Transocean Ltd Intrinsic Stock Value – Transocean Ltd. Sells Penang Land for RM30 million to Swift Haulage
December 3, 2023
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Transocean Ltd ($NYSE:RIG). is a global offshore drilling and drilling services provider for the oil and gas industry, operating one of the world’s largest fleets of drilling rigs. The company recently announced the sale of a piece of land in Penang to Swift Haulage for RM30 million. The piece of land located in Penang was previously owned by Transocean, who decided to sell it in order to focus on its core business. The sale was made at an attractive price and this is expected to provide Transocean with additional finances which will bolster its balance sheet. Swift Haulage is in the process of purchasing the land, which will be used for its own operations.
The sale is part of a larger strategy by Transocean to focus on its core business and to divest itself from non-core assets. This move is also expected to help the company to improve its bottom line and increase its profitability in the long run. This is expected to improve the company’s balance sheet and create long-term profitability.
Price History
This news had an immediate effect on the stock of the company as their stock opened at $6.3 at the start of the day and closed at $6.2, down by 0.8% from its last closing price of 6.3. This is a substantial decrease in the stock price and shows investors’ reaction to the sale. It is however unclear what the impact of this sale will have on TRANSOCEAN LTD‘s future operations. Live Quote…
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 |
| 2.7k | -1.2k | -36.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Transocean Ltd. More…
| Operations | Investing | Financing |
| 244 | -627 | -150 |
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 |
| 20.01k | 9.69k | 13.25 |
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 |
| -6.1% | -32.0% | -9.7% |
| FCF Margin | ROE | ROA |
| -13.8% | -1.6% | -0.8% |
Analysis – Transocean Ltd Intrinsic Stock Value
At GoodWhale, we have conducted an analysis of TRANSOCEAN LTD‘s fundamentals. Our proprietary Valuation Line estimates that the fair value of its shares is approximately $3.9. It can be seen that the current stock price of TRANSOCEAN LTD is traded at $6.2, overvalued by 58.6%. This suggests that investors may want to consider taking profit or perhaps adjust their portfolio allocations and be more cautious about their exposure to TRANSOCEAN LTD. More…
Peers
The company operates a fleet of 79 rigs, including 47 ultra-deepwater rigs, 19 harsh-environment rigs, and 13 midwater rigs. Transocean’s competitors include Equinor ASA, Noble Corp, and Chevron Corp.
– Equinor ASA ($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 is a multinational offshore drilling contractor for the oil and gas industry. Recently, they have agreed to sell a piece of land in Penang, Malaysia to Swift Haulage for approximately RM30 million. Investors should consider this news in view of the current market conditions and the potential benefits of divesting this land. Doing so may free up resources for Transocean to use elsewhere, such as in the development of new projects or to reduce financial liabilities.
Additionally, the sale could provide a boost to Transocean’s balance sheet and cash flow as well as returning a good return on investment. Furthermore, investors should examine the potential risks associated with the sale, such as any issues with land ownership or external factors that could affect the value of the land. Overall, Transocean’s decision to divest land in Penang appears to be a positive move that could generate a good return on investment.
