Transocean Ltd. Reports First Quarter 2025 Results
Transocean reported its Q1 2025 financial results, showing mixed performance. Contract drilling revenues reached $906 million, marking a $143 million year-over-year increase but a sequential decrease of $46 million from Q4 2024.
Key financial highlights:
- Net loss of $79 million ($0.11 per diluted share)
- Revenue efficiency improved to 95.5%
- Operating expenses increased to $618 million
- Adjusted EBITDA of $244 million with 26.9% margin
- Strong backlog of $7.9 billion
The quarter saw lower revenues due to rig contract preparation and mobilization activities. Despite uncertain market conditions and commodity price volatility, CEO Jeremy Thigpen noted the company's solid performance and highlighted debt reduction of $210 million. The company maintains a highly contracted fleet and continues discussions with customers for future opportunities.
Transocean ha comunicato i risultati finanziari del primo trimestre 2025, evidenziando performance contrastanti. I ricavi da perforazione a contratto hanno raggiunto 906 milioni di dollari, con un aumento di 143 milioni su base annua, ma una diminuzione sequenziale di 46 milioni rispetto al quarto trimestre 2024.
Punti salienti finanziari:
- Perdita netta di 79 milioni di dollari (0,11 dollari per azione diluita)
- Efficienza dei ricavi migliorata al 95,5%
- Spese operative aumentate a 618 milioni di dollari
- EBITDA rettificato di 244 milioni di dollari con margine del 26,9%
- Solido portafoglio ordini pari a 7,9 miliardi di dollari
Il trimestre ha registrato ricavi inferiori a causa delle attività di preparazione e mobilitazione dei contratti delle piattaforme. Nonostante condizioni di mercato incerte e volatilità dei prezzi delle materie prime, l’amministratore delegato Jeremy Thigpen ha sottolineato la solida performance dell’azienda e ha evidenziato una riduzione del debito di 210 milioni di dollari. La società mantiene una flotta altamente contrattualizzata e prosegue le trattative con i clienti per opportunità future.
Transocean informó sus resultados financieros del primer trimestre de 2025, mostrando un desempeño mixto. Los ingresos por perforación bajo contrato alcanzaron los 906 millones de dólares, lo que representa un aumento interanual de 143 millones, pero una disminución secuencial de 46 millones respecto al cuarto trimestre de 2024.
Puntos financieros clave:
- Pérdida neta de 79 millones de dólares (0,11 dólares por acción diluida)
- Eficiencia de ingresos mejorada al 95,5%
- Gastos operativos aumentaron a 618 millones de dólares
- EBITDA ajustado de 244 millones de dólares con un margen del 26,9%
- Fuerte cartera de pedidos de 7,9 mil millones de dólares
El trimestre registró ingresos más bajos debido a las actividades de preparación y movilización de contratos de plataformas. A pesar de condiciones de mercado inciertas y volatilidad en los precios de las materias primas, el CEO Jeremy Thigpen destacó el sólido desempeño de la compañía y resaltó la reducción de deuda de 210 millones de dólares. La empresa mantiene una flota altamente contratada y continúa las conversaciones con clientes para oportunidades futuras.
트랜스오션은 2025년 1분기 재무 실적을 발표하며 혼조된 성과를 보였습니다. 계약 시추 수익은 9억 600만 달러로 전년 대비 1억 4,300만 달러 증가했으나 2024년 4분기 대비 4,600만 달러 감소했습니다.
주요 재무 하이라이트:
- 순손실 7,900만 달러 (희석 주당 0.11달러)
- 수익 효율성 95.5%로 개선
- 영업비용 6억 1,800만 달러로 증가
- 조정 EBITDA 2억 4,400만 달러, 마진 26.9%
- 강력한 수주 잔고 79억 달러
이번 분기에는 장비 계약 준비 및 동원 활동으로 인해 수익이 감소했습니다. 제레미 티그펜 CEO는 불확실한 시장 상황과 원자재 가격 변동성에도 불구하고 회사의 견고한 실적을 강조하며 2억 1,000만 달러의 부채 감소를 언급했습니다. 회사는 계약이 잘 된 함대를 유지하며 미래 기회를 위해 고객과의 논의를 계속하고 있습니다.
Transocean a publié ses résultats financiers du premier trimestre 2025, montrant une performance mitigée. Les revenus de forage sous contrat ont atteint 906 millions de dollars, soit une augmentation de 143 millions par rapport à l'année précédente, mais une baisse séquentielle de 46 millions par rapport au quatrième trimestre 2024.
