RIG Earnings Prediction
The chart below shows how RIG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RIG sees a +2.57% change in stock price 10 days leading up to the earnings, and a +0.35% change 10 days following the report. On the earnings day itself, the stock moves by -0.01%. This data can give you a slight idea of what to expect for the next quarter's release.
RIG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
952.00M
28.48%
0.42%
Gross Margin
20.27%
1351.23%
-1.46%
Operating Margin
14.39%
271.92%
-7.82%
Net Margin
0.74%
105.27%
-101.42%
EPS
0.01
107.69%
-101.79%
No Data Available
RIG Earnings Analysis
Transocean Ltd Corporation (RIG.N) Earnings Conference Call
Positive
Adjusted EBITDA Performance: Transocean reported adjusted EBITDA of $323 million on $952 million of adjusted contract drilling revenues for Q4 2024, resulting in an adjusted EBITDA margin of approximately 34%.
Adjusted EBITDA Performance: For the full year 2024, Transocean delivered adjusted EBITDA of $1.15 billion on approximately $3.5 billion of adjusted contract drilling revenues, maintaining an adjusted EBITDA margin of approximately 33%.
High-Value Contract Acquisition: The company secured several contracts approaching and exceeding $500,000 per day for high hook load seventh generation assets and more than $600,000 per day for eighth generation 20k assets, indicating strong customer trust and demand.
Well Option Exercise: Reliance Industries exercised a four-well option for the KG1 in India at a rate of $410,000 per day, ensuring strong cash flow through the end of 2027.
Safety Performance Achievement: Transocean achieved its best-ever occupational and process safety performance in 2024, ending the year with a total recordable incident rate of 0.15 and zero serious injury cases or lost time injuries.
Subsea Completion Innovation: The company installed the first two 20k subsea completions in offshore drilling history, showcasing its technological leadership and commitment to innovation.
Drilling Automation Advancement: Transocean expanded the use of drilling automation, achieving an industry first with fully automated casing running and offline stand building operations, enhancing safety and efficiency.
Future Demand for Rigs: The company is engaged in discussions for multiyear term opportunities starting in 2026, indicating a strong future demand for its high specification rigs.
Fleet Utilization Outlook: Transocean's active fleet is near full utilization through 2026, reflecting a positive outlook for the company's operations and revenue generation.
Strong Financial Liquidity: The company ended Q4 2024 with total liquidity of approximately $1.5 billion, including unrestricted cash and cash equivalents of $560 million, indicating strong financial health.
Negative
Q4 2024 Net Loss: Net loss reported for Q4 2024 was $7 million, translating to a net loss of $0.11 per diluted share, primarily due to financial instruments related to exchangeable bonds.
Operational Expense Analysis: Operating and maintenance expenses for Q4 were $579 million, which was slightly below the forecast range, indicating potential operational inefficiencies.
Projected Q1 2025 Revenues: Expected contract drilling revenues for Q1 2025 are projected to decrease to between $870 million and $890 million, reflecting lower activity within the active fleet due to mobilization and contract preparation periods.
Rising O&M Expenses: O&M expenses for Q1 2025 are expected to rise to between $610 million and $630 million, primarily due to out of service and contract preparation periods, indicating increased operational costs.
2025 Contract Drilling Revenue Forecast: Full year 2025 contract drilling revenues are forecasted to be between $3.85 billion and $3.95 billion, which is lower than previous expectations due to shorter than expected activity for certain rigs.
Foreign Exchange Impact: Unfavorable foreign exchange movements impacted the remeasurement of local currency contracts in Brazil, which could affect overall financial performance.
Net Interest Expense Forecast: Net interest expense for Q1 2025 is forecasted to be between $140 million and $150 million, indicating a significant financial burden on the company.
Year-End Liquidity Projections: Projected liquidity at year-end 2025 is expected to be between $1.35 billion and $1.45 billion, with most of it reserved for debt service, highlighting potential liquidity constraints.
RIG FAQs
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RIG Earning Call Sentiment
Transocean Ltd. (NYSE:RIG) Q4 2024 Earnings Call Transcript
RIG.N
-2.96%Positive
The earnings call revealed strong operational performance and a solid backlog, with a positive outlook for future revenue and operational improvements. However, the lack of specific shareholder return plans and concerns about foreign exchange risks and debt management dampen the sentiment. The Q&A session highlighted uncertainties in contract pricing and market demand, particularly in Brazil. Given the market cap of $4.37 billion, the stock is likely to experience a neutral reaction, with potential fluctuations within a -2% to 2% range over the next two weeks.
