NYSE$RIG

Transocean LTD · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Transocean reported a net loss for Q3 2022, with revenues approximately flat sequentially and secured an incremental backlog.

Transocean Ltd. reported a net loss attributable to controlling interest of $28 million, or $0.04 per diluted share, for the three months ended September 30, 2022. Contract drilling revenues for the three months ended September 30, 2022 were $691 million.

  • Total contract drilling revenues were $691 million, compared to $692 million in the second quarter of 2022
  • Revenue efficiency was 95.0%, compared to 97.8% in the prior quarter
  • Net loss attributable to controlling interest was $28 million, $0.04 per diluted share, compared to $68 million, $0.10 per diluted share, in the second quarter of 2022
  • Adjusted EBITDA was $268 million, compared to $245 million in the prior quarter

Headline financials

Total Revenue

$691M

Previous: $626M+10.4%
EPS (adj)

-$0.06

Previous: -$0.19+68.4%
Revenue Efficiency

95.0%

Previous: 98.1%-3.2%
Adjusted EBITDA Margin

36.7%

No prior period
Capital Expenditures

-$308M

Previous: -$137M-124.8%
Free Cash Flow

-$336M

Previous: -$267M-25.8%
Net Income

-$28M

Previous: -$130M+78.5%
Operating Income

$53M

Previous: -$69M+176.8%
Gross Profit

$280M

Previous: $228M+22.8%
Cash & Equivalents

$954M

Previous: $900M+6.0%
Total Assets

$20.6B

Previous: $21B-1.7%
Stock-Based Comp

$7M

Previous: $7M+0.0%

Revenue & EPS history

Transocean · Revenue · Quarterly

$691M

Q3 2022+10.4%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Transocean · $691M total across 2 segments · Q3 2022

  • Ultra-Deepwater Floaters
    $433M+1.2%
  • Harsh Environment Floaters
    $258M+30.3%

Forward guidance

The robust demand for our assets and services helped us secure an incremental $1.6 billion since our July 25 Fleet Status Report, contributing to our already industry-leading backlog. We remain encouraged by the sustained strength in the offshore drilling market globally and expect demand for the increasingly scarce high-capability drilling rigs Transocean owns and operates to remain strong for the foreseeable future, resulting in higher utilization and dayrates.

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 2022

Historical avgQ3 2022

+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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