Transocean: Why A Dividend Cut May Be Inevitable

Last week SeaDrill, the third largest offshore driller by market cap, caught investors off guard by suspending its dividend payout in order to prune down its debt load and to help to finance possible acquisitions. We believe that Transocean, the world's largest offshore driller, could follow suit, potentially trimming its $0.75/share quarterly dividend, since its free cash flows are likely to come under significant stress due to a weaker business outlook and also due to the company?s need to inv...