Transocean(RIG) - 2024 Q4 - Annual Results

Financial Performance - Contract drilling revenues for Q4 2024 were $952 million, a sequential increase of$4 million from Q3 2024 and a year-over-year increase of $211 million from Q4 2023[3]. - Adjusted net income for Q4 2024 was$27 million, or a loss of $0.09 per diluted share, compared to a net loss of$494 million in Q3 2024[2][9]. - Full year 2024 net loss attributable to controlling interest totaled $512 million, or$0.76 per diluted share, with adjusted net loss of $54 million, or$0.26 per diluted share[9]. - Net loss for 2024 was $512 million, an improvement from a net loss of$954 million in 2023[28]. - The company reported a net income (loss) of $7 million for the quarter ending December 31, 2024, compared to a net loss of$104 million for the same quarter in 2023[34]. Revenue and Utilization - Total contract drilling revenues increased from $2,832 million in 2023 to$3,524 million in 2024, representing a growth of 24.4%[30]. - Average daily revenue for the total fleet rose from $382,300 in 2023 to$430,100 in 2024, an increase of 12.5%[30]. - Total fleet average rig utilization improved from 51.9% in 2023 to 66.8% in 2024, reflecting a significant increase of 28.5%[30]. - Contract drilling revenues for the quarter ending December 31, 2024, were $952 million, up from$741 million in the same quarter of 2023, representing a growth of approximately 28.5%[36]. - Adjusted Contract Drilling Revenues for YTD December 31, 2024, were $3,528 million, an increase from$2,884 million in the same period of 2023, reflecting a growth of approximately 22.4%[36]. Cash Flow and Expenses - Cash provided by operating activities in Q4 2024 was $206 million, an increase of$12 million compared to Q3 2024[7]. - Cash flows from operating activities provided $447 million in 2024, compared to$164 million in 2023[28]. - Free Cash Flow for the year-to-date (YTD) 2024 was $193 million, compared to a negative Free Cash Flow of$263 million in YTD 2023[42]. - Cash provided by operating activities for Q4 2024 was $206 million, up from$98 million in Q4 2023[42]. - Levered Free Cash Flow for Q4 2024 was $147 million, compared to a negative$132 million in Q4 2023[42]. Expenses and Debt - Operating and maintenance expenses for Q4 2024 were $579 million, up from$563 million in Q3 2024, driven by higher in-service maintenance costs[4]. - Interest expense net of capitalized amounts was $152 million in Q4 2024, compared to$154 million in Q3 2024[5]. - Long-term debt decreased from $7,043 million in 2023 to$6,195 million in 2024, a decline of 12.1%[26]. - Debt repayments for YTD 2024 amounted to $2.1 billion, with$30 million in Q4 2024[42]. Tax and Impairment - The effective tax rate for Q4 2024 was 89.0%, significantly up from 6.0% in the prior quarter, primarily due to higher income and increases in valuation allowance[6]. - Income before income taxes for Q4 2024 was $62 million, a significant improvement from a loss of$525 million in Q3 2024 and a loss of $941 million in Q4 2023[38]. - The company incurred a loss on impairment of assets totaling$772 million for the YTD ending December 31, 2024, compared to $57 million for the same period in 2023[36]. - The company reported a loss on impairment of assets of$629 million in Q3 2024, with no such loss reported in Q4 2024[38]. Operational Metrics - The company operates a fleet of 34 mobile offshore drilling units, including 26 ultra-deepwater floaters and eight harsh environment floaters[13]. - Average daily revenue for ultra-deepwater floaters increased from $393,700 in 2023 to$428,000 in 2024, a rise of 8.7%[30]. - Revenue efficiency for the total fleet averaged 94.5% in 2024, compared to 96.8% in 2023, indicating a slight decrease[30]. - Adjusted EBITDA for Q4 2024 was $323 million, with an adjusted EBITDA margin of 33.9$532 million for the YTD ending December 31, 2024, compared to $449 million for the same period in 2023, indicating an increase of approximately 18.5%[36].