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Jun 30
Transocean Q2 2025 Earnings Report
Estimated Revenue:$979M
+6.9% YoY
Estimated EPS:-$0.02
+75.6% YoY
Key Takeaways
Transocean Ltd. reported a substantial net loss of $938 million in Q2 2025, largely driven by a $1.128 billion loss on impairment of assets. However, contract drilling revenues increased sequentially to $988 million, and adjusted EBITDA rose to $344 million, reflecting improved rig utilization and revenue efficiency. The company also generated $104 million in free cash flow.
Net loss attributable to controlling interest was $938 million, or $1.06 per diluted share, primarily due to a $1.128 billion asset impairment loss.
Contract drilling revenues increased by $82 million sequentially to $988 million, driven by higher rig utilization and improved revenue efficiency.
Adjusted EBITDA significantly improved to $344 million, up $100 million sequentially, with an adjusted EBITDA margin of 34.9%.
The company generated $104 million in free cash flow during the quarter and is on track to reduce debt by over $700 million this year.
Transocean
Transocean
Transocean Revenue by Segment
Revenue by Segment
Ultra-deepwater floaters Revenue
CapyFin.comHarsh environment floaters Revenue
CapyFin.com Forward Guidance
Transocean is focused on improving its balance sheet and expects to reduce debt by over $700 million in 2025, aiming to create long-term shareholder value.
Positive Outlook
- On track to reduce debt by over $700 million in 2025.
- Continued focus on improving the balance sheet.
- Commitment to creating long-term value for shareholders.
- Expectation of continued favorable revenue efficiency.
- High operational reliability contributing to strong performance.
Challenges Ahead
- No specific negative forward guidance was provided in the report.
- Potential for fluctuations in oil and gas prices to impact future demand.
- Risks associated with international operations and geopolitical events.
- Uncertainties regarding future contract commencement dates and dayrates.
- Impact of planned shipyard projects and other out-of-service time on operations.
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Key Statistics
Market Cap
$2.86B
P/E Ratio
-3.58
Sector
Industrial Services
Industry
Contract Drilling
52-Week High
$4.67
52-Week Low
$2.09
Revenue Efficiency
96.6%
Adjusted EBITDA
$344M
Adjusted EBITDA Margin
34.9%
Avg Daily Rev - Ultra-deepwater
$457K
Avg Daily Rev - Harsh Environment
$462K