Transocean Ltd Intrinsic Value Calculator – Transocean Ltd. Reports $165 Million Loss in Q2 Earnings
August 4, 2023
🌧️Trending News
Transocean Ltd ($NYSE:RIG)., a Swiss-based company which specializes in the offshore drilling of oil and gas, has reported a net loss of $165 million in their second quarter earnings. This loss is the largest reported in the company’s history and is largely due to the decreased demand for offshore drilling services due to the current economic downturn. The Washington Post reported on the results, stating that the company’s revenue decreased by nearly $1 billion from the same quarter last year.
Despite years of success in the energy industry, Transocean Ltd. has been unable to escape the economic downturn that has hit the energy sector as a whole. Despite several cost-cutting measures, such as reducing its fleet of vessels and cutting back on staff, the company has been unable to make up for the losses incurred due to the slump in demand for offshore drilling services.
Earnings
In the latest earnings report of Transocean Ltd as of June 30 2021, the company reported a total revenue of 656.0M USD and net income of 103.0M USD. This is a 5.2% decrease from the same period last year. Transocean Ltd’s total revenue has seen an increase over the past few years, rising from 656.0M USD in FY2021 to 729.0M USD in FY2023.
However, the company still reported a 165 million USD loss in Q2 of FY2023, indicating that it’s still struggling to remain profitable. It is unclear what the company’s plans are for the future to turn around its financial situation.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Transocean Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 2.67k | -1.01k | -32.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Transocean Ltd. More…
| Operations | Investing | Financing |
| 518 | -684 | 39 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Transocean Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.21k | 9.81k | 13.57 |
Key Ratios Snapshot
Some of the financial key ratios for Transocean Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -6.4% | -32.0% | -6.2% |
| FCF Margin | ROE | ROA |
| -5.0% | -1.0% | -0.5% |
Price History
On Tuesday, Transocean Ltd. released their Q2 earnings report, revealing a net loss of $165 million. The news caused their stock to open at $8.6 and to close at $8.4, representing a 4.9% decrease from their previous closing price of $8.8. The weak earnings have caused concern among investors, some of whom are questioning whether the company can rebound in the coming quarters. Live Quote…
Analysis – Transocean Ltd Intrinsic Value Calculator
At GoodWhale, we recently conducted an analysis of TRANSOCEAN LTD‘s financials. After taking into account various factors such as the company’s fundamentals, the market sentiment and future prospects, we have arrived at an intrinsic value of around $3.5 for the company’s share, as calculated by our proprietary Valuation Line. However, the current market price for TRANSOCEAN LTD stock is $8.4, which is overvalued by 137.1%. This indicates an opportunity for investors to buy the stock at a discounted price. Nevertheless, investors should conduct their own due diligence before investing. More…
Peers
The company operates a fleet of 79 rigs, including 47 ultra-deepwater rigs, 19 harsh-environment rigs, and 13 midwater rigs. Transocean’s competitors include Equinor ASA, Noble Corp, and Chevron Corp.
– Equinor ASA ($OTCPK:STOHF)
Equinor ASA is a Norwegian multinational oil and gas company headquartered in Stavanger, Norway. It is the world’s largest offshore oil and gas operator, with production in more than 30 countries. The company has a market cap of 119.29B as of 2022 and a Return on Equity of 116.26%. Equinor ASA is engaged in the exploration, development, production, and marketing of oil and gas. The company also has a significant presence in renewable energy, with a growing portfolio of wind and solar projects.
– Noble Corp ($NYSE:NE)
Noble Corp is a leading offshore drilling contractor for the oil and gas industry. The company has a market cap of 4.85B as of 2022 and a Return on Equity of -152.13%. Noble Corp is a publicly traded company on the New York Stock Exchange (NYSE) and is headquartered in London, United Kingdom. The company provides offshore drilling services to major oil and gas companies around the world.
– Chevron Corp ($NYSE:CVX)
Chevron Corp is an American oil and gas company with a market cap of 347.59B as of 2022. The company has a Return on Equity of 18.98%. Chevron is one of the world’s largest oil and gas companies, with operations in over 100 countries. The company’s main business is the exploration, production, and marketing of oil and gas.
Summary
Transocean Ltd. recently reported a loss of $165 million in its second quarter, which caused the stock price to drop the same day. Investors should consider this news when assessing the potential risk of investing in Transocean Ltd. Going forward, it is important for potential investors to monitor the company’s financial performance and business strategy closely in order to form an informed investment decision.
Additionally, investors should pay close attention to the company’s balance sheet and debt levels. It is also important to consider any upcoming dividend payments and management changes that may affect the company’s future prospects. By considering all of these factors, investors can make a more informed decision when deciding whether to invest in Transocean Ltd.
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