RIG

Transocean Ltd. (NYSE:RIG) is one of the 10 Best Single Digit Stocks to Buy Right Now. On May 6, TD Cowen lifted its price target on Transocean Ltd. (NYSE:RIG) from $5.50 to $6 while keeping a Hold rating on the stock. The research firm updated its model after what it sees as messy first-quarter results and noted that a second Department of Justice request is continuing to pressure the stock. The update followed Transocean Ltd.’s (NYSE:RIG) financial results for the first quarter of 2026. The company reported contract drilling revenue of $1.08 billion, helped by strong revenue efficiency of 97.3%. During the quarter, the company also added $1.6 billion in contract backlog with a weighted average dayrate of around $410,000. Additionally, Transocean Ltd. (NYSE:RIG) reported that it entered into new or extended contracts on five rigs during the quarter, increasing its total backlog to $7.1 billion. This reflects demand for the company’s differentiated assets and includes an implied average dayrate of more than $450,000. The company also said it beat its revenue expectations for the quarter and achieved a strong adjusted EBITDA margin above 40%. Transocean Ltd. (NYSE:RIG) is an international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a strong focus on ultra-deepwater and harsh environment drilling services. The company operates the world’s highest specification floating offshore drilling fleet. While we acknowledge the potential of RIG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Revenue Growth Stocks to Buy According to Wall Street Analysts and 10 AI Stocks That Are About to Explode. Disclosure: None. Follow Insider Monkey on Google News.

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Transocean’s first quarter results were shaped by robust operational performance and margin expansion, but the company’s adjusted EPS fell significantly below Wall Street’s expectations. Management attributed the revenue strength to high rig uptime, increased average daily revenue, and new contract wins across multiple regions. CEO Keelan Adamson highlighted, “Our average daily revenue in the period was $476,000, the highest in over a decade.” Despite these positives, the market reacted negatively to the quarter, reflecting concerns about the earnings miss and ongoing cost pressures. Is now the time to buy RIG? Find out in our full research report (it’s free). Revenue: $1.08 billion vs analyst estimates of $1.03 billion (19.3% year-on-year growth, 4.7% beat) Adjusted EPS: -$0.03 vs analyst estimates of $0.08 (significant miss) Adjusted EBITDA: $440 million vs analyst estimates of $377.3 million (40.7% margin, 16.6% beat) Operating Margin: 26.5%, up from 7.1% in the same quarter last year Market Capitalization: $7.15 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Eddie Kim (Barclays) asked whether the market environment in 2027 could surpass the strong dynamics seen in 2023. CEO Keelan Adamson responded that offshore demand and backlog have both increased, with supply-demand fundamentals supporting optimism for continued strength. Eddie Kim (Barclays) also questioned the rationale behind the differing contract terms for Petrobras rigs. Chief Commercial Officer Roderick Mackenzie explained the shorter extension for the Deepwater Aquila allowed for more flexibility in a rising dayrate market. Fredrik Stene (Clarksons Securities) inquired about the implications of the U.S. Department of Justice’s second request regarding the Valaris acquisition. Adamson assured that the process is progressing as expected and remains within the projected closing window. Morgan Stanley Analyst asked about the economics and timing of reactivating cold-stacked rigs. Adamson clarified that reactivation would require a fully contracted return on investment, with costs still ranging from $100 to $150 million and timelines of 12 to 15...

