Transocean Ltd. Reports Third Quarter 2025 Results

Core Insights - Transocean Ltd. reported a net loss attributable to controlling interest of $1.92 billion, or $2.00 per diluted share, for the three months ended September 30, 2025, reflecting significant unfavorable items impacting financial performance [1][2][3]. Financial Performance - Contract drilling revenues increased sequentially by $40 million to $1.03 billion, driven by improved rig utilization, revenue efficiency, and an increase in dayrate for one rig, despite lower revenues from an idle rig [3][4]. - Operating and maintenance expenses decreased to $584 million from $599 million in the prior quarter, primarily due to lower expenses on a rig that completed a special periodic survey [4]. - Adjusted EBITDA for the quarter was $397 million, with an adjusted EBITDA margin of 38.7%, up from 34.9% in the previous quarter [1][8]. Loss and Adjustments - The third quarter included net unfavorable items totaling $1.985 billion, leading to an adjusted net income of $62 million, or $0.06 earnings per diluted share [2][8]. - The effective tax rate was (1.4)%, a decrease from 14.2% in the prior quarter, mainly due to losses on rig impairments [6][7]. Cash Flow and Debt Management - Cash provided by operating activities was $246 million, an increase of $118 million compared to the prior quarter, attributed to a reduction in working capital [7]. - The company took steps to reduce total debt by approximately $1.2 billion by the end of 2025, which is expected to lower annual interest expense by about $83 million [8]. Fleet and Operational Statistics - As of September 30, 2025, Transocean's backlog stood at $6.7 billion, indicating a strong pipeline of future work [1]. - The average daily revenue for ultra-deepwater floaters was $460,200, while for harsh environment floaters it was $467,100, contributing to a total fleet average daily revenue of $462,300 [28]. Summary of Financial Metrics - For the nine months ended September 30, 2025, contract drilling revenues totaled $2.92 billion, compared to $2.57 billion for the same period in 2024 [21]. - The company reported a net loss of $2.94 billion for the nine months ended September 30, 2025, compared to a loss of $519 million for the same period in 2024 [26].