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Dec 31, 2024
Transocean Q4 2024 Earnings Report
Transocean reported revenue growth and improved net income in Q4 2024.
Key Takeaways
Transocean Ltd. achieved $952M in revenue for Q4 2024, reflecting a 28.5% YoY increase, primarily driven by higher rig utilization and reimbursement revenues. Net income reached $7M, a significant improvement from a $10M loss in Q4 2023. The company secured $2.4B in new backlog, reinforcing contract coverage through 2026.
Revenue increased to $952M, up 28.5% YoY.
Net income reached $7M, reversing a $10M loss from Q4 2023.
Secured $2.4B in new backlog, strengthening future revenue visibility.
Adjusted EBITDA was $323M, with a 33.9% margin.
Transocean
Transocean
Transocean Revenue by Segment
Revenue by Segment
Ultra-deepwater floaters Revenue
CapyFin.comHarsh environment floaters Revenue
CapyFin.com Forward Guidance
Transocean expects to maintain strong contract coverage and improve cost efficiency in 2025.
Positive Outlook
- Backlog of $8.3B provides revenue visibility.
- Continued focus on cost control to maximize cash conversion.
- Technological leadership with 20K subsea completions.
- Higher rig utilization supports revenue growth.
- Strong industry demand for offshore drilling services.
Challenges Ahead
- Higher maintenance costs impacting margins.
- General and administrative expenses increased due to legal fees.
- Revenue efficiency declined from 97.0% to 93.5%.
- Interest expense remains high at $152M in Q4.
- Effective tax rate increased significantly to 89.0%.