Points financiers clés :
- Perte nette de 79 millions de dollars (0,11 dollar par action diluée)
- Efficacité des revenus améliorée à 95,5%
- Dépenses d'exploitation en hausse à 618 millions de dollars
- EBITDA ajusté de 244 millions de dollars avec une marge de 26,9%
- Un carnet de commandes solide de 7,9 milliards de dollars
Le trimestre a enregistré des revenus plus faibles en raison des activités de préparation et de mobilisation des contrats de plateformes. Malgré des conditions de marché incertaines et une volatilité des prix des matières premières, le PDG Jeremy Thigpen a souligné la solide performance de l'entreprise et a mis en avant une réduction de la dette de 210 millions de dollars. L'entreprise maintient une flotte fortement contractée et poursuit les discussions avec ses clients pour des opportunités futures.
Transocean meldete seine Finanzergebnisse für das erste Quartal 2025 und zeigte eine gemischte Leistung. Die Einnahmen aus Vertragsbohrungen erreichten 906 Millionen US-Dollar, was einem Anstieg von 143 Millionen im Jahresvergleich entspricht, jedoch einem Rückgang von 46 Millionen gegenüber dem vierten Quartal 2024.
Wichtige finanzielle Highlights:
- Nettoverlust von 79 Millionen US-Dollar (0,11 US-Dollar je verwässerter Aktie)
- Verbesserte Umsatz-Effizienz von 95,5%
- Gestiegene Betriebskosten von 618 Millionen US-Dollar
- Bereinigtes EBITDA von 244 Millionen US-Dollar mit einer Marge von 26,9%
- Starker Auftragsbestand von 7,9 Milliarden US-Dollar
Das Quartal verzeichnete geringere Einnahmen aufgrund von Vorbereitungs- und Mobilisierungsaktivitäten für Bohrgeräteverträge. Trotz unsicherer Marktbedingungen und volatiler Rohstoffpreise hob CEO Jeremy Thigpen die solide Leistung des Unternehmens hervor und betonte eine Schuldenreduzierung von 210 Millionen US-Dollar. Das Unternehmen verfügt über eine stark vertraglich gebundene Flotte und führt weiterhin Gespräche mit Kunden über zukünftige Chancen.
- Contract drilling revenues increased year-over-year by $143M to $906M
- Revenue efficiency improved to 95.5% from 93.5% in previous quarter
- Adjusted EBITDA of $244M, up $45M year-over-year
- Strong backlog of $7.9 billion as of April 2025
- Reduced outstanding debt by $210M
- Higher average daily revenues across the fleet
- Net loss of $79M in Q1 2025 compared to $7M profit in Q4 2024
- Sequential revenue decline of $46M from Q4 2024
- Operating and maintenance expenses increased by $39M to $618M
- Adjusted EBITDA decreased by $79M sequentially
- Negative operating cash flow trend with $180M sequential decrease
- Unfavorable legal outcome impacting expenses in Q1
- Negative effective tax rate of -95.8%
Insights
Transocean posted mixed Q1 2025 results with $906M revenue and $79M net loss while repaying $210M debt amid challenging market conditions.
Transocean's Q1 2025 results paint a mixed financial picture. Contract drilling revenues reached
Operating and maintenance expenses increased to
Cash flow showed concerning trends with operating cash flow dropping to
On the positive side, Transocean improved its revenue efficiency to
Despite improved revenue efficiency and $7.9B backlog, Transocean faces headwinds from volatile commodity prices and increased operating costs.
Transocean's Q1 results reflect the current challenges in the offshore drilling sector. The company achieved improved revenue efficiency of
The substantial
Operating costs increased by
Management's mention of "constructive conversations with customers on opportunities several years in the future" indicates ongoing demand for advanced offshore drilling assets despite near-term uncertainty. This suggests operators continue planning for long-cycle deepwater projects while possibly deferring immediate commitments given current market conditions – a common pattern when commodity prices face volatility.
