Transocean LTD (NYSE:RIG) has disappointed its investors when it announced that it will be reducing the dividends by 80 percent. Transocean LTD (NYSE:RIG) was paying 3 dollars per share as dividends to the investors after certain investors created a hoopla regarding the dividends some time back. Transocean LTD (NYSE:RIG)’s CEO stepped down after the company was on a constant downward spiral after the drop in oil prices. The plummeting of crude oil prices hurt the company more than anything and now Transocean LTD (NYSE:RIG) is desperate to make some major sales.
Transocean LTD (NYSE:RIG) was going fine until the crude oil prices dropped and ever since then the company’s stock has been waning. The investors have been reluctant to invest in the company and have been shorting the stock for pennies. Transocean LTD (NYSE:RIG) spent large amounts on high tech vessels but that investment hasn’t paid off as of yet because of the waning oil prices.
For an oil company, the worst nightmare is the dropping of oil prices. Oil prices’ plummeting is good news for the public but not for the oil companies that thrive on the expensive oil prices. Now Transocean LTD (NYSE:RIG) will have to find alternative ways to post profits. The initial thing to do is to associate itself with a profitable company that makes its revenue not through oil but through some other medium. If Transocean LTD (NYSE:RIG) can strike such a deal, it can revive its revenue. The current situation is constantly deplorable and anything positive would be better than the current situation of the company.
The company lost 2.2 billion dollars in the third quarter of 2014 and the losses will pile up because oil prices aren’t moving up any time soon. Unless the company take strict measures now, it will be too hard to save anything. Transocean LTD (NYSE:RIG) is losing billions in a matter of months and it is crucial for the company to stay afloat and for that it needs to be associated with something positive so at least it can survive rather than just drown in its own pool of oil leftover.
It’s a crucial period for Transocean LTD (NYSE:RIG) considering the fact that it has very little time to conjure up large profit but the least it can do is strike a major deal with a company that will lift it and save it from being lost in oblivion for the rest of the time. Let’s hope the company is revived and oil prices come to an optimum level so that the company can post some sales and impress new investors. Investors bailed out on the stock previously but it they will come onboard if the oil prices get some stability. Transocean LTD (NYSE:RIG) will be praying for that day when oil prices will come back to normal, for that will be the day when the fortune of Transocean LTD (NYSE:RIG) will reverse. We hope that day comes soon.
