Why Transocean Stock Rallied This Week -- and Could Go Higher

Transocean (NYSE: RIG) stock had a pretty strong week as it rose 10.2% at its highest point in trading during the week, according to data provided by S&P Global Market Intelligence. Despite shares of the offshore drilling rig operator taking a breather Friday alongside the broader market, they were still on track to end the week up almost 5% as of 2:30 p.m. ET Friday. Thank a contract extension from a key customer.

Transocean won an extension worth $181 million from Equinor SA for its harsh-environment semisubmersible Transocean Spitsbergen floater. The extended contract covers nine wells and two one-well options, with drilling expected to begin in October 2023 and end in April 2025.

Transocean specializes in ultra-deep water and harsh-weather drilling. Equinor SA is Transocean's second-largest customer behind Shell, and accounted for 30% of its revenue in 2021.

Source Fool.com