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Dec 31, 2021

Transocean Q4 2021 Earnings Report

Transocean experienced a net loss but delivered strong operational results.

Key Takeaways

Transocean Ltd. reported a net loss attributable to controlling interest of $260 million, or $0.40 per diluted share, for the three months ended December 31, 2021. Contract drilling revenues decreased sequentially by $5 million to $621 million.

Total contract drilling revenues were $621 million, compared to $626 million in the third quarter of 2021.

Revenue efficiency was 94.5%, compared to 98.1% in the prior quarter.

Operating and maintenance expense was $430 million, compared to $398 million in the prior quarter.

Adjusted EBITDA was $250 million, compared to $245 million in the prior quarter.

Total Revenue
$621M
Previous year: $690M
-10.0%
EPS
-$0.19
Previous year: -$0.34
-44.1%
Revenue efficiency
94.5%
Previous year: 97.2%
-2.8%
Gross Profit
$437M
Previous year: $501M
-12.8%
Cash and Equivalents
$976M
Previous year: $1.15B
-15.4%
Free Cash Flow
$114M
Previous year: $231M
-50.6%
Total Assets
$20.7B
Previous year: $21.8B
-5.2%

Transocean

Transocean

Transocean Revenue by Segment

Forward Guidance

Transocean is optimistic moving into 2022, expecting an upward trend in dayrates.

Positive Outlook

  • Energy demand remains resilient driving oil prices to seven-year highs.
  • Experiencing a growing list of opportunities from customers across the globe who value our high-specification floating fleet and our strong and consistent operating performance.
  • Customer demand is growing.
  • Utilization for active high-specification assets pushing higher.
  • Expect the upward trend in dayrates to continue as we progress through the year.

Challenges Ahead

  • Estimated duration of customer contracts
  • Contract dayrate amounts
  • Future contract commencement dates and locations
  • Planned shipyard projects and other out-of-service time
  • Sales of drilling units

Revenue & Expenses

Visualization of income flow from segment revenue to net income