Transocean Shares Have Just Plunged Substantially But Have Upside Potential

Sep. 27, 2022 1:07 PM ETTransocean Ltd. (RIG)DO, NE, SLB, VAL, SDRL41 Comments
Anna Sokolidou profile picture
Anna Sokolidou
1.81K Followers

Summary

  • Transocean shares are dropping due to falling oil prices. The whole stock market is feeling the pain of highly hawkish central bankers.
  • The company recently announced some drilling contracts were added to its backlog.
  • The recent debt exchange was not the main reason for the Transocean stock price plunge.
  • The offshore sector is recovering fast. If we don't enter a long depression, the contract dayrates should increase from the levels seen nowadays.
  • In my view, Transocean's shares have been artificially pressured for a long time.

Oil and Gas Drilling Platform

CloudVisual

Transocean Ltd.'s (NYSE:RIG) backlog increased significantly thanks to Wintershall Dea and OMV and their contract with Transocean Norge. RIG also announced $181 million in contracts for ultra-deepwater drillship Asgard. These two contracts were announced on 22

Backlog history (in $million)

Transocean's presentations

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Data by YCharts

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Data by YCharts

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Data by YCharts

This article was written by

Anna Sokolidou profile picture
1.81K Followers
A research analyst and a freelance writer looking for value investment opportunities. I have several years of investing experience. I am mostly interested in writing about bargain stocks of large companies. My interest is not limited to American companies but extends to firms operating in other countries but listed on US stock exchanges.

Disclosure: I/we have a beneficial long position in the shares of RIG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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