Transocean Ltd. RIG reported a first-quarter 2026 adjusted loss of 3 cents per share, in contrast to the Zacks Consensus Estimate of earnings of 7 cents. The underperformance was primarily due to higher interest expenses and tax-related impacts. However, the bottom line improved from the year-ago quarter’s adjusted loss of 10 cents, supported by higher revenues, stronger fleet utilization, improved revenue efficiency and higher average daily revenues. The Switzerland-based offshore drilling contractor’s contract drilling revenues of $1.08 billion surpassed the Zacks Consensus Estimate of $1.03 billion by 5.2%. This was due to higher-than-expected revenues from ultra-deepwater and harsh environment floaters. Ultra-deepwater and harsh environment revenues beat the consensus mark of $480 million and $264 million, respectively. The top line also increased 19.3% from the year-ago quarter’s reported figure of $906 million. Transocean Ltd. price-consensus-eps-surprise-chart | Transocean Ltd. Quote Adjusted EBITDA was $440 million, up from $244 million in the year-ago period and $385 million in the fourth quarter of 2025. Moreover, the figure beat our model estimate of $352.7 million. Adjusted EBITDA margin was 40.7% compared with 26.9% in the year-ago quarter and 36.8% in the prior quarter. Ultra-deepwater floaters accounted for about 69.2% of total contract drilling revenues, while harsh environment floaters contributed the remaining 30.8%. Transocean’s ultra-deepwater floaters generated revenues of $748 million in the reported quarter, up from $658 million in the year-ago period and $724 million in the prior quarter. Moreover, the figure beat our model estimate of $658 million. Harsh environment floaters contributed $333 million, compared with $248 million in the year-ago quarter and $319 million in the fourth quarter of 2025. Moreover, the figure beat our model estimate of $248 million. Revenue efficiency was 97.3%, up from 96.2% in the previous quarter and 95.5% in the year-ago period. Ultra-deepwater revenue efficiency improved to 97.6% from 94.3% a year ago, while harsh environment revenue efficiency came in at 96.7%. Average daily revenues increased to $475,600 from $443,600 in the year-ago quarter and $461,300 in the prior quarter. However, the figure missed our estimate of $502,600. Average daily revenues from ultra-deepwater floaters rose to $480,700 from...

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Transocean (RIG) just posted first quarter 2026 results, with contract drilling revenue and adjusted EBITDA margin above analyst forecasts, record average daily revenue in over a decade, and roughly US$1.6b of new or extended contracts. See our latest analysis for Transocean. Despite the strong first quarter report and US$1.6b of new contracts, investors have turned cautious in the short term, with a 1-day share price return of 9.16% lower and a 7-day share price return of 7.95% lower. Even so, the stock has a 90-day share price return of 17.04% and a year to date share price return of 47.41%, while the 1-year total shareholder return of 163.71% shows that longer term momentum has been strong even with recent volatility. If Transocean’s offshore drilling story has your attention, it can be useful to compare it with other energy linked plays by checking out 91 nuclear energy infrastructure stocks So, with a strong backlog, improving margins, and a share price that has pulled back even after a big 1-year run, is Transocean still undervalued, or is the market already pricing in everything investors hope for? The most followed narrative pegs Transocean’s fair value at about $5.91 per share, a touch below the last close at $6.25, and leans on a detailed earnings and margin roadmap. Read the complete narrative. Want to see what sits behind that high implied earnings multiple and modest revenue contraction? The narrative leans on shifting profit margins, future profitability, and a tight discount rate. The tension between declining top line assumptions and a richer profit profile is what drives the fair value story. Result: Fair Value of $5.91 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the story could change quickly if offshore dayrates soften or if Transocean’s sizeable debt keeps more of that backlog from turning into earnings. Find out about the key risks to this Transocean narrative. Analysts see Transocean as about 6% overvalued at a fair value of $5.91, but the SWS DCF model tells a different story. On that framework, the stock at $6.25 is trading roughly 36% below an estimated future cash flow value of $9.75. This raises a clear question: which view do you trust more? Look into how...

STEINHAUSEN, Switzerland, May 04, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported financial results for the first quarter of 2026. The Company will host a conference call and webcast at 9 a.m. EDT, 3 p.m. CEST, on Tuesday, May 5, 2026, with participation details included in this release. In addition, supplemental schedules have been posted to the Investors section of the Company’s website at www.deepwater.com. FIRST QUARTER 2026 KEY POINTS Contract drilling revenues were $1.08 billion due in part to strong revenue efficiency(1) of 97.3%. Net income was $71 million or $0.06 per diluted share. Adjusted EBITDA was $440 million, with adjusted EBITDA margin exceeding 40%. Net cash provided by operating activities was $164 million; net of capital expenditures of $28 million, Free Cash Flow was $136 million. Accelerated retirement of $358 million remaining principal amount of the 8.375% Senior Secured Notes due 2028 (the Deepwater Titan Notes), reducing interest to maturity by nearly $40 million. Ended the period with total liquidity of $1.125 billion, including the undrawn revolving credit facility. Added $1.6 billion in contract backlog(2) at a weighted average dayrate of about $410,000. “The Transocean team delivered exceptional performance to start the year,” said Keelan Adamson, President and Chief Executive Officer. “During the quarter, we executed new or extended contracts on five rigs increasing our total backlog to $7.1 billion which, reflecting demand for our differentiated assets, contains an implied average dayrate of over $450,000. We also exceeded our revenue expectations for the quarter and achieved a strong adjusted EBITDA margin above 40%. We continued to enhance our financial flexibility by accelerating debt retirement, reducing interest expense and simplifying our balance sheet. “Recent global events clearly underscore the importance of secure and reliable hydrocarbon supply. We continue to believe that we are in the early days of a multi-year upcycle with increasing demand for offshore exploration and development drilling services. Transocean is very well-positioned to play a key role in developing these offshore resources and creating long-term shareholder value.” 1Q26 FINANCIAL SUMMARY Favorable contract drilling revenues were primarily related to improved rig utilization, higher revenue efficiency and increased average dai...

