Boston, MA 10/30/2013 (wallstreetpr) – Transocean LTD (NYSE:RIG) has entered the S&P 500 Index tracking list to replace Dell Inc, the cornered computer giant that is going private to retrace its footing. The exit of Dell from the index was due to shareholder decision in favor of the privatization deal valued at $24.9 billion. The company is being taken private by its founder Michael Dell and Silver Lake Management.
On the index, the Switzerland-based offshore contract drilling services provider will joins the energy sector under the oil and gas drilling sub-industry. The inclusion of Transocean on the S&P 500 Index is expected to gain it investment interest from fund houses and institution investors who will be jostling to take up positions. As such, this is expected to give the company an edge at the browsers due to enhanced stock value. The S&P 500 gives listed companies greater exposure and monitoring which in effect enhance their reputation among investors.
When the announced of Transocean’s entry to the closely monitored index came October 21, its shares gained significantly in the regular and after hour trading sessions to stand at $46.57 and $48.44 after going up 1.5% and 4% respectively. The stock was up 0.98% to $49.50 at the close of business on Friday, October 25.
Transocean is a world-class offshore drilling contractor for oil and gas. It operates two segments namely: contract drilling and drilling management. While Transocean has global footprint, its operations are greatly impacted negatively by growing regulatory measures due to oil spills and higher exploration expenses. The company has a market cap of $17.38 billion.
Over the past 12 months, Transocean has had its sales rising to attain $9.31 billion, earning $1.65 billion in net income for the period. In the past two quarters, the company’s revenue figures have gone north 2.9%. Its earning per share has gone up by astounding 200% year over year. Last year, the company paid out $2.24 per share in dividend, translating to 4.53% in dividend yield.