Transocean Ltd. Reports Financial Results and Technological Advancements in 2024
$RIG
Transocean Ltd. (NYSE: RIG), a global provider of offshore drilling services, reported net income of $7 million, a significant recovery from the net loss of $494 million in the previous quarter. This improvement is attributed to operational adjustments and cost-efficiency measures. The company’s earnings per share moved from a loss of $0.56 in the third quarter to earnings of $0.01 in the fourth quarter.
Revenue for the period was $952 million, up slightly from $948 million in the preceding quarter. This increase was driven by higher utilization of a rig returning to service and increased reimbursement revenues, though it was partially offset by lower revenue efficiency across the fleet. Operational expenses rose slightly due to increased maintenance costs associated with more active rigs. The company’s effective tax rate increased to 89.0%, up from 6.0% in the previous quarter, due to higher income and increases in valuation allowances.
A significant achievement for Transocean in 2024 was the successful execution of the first two 20K subsea completions in offshore drilling history. This milestone underscores the company’s technological leadership and its focus on innovation. These advancements contributed to a $2.4 billion backlog secured during the year, strengthening Transocean’s market position.
For the full year, the company reported a net loss of $512 million, or $0.76 per diluted share, primarily due to a $755 million impairment of assets. This loss highlights the continued challenges in the offshore drilling industry, influenced by volatile market conditions and fluctuating oil prices.
Looking ahead, CEO Jeremy Thigpen emphasized the importance of strong operational execution and cost control in converting the company’s backlog into cash. This approach is critical for de-leveraging the balance sheet and maintaining leadership in offshore drilling technology. As Transocean moves forward, its ability to adapt to market dynamics and continue its innovation will be key to its long-term success and stability.
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