Transocean Bags Record Dayrate For 8th Generation Drillship - Hold

Jul. 24, 2024 11:56 PM ETTransocean Ltd. (RIG) StockRIG88 Comments
(7min)

Summary

  • Transocean discloses new 20k PSI work for the 8th generation drillship "Deepwater Atlas" at record-high rates.
  • However, additional contract commencement delays are likely to negatively impact second quarter results.
  • Over the past three months, the company added $656 million in backlog. However, with a quarterly revenue run rate of well above $800 million, total backlog was down again.
  • Valuation-wise, the company remains expensive relative to peers. With the stock trading close to my $5.50 price target, I am reiterating my "Hold" rating on the shares.
  • Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »
Transocean drillship at the entrance of Guanabara Bay

pabst_ell

Note:

I have covered Transocean Ltd. or "Transocean" (NYSE:RIG) previously, so investors should view this as an update to my earlier articles on the company.

After the close of Wednesday's regular session, leading offshore driller Transocean released a new fleet

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

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