Should You Buy This Mid Cap Energy Stock-RIG

Acrobull UK Advisory Services Ltd.

December 11			2024
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Transocean Ltd.	RIG-NYSE	Energy		$3.521 Billion	Medium

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells.

Recent Highlights

Transocean Ltd. (RIG) is regarded one of the oversold energy stocks to buy right now, ranking first on the list. The business, a renowned offshore drilling contractor, owns a large fleet of rigs and recently signed a significant contract with BP for its ultra-deepwater drillship, Deepwater Atlas.

Transocean has also taken steps to decrease debt by selling two non-strategic businesses, allowing the company to focus on its most important assets. With a forward P/E ratio of 16.95 and a year-to-date performance of -30.26%, RIG is regarded as a viable investment prospect, while the report cautions that AI stocks may hold better promise for bigger returns.

Third Quarter 2024 Financial Highlights

Contract drilling revenues increased by $87 million to $948 million in the three months ended September 30, 2024, owing primarily to increased rig utilization, higher dayrates for two rigs, higher reimbursement revenues, and a full quarter of revenues from the newbuild ultra-deepwater drillship Deepwater Aquila, which were partially offset by lower revenue efficiency across the fleet.

Operating and maintenance costs were $563 million, up to $534 million in the previous quarter. The sequential increase was driven by higher fleet activity, including a full quarter of operations from Deepwater Aquila, which was somewhat offset by lower operating costs for Transocean Norge following the acquisition of Orion Holdings (Cayman) Limited in June 2024.

Interest expense net of capitalized amounts was $154 million, up from $143 million in the previous quarter, excluding a favorable adjustment of $74 million and $69 million in the third and second quarters, respectively, for the fair value of the bifurcated exchange feature associated with the 4.625% exchangeable bonds. Interest income was $11 million, compared to $14 million in the previous quarter.

Stock Observation- The company has reported average financial results in the last quarter and is poised to report better financial results in the next quarter. The RSI level for the stock is at 38 which shows oversold conditions. Customers looking for a mid cap, medium term stock may choose to invest in it.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Watch Rating for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$3.98 USD
Acrobull Recommendation	Buy
Target Price	Target $4.47 USD
RSI Level	14 Day RSI 36
Total Shares Outstanding	875.8 Million
Shares held by Insiders Risk Factor Stop Loss	16.68% Medium 5%