, 2026 date and that indicates a change from an upward trend to a downward trend. In of 52 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on May 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on RIG as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for RIG turned negative on May 26, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .

The 10-day moving average for RIG crossed bearishly below the 50-day moving average on June 03, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where RIG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

The Aroon Indicator for RIG entered a downward trend on June 17, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Bullish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where RIG advanced for three days, in of 279 cases, the price rose further within the following month. The odds of a continued upward trend are .

RIG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. RIG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.754) is normal, around the industry mean (1.573). P/E Ratio (0.000) is within average values for comparable stocks, (151.475). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.755). RIG has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (1.370) is also within normal values, averaging (92.118).

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RIG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock worse than average.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

Notable companies

The most notable companies in this group are Transocean Ltd (NYSE:RIG), Valaris Limited (NYSE:VAL).

Industry description

The contract drilling industry includes companies that provide onshore and offshore drilling services to the energy sector. Services are delivered on a contractual or per-fee basis. Customers of this industry include major and independent oil and gas companies. Strong oil demand could potentially boost contract fees. Helmerich & Payne, Inc., Transocean Ltd and Patterson-UTI Energy, Inc. are among the major drilling companies in the U.S.

Market Cap

The average market capitalization across the Contract Drilling Industry is 3.41B. The market cap for tickers in the group ranges from 21.2K to 6.87B. NE holds the highest valuation in this group at 6.87B. The lowest valued company is EXLA at 21.2K.

High and low price notable news

The average weekly price growth across all stocks in the Contract Drilling Industry was -13%. For the same Industry, the average monthly price growth was -25%, and the average quarterly price growth was 39%. BORR experienced the highest price growth at -6%, while PTEN experienced the biggest fall at -14%.

Volume

The average weekly volume growth across all stocks in the Contract Drilling Industry was 14%. For the same stocks of the Industry, the average monthly volume growth was -45% and the average quarterly volume growth was -45%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 59
P/E Growth Rating: 38
Price Growth Rating: 50
SMR Rating: 100
Profit Risk Rating: 67
Seasonality Score: -11 (-100 ... +100)
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General Information

a provider of offshore contract drilling services for oil and gas wells

Industry ContractDrilling

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Industry
Contract Drilling
Address
Turmstrasse 30
Phone
+41 417490500
Employees
5800
Web
https://www.deepwater.com
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Transocean (RIG, $6.71) Signs $830 Million Contract With Chevron (CVX, $109.32)