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Jun 30, 2021

Transocean Q2 2021 Earnings Report

Transocean experienced a slight increase in contract drilling revenues and maintained strong revenue efficiency.

Key Takeaways

Transocean Ltd. reported a net loss attributable to controlling interest of $103 million, or $0.17 per diluted share, for the three months ended June 30, 2021. Contract drilling revenues increased slightly to $656 million. The company's revenue efficiency remained strong at 98.0%.

Total contract drilling revenues were $656 million (total adjusted contract drilling revenues of $713 million).

Revenue efficiency was 98.0%.

Net loss attributable to controlling interest was $103 million, $0.17 per diluted share.

Adjusted EBITDA was $255 million.

Total Revenue
$656M
Previous year: $930M
-29.5%
EPS
-$0.18
Previous year: -$0.808
-77.7%
Revenue efficiency
98%
Previous year: 97.2%
+0.8%
Gross Profit
$470M
Previous year: $734M
-36.0%
Cash and Equivalents
$988M
Previous year: $1.51B
-34.6%
Free Cash Flow
$112M
Previous year: $41M
+173.2%
Total Assets
$21.2B
Previous year: $22.8B
-7.1%

Transocean

Transocean

Transocean Revenue by Segment

Forward Guidance

Transocean anticipates improved utilization and dayrates for ultra-deepwater assets in 2022, assuming supportive oil prices.

Positive Outlook

  • Upcycle unfolding
  • Improved liquidity through delayed delivery and payment of newbuild drillships
  • ATM program initiation provides additional optionality
  • Focus on operational excellence
  • Strong uptime performance

Challenges Ahead

  • Oil prices need to remain supportive
  • Uncertainties and risks
  • Estimated duration of customer contracts
  • Planned shipyard projects and other out-of-service time
  • Operating hazards and delays

Revenue & Expenses

Visualization of income flow from segment revenue to net income