| Three months ended | Three months ended | ||||||||||||||||||
| March 31, | December 31, | sequential | March 31, | year-over-year | |||||||||||||||
| 2025 | 2024 | change | 2024 | change | |||||||||||||||
| (In millions, except per share amounts, percentages and backlog) | |||||||||||||||||||
| Contract drilling revenues | $ | 906 | $ | 952 | $ | (46 | ) | $ | 763 | $ | 143 | ||||||||
| Revenue efficiency (1) | 95.5 | % | 93.5 | % | 92.9 | % | |||||||||||||
| Operating and maintenance expense | $ | 618 | $ | 579 | $ | (39 | ) | $ | 523 | $ | (95 | ) | |||||||
| Net income (loss) attributable to controlling interest | $ | (79 | ) | $ | 7 | $ | (86 | ) | $ | 98 | $ | (177 | ) | ||||||
| Basic earnings (loss) per share | $ | (0.09 | ) | $ | 0.01 | $ | (0.10 | ) | $ | 0.12 | $ | (0.21 | ) | ||||||
| Diluted earnings (loss) per share | $ | (0.11 | ) | $ | (0.11 | ) | $ | — | $ | 0.11 | $ | (0.22 | ) | ||||||
| Adjusted EBITDA | $ | 244 | $ | 323 | $ | (79 | ) | $ | 199 | $ | 45 | ||||||||
| Adjusted EBITDA margin | 26.9 | % | 33.9 | % | 26.0 | % | |||||||||||||
| Adjusted net income (loss) | $ | (65 | ) | $ | 27 | $ | (92 | ) | $ | (22 | ) | $ | (43 | ) | |||||
| Adjusted diluted loss per share | $ | (0.10 | ) | $ | (0.09 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.07 | ) | ||||
| Backlog as of the April 2025 Fleet Status Report | $ | 7.9 | billion | ||||||||||||||||
STEINHAUSEN, Switzerland, April 28, 2025 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of
First quarter results included
Contract drilling revenues for the three months ended March 31, 2025, decreased sequentially by
Operating and maintenance expense was
General and administrative expense was
Interest expense was
The Effective Tax Rate(2) was (95.8)%, down from
Cash provided by operating activities was
First quarter 2025 capital expenditures of
“The Transocean team delivered a solid quarter, with an adjusted EBITDA of
Thigpen concluded, “While uncertain macroeconomic conditions have resulted in near-term market volatility, including commodity prices, Transocean is very well-positioned to navigate this evolving landscape. In addition to continuing to deliver strong operating performance across our highly contracted fleet, we remain engaged in constructive conversations with our customers on opportunities several years in the future.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as EBITDA, Adjusted EBITDA, Adjusted Net Income and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
About Transocean
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.
For more information about Transocean, please visit: www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference starting at 10 a.m. EDT, 4 p.m. CEST, on Tuesday, April 29, 2025, to discuss the results. To participate, dial +1 785-424-1619 and refer to conference code 119877 approximately 15 minutes prior to the scheduled start time.
The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.
A replay of the conference call will be available after 1 p.m. EDT, 7 p.m. CEST, on Tuesday, April 29, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7202, passcode 119877. The replay will also be available on the company’s website.
Forward-Looking Statements
The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2024, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
Notes
| (1) | Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.” | |
| (2) | Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.” | |
Analyst Contact:
Alison Johnson
+1 713-232-7214
Media Contact:
Pam Easton
+1 713-232-7647
| TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited) | |||||||
| Three months ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Contract drilling revenues | $ | 906 | $ | 763 | |||
| Costs and expenses | |||||||
| Operating and maintenance | 618 | 523 | |||||
