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• Adjusted EBITDA: $244 million.

• Contract Drilling Revenues: $906 million.

• Adjusted EBITDA Margin: Approximately 27%.

• Net Loss: $79 million or $0.11 per diluted share.

• Cash Flow from Operating Activities: $26 million.

• Free Cash Flow: Negative $34 million.

• Operating and Maintenance Expense: $618 million.

• General and Administrative Expense: $50 million.

• Total Liquidity: Approximately $1.3 billion.

• Second Quarter Revenue Guidance: Between $970 million and $990 million.

• Full Year Revenue Guidance: Between $3.85 billion and $3.95 billion.

• Full Year Operating and Maintenance Expense Guidance: Between $2.3 billion and $2.4 billion.

• Full Year Capital Expenditures: Approximately $115 million.

• Warning! GuruFocus has detected 4 Warning Signs with RIG.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Transocean Ltd (NYSE:RIG) delivered an adjusted EBITDA of $244 million on $906 million of contract drilling revenues, resulting in an adjusted EBITDA margin of approximately 27%.

• The company secured a price option on the Deepwater Asgard, potentially extending its firm period by one year, and exercised options on the Transocean Equinox, adding $40 million to its backlog.

• Operational efficiency was highlighted by the early commencement of two programs, with the Transocean Barron's and Deepwater Invictus starting ahead of schedule.

• Transocean Ltd (NYSE:RIG) has a strong backlog of $7.9 billion, providing a solid foundation for future revenue conversion and cash generation.

• The company identified $100 million in cost savings for 2025, with a similar amount expected in 2026, enhancing financial efficiency and liquidity.

Negative Points

• Transocean Ltd (NYSE:RIG) reported a net loss attributable to controlling interest of $79 million or a net loss of $0.11 per diluted share for the first quarter.

• Free cash flow was negative $34 million, reflecting operating cash flow of $26 million offset by $60 million in capital expenditures.

• The company faced an unfavorable conclusion to a customer dispute, resulting in a $34 million non-cash charge associated with the write-off of an uncollected receivable.

• Market volatility due to trade tensions and OPEC announcements has introduced uncertainty, although it has not yet materially impacted Transocean Ltd (NYSE:RIG)'s business.

• There is potential near-term pressure on day rates for short-term contracts due to an increase in idle rigs, although long-term rates are expected to remain stable.

Q & A Highlights

Q: Can you provide an estimate on the timing of upcoming contract announcements, particularly for tenders and programs with 2026 start dates? A: Roddie Mackenzie, Executive Vice President and Chief Commercial Officer, stated that several contract announcements are expected over the summer and towards the end of the year. The second half of the year could be prolific in terms of long-term awards, with many contracts starting in 2026. Transocean is currently 97% booked for 2025, which positions them well for future opportunities.