Transocean Stock Price, News & Analysis

Transocean Ltd. (NYSE: RIG) announced new contract awards and extensions for five drilling rigs, adding approximately $488 million to its firm backlog. Highlights include a three-well contract for the Deepwater Invictus in the U.S. Gulf of Mexico, worth $43 million, and a one-well contract for Transocean Barents in the U.K. North Sea, valued at $34 million. The Paul B. Loyd, Jr. contract was extended for eight P&A wells, contributing $48 million. The Transocean Norge contract with Wintershall DEA adds $331 million, while TotalEnergies exercised a one-well option for Development Driller III, adding $32 million.

Transocean Ltd. (NYSE: RIG) announced two major contracts for its ultra-deepwater drillships, Deepwater Corcovado and Deepwater Orion, totaling approximately $1.04 billion in backlog. The Deepwater Corcovado secured a four-year contract worth an estimated $583 million, expected to begin in Q3 2023. Meanwhile, the Deepwater Orion obtained a three-year contract contributing $456 million to backlog, set to commence in Q4 2023. These contracts reflect Transocean's strategic positioning in offshore drilling services.

Transocean has announced the formation of a joint venture, Liquila Ventures, with Perestroika A.S. and funds managed by Lime Rock Management, to acquire an ultra-deepwater drillship, Hull 3623, for approximately $200 million. This seventh-generation drillship, previously known as West Aquila, boasts a high specification design with a 1400 short-ton hookload capacity. Transocean has invested $15 million in the venture and retains exclusive marketing rights. The rig is expected to be delivered in Q3 2023, reinforcing Transocean's position in the offshore drilling market.

Transocean Ltd. (NYSE: RIG) reported a net loss of $28 million or $0.04 per diluted share for Q3 2022, down from $68 million or $0.10 per share a year earlier. Total contract drilling revenues were $691 million, flat compared to Q2 2022, with adjusted revenues at $730 million. Revenue efficiency decreased to 95%, while operating expenses dropped to $411 million from $433 million. Cash provided by operations rose significantly to $230 million from $41 million. Contract backlog increased by $1.6 billion, totaling $7.3 billion, reflecting strong demand for high-capability drilling assets.

Transocean Ltd. (NYSE: RIG) will report its third-quarter earnings on November 2, 2022, after NYSE trading hours. A teleconference is scheduled for November 3, 2022, at 9 a.m. EDT to discuss the results. Interested participants can join by dialing +1 785-424-1205 with conference code 260431. Transocean specializes in offshore contract drilling, operating a fleet of 37 mobile units, including 27 ultra-deepwater floaters. The company is constructing two ultra-deepwater drillships, enhancing its capabilities in the challenging offshore sector.

Transocean Ltd. (NYSE: RIG) released its quarterly Fleet Status Report on October 13, 2022, detailing the current status and contract information for its offshore drilling rigs. Key contracts include a two-year contract for the Deepwater Conqueror in the U.S. Gulf of Mexico at $440,000 per day and a 5.8-year contract for Petrobras 10000 in Brazil starting at $399,000 per day. The total backlog stands at approximately $7.3 billion, with an incremental backlog of about $1.6 billion from new contracts.

Salunda Limited has secured an exclusive license agreement with Transocean (NYSE: RIG) for the HaloGuard^® system, the offshore drilling industry's first safety system that integrates camera and sensor technology with drilling equipment. HaloGuard^® ensures personnel safety by pausing equipment when crew members are too close. This technology, developed by Nauticus Robotics (NASDAQ: KITT), enhances safety in offshore operations and positions Salunda as a leader in the energy sector. The system is operational on multiple rigs and leverages patented Hawk Network technology.

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.