Yahoo Finance Transocean (RIG) & Eneti Team Up for Offshore Wind Projects
Transocean Ltd. RIG and Eneti Inc. recently announced the signing of a non-binding memorandum of understanding through their respective subsidiary companies. The deal indicated their intention to form a joint venture company that will focus on offshore wind foundation installation activities. The project, subject to successful negotiation and execution of definitive agreements, would combine the best-in-class experience of both companies across their respective core businesses.
Transocean and Eneti's Offshore Drilling Expertise
Transocean is a leading international provider of offshore drilling services for energy companies. It operates a global fleet of dynamically positioned offshore drilling rigs. With more than 50 years of experience, RIG has developed a strong reputation for delivering high-quality drilling services to a range of energy-producing customers, including major oil and gas companies, national oil companies and independent operators.
Eneti is one of the top providers of offshore wind installation and support services. It primarily operates through its subsidiary, Seajacks International Ltd. The unit has installed more than 500 wind turbine foundation components and executed "Transport and Installation contracts" at wind farms, including Akita & Noshiro (Japan), Meerwind (Germany), Veja Mate (Germany) and Moray East (Scotland). Eneti's expertise in offshore wind foundation installation makes it an ideal partner for Transocean in the joint venture.
Project Details
The operations related to the project will initially be performed by both Transocean and Eneti personnel. They will also be responsible for converting up to two fit-for-purpose floating vessels into offshore wind foundation installation vessels.
The upgrades would include a 5200t crane. The vessels are expected to carry up to six 3,500t monopile foundations with 12m diameter, and certain other environmentally responsible and efficiency-enhancing operating features. The companies are confident that the upgrades will provide them with a world-class offshore wind foundation installation capability.
Investment Opportunities
Both Transocean and Eneti will have the right, but not the obligation, to invest in the joint venture along with other financial partners. This offers an exciting investment opportunity for those looking to invest in the offshore wind industry at present.
What’s Ahead?
The successful execution of the joint venture will help accelerate the industry’s transition to a cleaner and more sustainable energy future.
In a Nutshell
In conclusion, the proposed joint venture between Transocean and Eneti is an exciting development for the offshore wind industry. The two companies will leverage their respective knowledge and skills to create a top-notch offshore wind foundation installation capability, thereby increasing investment opportunities in the industry.
Zacks Rank and Key Picks
Transocean carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like Par Pacific PARR and Marathon Petroleum MPC,each sporting a Zacks Rank #1 (Strong Buy), and Ranger Energy Services RNGR, holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Par Pacific: PARR is worth approximately $1.63 billion. Its shares have risen 82.1% in the past year.
The company manages and maintains interests in energy and infrastructure businesses. Its operating segment consists of refining, retail and logistics.
Marathon Petroleum: MPC is valued at around $58.02 billion. It delivered an average earnings surprise of 20.91% for the last four quarters and its current dividend yield is 2.30%.
The company currently has a forward P/E ratio of 6.36. In comparison, its industry has an average forward P/E of 9.10, which means MPC is trading at a discount to the group.
Ranger Energy Services: RNGR is valued at around $242.99 million. In the past year, its shares have gained 16.8%.
Ranger Energy Services currently has a forward P/E ratio of 5.30. In comparison, its industry has an average forward P/E of 11.60, which means RNGR is trading at a discount to the group.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
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