NYSE$RIG

Transocean LTD · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a net loss attributable to controlling interest for the three months ended September 30, 2021.

Transocean Ltd. reported a total contract drilling revenue of $626 million and a net loss attributable to controlling interest of $130 million, or $0.20 per diluted share for the three months ended September 30, 2021. The results were influenced by reduced activity for rigs that went idle or commenced shipyard stays, offset by higher revenue efficiency.

  • Total contract drilling revenues were $626 million, compared to $656 million in the second quarter of 2021.
  • Revenue efficiency was 98.1%, compared to 98.0% in the prior quarter.
  • Operating and maintenance expense was $398 million, compared to $434 million in the prior quarter.
  • Net loss attributable to controlling interest was $130 million, $0.20 per diluted share, compared to $103 million, $0.17 per diluted share, in the second quarter of 2021.

Headline financials

Total Revenue

$626M

Previous: $773M-19.0%
EPS (adj)

-$0.19

Previous: -$0.11-72.7%
Revenue Efficiency

98.1%

Previous: 96.6%+1.6%
Capital Expenditures

-$137M

Previous: -$218M+37.2%
Free Cash Flow

-$267M

Previous: $141M-289.4%
Net Income

-$130M

Previous: $359M-136.2%
Operating Income

-$69M

Previous: $4M-1825.0%
Gross Profit

$228M

Previous: $303M-24.8%
Cash & Equivalents

$900M

Previous: $1.38B-34.9%
Total Assets

$21B

Previous: $22.5B-6.7%
Stock-Based Comp

$7M

Previous: $9M-22.2%

Revenue & EPS history

Transocean · Revenue · Quarterly

$626M

Q3 2021-19%vs Q3 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Transocean · $626M total across 2 segments · Q3 2021

  • Ultra-Deepwater Floaters
    $428M-12.7%
  • Harsh Environment Floaters
    $198M-30.0%

Forward guidance

Transocean grows increasingly encouraged as they observe continuously improving market fundamentals and the resulting strength exhibited in oil prices. With tightening utilization for high-specification ultra-deepwater and harsh environment assets, and longer tender durations across multiple markets, dayrates are steadily increasing, which bodes well for the offshore drilling industry, and Transocean.

Tailwinds

  • Improving market fundamentals
  • Strength exhibited in oil prices
  • Tightening utilization for high-specification ultra-deepwater assets
  • Tightening utilization for harsh environment assets
  • Longer tender durations across multiple markets

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 Q3 2021

Historical avgQ3 2021

+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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