NYSE$RIG

Transocean LTD · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Transocean reported results for Q1 2020, including a net loss and adjusted EBITDA.

Transocean Ltd. reported a net loss attributable to controlling interest of $392 million, or $0.64 per diluted share, for the three months ended March 31, 2020. Adjusted net loss was $187 million, or $0.30 per diluted share. Total contract drilling revenues were $759 million, with adjusted contract drilling revenues of $807 million. The company's contract backlog was $9.6 billion as of the April 2020 Fleet Status Report.

  • Total contract drilling revenues were $759 million (total adjusted contract drilling revenues of $807 million).
  • Revenue efficiency was 94.4%.
  • Net loss attributable to controlling interest was $392 million, $0.64 per diluted share.
  • Adjusted net loss was $187 million, $0.30 per diluted share, excluding $205 million of net unfavorable items.

Headline financials

Total Revenue

$759M

Previous: $754M+0.7%
EPS (adj)

-$0.30

Previous: -$0.30+0.0%
Revenue Efficiency

94.4%

Previous: 98.0%-3.7%
Capital Expenditures

-$107M

Previous: -$52M-105.8%
Free Cash Flow

-$499M

Previous: -$223M-123.8%
Net Income

-$392M

Previous: -$171M-129.2%
Operating Income

-$199M

Previous: -$13M-1430.8%
Gross Profit

$219M

Previous: $246M-11.0%
Cash & Equivalents

$1.48B

Previous: $1.89B-21.4%
Total Assets

$23.5B

Previous: $25.5B-7.9%
Stock-Based Comp

$8M

Previous: $9M-11.1%

Revenue & EPS history

Transocean · Revenue · Quarterly

$759M

Q1 2020+0.7%vs Q1 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Transocean · $748M total across 2 segments · Q1 2020

  • Ultra-Deepwater Floaters
    $528M
  • Harsh Environment Floaters
    $220M

Forward guidance

Transocean anticipates delays in contracting activity due to the decline in oil prices and uncertainties surrounding COVID-19.

Tailwinds

  • Delivered revenue in line with guidance.
  • Delivered lower than projected costs.
  • Industry-leading backlog.
  • Proven track record for managing costs.
  • Well-positioned to continue delivering the highest level of service while keeping our employees and our customers safe.

Headwinds

  • Dramatic decline in oil prices.
  • Continued uncertainties surrounding the containment of COVID-19.
  • Resumption of the global economy will invariably delay the contracting activity that we expected in 2020.
  • Cash flows used in operating activities were $48 million, compared to cash provided by operating activities of $147 million in the prior quarter.
  • First quarter 2020 capital expenditures of $107 million decreased primarily due to reduced expenditures for the reactivation of two rigs and leasehold improvements, partially offset by increased expenditures for our newbuild rigs under construction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.0%

Avg return

Earnings day

+3.5%

Avg return

5 days after

+5.1%

Avg return

30 days after

44%

32 / 72 earnings

Positive

+36.8%

Q1 2020

Best reaction

-13.0%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%-6.7%-8.9%
Q4 2025+2.5%+0.8%-2.2%
Q3 2025+1.8%+1.8%+15.1%
Q1 2025-4.8%+2.6%+12.6%
Q4 2024+0.6%-4.8%-8.2%
Q3 2024+10.7%+12.5%+12.2%
Q2 2024-3.9%-11.8%-16.5%
Q1 2024-11.1%-5.1%+1.2%
Q4 2023-4.5%-4.5%+24.7%
Q3 2023+1.1%+4.4%-4.6%
Q2 2023-2.1%-0.7%-4.4%
Q1 2023-2.9%+4.4%-3.1%
Q4 2022-13.0%-3.7%-15.7%
Q3 2022+13.7%+16.4%+14.5%
Q2 2022+10.7%+1.8%+7.1%
Q1 2022+6.1%+9.6%+9.8%
Q4 2021+3.9%-0.6%+32.2%
Q3 2021+4.5%+1.4%-17.3%
Q2 2021-3.0%-4.2%-3.6%
Q1 2021+6.2%+24.2%+37.6%
Q4 2020-6.0%-0.6%-6.0%
Q3 2020+29.8%+49.3%+211.9%
Q2 2020+2.0%+4.4%-33.8%
Q1 2020+36.8%+30.9%+41.5%
Q4 2019-2.4%-8.0%-75.4%
Q3 2019+8.7%+9.4%+6.8%
Q2 2019+7.0%-5.5%-21.3%
Q1 2019-10.7%-11.8%-23.3%
Q4 2018-2.2%-7.6%+5.9%
Q3 2018-1.4%-0.7%-12.6%
Q2 2018-0.3%+0.2%-5.5%
Q1 2018-3.1%-2.7%+1.2%
Q4 2017-0.9%+6.7%+10.3%
Q3 2017+1.1%+7.0%+3.1%
Q2 2017+7.7%+1.9%-0.3%
Q1 2017-0.8%+6.9%-13.3%
Q4 2016+6.2%+5.1%-9.0%
Q3 2016+2.9%+1.5%+39.2%
Q2 2016+7.8%+12.5%-4.2%
Q1 2016-3.5%
Q4 2015-3.6%
Q3 2015-8.0%
Q2 2015+13.3%
Q1 2015-3.5%
Q4 2014-1.0%
Q3 2014-1.4%
Q2 2014-0.9%
Q1 2014-3.7%
Q4 2013-2.0%
Q3 2013+8.8%
Q2 2013+0.3%
Q1 2013+0.3%
Q4 2012-0.2%
Q3 2012+7.1%
Q2 2012+0.8%
Q1 2012-4.0%
Q4 2011+6.8%
Q3 2011-10.5%
Q2 2011-8.9%
Q1 2011-0.2%
Q4 2010-0.4%
Q3 2010+1.0%
Q2 2010+15.0%
Q1 2009-4.2%
Q1 2010+6.7%
Q4 2009-6.2%
Q4 2007-6.2%
Q3 2008-0.1%
Q3 2009-0.1%
Q2 2008-6.4%
Q2 2009-6.4%
Q4 2008-6.4%

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