Transocean Stock Slides After-Hours On Q4 Miss, But Retail Bulls Pin Hopes On Valaris Deal

he Valaris acquisition will enable Transocean to own 73 rigs capable of serving customers in deepwater, harsh-environment, and shallow-water basins around the world.

• The company reported fourth-quarter operating revenues of $3.97 billion, up 13% year over year.
• Transocean’s adjusted profit per share came in at $0.02, compared with analysts’ estimates of $0.07, according to data from Fiscal AI.
• Transocean announced it will combine the two companies, with Transocean acquiring Valaris in an all-stock transaction valued at nearly $5.8 billion.

Transocean Ltd. shares fell more than 3% in extended trading Thursday after the company reported fourth-quarter profit that missed expectations, even as it highlighted growth driven by stronger contract drilling revenue, improved rig utilization, and cost reductions.

The stock had risen for two straight sessions but could snap that streak if weakness carries into Friday’s trading. Shares are up 54% so far this year, largely fueled by its planned acquisition of Valaris Limited, and gained 10% in 2025 as investors responded to efforts to rein in costs amid softer oil prices.

Transocean Q4 2025 Earnings Snapshot

The company reported fourth-quarter operating revenues of $3.97 billion, up 13% year over year. Transocean’s contract drilling revenue came in at $1.04 billion in-line with Wall Street expectations.

Transocean’s adjusted profit per share came in at $0.02, compared with analysts’ estimates of $0.07, according to data from Fiscal AI. “During 2025, we took significant strides to strengthen our capital structure, sustainably lowering costs and ensuring we continue to deliver best-in-class service to our customers around the world,” said CEO Keelan Adamson.  

 “At just shy of 98%, we delivered our best uptime performance on record while making significant progress in strengthening our balance sheet by retiring approximately $1.3 billion in debt principal and saving nearly $90 million in annualized interest expense,” Adamson said.

RIG’s Valaris Acquisition

Last week, Transocean said it would combine the two companies, with Transocean acquiring Valaris in an all-stock transaction valued at nearly $5.8 billion. The shareholding percentages of the combined company will be about 53% for Transocean and 47% for Valaris.

Transocean said that the transaction brings together highly complementary, premium offshore assets. On a pro forma basis, the company will own 73 rigs capable of serving customers in deepwater, harsh-environment, and shallow-water basins around the world.

What Is Retail Thinking About RIG?

Retail sentiment on Transocean dipped to ‘bullish’ from ‘extremely bullish’ a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A user on Stocktwits said that Transocean has paid off a massive amount of debt, reducing overhead, and merging with a solid, cash-flow-positive company.

Shares of Transocean have surged more than 89% in the last 12 months.

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