| Depreciation and amortization | 176 | 185 | |||||
| General and administrative | 50 | 52 | |||||
| 844 | 760 | ||||||
| Gain (loss) on disposal of assets, net | 2 | (6 | ) | ||||
| Operating income (loss) | 64 | (3 | ) | ||||
| Other income (expense), net | |||||||
| Interest income | 8 | 15 | |||||
| Interest expense, net of amounts capitalized | (116 | ) | (117 | ) | |||
| Other, net | 4 | 12 | |||||
| (104 | ) | (90 | ) | ||||
| Loss before income tax expense (benefit) | (40 | ) | (93 | ) | |||
| Income tax expense (benefit) | 39 | (191 | ) | ||||
| Net income (loss) | (79 | ) | 98 | ||||
| Net income attributable to noncontrolling interest | — | — | |||||
| Net income (loss) attributable to controlling interest | $ | (79 | ) | $ | 98 | ||
| Earnings (loss) per share | |||||||
| Basic | $ | (0.09 | ) | $ | 0.12 | ||
| Diluted | $ | (0.11 | ) | $ | 0.11 | ||
| Weighted-average shares outstanding | |||||||
| Basic | 883 | 819 | |||||
| Diluted | 958 | 955 | |||||
| TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 263 | $ | 560 | |||
| Accounts receivable, net of allowance of | 551 | 564 | |||||
| Materials and supplies, net of allowance of | 453 | 439 | |||||
| Assets held for sale | 344 | 343 | |||||
| Restricted cash and cash equivalents | 428 | 381 | |||||
| Other current assets | 165 | 165 | |||||
| Total current assets | 2,204 | 2,452 | |||||
| Property and equipment | 22,460 | 22,417 | |||||
| Less accumulated depreciation | (6,746 | ) | (6,586 | ) | |||
| Property and equipment, net | 15,714 | 15,831 | |||||
| Deferred tax assets, net | 50 | 45 | |||||
| Other assets | 1,051 | 1,043 | |||||
| Total assets | $ | 19,019 | $ | 19,371 | |||
| Liabilities and equity | |||||||
| Accounts payable | $ | 273 | $ | 255 | |||
| Accrued income taxes | 24 | 31 | |||||
| Debt due within one year | 712 | 686 | |||||
| Other current liabilities | 647 | 691 | |||||
| Total current liabilities | 1,656 | 1,663 | |||||
| Long-term debt | 5,936 | 6,195 | |||||
| Deferred tax liabilities, net | 519 | 499 | |||||
| Other long-term liabilities | 697 | 729 | |||||
| Total long-term liabilities | 7,152 | 7,423 | |||||
| Commitments and contingencies | |||||||
| Shares, | |||||||
| and 883,261,456 outstanding at March 31, 2025, and | |||||||
| 141,262,093 conditionally authorized, 940,828,901 issued and 875,830,772 outstanding at December 31, 2024 | 88 | 87 | |||||
| Additional paid-in capital | 14,887 | 14,880 | |||||
| Accumulated deficit | (4,624 | ) | (4,545 | ) | |||
| Accumulated other comprehensive loss | (141 | ) | (138 | ) | |||
| Total controlling interest shareholders’ equity | 10,210 | 10,284 | |||||
| Noncontrolling interest | 1 | 1 | |||||
| Total equity | 10,211 | 10,285 | |||||
| Total liabilities and equity | $ | 19,019 | $ | 19,371 | |||
| TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | |||||||
| Three months ended | |||||||
| March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities | |||||||
| Net income (loss) | $ | (79 | ) | $ | 98 | ||
| Adjustments to reconcile to net cash provided by (used in) operating activities: | |||||||
| Amortization of contract intangible asset | — | 4 | |||||
| Depreciation and amortization | 176 | 185 | |||||
| Share-based compensation expense | 8 | 11 | |||||
| (Gain) loss on disposal of assets, net | (2 | ) | 6 | ||||
| Amortization of debt-related balances, net | 13 | 13 | |||||
| Gain on adjustment to bifurcated compound exchange feature | (36 | ) | (10 | ) | |||
| Loss on impairment of investment in unconsolidated affiliates | — | 1 | |||||
| Deferred income tax expense (benefit) | 15 | (164 | ) | ||||
| Other, net | 4 | — | |||||
| Changes in deferred revenues, net | (38 | ) | 77 | ||||
| Changes in deferred costs, net | (12 | ) | (38 | ) | |||
| Changes in other operating assets and liabilities, net | (23 | ) | (269 | ) | |||
