SDRL - Transocean: Strong Near-Term Contract Coverage Reflected In Premium Valuation - Hold

2025-04-02 16:52:42 ET

Summary

• Transocean reported fourth quarter and full-year 2024 results largely in line with expectations.
• Disappointingly, the previously disclosed $342 million sale of two lower-specification floaters failed.
• On the conference call, management issued Q1 guidance slightly below consensus estimates and tweaked full-year expectations.
• Due to strong near-term contract coverage, the company remains largely protected from current industry weakness.
• However, this is more than reflected in Transocean's premium valuation. Consequently, I am reiterating my "Hold" rating on the shares.

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. ...

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