STEINHAUSEN, Switzerland - Transocean Ltd . (NYSE: NYSE:RIG), an international leader in offshore contract drilling, announced today a significant contract extension for its Deepwater Asgard rig in the U.S. Gulf of Mexico.
The 365-day extension with an independent operator is set to follow the rig's present schedule and is projected to generate approximately $188 million in additional revenue.
The Deepwater Asgard is part of Transocean's high-specification floating drilling fleet, which includes 27 ultra-deepwater floaters and eight harsh environment floaters. The company also disclosed it is constructing an additional ultra-deepwater drillship, further expanding its capabilities.
This contract extension is expected to commence without interruption after the current program ends. Transocean's announcement underscores the continued demand for high-specification drilling services, particularly in technically challenging sectors such as deepwater operations.
Transocean, with a fleet of 35 mobile offshore drilling units, is recognized for its work in the global offshore drilling business, emphasizing deepwater and harsh environment services.
The information provided here is based on a press release statement from Transocean Ltd.
In other recent news, Transocean Ltd., a significant player in offshore drilling services, has reported its Q1 2024 results, with an adjusted EBITDA of $199 million and adjusted contract drilling revenues of $767 million.
The company has also made amendments to its Articles of Association, increasing its share capital due to the issuance of an additional 22.5 million shares, now held in treasury. In addition, Transocean has secured new contracts for three of its harsh environment semisubmersible rigs, amassing a firm backlog of approximately $161 million. Notable contract extensions include those from Equinor, Wintershall Dea, and Woodside (OTC:WOPEY), contributing significantly to the backlog.
InvestingPro Insights
As Transocean Ltd. (NYSE: RIG) secures a lucrative contract extension for its Deepwater Asgard rig, investors and industry observers are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Transocean boasts a market capitalization of $4.12 billion, reflecting its significant presence in the offshore drilling sector. Despite the positive news, the company's financial metrics indicate some challenges. The Price/Earnings (P/E) Ratio stands at -10.18, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at -12.55, suggesting that the market has concerns about future earnings.
InvestingPro Tips indicate that Transocean operates with a significant debt burden and that its stock price movements are quite volatile. Analysts are not expecting the company to be profitable this year, as evidenced by the negative operating income margin of -2.51% for the last twelve months as of Q1 2024. Additionally, Transocean does not pay a dividend to shareholders, which may influence investment decisions for those seeking income-generating assets.
Despite these challenges, the company has experienced an 11.68% revenue growth over the last twelve months as of Q1 2024, indicating a potential turnaround in its operational performance. With a Price/Book ratio of 0.39 in the same period, the stock may be appealing to value investors looking for assets trading below their book value.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/RIG. These tips provide a comprehensive understanding of Transocean's financial position and market potential. Interested readers can access these insights and benefit from an exclusive offer by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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