Transocean Ltd. Reports Second Quarter 2025 Results
Transocean (NYSE:RIG) reported its Q2 2025 financial results with mixed performance. Contract drilling revenues increased to $988 million, up $82 million sequentially and $127 million year-over-year. The company posted a net loss of $938 million ($1.06 per share), primarily due to a $1.128 billion asset impairment charge.
Key operational metrics showed improvement with revenue efficiency of 96.6% and adjusted EBITDA of $344 million, representing a 34.9% margin. Operating and maintenance expenses decreased to $599 million from $618 million in the previous quarter. The company generated $128 million in operating cash flow and maintains a substantial backlog of $7.2 billion.
Management highlighted their progress in debt reduction, targeting over $700 million in debt reduction for the year to strengthen the balance sheet.
Transocean (NYSE:RIG) ha comunicato i risultati finanziari del secondo trimestre 2025 con performance contrastanti. I ricavi da perforazione a contratto sono saliti a 988 milioni di dollari, in aumento di 82 milioni rispetto al trimestre precedente e di 127 milioni su base annua. L'azienda ha registrato una perdita netta di 938 milioni di dollari (1,06 dollari per azione), principalmente a causa di una svalutazione di attività pari a 1,128 miliardi di dollari.
I principali indicatori operativi hanno mostrato miglioramenti con un indice di efficienza dei ricavi del 96,6% e un EBITDA rettificato di 344 milioni di dollari, corrispondente a un margine del 34,9%. Le spese operative e di manutenzione sono diminuite a 599 milioni di dollari rispetto ai 618 milioni del trimestre precedente. La società ha generato 128 milioni di dollari di flusso di cassa operativo e mantiene un consistente portafoglio ordini di 7,2 miliardi di dollari.
La direzione ha sottolineato i progressi nella riduzione del debito, puntando a un taglio superiore a 700 milioni di dollari per l'anno, al fine di rafforzare il bilancio.
Transocean (NYSE:RIG) reportó sus resultados financieros del segundo trimestre de 2025 con un desempeño mixto. Los ingresos por perforación bajo contrato aumentaron a 988 millones de dólares, incrementándose en 82 millones respecto al trimestre anterior y 127 millones en comparación con el año anterior. La compañía registró una pérdida neta de 938 millones de dólares (1,06 dólares por acción), principalmente debido a un cargo por deterioro de activos de 1.128 millones de dólares.
Los principales indicadores operativos mostraron mejoras con una eficiencia de ingresos del 96,6% y un EBITDA ajustado de 344 millones de dólares, lo que representa un margen del 34,9%. Los gastos operativos y de mantenimiento disminuyeron a 599 millones desde 618 millones en el trimestre previo. La empresa generó 128 millones de dólares en flujo de caja operativo y mantiene una cartera de pedidos sustancial de 7.2 mil millones de dólares.
La gerencia destacó sus avances en la reducción de deuda, apuntando a una disminución de más de 700 millones de dólares durante el año para fortalecer el balance.
Transocean (NYSE:RIG)은 2025년 2분기 재무 실적을 발표하며 혼재된 성과를 보였습니다. 계약 드릴링 수익은 9억 8,800만 달러로 전 분기 대비 8,200만 달러, 전년 동기 대비 1억 2,700만 달러 증가했습니다. 회사는 주로 11억 2,800만 달러의 자산 손상차손으로 인해 9억 3,800만 달러(주당 1.06달러)의 순손실을 기록했습니다.
주요 운영 지표는 96.6%의 수익 효율성과 3억 4,400만 달러의 조정 EBITDA(34.9% 마진)를 보여 개선되었습니다. 영업 및 유지보수 비용은 이전 분기의 6억 1,800만 달러에서 5억 9,900만 달러로 감소했습니다. 회사는 1억 2,800만 달러의 영업 현금 흐름을 창출했으며 72억 달러 규모의 견고한 수주 잔고를 유지하고 있습니다.
경영진은 재무 건전성 강화를 위해 연간 7억 달러 이상의 부채 감축 목표를 강조했습니다.
