Transocean Ltd (NYSE:RIG)
$ 4.455 0.045 (1.02%) Market Cap: 3.90 Bil Enterprise Value: 10.39 Bil PE Ratio: 0 PB Ratio: 0.38 GF Score: 70/100
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Q2 2024 Transocean Ltd Earnings Call Transcript

Aug 01, 2024 / 03:00PM GMT
Release Date Price: $5.46 (-5.70%)

Key Points

Positve
  • Transocean Ltd (RIG) reported an adjusted EBITDA of $284 million with a strong EBITDA margin of approximately 33% for Q2 2024.
  • The company achieved a high revenue efficiency of approximately 97%, reflecting superior operational performance.
  • Transocean Ltd (RIG) secured several new contracts, including a two-well contract for the Deepwater Atlas at an industry-leading rate of $580,000 per day.
  • The company has more than 90% of its working fleet committed through the end of 2025, with expectations to be fully booked well into 2026.
  • Transocean Ltd (RIG) has an industry-leading backlog of $8.64 billion, excluding recent contracts, providing strong visibility into future cash flows.
Negative
  • Transocean Ltd (RIG) reported a net loss attributable to controlling interest of $123 million for Q2 2024.
  • The company faced delays in contract drilling revenues due to prolonged 15K PSI drilling operations and customer delays in India.
  • Operating and maintenance expenses are expected to increase in the third quarter, impacting overall profitability.
  • The company has two idle rigs, the DD3 and the Inspiration, which are not expected to be active in 2024, potentially affecting revenue generation.
  • Transocean Ltd (RIG) continues to face challenges in reducing its overall debt, with no specific targets articulated for debt reduction.
Operator

Good day, everyone, and welcome to today's second quarter 2024 Transocean earnings call. (Operator Instructions) Please note this call is being recorded, and I'll be standing by if you should need any assistance.

It is now my pleasure to turn the program over to Alison Johnson, Director of Investor Relations.

Alison Johnson
Transocean Ltd - Director - IR

Thank you. Good morning, and welcome to Transocean's second quarter 2024 earnings conference call. A copy of our press release covering financial results, along with supporting statements and schedules, including reconciliations and disclosures regarding non-GAAP financial measures, are posted on our website at deepwater.com. Joining me on this morning's call are Jeremy Thigpen, Chief Executive Officer; Keelan Adamson, President and Chief Operating Officer; Thad Vayda, Executive Vice President and Chief Financial Officer; and Roddie Mackenzie, Executive Vice President and Chief Commercial Officer.

During the course of this call, Transocean management may make certain forward-looking

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