| Net cash provided by (used in) operating activities | 26 | (86 | ) | ||||
| Cash flows from investing activities | |||||||
| Capital expenditures | (60 | ) | (83 | ) | |||
| Investment in loan to unconsolidated affiliate | — | (2 | ) | ||||
| Proceeds from disposal of assets, net of costs to sell | 2 | 44 | |||||
| Net cash used in investing activities | (58 | ) | (41 | ) | |||
| Cash flows from financing activities | |||||||
| Repayments of debt | (210 | ) | (151 | ) | |||
| Other, net | (8 | ) | (1 | ) | |||
| Net cash used in financing activities | (218 | ) | (152 | ) | |||
| Net decrease in unrestricted and restricted cash and cash equivalents | (250 | ) | (279 | ) | |||
| Unrestricted and restricted cash and cash equivalents, beginning of period | 941 | 995 | |||||
| Unrestricted and restricted cash and cash equivalents, end of period | $ | 691 | $ | 716 | |||
| TRANSOCEAN LTD. AND SUBSIDIARIES | |||||||||
| FLEET OPERATING STATISTICS | |||||||||
| Three months ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| Contract Drilling Revenues (in millions) | 2025 | 2024 | 2024 | ||||||
| Ultra-deepwater floaters | $ | 658 | $ | 675 | $ | 569 | |||
| Harsh environment floaters | 248 | 277 | 194 | ||||||
| Total contract drilling revenues | $ | 906 | $ | 952 | $ | 763 | |||
| Three months ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| Average Daily Revenue (1) | 2025 | 2024 | 2024 | ||||||
| Ultra-deepwater floaters | $ | 443,600 | $ | 428,200 | $ | 422,900 | |||
| Harsh environment floaters | 443,600 | 452,600 | 367,900 | ||||||
| Total fleet average daily revenue | $ | 443,600 | $ | 434,700 | $ | 408,200 | |||
| Three months ended | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| Revenue Efficiency (2) | 2025 | 2024 | 2024 | |||||||
| Ultra-deepwater floaters | 94.3 | % | 92.0 | % | 92.7 | % | ||||
| Harsh environment floaters | 99.3 | % | 97.6 | % | 93.3 | % | ||||
| Total fleet average revenue efficiency | 95.5 | % | 93.5 | % | 92.9 | % | ||||
| Three months ended | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| Utilization (3) | 2025 | 2024 | 2024 | |||||||
| Ultra-deepwater floaters | 61.5 | % | 64.3 | % | 51.2 | % | ||||
| Harsh environment floaters | 69.5 | % | 75.0 | % | 62.0 | % | ||||
| Total fleet average rig utilization | 63.4 | % | 66.8 | % | 53.7 | % | ||||
| (1) Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence. | ||||||||||
| (2) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. | ||||||||||
| (3) Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage. | ||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | |||
| NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||
| ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE | |||
| (in millions, except per share data) | |||
| YTD | |||
| 03/31/25 | |||
| Adjusted Net Loss | |||
| Net loss attributable to controlling interest, as reported | $ | (79 | ) |
| Discrete tax items | 14 | ||
| Net loss, as adjusted | $ | (65 | ) |
| Adjusted Diluted Loss Per Share: | |||
| Diluted loss per share, as reported | $ | (0.11 | ) |
| Discrete tax items | 0.01 | ||
| Diluted loss per share, as adjusted | $ | (0.10 | ) |
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | ||||||||||||||||||||||
| 12/31/24 | 12/31/24 | 09/30/24 | 09/30/24 | 06/30/24 | 06/30/24 | 03/31/24 | ||||||||||||||||||||||
| Adjusted Net Income (Loss) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to controlling interest, as reported | $ | (512 | ) | $ | 7 | $ | (519 | ) | $ | (494 | ) | $ | (25 | ) | $ | (123 | ) | $ | 98 | |||||||||
| Loss on impairment of assets, net of tax | 755 | — | 755 | 617 | 138 | 138 | — | |||||||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliates | 5 | — | 5 | — | 5 | 4 | 1 | |||||||||||||||||||||
| Gain on retirement of debt | (161 | ) | — | (161 | ) | (21 | ) | (140 | ) | (140 | ) | — | ||||||||||||||||