Transocean (NYSE:RIG) a publié ses résultats financiers du deuxième trimestre 2025 avec des performances mitigées. Les revenus de forage sous contrat ont augmenté pour atteindre 988 millions de dollars, en hausse de 82 millions par rapport au trimestre précédent et de 127 millions sur un an. La société a enregistré une perte nette de 938 millions de dollars (1,06 dollar par action), principalement en raison d'une charge de dépréciation d'actifs de 1,128 milliard de dollars.
Les principaux indicateurs opérationnels ont montré une amélioration avec une efficacité des revenus de 96,6% et un EBITDA ajusté de 344 millions de dollars, soit une marge de 34,9%. Les dépenses d'exploitation et de maintenance ont diminué à 599 millions contre 618 millions au trimestre précédent. L'entreprise a généré un flux de trésorerie opérationnel de 128 millions et maintient un carnet de commandes important de 7,2 milliards de dollars.
La direction a souligné ses progrès dans la réduction de la dette, visant une diminution de plus de 700 millions de dollars pour l'année afin de renforcer le bilan.
Transocean (NYSE:RIG) meldete seine Finanzergebnisse für das zweite Quartal 2025 mit gemischter Leistung. Die Vertragsbohrumsätze stiegen auf 988 Millionen US-Dollar, ein Anstieg von 82 Millionen gegenüber dem Vorquartal und 127 Millionen im Jahresvergleich. Das Unternehmen verzeichnete einen Nettoverlust von 938 Millionen US-Dollar (1,06 US-Dollar pro Aktie), hauptsächlich aufgrund einer Wertminderung von Vermögenswerten in Höhe von 1,128 Milliarden US-Dollar.
Wichtige operative Kennzahlen zeigten Verbesserungen mit einer Umsatz-Effizienz von 96,6% und einem bereinigten EBITDA von 344 Millionen US-Dollar, was einer Marge von 34,9% entspricht. Die Betriebs- und Wartungskosten sanken von 618 Millionen auf 599 Millionen US-Dollar im Vergleich zum Vorquartal. Das Unternehmen generierte einen operativen Cashflow von 128 Millionen US-Dollar und hält einen substantiellen Auftragsbestand von 7,2 Milliarden US-Dollar.
Das Management hob Fortschritte bei der Schuldenreduzierung hervor und strebt für das Jahr eine Reduzierung von über 700 Millionen US-Dollar an, um die Bilanz zu stärken.
- Contract drilling revenues increased by $127M year-over-year to $988M
- Strong revenue efficiency of 96.6% demonstrating operational reliability
- Generated $128M in operating cash flow and $104M in free cash flow
- Substantial backlog of $7.2 billion providing revenue visibility
- Operating expenses decreased by $19M sequentially to $599M
- On track to reduce debt by over $700M in 2025
- Reported significant net loss of $938M ($1.06 per share)
- Substantial asset impairment charge of $1.128B
- High effective tax rate of 70.0% excluding discrete items
- $24M loss on conversion of debt to equity
Insights
Transocean reports mixed Q2 results with improved revenues but significant asset impairment leading to large net loss despite operational improvements.
Transocean's Q2 2025 results reveal a company in transition, with both encouraging operational improvements and concerning financial challenges. Revenue efficiency improved to
However, the headline figure is concerning: a
Operationally, there are positive signs. Operating and maintenance expenses decreased by
The balance sheet strategy appears to be gaining traction, with management confirming they're on track to reduce debt by over
These results highlight a company making operational progress while dealing with significant asset value challenges. The massive impairment suggests management is taking a more realistic view of certain assets' value, which could position them better for the future despite the short-term earnings impact.
