Transocean Ltd. Reports Third Quarter 2024 Financial Results

Transocean Ltd., a prominent offshore contract drilling services provider for oil and gas wells, disclosed its financial performance for the third quarter of 2024 in an 8-K SEC filing. The company reported a net loss attributable to controlling interest of $494 million, translating to $0.58 per diluted share. Despite this figure, after adjusting for specific non-recurring items, the adjusted net income for the third quarter of 2024 came in at $64 million.

The quarter saw a sequential increase in contract drilling revenues to $948 million, rising by $87 million primarily due to improved rig utilization, elevated dayrates for certain rigs, increased reimbursement revenues, and a full quarter of revenue contribution from the newbuild ultra-deepwater drillship, Deepwater Aquila. However, there was a decrease in revenue efficiency across the fleet during this period.

Operating and maintenance expenses rose to $563 million from $534 million in the prior quarter, attributed to enhanced fleet activity, mostly driven by full-quarter operations of Deepwater Aquila. General and administrative expenses decreased to $47 million from $59 million in the second quarter due to various cost-cutting initiatives.

Transocean’s Effective Tax Rate for the third quarter declined to 6.0% from 474.5% in the prior quarter. Notably, cash provided by operating activities for the quarter amounted to $194 million, marking an increase of $61 million compared to the prior quarter.

The company highlighted a solid backlog book of nearly $1.3 billion during the third quarter, emphasizing sustained demand for its high-specification ultra-deepwater and harsh environment rigs. With a backlog exceeding $9.3 billion, Transocean’s Chief Executive Officer, Jeremy Thigpen, reiterated the company’s focus on delivering safe, reliable, and efficient operations while optimizing cash generation to strengthen the balance sheet.

Transocean utilizes non-GAAP financial measures to present its operating results, aiming to offer additional insights into its performance. These measures—such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA, and Adjusted Net Income—are intended to better evaluate its operations over varying periods and in comparison to industry peers.

The company’s financial performance is subject to a variety of factors, as outlined in the filing, and it continues to monitor and adjust its operational strategies to navigate changing market conditions. For detailed reconciliations and additional financial data, interested parties can access quantitative schedules on Transocean’s website at www.deepwater.com.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Transocean’s 8K filing here.

About Transocean

Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. The company operates a fleet of mobile offshore drilling units, consisting of ultra-deepwater floaters and harsh environment floaters.