Transocean Unveils World's First Hybrid Energy Storage Unit

Transocean Limited’s (NYSE:RIG) latest activity marked the world’s first deployment of hybrid energy storage system on a floating drilling vessel. This power system is operational on 2009-built semi-submersible rig Transocean Spitsbergen situated at the Equinor (NYSE:EQNR) -operated Snorre field offshore Norway.

This hybrid power equipment is designed in a way so that it lowers fuel utilization along with improving maintenance of the rig’s station-keeping position by accumulating all the energy generated from usual rig activities.

This important operational and safety enhancement technology innovated by Transocean in association with systems integrator and engineering company Aspin Kemp and Associates targets a 14% drop in fuel consumption during normal operations, thereby leading to an evident decline in NOx and CO2 emissions. Transocean’s capital will be partly financed by the Norwegian NOx Fund and through fuel-saving incentives in its contract with Equinor.

Transocean is the world’s largest offshore drilling contractor and the leading provider of drilling management services. The company provide rigs on a contractual basis to explore and develop oil and gas. Transocean offers offshore drilling rigs, equipment, services and manpower (with particular emphasis on ultra-deepwater and harsh environment drilling services) to exploration and production companies worldwide.

However, the company is grappled with a huge debt burden. Notably, Transocean’s long-term debt deteriorated to $9.4 billion as of Jun 30, 2019 from $7.1 billion in 2017. The company’s insufficient level of contracting activity is a concern as well. Over the last year, it has received only two major drilling contracts from Petrobras (NYSE:PBR) and Chevron (NYSE:CVX) .

Nonetheless, Transocean's robust backlog of $11.4 billion reflects steady demand from customers and offers earnings as well as cash flow visibility.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>