Estimates For RIG Lowered

Oppenheimer has issued a research report on Transocean Ltd. RIG and is lowering EPS estimates for the company after its fleet status update. In the report, Oppenheimer writes "Extra downtime, a few idled rigs and a lower day rate reduce our EPS estimates for 2010 from $6.44 to $6.10 and for 2011 from $7.46 to $7.18. The idled rigs imply continued low utilization for low-end jackups and mid-water rigs. Another rig has left the Gulf of Mexico, leaving 13 of its floating rigs in the Gulf of Mexico. The GOM drilling moratorium is now technically over, but functionally no activity can move forward without permit approvals from the BOEMRE (Bureau of Ocean Energy Management, Regulation and Enforcement), which would be the next positive headline/catalyst for the group. We retain our Perform rating on RIG, concerned that Macondo lawsuits could prevent further outperformance." Oppenheimer maintains its Perform rating on Transocean Ltd., which closed yesterday at $66.68.