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Sep 30, 2023

Transocean Q3 2023 Earnings Report

Transocean experienced a net loss with decreased contract drilling revenues and adjusted EBITDA.

Key Takeaways

Transocean Ltd. reported a net loss of $220 million, or $0.28 per diluted share, for the three months ended September 30, 2023. Contract drilling revenues decreased to $713 million. Adjusted EBITDA was $162 million.

Total contract drilling revenues were $713 million, compared to $729 million in the second quarter of 2023.

Revenue efficiency was 95.4%, compared to 97.2% in the prior quarter.

Operating and maintenance expense was $524 million, compared to $484 million in the prior quarter.

Adjusted EBITDA was $162 million, compared to $237 million in the prior quarter.

Total Revenue
$713M
Previous year: $691M
+3.2%
EPS
-$0.36
Previous year: -$0.06
+500.0%
Revenue efficiency
95.4%
Previous year: 95%
+0.4%
Gross Profit
$521M
Previous year: $509M
+2.4%
Cash and Equivalents
$594M
Previous year: $954M
-37.7%
Free Cash Flow
-$94M
Previous year: $143M
-165.7%
Total Assets
$20B
Previous year: $20.6B
-3.0%

Transocean

Transocean

Transocean Revenue by Segment

Forward Guidance

Transocean believes that it remains in the early stages of a multi-year upcycle.

Positive Outlook

  • Transocean increased its backlog for the sixth consecutive quarter, ending the third quarter at $9.4 billion dollars.
  • The backlog contains many of the industry’s highest dayrate fixtures.
  • Secured a three-year contract for Deepwater Aquila in Brazil.
  • The addition of the Aquila further reinforces Transocean’s leadership position in the high-specification, ultra-deepwater drilling market.
  • Transocean is uniquely positioned to capitalize on current and future opportunities.

Revenue & Expenses

Visualization of income flow from segment revenue to net income