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Sep 30, 2021

Transocean Q3 2021 Earnings Report

Reported a net loss attributable to controlling interest for the three months ended September 30, 2021.

Key Takeaways

Transocean Ltd. reported a total contract drilling revenue of $626 million and a net loss attributable to controlling interest of $130 million, or $0.20 per diluted share for the three months ended September 30, 2021. The results were influenced by reduced activity for rigs that went idle or commenced shipyard stays, offset by higher revenue efficiency.

Total contract drilling revenues were $626 million, compared to $656 million in the second quarter of 2021.

Revenue efficiency was 98.1%, compared to 98.0% in the prior quarter.

Operating and maintenance expense was $398 million, compared to $434 million in the prior quarter.

Net loss attributable to controlling interest was $130 million, $0.20 per diluted share, compared to $103 million, $0.17 per diluted share, in the second quarter of 2021.

Total Revenue
$626M
Previous year: $773M
-19.0%
EPS
-$0.19
Previous year: -$0.11
+72.7%
Revenue efficiency
98.1%
Previous year: 96.6%
+1.6%
Gross Profit
$441M
Previous year: $583M
-24.4%
Cash and Equivalents
$900M
Previous year: $1.38B
-34.9%
Free Cash Flow
$104M
Previous year: $16M
+550.0%
Total Assets
$21B
Previous year: $22.5B
-6.7%

Transocean

Transocean

Transocean Revenue by Segment

Forward Guidance

Transocean grows increasingly encouraged as they observe continuously improving market fundamentals and the resulting strength exhibited in oil prices. With tightening utilization for high-specification ultra-deepwater and harsh environment assets, and longer tender durations across multiple markets, dayrates are steadily increasing, which bodes well for the offshore drilling industry, and Transocean.

Positive Outlook

  • Improving market fundamentals
  • Strength exhibited in oil prices
  • Tightening utilization for high-specification ultra-deepwater assets
  • Tightening utilization for harsh environment assets
  • Longer tender durations across multiple markets