Added to YB: 2025-08-07
Pitch date: 2025-08-06
RIG [bullish]
Transocean Ltd.
+136.77%
current return
Author Info
Aurelion Research is a research analyst with a passion for markets, specializing in high‑conviction ideas across shipping, offshore drilling, and thematic equity research. Sign up for the newsletter.
Company Info
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells in Switzerland and internationally.
Market Cap
$8.5B
Pitch Price
$3.10
Price Target
6.70 (-10%)
Dividend
N/A
EV/EBITDA
8.46
P/E
-2.79
EV/Sales
3.24
Sector
Energy Equipment and Services
Category
turnaround
Transocean (RIG): The Last Big Bet in Offshore
RIG: Offshore drillship leader trades 5.6x 2025 EV/EBITDA vs 7.8x 20yr avg. Owns 8 of 12 global 1400-ton class drillships + 2 flagship 1700-ton units (20k psi). Low-rate legacy contracts roll off 2026-27, repricing $400k/day→$500k/day adds ~$30-35M EBITDA per rig. 70%+ rev from top-tier 7G-8G assets; Q2 $344M EBITDA (35% margin). Net debt to fall 4.9x→3.5x by late 2026, unlocking buybacks. Base case $6.70/sh, bull $12/sh. Risks: project delays, faster reactivations capping rates
Read full article (9 min)