Transocean(US:RIG)2025-04-29 14:00Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $244 million on $906 million of contract drilling revenues, resulting in an adjusted EBITDA margin of approximately 27% [10] - The net loss attributable to controlling interest was $79 million, or a net loss of $0.11 per diluted share [25] - Cash flow from operating activities was $26 million, with free cash flow of negative $34 million reflecting $60 million of capital expenditures [26] Business Line Data and Key Metrics Changes - Contract drilling revenues exceeded guidance due to higher than anticipated utilization on specific rigs, with average daily revenue approximately $444,000 [26] - Operating and maintenance expenses were $618 million, within guidance range, but included a $34 million non-cash charge related to a customer dispute [27] Market Data and Key Metrics Changes - The company expects up to six programs to commence in the U.S. Gulf in the second and third quarters of 2026, with three expected to come from public tenders [16] - In Brazil, Petrobras is expected to increase its rig count to over 30 active rigs by the end of the year, with ongoing tenders for new programs [17] Company Strategy and Development Direction - The company is focused on converting its $7.9 billion backlog to revenue and cash to create sustainable value for shareholders [24] - Management emphasized the importance of deepwater drilling, with projections indicating a 40% increase in deepwater investment by 2029 [15] Management Comments on Operating Environment and Future Outlook - Management noted that market and commodity volatility has not materially impacted the business, and no planned programs have been delayed or canceled [14] - The outlook for deepwater drilling remains positive, supported by third-party projections and a strategic shift among major operators towards oil and gas investments [12][15] Other Important Information - The company has identified approximately $100 million in cash cost savings expected to be realized in 2025, with a similar amount anticipated for 2026 [34] - The projected liquidity at year-end 2025 is forecasted to be between $1.45 billion and $1.55 billion [30] Q&A Session Summary Question: Timing of contract announcements - Management expects several contract announcements over the summer and into the end of the year, with the second half of the year potentially being prolific for long-term awards [45] Question: Expected day rates for upcoming contracts - There may be near-term pressure on day rates for short-term work, but long-term contracts are expected to remain stable [48][49] Question: Implications of Shell awards from Noble - Management believes there are still opportunities with Shell, and they are taking a long-term view on rates and contracts [56][59] Question: Activity assumptions for West Africa - Management sees potential growth in West Africa, with expectations for multi-year opportunities and increased rig demand in the region [61] Question: Cost savings details - The company anticipates $100 million in cost savings for 2025 and a similar amount for 2026, primarily through renegotiation of contracts and operational efficiencies [68] Question: Status of idle and cold stacked vessels - The company is actively looking for opportunities for its idle vessels and continues to assess its cold stacked fleet on a quarterly basis [74][76]