Added to YB: 2025-09-30
Pitch date: 2025-09-27
RIG [neutral]
Transocean Ltd.
+30.7%
current return
Author Info
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Company Info
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells in Switzerland and internationally.
Market Cap
$4.7B
Pitch Price
$3.16
Price Target
N/A
Dividend
N/A
EV/EBITDA
7.54
P/E
-1.28
EV/Sales
2.61
Sector
Energy Equipment and Services
Category
special_situation
Transocean's Capital Structure
RIG (update): Equity raised $381M at 16% discount to address 2027 maturities after rig sale collapsed. $6.6B debt with creditor-friendly terms limits equity upside—$502M annual amortization + $395M restricted cash constrains shareholder returns. Key catalyst: potential debt refinancing to loosen covenants could unlock trapped cash flow for equity. Currently 4.0-4.3x leverage; needs sub-3.5x for returns. Strong 7G+ fleet positioning for 2H26-27 project starts.
Read full article (6 min)