Transocean Ltd. Reports Third Quarter 2024 Results

Core Viewpoint Transocean Ltd. reported a significant net loss of $494 million for the third quarter of 2024, despite an increase in contract drilling revenues driven by higher rig utilization and dayrates. The company continues to maintain a strong backlog of $9.3 billion, indicating robust future demand for its services. Financial Performance - Contract drilling revenues increased to $948 million, up $87 million sequentially and $235 million year-over-year, primarily due to increased rig utilization and higher dayrates for two rigs [3][25]. - Adjusted net income for the quarter was $64 million, contrasting with a net loss of $123 million in the previous quarter [2][32]. - The net loss attributable to controlling interest was $494 million, translating to a diluted loss per share of $0.58, compared to a loss of $0.15 in the prior quarter [1][2]. Operational Metrics - Revenue efficiency for the fleet was reported at 94.5%, down from 96.9% in the previous quarter [1][29]. - Operating and maintenance expenses rose to $563 million, reflecting increased fleet activity, including operations from the newbuild ultra-deepwater drillship Deepwater Aquila [4]. - General and administrative expenses decreased to $47 million from $59 million in the prior quarter, attributed to reduced personnel costs [5]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $194 million, an increase of $61 million compared to the prior quarter, driven by improved cash collection from customers [8]. - Capital expenditures for the quarter were $58 million, primarily related to the Deepwater Aquila project [9]. Backlog and Future Outlook - The company reported a backlog of $9.3 billion as of October 2024, with over 97% of its active fleet contracted for 2025, indicating strong future demand [10]. - The CEO emphasized the company's focus on delivering safe and efficient operations while maximizing cash generation to improve the balance sheet [10].