RIG News & Analysis

Transocean Ltd. (RIG) Shares Reach $6.79 with Strong P/E Ratio

As of April 28, Transocean Ltd. (RIG) shares were trading at $6.79 with a forward P/E of 3.84. The company is set to benefit from the offshore drilling upcycle expected to last until 2027, with projections of $2B in FY27E EBITDA and $1B in free cash flow post-acquisition of Valaris. RIG's leverage is anticipated to decline from 3.8x to around 3.0x, enhancing financial flexibility. The shift in pricing power to contractors could see dayrates rise from approximately $450K to between $600K and $800K, suggesting a re-rating potential for RIG shares above $20.