Transocean Ltd's decision to replace its chief executive will do little to help the company cope with an aging fleet and lower demand for its rigs due to a steep fall in oil prices, analysts said.
Shares of the company, which also slashed its dividend by 80 percent to 60 cents per share, fell as much as 4 percent to $18.22 on the New York Stock Exchange.
Transocean said on Sunday Chairman Ian Strachan would serve as interim CEO until a replacement was found for departing CEO Steven Newman.
The company has lagged its rivals because it failed to invest quickly to build ultra-modern drillships. A 50 percent drop in oil prices since June has added to its troubles.
"The challenges that RIG faces today with a competitively disadvantaged fleet and balance sheet ... will not be readily cured via CEO replacement," said Simmons and Co analysts.
Transocean faces a funding gap of $1.5 billion to $2.5 billion because of upcoming debt maturities and its payments towards new rigs.
Deutsche Bank analysts said the dividend cut, however, would be viewed positively as it would free up about $800 million per year.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Saumyadeb Chakrabarty)