Transocean Incurs Loss in Fourth Quarter, Misses on Revenues

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 $952 million, falling short of the Zacks Consensus Estimate of $959 million, but representing a 27.3% increase from the prior-year figure of $748 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 $536 million year-over-year, while harsh environment floaters generated $277 million, compared to $205 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 $407,800 in the year-ago quarter, but missed the model prediction of $461,400 [5] - Average revenues per day from ultra-deepwater floaters decreased to $428,200 from $432,100 year-over-year, missing the model estimation of $453,400 [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 $803 million in the year-ago quarter [7] - Operating and maintenance expenses rose to $579 million from $569 million, while general and administrative expenses increased to $56 million from $50 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]