The driller took a hit from $617 million in asset impairments. Image by William_Potter via iStock
Offshore drilling contractor Transocean Ltd. ended the third quarter of the year with $494 million in net loss attributable to controlling interests of $494 million, $0.58 per diluted share, as it took a hit from a $617 million impairment.
The company said in a media release that contract drilling revenues increased for the quarter by $87 million, reaching $948 million. The rise was attributed to increased rig utilization, higher day rates for two units as well as a full quarter of revenues from Deepwater Aquila, a newly built ultra-deepwater drillship.
Transocean's backlog as of October was at $9.3 billion, the company said. "As illustrated by the nearly $1.3 billion in backlog booked in the third quarter, including the recent award for Deepwater Conqueror, the demand for our fleet of high specification ultra-deepwater and harsh environment rigs remains strong", said Chief Executive Officer Jeremy Thigpen. "With these most recent awards, more than 97 percent of Transocean's active fleet is contracted in 2025".
In its recent fleet status report, Transocean unveiled deals for six of its drillships. Deepwater Conqueror secured a one-year contract in the U.S. Gulf of Mexico at a day rate of $530,000. The day rate was topped by Deepwater Atlas securing a one-year deal at $635,000, also in the U.S. Gulf of Mexico.
Deepwater Invictus secured two one-well extensions in the U.S. Gulf of Mexico on top of a 34-month contract. Transocean Endurance remains in Australia as the customer exercised its options for a total of six additional wells. Dhirubhai Deepwater KG1 stays in India for six more wells while Transocean Spitsbergen will drill three more wells in Norway.
Transocean's operating and maintenance expenses rose to $563 million for the third quarter, up from $534 million for the previous quarter. This increase was driven by higher fleet activity, particularly from the Deepwater Aquila, which was fully operational for the entire quarter. However, reduced operating costs related to Transocean Norge, following the acquisition of Orion Holdings in June, partially offset this increase.