Diamondback Energy gave positive guidance late Monday after beating earnings estimates for the first quarter. The oil stock fell Tuesday after hitting a new high. Tidewater and Transocean gave mixed reports.

STEINHAUSEN, Switzerland (AP) — STEINHAUSEN, Switzerland (AP) — Transocean Ltd. (RIG) on Monday reported first-quarter net income of $71 million. The Steinhausen, Switzerland-based company said it had profit of 6 cents per share. Losses, adjusted for pretax gains, came to 3 cents per share. The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 7 cents per share. The offshore oil and gas drilling contractor posted revenue of $1.08 billion in the period, surpassing Street forecasts. Four analysts surveyed by Zacks expected $1.03 billion. For the current quarter ending in June, Transocean said it expects revenue in the range of $930 million to $970 million. The company expects full-year revenue in the range of $3.8 billion to $3.9 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on RIG at https://www.zacks.com/ap/RIG

STEINHAUSEN, Switzerland, May 04, 2026 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today issued a quarterly Fleet Status Report that provides the current status of, and contract information for, the company’s fleet of offshore drilling rigs. UPDATES This quarter’s report includes the following updates: Transocean Barents – Awarded a 1,095-day contract with Vår Energi ASA in Norway. Deepwater Orion – Awarded a 1,095-day contract extension with Petrobras in Brazil. Deepwater Aquila – Awarded a 365-day contract extension with Petrobras in Brazil. Deepwater Corcovado – Awarded a 1,156-day contract extension with Petrobras in Brazil. Deepwater Asgard – Awarded a five-well contract in the Eastern Mediterranean Sea. The aggregate incremental backlog associated with these fixtures is approximately $1.6 billion. As of May 4, 2026, the company’s total backlog is approximately $7.1 billion. The report can be accessed on the company’s website: www.deepwater.com. ABOUT TRANSOCEAN Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world. Transocean owns or has partial ownership interests in and operates a fleet of 27 mobile offshore drilling units, consisting of 20 ultra-deepwater floaters and seven harsh environment floaters. FORWARD-LOOKING STATEMENTS The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “approximately,” “expected,” “estimated,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are beyond our control, and in many cases, cannot be predicted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. Factors that could cause actual results to differ mate...

Image source: The Motley Fool. Tuesday, May 5, 2026 at 9:00 a.m. ET President and Chief Executive Officer — Keelan I. Adamson Executive Vice President and Chief Financial Officer — Thaddeus Vayda Executive Vice President and Chief Operating Officer — Roderick J. Mackenzie Head of Investor Relations — David Kiddington Keelan I. Adamson: Good morning, and welcome to our first quarter conference call. Today, we will address several topics. First, an overview of our accomplishments in the first quarter. Next, I will provide some market updates, including a few thoughts on the impact of events in the Middle East on our business. Then I will update you on the pending acquisition of Valaris. And finally, Thaddeus will make a few comments on our financial results and guidance. First, the quarter. Operational performance was very strong, with uptime of 98%. Adjusted EBITDA was $440 million, implying a solid margin of over 40%. Our average daily revenue in the period was $476,000, the highest in over a decade. These results were accomplished while working safely and efficiently with zero life-changing injuries or operational integrity events. This exceptional performance is due to our team's dedication to providing best-in-class service to our customers. We are committed to eliminating costs from our business and are on track to deliver, versus a 2024 baseline, savings of $250 million in aggregate through 2026. As we have discussed, these savings are associated with continuous improvements in how we run our rig operations, removing idle and stacked assets from the fleet, more efficient maintenance spending, and a reduction in shore-based support infrastructure. Since our February call, we have announced approximately $1.6 billion of backlog, including new contracts and contract extensions on five rigs in Norway, Brazil, and the Eastern Mediterranean, increasing our backlog to over $7 billion as reflected in our fleet status report published yesterday. Nearly one third of this backlog increase is related to a three-year contract on the Transocean Barron with Vår Energi in Norway at a rate of $450,000 per day. The program is expected to start in mid-2027 and includes options that, if fully exercised, could keep the Barron working in Norway into 2034. We are very excited to be commencing a new long-term strategic relationship with Vår Energi. In Brazil, three of our ultr...