| Discrete tax items | (141 | ) | 20 | (161 | ) | (38 | ) | (123 | ) | (2 | ) | (121 | ) | |||||||||||||||
| Net income (loss), as adjusted | $ | (54 | ) | $ | 27 | $ | (81 | ) | $ | 64 | $ | (145 | ) | $ | (123 | ) | $ | (22 | ) | |||||||||
| Adjusted Diluted Earnings (Loss) Per Share: | ||||||||||||||||||||||||||||
| Diluted earnings (loss) per share, as reported | $ | (0.76 | ) | $ | (0.11 | ) | $ | (0.65 | ) | $ | (0.58 | ) | $ | (0.03 | ) | $ | (0.15 | ) | $ | 0.11 | ||||||||
| Loss on impairment of assets, net of tax | 0.82 | — | 0.82 | 0.64 | 0.17 | 0.17 | — | |||||||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliates | 0.01 | — | 0.01 | — | — | — | — | |||||||||||||||||||||
| Gain on retirement of debt | (0.18 | ) | — | (0.18 | ) | (0.02 | ) | (0.17 | ) | (0.17 | ) | — | ||||||||||||||||
| Discrete tax items | (0.15 | ) | 0.02 | (0.18 | ) | (0.04 | ) | (0.15 | ) | — | (0.14 | ) | ||||||||||||||||
| Diluted earnings (loss) per share, as adjusted | $ | (0.26 | ) | $ | (0.09 | ) | $ | (0.18 | ) | $ | — | $ | (0.18 | ) | $ | (0.15 | ) | $ | (0.03 | ) | ||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | |||
| NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | |||
| ADJUSTED CONTRACT DRILLING REVENUES | |||
| EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS | |||
| (in millions, except percentages) | |||
| YTD | |||
| 03/31/25 | |||
| Contract drilling revenues | $ | 906 | |
| Net loss | $ | (79 | ) |
| Interest expense, net of interest income | 108 | ||
| Income tax expense | 39 | ||
| Depreciation and amortization | 176 | ||
| EBITDA | 244 | ||
| Adjusted EBITDA | $ | 244 | |
| Loss margin | (8.7 | )% | |
| EBITDA margin | 26.9 | % | |
| Adjusted EBITDA margin | 26.9 | % | |
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | |||||||||||||||||||||
| 12/31/24 | 12/31/24 | 09/30/24 | 09/30/24 | 06/30/24 | 06/30/24 | 03/31/24 | |||||||||||||||||||||
| Contract drilling revenues | $ | 3,524 | $ | 952 | $ | 2,572 | $ | 948 | $ | 1,624 | $ | 861 | $ | 763 | |||||||||||||
| Contract intangible asset amortization | 4 | — | 4 | — | 4 | — | 4 | ||||||||||||||||||||
| Adjusted Contract Drilling Revenues | $ | 3,528 | $ | 952 | $ | 2,576 | $ | 948 | $ | 1,628 | $ | 861 | $ | 767 | |||||||||||||
| Net income (loss) | $ | (512 | ) | $ | 7 | $ | (519 | ) | $ | (494 | ) | $ | (25 | ) | $ | (123 | ) | $ | 98 | ||||||||
| Interest expense, net of interest income | 312 | 81 | 231 | 69 | 162 | 60 | 102 | ||||||||||||||||||||
| Income tax expense (benefit) | (11 | ) | 55 | (66 | ) | (31 | ) | (35 | ) | 156 | (191 | ) | |||||||||||||||
| Depreciation and amortization | 739 | 180 | 559 | 190 | 369 | 184 | 185 | ||||||||||||||||||||
| Contract intangible asset amortization | 4 | — | 4 | — | 4 | — | 4 | ||||||||||||||||||||
| EBITDA | 532 | 323 | 209 | (266 | ) | 475 | 277 | 198 | |||||||||||||||||||
| Loss on impairment of assets | 772 | — | 772 | 629 | 143 | 143 | — | ||||||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliates | 5 | — | 5 | — | 5 | 4 | 1 | ||||||||||||||||||||
| Gain on retirement of debt | (161 | ) | — | (161 | ) | (21 | ) | (140 | ) | (140 | ) | — | |||||||||||||||
| Adjusted EBITDA | $ | 1,148 | $ | 323 | $ | 825 | $ | 342 | $ | 483 | $ | 284 | $ | 199 | |||||||||||||
| Profit (loss) margin | (14.5 | )% | 0.7 | % | (20.2 | )% | (52.0 | )% | (1.5 | )% | (14.3 | )% | 12.9 | % | |||||||||||||
| EBITDA margin | 15.1 | % | 33.9 | % | 8.1 | % | (28.1 | )% | 29.2 | % | 32.2 | % | 25.8 | % | |||||||||||||
| Adjusted EBITDA margin | 32.5 | % | 33.9 | % | 32.0 | % | 36.0 | % | 29.7 | % | 33.0 | % | 26.0 | % | |||||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | ||||||||||||
| SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS | ||||||||||||
| (in millions, except tax rates) | ||||||||||||
| Three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Income (loss) before income taxes | $ | (40 | ) | $ | 62 | $ | (93 | ) | ||||
