Transocean's Q3 2024 earnings call was largely positive, highlighting strong contracting activities, an impressive backlog, and strategic positioning for future demand. However, some operational challenges and cost inflation concerns were noted.

Company Guidance

During the third quarter 2024 earnings call, Transocean provided several key metrics and guidance. The company reported adjusted EBITDA of $342 million on contract drilling revenues of $948 million, achieving an adjusted EBITDA margin of approximately 36%. Transocean's marketing team secured new contracts, with fleet utilization expected to remain high for the next 12 to 18 months. Notable contracts include a one-year deal with BP for the Deepwater Atlas at $635,000 per day, starting in 2028, and a one-year contract for the Deepwater Conqueror at $530,000 per day, commencing in 2025. The company's backlog increased to $9.3 billion, a 7.5% rise from the previous quarter. Looking ahead, Transocean anticipates contract drilling revenues for 2025 to be between $3.85 billion and $4 billion, with an average revenue efficiency of 96.5%. Capital expenditures for 2025 are projected around $130 million, while the company plans to focus on debt reduction, targeting a net debt-to-EBITDA ratio of less than 3.5x by late 2026, potentially enabling shareholder distributions.

Strong Contracting and Fleet Utilization

Transocean secured numerous new contracts, ensuring excellent fleet utilization for the next 12 to 18 months. The active fleet is essentially fully contracted for 2024 with utilization exceeding 97% in 2025 and around 86% through the first half of 2026.

Impressive Backlog and Financial Performance

Transocean reported a $9.3 billion backlog, representing a 7.5% increase from July 2024. They achieved an adjusted EBITDA of $342 million on $948 million of contract drilling revenues for Q3 2024.

Industry-Leading Assets and Contracts

Transocean owns the only two 8th-generation Ultra-Deepwater drillships globally and eight of the twelve 1,400 short-ton drillships. The premium assets have attracted strong day rates and full-cycle utilization.

Future Demand and Strategic Positioning

Advanced discussions with customers for projects beginning in 2026 and beyond support the company’s confidence in sustained demand. Also, potential shareholder distributions are considered by the end of 2026.

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Transocean (RIG) Earnings, Revenues Date & History

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RIG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 30, 2018	2018 (Q2)	- / -0.04	0	―	―	―
Oct 29, 2018	2018 (Q3)	- / 0.06	0.16	-62.50% (-0.10)	―	―
Feb 18, 2019	2018 (Q4)	- / -0.34	-0.24	-41.67% (-0.10)	―	―
Apr 29, 2019	2019 (Q1)	- / -0.30	-0.48	37.50% (+0.18)	―	―
Jul 29, 2019	2019 (Q2)	- / -0.34	-0.04	-750.00% (-0.30)	―	―
Oct 28, 2019	2019 (Q3)	- / -0.38	0.06	-733.33% (-0.44)	―	―
Feb 17, 2020	2019 (Q4)	- / -0.43	-0.34	-26.47% (-0.09)	―	―
Apr 29, 2020	2020 (Q1)	- / -0.30	-0.3	0.00% (0.00)	―	―
Jul 29, 2020	2020 (Q2)	- / -0.12	-0.34	64.71% (+0.22)	―	―
Nov 02, 2020	2020 (Q3)	- / -0.11	-0.38	71.05% (+0.27)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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RIG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 30, 2024	$3.98	$4.34	+9.05%
Jul 31, 2024	$5.79	$5.46	-5.70%
Apr 29, 2024	$5.82	$5.22	-10.31%
Oct 30, 2023	$6.63	$6.62	-0.15%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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