Transocean Stock Price, News & Analysis

Transocean Ltd. (NYSE: RIG) announced a significant contract for its Transocean Norge semi-submersible rig. Awarded by Wintershall Dea Norge and OMV Norge, the contract covers drilling 17 wells from 2023 to 2027, assuming all approvals are secured. The total backlog from this contract is projected at $437 million, based on an average dayrate of $408,000, with a firm term of 208 days contributing $72 million to backlog. Transocean holds a 33% interest in the rig through a joint venture.

Transocean Ltd. (NYSE: RIG) announced a liquidity boost of $175 million through negotiated transactions of its bonds. This includes exchanging approximately $73 million of existing bonds for new 4.625% Senior Guaranteed Exchangeable Bonds due in 2029, along with warrants for 31.5% of underlying shares. Furthermore, the company plans to sell $188.1 million of additional new exchangeable bonds and warrants. The deal's expected closing date is September 30, 2022, enhancing the company's balance sheet flexibility.

Transocean Ltd. (NYSE: RIG) announced two new contract awards for its ultra-deepwater drillship, Deepwater Asgard, in the U.S. Gulf of Mexico, contributing approximately $181 million to its backlog over 14 months. The first contract, for one well with Murphy Oil Corporation, is valued at $395,000 per day and is expected to commence this fall. The second contract, a one-year deal with another operator, is for $440,000 per day plus optional services, starting in the first half of 2023. This strong contract portfolio enhances Transocean's market position.

Viasat has partnered with Transocean and Intelilift to form a joint venture named Inteliwell, aimed at enhancing well construction through AI-powered automation. The initiative seeks to lower drilling times, improve safety, and streamline the construction process. Key applications include InteliPlan, InteliAutomate, and InteliAssist, designed to optimize planning and execution. The venture capitalizes on advanced data analytics to reduce costs and increase efficiency in drilling operations. This collaboration is expected to create significant value in a rapidly evolving market.

Transocean Ltd. (NYSE: RIG) announced that its ultra-deepwater drillship, Deepwater Conqueror, has secured a two-year contract for work in the U.S. Gulf of Mexico. The contract is valued at $440,000 per day, with the potential for an additional $39,000 per day for supplementary services. This adds an estimated $321 million to the backlog, effective December 2022, continuing from the current contract. Transocean operates 37 offshore drilling units, focusing on deepwater and harsh environment drilling.

On August 1, 2022, Transocean Ltd. (NYSE: RIG) announced a significant contract for its ultra-deepwater drillship, Petrobras 10000, securing a 5.8-year engagement offshore Brazil with a national oil company. This contract is expected to contribute approximately $915 million to the company's backlog, starting in October 2023 and running through August 2029. The firm backlog does not account for potential additional income from the use of Transocean's patented dual-activity technology.

Transocean Ltd. (NYSE: RIG) reported total contract drilling revenues of $692 million for Q2 2022, up from $586 million in Q1 2022. Adjusted EBITDA reached $245 million, compared to $163 million in the prior quarter. Despite a net loss of $68 million ($0.10 per diluted share), this was an improvement from $175 million ($0.26 per diluted share) in Q1 2022. Contract backlog was $6.2 billion as of July 2022. The company’s revenue efficiency improved to 97.8%, attributed to the return of idle rigs and higher dayrates.

Transocean Ltd. (NYSE: RIG) released its quarterly Fleet Status Report detailing the current status and contracts for its offshore drilling fleet. Key updates include:

• Deepwater Skyros: Ten-well contract in Angola at $310,000/day.
• Deepwater Invictus: Two-well contract extension in the U.S. Gulf of Mexico at $375,000/day.
• Transocean Spitsbergen: Nine-well contract in Norway at $335,000/day.
• Total backlog stands at approximately $6.2 billion, with an incremental backlog from new contracts totaling around $650 million.

Transocean Ltd. (NYSE: RIG) will report its second-quarter earnings on August 1, 2022, after the NYSE trading closes. A teleconference to discuss the results is scheduled for August 2, 2022, at 9 a.m. EDT. Interested participants can dial +1 313-209-6672, using conference code 5258095. The results will be available on their website and via a replay after the call. Transocean specializes in offshore contract drilling services, operating a fleet of 37 mobile offshore drilling units, including ultra-deepwater and harsh environment floaters.