Transocean Ltd. (RIG) Shares Surge 8.46% on Strong Earnings, Backlog Growth, Debt Reduction

Transocean Ltd. (RIG) shares hit their highest level so far this month on Nov. 12, with an intraday gain of 4.52%. The stock has climbed 8.46% over five consecutive days, extending a recent rally driven by improved financials and market sentiment.

The offshore drilling contractor’s third-quarter results for 2025 exceeded expectations, with adjusted earnings per share of 6 cents and revenue of $1.03 billion, both surpassing forecasts. A $243 million increase in the company’s backlog to $6.7 billion, fueled by customer contract extensions, underscored growing demand for its services. Analysts, including Barclays’ Eddie Kim and BofA Securities, raised price targets, citing optimism about deepwater drilling recovery by late 2026–2027 and Transocean’s strategic focus on long-term contracts.

Strategic debt management further bolstered investor confidence. Transocean executed a successful tender offer, repurchasing $209.6 million of high-cost debt and reducing leverage to 0.77. The company’s proactive approach to deleveraging, combined with a $6.7 billion backlog, positions it to benefit from an anticipated industry upcycle. Broader market optimism about offshore drilling, driven by energy demand and geopolitical factors, has reinforced the stock’s momentum, though challenges like asset impairments remain. Transocean’s alignment with long-term sector trends suggests its recent gains could persist as recovery gains traction.