Transocean posts top-line beat in second quarter on improved rig utilization

Published 04/08/2025, 21:46
 Transocean posts top-line beat in second quarter on improved rig utilization

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."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.