AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Revenue Growth: Contract drilling revenues rose to $952 million, driven by increased utilization of a returning rig.
- Higher Costs: Operating and maintenance expenses increased to $579 million due to higher in-service maintenance costs.
- Annual Performance: Full-year 2024 net loss stood at $512 million, with significant impairment losses offset by debt retirement gains.
Transocean Ltd. (NYSE:RIG) has announced its financial results for the fourth quarter of 2024, reporting a net income attributable to controlling interest of $7 million. However, this translated to a net loss of $0.11 per diluted share for the three-month period ending December 31, 2024.
The company’s fourth-quarter results included $20 million in discrete tax items, equating to an impact of $0.02 per diluted share. Excluding these unfavorable factors, the adjusted net income for the quarter was $27 million, resulting in a loss of $0.09 per diluted share.
Revenue and Expenses Overview
Transocean’s contract drilling revenues reached $952 million for Q4 2024, marking a $4 million sequential increase from the previous quarter. The revenue boost was primarily attributed to one of the company’s rigs resuming operations after undergoing a special periodic survey in the third quarter. Higher reimbursement revenues also contributed to the increase, though these gains were partially offset by lower revenue efficiency across the fleet.
Operating and maintenance expenses climbed to $579 million, up from $563 million in the prior quarter. This increase was largely driven by higher in-service maintenance costs across the company’s fleet. However, an insurance settlement helped to partially offset these rising costs.
General and administrative expenses also saw an increase, reaching $56 million compared to $47 million in the third quarter. This rise was mainly due to higher legal and professional fees incurred during the quarter.
Interest and Taxation
Interest expense, net of capitalized amounts, stood at $152 million, slightly lower than the $154 million reported in the previous quarter. The company also noted favorable fair value adjustments of $61 million in Q4, compared to $74 million in Q3, related to the bifurcated exchange feature of its 4.625% exchangeable bonds. Meanwhile, interest income for the quarter came in at $10 million, down from $11 million in Q3.
The company’s Effective Tax Rate (ETR) surged to 89.0%, a significant increase from 6.0% in the prior quarter. The spike was attributed to higher income levels and increases in valuation allowance. Excluding discrete tax items, the adjusted ETR for Q4 2024 stood at 56.7%, up from 22.5% in Q3.
Full-Year 2024 Financial Performance
For the full year ended December 31, 2024, Transocean reported a net loss attributable to controlling interest of $512 million, translating to a loss of $0.76 per diluted share. The company’s annual results included $458 million in net unfavorable items, primarily driven by:
- Impairment losses: A $755 million asset impairment charge ($0.82 per diluted share) and a $5 million loss on investments in unconsolidated affiliates.
- Debt-related gains: A $161 million gain from debt retirement and a $141 million gain from discrete tax items.
