Transocean(RIG)2024-10-30 20:24Financial Performance - Contract drilling revenues for Q3 2024 increased to $948 million, up $87 million sequentially and $235 million year-over-year[3]. - Adjusted net income for Q3 2024 was $64 million, a significant improvement from a net loss of $123 million in the previous quarter[2]. - The company reported a net loss attributable to controlling interest of $494 million, or $0.58 per diluted share, for Q3 2024[1]. - Adjusted EBITDA for Q3 2024 was $342 million, reflecting a $58 million increase from the previous quarter[1]. - Net loss for the nine months ended September 30, 2024, was $519 million, compared to a net loss of $850 million for the same period in 2023, representing a 39% improvement[29]. - The net loss for the quarter ended September 30, 2024, was $(519) million, compared to a net loss of $(25) million for the same quarter in 2023, reflecting a significant increase in losses[36]. - Adjusted Contract Drilling Revenues for the quarter ended September 30, 2024, were $2,884 million, compared to $2,136 million for the same quarter in 2023, marking a 35% increase[36]. Expenses and Liabilities - Operating and maintenance expenses rose to $563 million, compared to $534 million in Q2 2024, primarily due to increased fleet activity[4]. - Total liabilities decreased to $9,282 million as of September 30, 2024, from $9,838 million as of December 31, 2023, a decrease of 5.6%[26]. - The company reported capital expenditures of $225 million for the nine months ended September 30, 2024, compared to $207 million for the same period in 2023, reflecting a 8.7% increase[28]. - The company experienced a loss on impairment of assets totaling $772 million for the nine months ended September 30, 2024[37]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $194 million, an increase of $61 million compared to the prior quarter[8]. - Free Cash Flow for YTD 09/30/24 is $241 million, with QTD 09/30/24 at $194 million[40]. - The company reported a Free Cash Flow of $164 million for the period, with debt repayments totaling $(1,717) million[40]. - Operating activities provided cash of $448 million for the period, with capital expenditures of $(717) million[40]. Tax and Effective Tax Rate - The effective tax rate decreased to 6.0% from 474.5% in the prior quarter, primarily due to rig impairments and sales[7]. - The effective tax rate for the three months ended September 30, 2024, was 6.0%, while the effective tax rate excluding discrete items was 22.5%[37]. Fleet and Backlog - The backlog as of October 2024 was approximately $9.3 billion, indicating strong future demand for the company's services[10]. - More than 97% of Transocean's active fleet is contracted for 2025, demonstrating strong customer demand for its high specification rigs[10]. - The average fleet utilization rate improved to 63.9% for the three months ended September 30, 2024, compared to 49.4% for the same period in 2023, an increase of 29%[31]. Asset Management - Total current assets decreased to $2,343 million as of September 30, 2024, from $2,126 million as of December 31, 2023, a decline of 10%[25]. - Total assets decreased to $19,510 million as of September 30, 2024, down from $20,254 million as of December 31, 2023, a reduction of 3.7%[27]. - The total equity attributable to controlling interest decreased to $10,227 million as of September 30, 2024, from $10,415 million as of December 31, 2023, a decline of 1.8%[27]. Earnings Per Share - Diluted earnings per share, as reported, is $(0.65) for the year-to-date as of September 30, 2024, compared to $(0.03) for the previous quarter[35]. - Adjusted Diluted Loss Per Share is $(0.96) for the year-to-date as of September 30, 2024, compared to $(0.36) for the previous quarter[35].