Transocean Ltd. (NYSE:RIG) is a leading offshore drilling services company, providing essential drilling services to oil and gas companies worldwide. Despite facing competition from other drilling service providers like Seadrill and Noble Corporation, RIG continues to secure its position in the market.
On February 17, 2025, RIG reported an earnings per share (EPS) of -$0.09, missing the estimated EPS of $0.02. The company's actual revenue was approximately $961.5 million, slightly below the estimated $962.7 million. Operating and maintenance expenses increased to $579 million from the previous quarter's $563 million. Despite these challenges, RIG's backlog as of February 2025 stands at $8.3 billion. This backlog is crucial for investors as it impacts the company's sales, earnings, and cash flows, improving its financial outlook.
RIG has added $175 million to its contract backlog through new deals and extensions with companies like Reliance Industries, Equinor, and Woodside Energy. This strategic move enhances RIG's global presence and provides geographical diversification, mitigating regional market risks. Reliance Industries exercised a four-well option in India, contributing to RIG's growth.
Despite a negative price-to-earnings (P/E) ratio of -4.98, RIG's price-to-sales ratio is about 0.93, indicating the stock is valued at less than one times its sales. The debt-to-equity ratio is about 0.68, showing a moderate level of debt relative to equity. The current ratio is approximately 1.64, suggesting good liquidity to cover short-term liabilities.