| Loss on impairment of investment in unconsolidated affiliates | — | — | 1 | |||||||||
| Adjusted income (loss) before income taxes | $ | (40 | ) | $ | 62 | $ | (92 | ) | ||||
| Income tax expense (benefit) | $ | 39 | $ | 55 | $ | (191 | ) | |||||
| Loss on impairment of investment in unconsolidated affiliates | — | — | — | |||||||||
| Changes in estimates (1) | (14 | ) | (20 | ) | 121 | |||||||
| Adjusted income tax expense (benefit) | $ | 25 | $ | 35 | $ | (70 | ) | |||||
| Effective Tax Rate (2) | (95.8 | )% | 89.0 | % | 206.0 | % | ||||||
| Effective Tax Rate, excluding discrete items (3) | (62.3 | )% | 56.7 | % | 76.9 | % | ||||||
| (1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities. | ||||||||||||
| (2) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes. | ||||||||||||
| (3) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate. | ||||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | ||||||||||||||||||||||||||||
| NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS | ||||||||||||||||||||||||||||
| FREE CASH FLOW AND LEVERED FREE CASH FLOW | ||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||
| YTD | ||||||||||||||||||||||||||||
| 03/31/25 | ||||||||||||||||||||||||||||
| Cash provided by operating activities | $ | 26 | ||||||||||||||||||||||||||
| Capital expenditures | (60 | ) | ||||||||||||||||||||||||||
| Free Cash Flow | (34 | ) | ||||||||||||||||||||||||||
| Debt repayments | (210 | ) | ||||||||||||||||||||||||||
| Debt repayments, paid from debt proceeds | - | |||||||||||||||||||||||||||
| Levered Free Cash Flow | $ | (244 | ) | |||||||||||||||||||||||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | ||||||||||||||||||||||
| 12/31/24 | 12/31/24 | 09/30/24 | 09/30/24 | 06/30/24 | 06/30/24 | 03/31/24 | ||||||||||||||||||||||
| Cash provided by (used in) operating activities | $ | 447 | $ | 206 | $ | 241 | $ | 194 | $ | 47 | $ | 133 | $ | (86 | ) | |||||||||||||
| Capital expenditures | (254 | ) | (29 | ) | (225 | ) | (58 | ) | (167 | ) | (84 | ) | (83 | ) | ||||||||||||||
| Free Cash Flow | 193 | 177 | 16 | 136 | (120 | ) | 49 | (169 | ) | |||||||||||||||||||
| Debt repayments | (2,103 | ) | (30 | ) | (2,073 | ) | (258 | ) | (1,815 | ) | (1,664 | ) | (151 | ) | ||||||||||||||
| Debt repayments, paid from debt proceeds | 1,748 | - | 1,748 | 99 | 1,649 | 1,649 | - | |||||||||||||||||||||
| Levered Free Cash Flow | $ | (162 | ) | $ | 147 | $ | (309 | ) | $ | (23 | ) | $ | (286 | ) | $ | 34 | $ | (320 | ) | |||||||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | ||||||||||||||||||||||
| 12/31/23 | 12/31/23 | 09/30/23 | 09/30/23 | 06/30/23 | 06/30/23 | 03/31/23 | ||||||||||||||||||||||
| Cash provided by (used in) operating activities | $ | 164 | $ | 98 | $ | 66 | $ | (44 | ) | $ | 110 | $ | 157 | $ | (47 | ) | ||||||||||||
| Capital expenditures | (427 | ) | (220 | ) | (207 | ) | (50 | ) | (157 | ) | (76 | ) | (81 | ) | ||||||||||||||
| Free Cash Flow | (263 | ) | (122 | ) | (141 | ) | (94 | ) | (47 | ) | 81 | (128 | ) | |||||||||||||||
| Debt repayments | (1,717 | ) | (10 | ) | (1,707 | ) | (139 | ) | (1,568 | ) | (4 | ) | (1,564 | ) | ||||||||||||||
| Debt repayments, paid from debt proceeds | 1,156 | - | 1,156 | - | 1,156 | - | 1,156 | |||||||||||||||||||||
| Levered Free Cash Flow | $ | (824 | ) | $ | (132 | ) | $ | (692 | ) | $ | (233 | ) | $ | (459 | ) | $ | 77 | $ | (536 | ) | ||||||||
FAQ
What were Transocean's (RIG) Q1 2025 earnings per share and revenue?
How much debt did Transocean (RIG) repay in Q1 2025?
What is Transocean's (RIG) current contract backlog as of April 2025?
How did Transocean's (RIG) Q1 2025 operating costs compare to previous quarter?
What was Transocean's (RIG) adjusted EBITDA for Q1 2025?
How much cash did Transocean (RIG) generate from operations in Q1 2025?