| Three months ended | Three months ended | ||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | sequential change | June 30, 2024 | year-over-year change | |||||||||||||||||||
| (In millions, except per share amounts, percentages and backlog) | |||||||||||||||||||||||
| Contract drilling revenues | $ | 988 | $ | 906 | $ | 82 | $ | 861 | $ | 127 | |||||||||||||
| Revenue efficiency (1) | 96.6 | % | 95.5 | % | 96.9 | % | |||||||||||||||||
| Operating and maintenance expense | $ | 599 | $ | 618 | $ | 19 | $ | 534 | $ | (65 | ) | ||||||||||||
| Net loss attributable to controlling interest | $ | (938 | ) | $ | (79 | ) | $ | (859 | ) | $ | (123 | ) | $ | (815 | ) | ||||||||
| Basic loss per share | $ | (1.06 | ) | $ | (0.09 | ) | $ | (0.97 | ) | $ | (0.15 | ) | $ | (0.91 | ) | ||||||||
| Diluted loss per share | $ | (1.06 | ) | $ | (0.11 | ) | $ | (0.95 | ) | $ | (0.15 | ) | $ | (0.91 | ) | ||||||||
| Adjusted EBITDA | $ | 344 | $ | 244 | $ | 100 | $ | 284 | $ | 60 | |||||||||||||
| Adjusted EBITDA margin | 34.9 | % | 26.9 | % | 33.0 | % | |||||||||||||||||
| Adjusted net income (loss) | $ | 19 | $ | (65 | ) | $ | 84 | $ | (123 | ) | $ | 142 | |||||||||||
| Adjusted diluted loss per share | $ | — | $ | (0.10 | ) | $ | 0.10 | $ | (0.15 | ) | $ | 0.15 | |||||||||||
| Backlog as of the July 2025 Fleet Status Report | $ | 7.2 | billion | ||||||||||||||||||||
STEINHAUSEN, Switzerland, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of
Second quarter results included net unfavorable items of
$1.12 8 billion,$1.27 per diluted share, loss on impairment of assets, net of tax; and$24 million ,$0.03 per diluted share, loss on conversion of debt to equity.
Partially offset by:
$195 million ,$0.22 per diluted share, discrete tax items, net.
After consideration of these net unfavorable items, second quarter 2025 adjusted net income was
Contract drilling revenues for the three months ended June 30, 2025, increased sequentially by
Operating and maintenance expense was
Interest expense was
The Effective Tax Rate(2) was
Cash provided by operating activities was
Second quarter 2025 capital expenditures were
“We reported a quarter of safe, reliable, and efficient operations, resulting in an adjusted EBITDA margin of
Adamson added, “We also continue to improve our balance sheet and are on track to reduce our debt by over
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 32 mobile offshore drilling units, consisting of 24 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 9 a.m. EDT, 3 p.m. CEST, on Tuesday, August 5, 2025, to discuss the results. To participate, dial +1 785-424-1116 and refer to conference code 125397 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 12 p.m. EDT, 6 p.m. CEST, on Tuesday, August 5, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-2972, passcode 125397. 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 | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Contract drilling revenues | $ | 988 | $ | 861 | $ | 1,894 | $ | 1,624 | ||||||||
| Costs and expenses | ||||||||||||||||
| Operating and maintenance | 599 | 534 | 1,217 | 1,057 | ||||||||||||
| Depreciation and amortization | 175 | 184 | 351 | 369 | ||||||||||||
| General and administrative | 49 | 59 | 99 | 111 | ||||||||||||
| 823 | 777 | 1,667 | 1,537 | |||||||||||||
| Loss on impairment of assets | (1,136 | ) | (143 | ) | (1,136 | ) | (143 | ) | ||||||||
| Gain (loss) on disposal of assets, net | 7 | — | 9 | (6 | ) | |||||||||||
| Operating loss | (964 | ) | (59 | ) | (900 | ) | (62 | ) | ||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income | 10 | 14 | 18 | 29 | ||||||||||||
