Transocean Ltd. (RIG), a leading offshore drilling contractor, saw its shares soar 6.28% on Monday after reporting better-than-expected third-quarter results driven by strong demand for its high-specification rigs and robust backlog.
The company reported adjusted earnings of $0.64 per share for the quarter ended September 30, 2024, beating analysts' estimates of a $0.04 loss per share. Revenues for the quarter came in at $948 million, surpassing the consensus estimate of $943.83 million.
Transocean's solid performance was largely attributed to its nearly $1.3 billion in new contract awards during the quarter, including a recent deal for the ultra-deepwater drillship Deepwater Conqueror. The company's backlog stood at an impressive $9.3 billion as of the October 2024 Fleet Status Report, providing clear visibility into future demand.
Chief Executive Officer Jeremy Thigpen highlighted the company's unique capabilities and superior operational performance as key factors driving customer demand. "With more than 97% of Transocean's active fleet contracted in 2025, our customers clearly recognize that our rigs, crews, and superior operational performance add value to their programs," Thigpen said.
Transocean's revenue efficiency, a measure of its ability to maximize revenue generation, was 94.5% for the quarter, reflecting the high utilization of its fleet. The company's ultra-deepwater and harsh environment floaters achieved revenue efficiencies of 92.5% and 100.1%, respectively.
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