Transocean(RIG) - 2024 Q3 - Quarterly Report

Acquisitions and Sales - In June 2024, Transocean acquired a 67.0% ownership interest in Orion Holdings for noncash consideration valued at $431 million, including$130 million in senior notes and 55.5 million shares[62]. - In February 2024, Transocean sold two harsh environment floaters for net cash proceeds of $49 million, and in July 2024, sold an ultra-deepwater floater for$53 million[62]. - In September 2024, Transocean executed agreements for the sale of two ultra-deepwater floaters with expected net cash proceeds of $345 million, recognizing a loss of$629 million associated with their impairment[62]. - During the nine months ended September 30, 2024, the company completed the sale of one ultra-deepwater floater and two harsh environment floaters, with plans to sell two additional ultra-deepwater floaters[86]. Financial Performance - A loss of $143 million was recognized in the nine months ended September 30, 2024, due to impairment of rig and related assets classified as held for sale[62]. - The company reported contract drilling revenues of$948 million for the three months ended September 30, 2024, a 33% increase from $713 million in the same period last year[74]. - Contract drilling revenues for Q3 2024 increased by approximately$481 million (23%) to $2,572 million compared to Q3 2023[78]. - For the nine months ended September 30, 2024, contract drilling revenues increased by approximately$305 million due to higher utilization[79]. - The company reported a net loss of $519 million for the nine months ended September 30, 2024, an improvement from a net loss of$850 million in the same period of 2023, reflecting a change of $331 million[82]. Debt Management - Transocean issued$900 million in senior notes due May 2029 and $900 million in senior notes due May 2031, receiving$1.77 billion in cash proceeds[63]. - The company used $2,073 million for debt repayments, an increase of$366 million from $1,707 million in the previous year[84]. - The fair value of the company's outstanding debt was$7.03 billion as of September 30, 2024, and $7.31 billion as of December 31, 2023[94]. - The company is actively managing its debt portfolio through retirements and new issuances to optimize its capital structure[94]. Operational Metrics - As of October 24, 2024, Transocean operated 34 mobile offshore drilling units, including 26 ultra-deepwater floaters and eight harsh environment floaters[61]. - Rig utilization for ultra-deepwater floaters improved to 60.7$426,700 for the three months ended September 30, 2024, compared to $406,500 for the same period in 2023, reflecting a 4.3$436,800 for the three months ended September 30, 2024, up from $391,300 in the same period last year, marking a 11.6$7,144 million as of October 24, 2024, up from $6,666 million in July 2024[70]. - The company anticipates demand for harsh environment floaters to accelerate through at least 2028, with contract durations likely to favorably influence dayrates[66]. - The uncommitted fleet rate for ultra-deepwater floaters is projected to be 37$203 million (14%) to $1,620 million in Q3 2024 compared to Q3 2023[78]. - Net cash provided by operating activities increased to$241 million, up from $66 million in the prior year, primarily due to increased cash collected from customers[82]. - Capital expenditures for the nine months ended September 30, 2024, were$225 million, compared to $207 million in 2023, indicating an increase of$18 million[83]. - The company expects to utilize existing cash balances and cash flows from operating activities to meet anticipated near-term obligations, including capital expenditures and scheduled debt maturities[85].