| Interest expense, net of amounts capitalized | (112 | ) | (74 | ) | (228 | ) | (191 | ) | ||||||||
| Gain on retirement of debt | — | 140 | — | 140 | ||||||||||||
| Other, net | (27 | ) | 12 | (23 | ) | 24 | ||||||||||
| (129 | ) | 92 | (233 | ) | 2 | |||||||||||
| Income (loss) before income tax expense (benefit) | (1,093 | ) | 33 | (1,133 | ) | (60 | ) | |||||||||
| Income tax expense (benefit) | (155 | ) | 156 | (116 | ) | (35 | ) | |||||||||
| Net loss | (938 | ) | (123 | ) | (1,017 | ) | (25 | ) | ||||||||
| Net income attributable to noncontrolling interest | — | — | — | — | ||||||||||||
| Net loss attributable to controlling interest | $ | (938 | ) | $ | (123 | ) | $ | (1,017 | ) | $ | (25 | ) | ||||
| Loss per share, basic and diluted | $ | (1.06 | ) | $ | (0.15 | ) | $ | (1.15 | ) | $ | (0.03 | ) | ||||
| Weighted-average shares outstanding, basic and diluted | 888 | 824 | 885 | 821 | ||||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 377 | $ | 560 | ||||
| Accounts receivable, net of allowance of | 577 | 564 | ||||||
| Materials and supplies, net of allowance of | 427 | 439 | ||||||
| Assets held for sale | 43 | 343 | ||||||
| Restricted cash and cash equivalents | 395 | 381 | ||||||
| Other current assets | 181 | 165 | ||||||
| Total current assets | 2,000 | 2,452 | ||||||
| Property and equipment | 20,957 | 22,417 | ||||||
| Less accumulated depreciation | (6,205 | ) | (6,586 | ) | ||||
| Property and equipment, net | 14,752 | 15,831 | ||||||
| Deferred tax assets, net | 48 | 45 | ||||||
| Other assets | 1,011 | 1,043 | ||||||
| Total assets | $ | 17,811 | $ | 19,371 | ||||
| Liabilities and equity | ||||||||
| Accounts payable | $ | 253 | $ | 255 | ||||
| Accrued income taxes | 8 | 31 | ||||||
| Debt due within one year | 666 | 686 | ||||||
| Other current liabilities | 655 | 691 | ||||||
| Total current liabilities | 1,582 | 1,663 | ||||||
| Long-term debt | 5,885 | 6,195 | ||||||
| Deferred tax liabilities, net | 345 | 499 | ||||||
| Other long-term liabilities | 645 | 729 | ||||||
| Total long-term liabilities | 6,875 | 7,423 | ||||||
| Commitments and contingencies | ||||||||
| Shares, | 90 | 87 | ||||||
| Additional paid-in capital | 14,966 | 14,880 | ||||||
| Accumulated deficit | (5,562 | ) | (4,545 | ) | ||||
| Accumulated other comprehensive loss | (141 | ) | (138 | ) | ||||
| Total controlling interest shareholders’ equity | 9,353 | 10,284 | ||||||
| Noncontrolling interest | 1 | 1 | ||||||
| Total equity | 9,354 | 10,285 | ||||||
| Total liabilities and equity | $ | 17,811 | $ | 19,371 | ||||
| TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) | ||||||||
| Six months ended | ||||||||
| June 30, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (1,017 | ) | $ | (25 | ) | ||
| Adjustments to reconcile to net cash provided by operating activities: | ||||||||
| Amortization of contract intangible asset | — | 4 | ||||||
| Depreciation and amortization | 351 | 369 | ||||||
| Share-based compensation expense | 16 | 26 | ||||||
| Loss on impairment of assets | 1,136 | 143 | ||||||
| (Gain) loss on disposal of assets, net | (9 | ) | 6 | |||||
| Amortization of debt-related balances, net | 25 | 26 | ||||||
| Gain on adjustment to bifurcated compound exchange feature | (65 | ) | (79 | ) | ||||
| Gain on retirement of debt | — | (140 | ) | |||||
| Loss on impairment of investment in unconsolidated affiliate | — | 5 | ||||||
| Deferred income tax benefit | (157 | ) | (56 | ) | ||||
| Other, net | 31 | (11 | ) | |||||
| Changes in deferred revenues, net | (84 | ) | 97 | |||||
| Changes in deferred costs, net | 16 | (49 | ) | |||||
| Changes in other operating assets and liabilities, net | (89 | ) | (269 | ) | ||||
