Transocean Ltd. Reports Third Quarter 2025 Results

STEINHAUSEN, Switzerland, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $1.92 billion, $2.00 per diluted share, for the three months ended September 30, 2025.

Third quarter results included net unfavorable items of $1.985 billion, $2.06 per diluted share, as follows:

After consideration of these net unfavorable items, third quarter 2025 adjusted net income was $62 million, $0.06 earnings per diluted share.

Contract drilling revenues for the three months ended September 30, 2025, increased sequentially by $40 million to $1.03 billion, primarily due to higher revenues associated with improved rig utilization, improved revenue efficiency, an additional day in the quarter, and an increase in dayrate for one rig, partially offset by lower revenues generated by one rig that was idle between contracts.

Operating and maintenance expense was $584 million, compared to $599 million in the prior quarter. The sequential decrease was primarily due to lower expenses on a rig that completed a special periodic survey during the second quarter.

Interest expense was $140 million, compared with $141 million in the prior quarter, excluding the effect of the bifurcated exchange feature of the 4.625% exchangeable bonds due 2029, which represented an unfavorable adjustment of $14 million and a favorable adjustment of $29 million in the third and second quarter, respectively. Interest income was $12 million, compared to $10 million in the prior quarter.

The Effective Tax Rate (2) was (1.4)%, down from 14.2% in the prior quarter. The decrease was primarily due to losses on rig impairments and changes in the internal ownership of certain rigs. Excluding discrete items, the Effective Tax Rate was 34.8% compared to 70.0% in the previous quarter. In the third quarter, cash paid for taxes was $11 million.

Cash provided by operating activities was $246 million during the third quarter, representing an increase of $118 million compared to the prior quarter. The sequential increase was primarily due to a reduction of working capital.

Third quarter 2025 capital expenditures were $11 million, compared to $24 million in the prior quarter.

“In addition to delivering an outstanding quarter of operational performance and Free Cash Flow generation, we took decisive steps to accelerate debt reduction and improve our financial flexibility,” said President and Chief Executive Officer, Keelan Adamson. “Along with meeting scheduled maturities, these transactions are expected to, respectively, reduce total debt by approximately $1.2 billion by the end of 2025; annual interest expense by approximately $83 million; and restricted cash by $52 million.”

Adamson concluded, “As a result, we have also significantly improved our debt maturity profile over the next several years and believe these actions will further enhance shareholder value.”

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as EBITDA, Adjusted EBITDA, Adjusted Net Income and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.

All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 27 mobile offshore drilling units, consisting of 20 ultra-deepwater floaters and seven harsh environment floaters.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 9 a.m. EDT, 2 p.m. CET, on Thursday, October 30, 2025, to discuss the results. To participate, dial +1 785-424-1619 and refer to conference code 234878 approximately 15 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.

A replay of the conference call will be available after 12 p.m. EDT, 5 p.m. CET, on Thursday, October 30, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-0689, passcode 234878. The replay will also be available on the company’s website.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2024, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Notes

Analyst Contact:

Alison Johnson

+1 713-232-7214

Media Contact:

Kristina Mays

+1 713-232-7734