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STEINHAUSEN, Switzerland - Transocean Ltd. (NYSE: RIG), a major provider of offshore contract drilling services, has announced the exercise of a two-well option for the Transocean Spitsbergen rig in Norway. This extension is set to commence in the first quarter of 2026, following the completion of the rig’s current drilling program. The company, which according to InvestingPro analysis is currently undervalued, anticipates that this development will contribute approximately $100 million to its backlog, not including potential revenue from additional services.
The Transocean Spitsbergen is part of Transocean’s fleet, which includes 32 mobile offshore drilling units, with a focus on ultra-deepwater and harsh environment operations. The fleet consists of 24 ultra-deepwater floaters and eight harsh environment floaters, underscoring the company’s specialization in technically demanding sectors of the offshore drilling industry. With a market capitalization of $2.33 billion and last twelve months revenue of $3.67 billion showing strong growth of 24.47%, the company maintains a significant presence in the sector despite challenging market conditions.
Transocean’s announcement comes with the usual caveats of forward-looking statements, which are subject to various risks and uncertainties. These include factors such as the duration of customer contracts, dayrate amounts, future contract commencement dates and locations, and other operational risks. The company’s recent Annual Report and filings with the SEC provide further details on these risks. For deeper insights into Transocean’s financial health and future prospects, InvestingPro subscribers can access comprehensive analysis including 7 additional key ProTips and detailed valuation metrics.
Investors are advised to make their own assessments of Transocean and its securities, considering both the opportunities and risks involved. The company has made it clear that this press release is not an offer to sell or a solicitation of an offer to buy any securities.
This news is based on a press release statement from Transocean Ltd. and does not constitute any form of financial advice or endorsement.
In other recent news, Transocean Ltd. reported first-quarter revenue of $906 million, surpassing analyst expectations of $884.8 million. This marks an 18.7% increase from the same period last year. Despite the revenue beat, the company reported an adjusted loss of $0.10 per share, slightly worse than the anticipated $0.09 loss. During the quarter, Transocean achieved an adjusted EBITDA of $244 million and improved its revenue efficiency to 95.5%. The company also repaid $210 million in outstanding debt, ending the quarter with a backlog of $7.9 billion. In another development, Transocean announced plans to dispose of two rigs, with potential impairments expected to result in a non-cash charge of $1.1 billion to $1.2 billion in the second quarter of 2025. At its Annual General Meeting, shareholders approved amendments to the company’s Long-Term Incentive Plan and other proposals, including the re-election of Ernst & Young LLP as the independent auditor. Jeremy D. Thigpen was elected as the Chair of the Board of Directors, while a proposal to increase the maximum number of board members was not voted on due to a lack of quorum.
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