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STEINHAUSEN, Switzerland - Transocean Ltd . (NYSE:RIG) reported in-line earnings and better-than-expected revenue for the second quarter of 2025, as improved rig utilization and operational efficiency drove financial performance. RIG shares were trading flat after-hours.
The offshore drilling contractor posted adjusted earnings of $0.00 per share for the quarter ended June 30, matching analyst expectations. Revenue rose to $988 million, exceeding the consensus estimate of $969.61 million. The company did not provide information on stock movement following the results.
Contract drilling revenues increased by $82 million sequentially, primarily due to improved rig utilization, better revenue efficiency, higher reimbursement revenues, and an additional day in the quarter. Operating and maintenance expenses decreased to $599 million from $618 million in the previous quarter.
"We reported a quarter of safe, reliable, and efficient operations, resulting in an adjusted EBITDA margin of 35% and free cash generation of $104 million," said President and CEO Keelan Adamson. "This result reflects favorable revenue efficiency driven by high operational reliability."
On a GAAP basis, Transocean reported a net loss of $938 million, or $1.06 per diluted share, largely due to a $1.128 billion impairment charge on assets. After adjusting for this and other items, the company posted adjusted net income of $19 million.
The company generated $128 million in cash from operating activities during the quarter, an increase of $102 million from the previous quarter. Capital expenditures totaled $24 million, down from $60 million in the prior quarter.
Adamson noted that the company is making progress on strengthening its financial position, saying, "We also continue to improve our balance sheet and are on track to reduce our debt by over $700 million this year, creating long-term value for our shareholders."
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