| Net cash provided by operating activities | 154 | 47 | ||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (84 | ) | (167 | ) | ||||
| Investment in loan to unconsolidated affiliate | — | (3 | ) | |||||
| Proceeds from disposal of assets, net of costs to sell | 10 | 51 | ||||||
| Proceeds from disposal of equity investment in unconsolidated affiliate | 4 | — | ||||||
| Cash acquired in acquisition of unconsolidated affiliate | — | 5 | ||||||
| Net cash used in investing activities | (70 | ) | (114 | ) | ||||
| Cash flows from financing activities | ||||||||
| Repayments of debt | (240 | ) | (1,815 | ) | ||||
| Proceeds from issuance of debt, net of issue costs | — | 1,767 | ||||||
| Other, net | (13 | ) | (5 | ) | ||||
| Net cash used in financing activities | (253 | ) | (53 | ) | ||||
| Net decrease in unrestricted and restricted cash and cash equivalents | (169 | ) | (120 | ) | ||||
| Unrestricted and restricted cash and cash equivalents, beginning of period | 941 | 995 | ||||||
| Unrestricted and restricted cash and cash equivalents, end of period | $ | 772 | $ | 875 | ||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | |||||||||||
| FLEET OPERATING STATISTICS | |||||||||||
| Three months ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| Contract Drilling Revenues (in millions) | 2025 | 2025 | 2024 | ||||||||
| Ultra-deepwater floaters | $ | 699 | $ | 658 | $ | 606 | |||||
| Harsh environment floaters | 289 | 248 | 255 | ||||||||
| Total contract drilling revenues | $ | 988 | $ | 906 | $ | 861 | |||||
| Three months ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| Average Daily Revenue (1) | 2025 | 2025 | 2024 | ||||||||
| Ultra-deepwater floaters | $ | 457,200 | $ | 443,600 | $ | 433,900 | |||||
| Harsh environment floaters | 462,400 | 443,600 | 449,600 | ||||||||
| Total fleet average daily revenue | $ | 458,600 | $ | 443,600 | $ | 438,300 | |||||
| Three months ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| Revenue Efficiency (2) | 2025 | 2025 | 2024 | ||||||||
| Ultra-deepwater floaters | 96.7 | % | 94.3 | % | 96.5 | % | |||||
| Harsh environment floaters | 96.3 | % | 99.3 | % | 98.1 | % | |||||
| Total fleet average revenue efficiency | 96.6 | % | 95.5 | % | 96.9 | % | |||||
| Three months ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| Utilization (3) | 2025 | 2025 | 2024 | ||||||||
| Ultra-deepwater floaters | 64.7 | % | 61.5 | % | 53.5 | % | |||||
| Harsh environment floaters | 75.3 | % | 69.5 | % | 73.0 | % | |||||
| Total fleet average rig utilization | 67.3 | % | 63.4 | % | 57.8 | % | |||||
| (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 | QTD | YTD | ||||||||||||||||||||||
| 06/30/25 | 06/30/25 | 03/31/25 | ||||||||||||||||||||||
| Adjusted Net Loss | ||||||||||||||||||||||||
| Net loss attributable to controlling interest, as reported | $ | (1,017 | ) | $ | (938 | ) | $ | (79 | ) | |||||||||||||||
| Loss on impairment of assets, net of tax | 1,128 | 1,128 | — | |||||||||||||||||||||
| Loss on conversion of debt to equity | 24 | 24 | — | |||||||||||||||||||||
| Discrete tax items | (181 | ) | (195 | ) | 14 | |||||||||||||||||||
| Net income (loss), as adjusted | $ | (46 | ) | $ | 19 | $ | (65 | ) | ||||||||||||||||
| Adjusted Diluted Loss Per Share: | ||||||||||||||||||||||||
| Diluted loss per share, as reported | $ | (1.15 | ) | $ | (1.06 | ) | $ | (0.11 | ) | |||||||||||||||
| Loss on impairment of assets, net of tax | 1.27 | 1.27 | — | |||||||||||||||||||||
| Loss on conversion of debt to equity | 0.03 | 0.03 | — | |||||||||||||||||||||
| Discrete tax items | (0.20 | ) | (0.22 | ) | 0.01 | |||||||||||||||||||
| Dilutive effect, | (0.05 | ) | (0.02 | ) | — | |||||||||||||||||||
