Image: Deepwater Invictus. Source: Vessel Finder
Transocean (NYSE: RIG) has been struggling for many years, and I have witnessed its slow financial deterioration on Seeking Alpha since February 2014.
Initially, I considered Transocean’s business model bulletproof on account of its massive backlog, which is still over $8 billion as we speak. Unfortunately, the whole building held one vulnerable support that would ultimately shake it down to the ground, and it is the debt load. It is what drove the majority of the offshore drillers that we know into their financial demise.
The backlog is probably why the company is still standing on its two feet while most of the offshore drillers that I have covered regularly have filed for bankruptcy or about to file a second one. From Diamond Offshore (OTCPK:DOFSQ), Valaris Plc (NYSE:VAL), Noble Corp. (NYSE:NE) to Seadrill (OTCQX:SDRLF), and many others, all of