Transocean Stock Price, News & Analysis

Transocean Ltd. (NYSE: RIG) announced a $1.175 billion offering of senior secured notes due 2030 by its subsidiary, Transocean Inc., to eligible purchasers under Rule 144A/Regulation S. The offering aims to refinance existing notes, specifically the Thalassa, Guardian, Proteus, and Pontus Notes, ensuring senior secured guarantees from subsidiaries. The Notes will be secured by a lien on specific drilling rigs and assets. Proceeds will primarily fund the redemption of outstanding secured notes, contingent on market conditions and offering completion. Redemptions are expected to close by February 16, 2023, pending conditions.

Transocean Ltd. (NYSE: RIG) announced that its subsidiary, Transocean Titan, has priced an offering of $525 million in senior secured notes due 2028. The 8.375% interest Notes will be guaranteed by Transocean Ltd. and are secured by the Deepwater Titan and related assets. The offering is expected to close on or about January 17, 2023. Proceeds are aimed at financing the Deepwater Titan's construction and initial debt service. The Notes will not be registered under the U.S. Securities Act and may not be publicly offered in Switzerland.

Transocean Ltd. (NYSE: RIG) has announced a private offering of $500 million in senior secured notes due 2028. The offering, led by Transocean Titan Financing Limited, will be secured by the Deepwater Titan and other related assets. Proceeds will partially fund the construction and improvement of the Deepwater Titan and cover initial debt service reserves. The notes are exempt from registration under U.S. securities laws and will not be publicly offered in Switzerland. Market conditions will dictate the final pricing and terms.

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.