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Transocean Incurs Loss in Fourth Quarter, Misses on Revenues
RIGTransocean(RIG) ZACKS·2025-02-19 12:50

Core Insights - Transocean Ltd. reported a fourth-quarter 2024 adjusted net loss of 9 cents per share, missing the Zacks Consensus Estimate of a profit of 1 cent, attributed to higher costs and expenses year-over-year [1] - Total adjusted revenues were 952million,fallingshortoftheZacksConsensusEstimateof952 million, falling short of the Zacks Consensus Estimate of 959 million, but representing a 27.3% increase from the prior-year figure of 748million[2][4]RevenuePerformance−Ultra−deepwaterfloaterscontributed71748 million [2][4] Revenue Performance - Ultra-deepwater floaters contributed 71% to net contract drilling revenues, while harsh environment floaters accounted for 29% [3] - Revenues from ultra-deepwater floaters totaled 675 million, up from 536millionyear−over−year,whileharshenvironmentfloatersgenerated536 million year-over-year, while harsh environment floaters generated 277 million, compared to 205millionayearago[4]−Revenueefficiencywas93.5205 million a year ago [4] - Revenue efficiency was 93.5%, down from 94.5% in the previous quarter and 97% in the year-ago quarter [4] Day Rates and Utilization - Average day rates increased to 434,700 from 407,800intheyear−agoquarter,butmissedthemodelpredictionof407,800 in the year-ago quarter, but missed the model prediction of 461,400 [5] - Average revenues per day from ultra-deepwater floaters decreased to 428,200from428,200 from 432,100 year-over-year, missing the model estimation of 453,400[5]−Fleetutilizationratewas66.8453,400 [5] - Fleet utilization rate was 66.8%, up from 51.6% in the prior-year period [6] Costs and Financials - Total costs and expenses were 815 million, a 1.5% increase from 803millionintheyear−agoquarter[7]−Operatingandmaintenanceexpensesroseto803 million in the year-ago quarter [7] - Operating and maintenance expenses rose to 579 million from 569million,whilegeneralandadministrativeexpensesincreasedto569 million, while general and administrative expenses increased to 56 million from 50million[7]−Capitalexpendituresforthefourthquarterwere50 million [7] - Capital expenditures for the fourth quarter were 29 million, with cash used in operating activities amounting to 206 million [8] Guidance - For the first quarter, O&M expenses are expected to be between 610 million and 630 million, with G&A expenses ranging from 50 million to 55 million [10] - Full-year O&M expenses are anticipated to be between 2.3 billion and $2.4 billion, consistent with prior guidance [11]