Feel free to start performing, Transocean (NYSE: RIG); we're all waiting on you. While Transocean often finds itself in lists of top energy service ideas, the company's five straight missed quarters are making it harder and harder to stay optimistic on this leading offshore driller. Although the long-term fundamentals for offshore exploration are indeed strong and Transocean shares look like a value stock, investors will have to be patient here, as management must not only rebuild performance, but rebuild Wall Street's trust as well. (To know more about value investments, read: 5 Must-Have Metrics For Value Investor.)
A Miserable Third Quarter
If there was good news in Transocean's third quarter report, it was pretty much limited to the absence of any kraken attacks on the company's equipment. Revenue fell 4% from the second quarter, and 3% from last year, on lower utilization rates caused by downtime issues. Although rates are not terrible, the company had the worst performance in its highest-margin segments.
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