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Mar 31, 2020
Transocean Q1 2020 Earnings Report
Transocean reported results for Q1 2020, including a net loss and adjusted EBITDA.
Key Takeaways
Transocean Ltd. reported a net loss attributable to controlling interest of $392 million, or $0.64 per diluted share, for the three months ended March 31, 2020. Adjusted net loss was $187 million, or $0.30 per diluted share. Total contract drilling revenues were $759 million, with adjusted contract drilling revenues of $807 million. The company's contract backlog was $9.6 billion as of the April 2020 Fleet Status Report.
Total contract drilling revenues were $759 million (total adjusted contract drilling revenues of $807 million).
Revenue efficiency was 94.4%.
Net loss attributable to controlling interest was $392 million, $0.64 per diluted share.
Adjusted net loss was $187 million, $0.30 per diluted share, excluding $205 million of net unfavorable items.
Transocean
Transocean
Transocean Revenue by Segment
Revenue by Segment
Ultra-deepwater floaters Revenue
CapyFin.comHarsh environment floaters Revenue
CapyFin.com Forward Guidance
Transocean anticipates delays in contracting activity due to the decline in oil prices and uncertainties surrounding COVID-19.
Positive Outlook
- Delivered revenue in line with guidance.
- Delivered lower than projected costs.
- Industry-leading backlog.
- Proven track record for managing costs.
- Well-positioned to continue delivering the highest level of service while keeping our employees and our customers safe.
Challenges Ahead
- Dramatic decline in oil prices.
- Continued uncertainties surrounding the containment of COVID-19.
- Resumption of the global economy will invariably delay the contracting activity that we expected in 2020.
- Cash flows used in operating activities were $48 million, compared to cash provided by operating activities of $147 million in the prior quarter.
- First quarter 2020 capital expenditures of $107 million decreased primarily due to reduced expenditures for the reactivation of two rigs and leasehold improvements, partially offset by increased expenditures for our newbuild rigs under construction.
Revenue & Expenses
Visualization of income flow from segment revenue to net income