Offshore driller Transocean Ltd’s (NYSE:RIG) stock closed higher Friday after the company posted mixed fourth-quarter results and highlighted progress on its pending merger with its rival, Valaris Ltd..
Here’s what investors need to know.
- Transocean stock is gaining positive traction. Why are RIG shares climbing?
Earnings Miss But Revenue Beats Expectations
Transocean delivered adjusted earnings of two cents per share, missing Wall Street’s eight cent consensus, while revenue climbed to $1.04 billion, slightly ahead of forecasts.
Contract drilling revenue rose 1.5% from the prior quarter on better rig utilization, even as operating and maintenance expenses increased to $605 million amid shipyard work across four rigs.
Strong Backlog, Cash Flow and Debt Reduction
For 2025, Transocean generated $749 million in operating cash flow and $626 million in free cash flow, ending the year with $1.51 billion in total liquidity and a contract backlog of about $6.1 billion.
Management has also retired roughly $1.3 billion of debt, reducing annual interest expense by nearly $90 million.
Valaris Deal To Create Offshore Heavyweight
Investors are also watching Transocean’s plan to acquire Valaris Ltd. in a roughly $5.8 billion transaction that will create an offshore driller with an estimated $10 billion backlog and greater cash-flow visibility.
CEO Keelan Adamson said the combined fleet of high-spec rigs should enhance financial flexibility and support continued investment in people, assets and technology.
RIG’s Mixed Technicals
The stock’s technical indicators reveal a mixed picture. The RSI is at 68.98, indicating neutral momentum, while the MACD shows a bullish signal with a value of 0.4874, above its signal line at 0.3947.
This combination suggests that while the stock is not overbought, there is still upward momentum present.
- Key Resistance: $6.50
- Key Support: $6
RIG Shares Close Higher Friday
RIG Price Action: Transocean shares closed up 2.84% at $6.52 at the time of publication on Friday. The stock is trading near its 52-week high of $6.57, according to Benzinga Pro data.
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