Transocean(US:RIG)2025-10-29 21:11Financial Performance - Contract drilling revenues for Q3 2025 increased to $1.03 billion, a sequential increase of $40 million, and a year-over-year increase of $80 million[3] - Adjusted EBITDA for Q3 2025 was $397 million, representing a sequential increase of $53 million and a year-over-year increase of $55 million[1] - The net loss attributable to controlling interest for Q3 2025 was $1.92 billion, or $2.00 per diluted share, compared to a net loss of $938 million in the previous quarter[1] - Adjusted net income for Q3 2025 was reported at $16 million, a recovery from a loss of $46 million in Q2 2025[34] - Contract drilling revenues for YTD September 30, 2025, reached $2,922 million, a significant increase compared to $1,894 million for Q2 2025[36] - The net loss for YTD September 30, 2025, was $2,940 million, worsening from a loss of $1,017 million in Q2 2025[36] - Adjusted EBITDA for YTD September 30, 2025, was $985 million, with an adjusted EBITDA margin of 33.8%[36] - Free Cash Flow for YTD September 30, 2025, was $305 million, compared to $70 million in Q2 2025[42] - The EBITDA margin for YTD September 30, 2025, was (74.1)%, compared to (30.2)% in Q2 2025[36] Expenses and Liabilities - Operating and maintenance expenses decreased to $584 million in Q3 2025 from $599 million in the prior quarter, a reduction of $15 million[4] - Interest expense for Q3 2025 was $140 million, compared to $141 million in the prior quarter[5] - Capital expenditures for Q3 2025 were $11 million, down from $24 million in the previous quarter[8] - Total current liabilities increased to $2,235 million as of September 30, 2025, compared to $1,663 million at December 31, 2024[26] - Interest expense, net of interest income, was $352 million for YTD September 30, 2025, compared to $210 million in Q2 2025[36] - The company incurred restructuring costs of $3 million for the three months ended September 30, 2025[38] Cash Flow and Assets - Cash provided by operating activities was $246 million in Q3 2025, an increase of $118 million compared to the prior quarter[8] - Cash flows from operating activities generated $400 million in the nine months ended September 30, 2025, compared to $241 million in the same period of 2024[28] - The company’s unrestricted and restricted cash and cash equivalents increased to $1,250 million at the end of the period, up from $800 million in the previous year[28] - Total assets decreased to $16,174 million as of September 30, 2025, down from $19,371 million at December 31, 2024[26] Tax and Impairments - The effective tax rate for Q3 2025 was (1.4)%, down from 14.2% in the prior quarter, primarily due to losses on rig impairments[7] - The effective tax rate for the three months ended September 30, 2025, was (1.4)%, indicating a tax benefit[38] - The company reported a loss on impairment of assets of $3,049 million for the nine months ended September 30, 2025[28] - The company reported a loss on impairment of assets totaling $3,049 million for YTD September 30, 2025[36] Operational Metrics - The backlog as of October 2025 was reported at $6.7 billion[1] - Average daily revenue for ultra-deepwater floaters was $460,200 in Q3 2025, up from $457,200 in Q2 2025 and $426,700 in Q3 2024[30] - The total fleet average rig utilization improved to 76.0% in Q3 2025, compared to 67.3% in Q2 2025 and 63.9% in Q3 2024[30] - The net loss attributable to controlling interest for the nine months ended September 30, 2025, was $2,940 million, significantly higher than the loss of $519 million for the same period in 2024[34] - Levered Free Cash Flow for YTD September 30, 2025, was $(145) million, reflecting a decrease from $74 million in Q2 2025[42]