To: RGinPG who wrote (13133 ) 2/28/1998 10:11:00 AM From: Bernie Diamond Respond to
Somewhat dated Research Report on RIG in this weeks Barron's.Strong Buy. It announced record fourth-quarter earnings of 46 cents (diluted) per share versus a consensus of 44 cents and our estimate of 45 cents. For 1977, the company reported earnings of $1.38 per share, an increase of 37% over 1966 earnings. Transocean bought back 3.8 million shares in 1997 at an average price of $38.13 and still has $105 million authorized for additional shares to be purchased. In the fourth quarter, it purchased approximately one million shares, with an average price of $48. With the stock at its current level, we would expect further buybacks in the near term. As the most experienced deepwater driller in the world, the company's stated demand for deepwater drilling rigs continues to grow as the major oil companies expand worldwide offshore exploration. The impact of these deepwater rigs should be additive to earnings in 2000 and beyond as contract lengths continue to increase. With approximately 94%, of the fleet time committed in 1998 and 62% committed in 1999, the company's earnings stability grows with each new contract.
