SDRL - Transocean: Q4 2024 Earnings Preview - Profitability In Reach, But Backlog Likely To Take A Hit
2025-01-16 14:20:27 ET
Summary
- Leading offshore driller Transocean will report Q4 and full-year 2024 results next month. On the conference call, management will also provide an update to its 2025 outlook.
- Given the lack of new contract announcements in recent months, the company's backlog is likely to take a hit.
- Based on management's guidance for Q4 2024, profitability appears within reach. In addition, the company should generate a decent amount of cash.
- Failure to close on a previously announced $342 million floater sale would likely result in shares experiencing some selling pressure.
- While Transocean's strong contract coverage and state-of-the-art floater fleet justify a premium valuation, the stock remains expensive relative to peers. Consequently, I am reiterating my "Hold" rating on the company's.
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.
With leading offshore driller Transocean scheduled to report Q4 and full-year 2024 results next month, I have taken the time to outline my expectations for the quarter and provide an outlook for 2025....
Transocean: Q4 2024 Earnings Preview - Profitability In Reach, But Backlog Likely To Take A Hit