| Diluted loss per share, as adjusted | $ | (0.10 | ) | $ | — | $ | (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 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 | QTD | YTD | |||||||||||||||||||||||
| 06/30/25 | 06/30/25 | 03/31/25 | |||||||||||||||||||||||
| Contract drilling revenues | $ | 1,894 | $ | 988 | $ | 906 | |||||||||||||||||||
| Net loss | $ | (1,017 | ) | $ | (938 | ) | $ | (79 | ) | ||||||||||||||||
| Interest expense, net of interest income | 210 | 102 | 108 | ||||||||||||||||||||||
| Income tax expense (benefit) | (116 | ) | (155 | ) | 39 | ||||||||||||||||||||
| Depreciation and amortization | 351 | 175 | 176 | ||||||||||||||||||||||
| EBITDA | (572 | ) | (816 | ) | 244 | ||||||||||||||||||||
| Loss on impairment of assets | 1,136 | 1,136 | — | ||||||||||||||||||||||
| Loss on conversion of debt to equity | 24 | 24 | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 588 | $ | 344 | $ | 244 | |||||||||||||||||||
| Loss margin | (53.7 | ) | % | (94.9 | ) | % | (8.7 | ) | % | ||||||||||||||||
| EBITDA margin | (30.2 | ) | % | (82.5 | ) | % | 26.9 | % | |||||||||||||||||
| Adjusted EBITDA margin | 31.1 | % | 34.9 | % | 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 | Six months ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||
| Income (loss) before income taxes | $ | (1,093 | ) | $ | (40 | ) | $ | 33 | $ | (1,133 | ) | $ | (60 | ) | |||||||
| Loss on impairment of assets | 1,136 | — | 143 | 1,136 | 143 | ||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliate | — | — | 4 | — | 5 | ||||||||||||||||
| Loss on conversion of debt to equity | 24 | — | — | 24 | — | ||||||||||||||||
| Gain on retirement of debt | — | — | (140 | ) | — | (140 | ) | ||||||||||||||
| Adjusted income (loss) before income taxes | $ | 67 | $ | (40 | ) | $ | 40 | $ | 27 | $ | (52 | ) | |||||||||
| Income tax expense (benefit) | $ | (155 | ) | $ | 39 | $ | 156 | $ | (116 | ) | $ | (35 | ) | ||||||||
| Loss on impairment of assets | 8 | — | 5 | 8 | 5 | ||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliate | — | — | — | — | — | ||||||||||||||||
| Loss on conversion of debt to equity | — | — | — | — | — | ||||||||||||||||
| Gain on retirement of debt | — | — | — | — | — | ||||||||||||||||
| Changes in estimates (1) | 195 | (14 | ) | 2 | 181 | 123 | |||||||||||||||
| Adjusted income tax expense | $ | 48 | $ | 25 | $ | 163 | $ | 73 | $ | 93 | |||||||||||
| Effective Tax Rate (2) | 14.2 | % | (95.8 | ) | % | 474.5 | % | 10.3 | % | 57.8 | % | ||||||||||
| Effective Tax Rate, excluding discrete items (3) | 70.0 | % | (62.3 | ) | % | 416.3 | % | 268.9 | % | (179.3 | ) | % | |||||||||
| (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 | QTD | YTD | |||||||||||||||||||||||||||
| 06/30/25 | 06/30/25 | 03/31/25 | |||||||||||||||||||||||||||
| Cash provided by operating activities | $ | 154 | $ | 128 | $ | 26 | |||||||||||||||||||||||
| Capital expenditures | (84 | ) | (24 | ) | (60 | ) | |||||||||||||||||||||||
| Free Cash Flow | 70 | 104 | (34 | ) | |||||||||||||||||||||||||
| Debt repayments | (240 | ) | (30 | ) | (210 | ) | |||||||||||||||||||||||
| Debt repayments, paid from debt proceeds | — | — | — | ||||||||||||||||||||||||||
| Levered Free Cash Flow | $ | (170 | ) | $ | 74 | $ | (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 | ) | ||||||||||
FAQ
What were Transocean's (RIG) Q2 2025 earnings results?
How much debt reduction is Transocean (RIG) targeting in 2025?
What is Transocean's (RIG) current contract backlog?
What caused Transocean's (RIG) large net loss in Q2 2025?
How much cash did Transocean (RIG) generate from operations in Q2 2025?