Transocean (RIG) reported $1.08 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 19.3%. EPS of -$0.03 for the same period compares to -$0.10 a year ago. The reported revenue represents a surprise of +5.17% over the Zacks Consensus Estimate of $1.03 billion. With the consensus EPS estimate being $0.07, the EPS surprise was -140.54%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Transocean performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Utilization - Total fleet average rig utilization: 86.7% versus the three-analyst average estimate of 83.2%. Utilization - Ultra-Deepwater Floaters: 82.1% versus the three-analyst average estimate of 79.3%. Average Daily Revenue - Harsh Environment Floaters: $463.8 thousand versus $466.33 thousand estimated by three analysts on average. Average Daily Revenue - Total fleet average daily revenue: $475.6 thousand compared to the $476.05 thousand average estimate based on three analysts. Average Daily Revenue - Ultra Deepwater Floaters: $480.7 thousand compared to the $479.9 thousand average estimate based on three analysts. Utilization - Harsh Environment Floaters: 100% versus the three-analyst average estimate of 95.7%. Contract drilling revenues- Ultra-Deepwater Floaters: $748 million versus the two-analyst average estimate of $701.65 million. The reported number represents a year-over-year change of +13.7%. Contract drilling revenues- Harsh Environment Floaters: $333 million versus $263.81 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +34.3% change. View all Key Company Metrics for Transocean here>>> Shares of Transocean have returned +3.8% over the past month versus the Zacks S&P 500 composite's +10% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perfor...

Achieved 98% uptime and 40% EBITDA margins, driven by the highest average daily revenue in over a decade at $476,000. Added $1.6 billion in backlog during the quarter, bringing the total to over $7 billion, with nearly one-third coming from a strategic long-term contract in Norway. Management attributes the market's tightening to a fundamental shift where offshore CapEx is expected to grow from 13% to nearly 30% of total industry spend by 2028. The energy security imperative, amplified by Middle East instability, is driving nations like India and Indonesia to aggressively expand domestic offshore exploration and production. Operational efficiency initiatives are on track to deliver $250 million in aggregate cost savings through 2026 by optimizing maintenance and reducing shore-based infrastructure. Strategic 'blend-and-extend' negotiations in Brazil secured 38 rig years of capacity for Petrobras, signaling a shift toward long-term commitment by major operators. Revised deepwater utilization expectations upward to approach nearly 100% by 2027, up from previous estimates of 90%. Anticipate the Valaris acquisition to close in 2026, targeting $200 million in cost synergies that are incremental to a standalone $250 million cost reduction program, with a pro forma backlog of approximately $12 billion. Projecting a significant increase in African regional rig counts from 15 units today to at least 20 over the next one to two years. Firm full-year 2026 and 2027 contract coverage is currently 86% and 73% respectively, providing a foundation for continued debt and interest expense reduction. Management expects to retire at least $750 million in total debt in 2026, aiming for the combined company to reach leverage of approximately 1.5x EBITDA within 24 months of the Valaris closing. Received a second request for information from the U.S. Department of Justice regarding the Valaris acquisition, though management remains confident in a 2026 closing timeline. Opportunistically retired $358 million in Deepwater Titan notes, reducing annual interest expense by nearly $40 million. Increased 2026 capital expenditure guidance by $20 million, with approximately half of the increase dedicated to environmental upgrades required by customers in Norway. Noted that while ocean and air freight costs have risen 30%–50%, logistics only represent 2% to 3% of annual O&M costs, limiting i...