About Transocean Ltd.
Transocean Ltd. (NYSE: RIG) is a leading international offshore contract drilling company providing specialized oil and gas well drilling services worldwide. Headquartered in Steinhausen, Switzerland, the company owns and operates a fleet of offshore drilling rigs, including deepwater and offshore floating rigs, which it leases to integrated energy companies, national oil companies, and private exploration and production companies. Its services include contract rigs, related equipment, and subsea drilling crews. Founded in 1926, Transocean is one of the leading players in the offshore drilling sector and is listed on the New York Stock Exchange (NYSE) under the ticker RIG.
Transocean’s operations are capital intensive and cyclical, closely linked to oil and gas exploration around the world. It specializes in deep well drilling equipment and continues to secure multi-year contracts for its equipment around the world.
2025 Results
Operating income increased to $3.965 billion, representing a 13% increase compared to $3.524 billion in 2024, reflecting improved levels of work and strong contract performance. Revenue efficiency improved to 96.5%, from 94.5% in the prior year, reflecting improved uptime and performance across the fleet.
Net loss attributable to controlling interest was $2.915 billion, or $3.04 per diluted share, reflecting non-cash charges and other financial impacts during the year. Adjusted EBITDA increased to $1.37 billion, a 19% increase from $1.148 billion in 2024, reflecting strong operating performance and margin improvement.
Income from operating activities reached $749 million, up $302 million (68%) year over year, driven by higher revenue and improved cost management. Free cash flow reached $626 million, a significant increase of $433 million compared to $193 million last year, supporting debt reduction and strengthening the economy.
Total principal debt decreased to $5.686 billion, a decrease of $1.258 billion (18%), highlighting the company’s continued focus on deleveraging. Total liquidity stands at $1.507 billion, including availability under the revolving credit facility, which provides financial flexibility.
The company added $839 million to its contract backlog for a weighted daily average of $453,000, strengthening revenue visibility in the coming periods.
4Q25 Financial Summary
Net income from controlling interest of $25 million, $0.02 per diluted share. Cash provided by operating activities was $349 million, an increase of 42% compared to the prior quarter and was primarily related to improvements in working capital.
Contract drilling revenue was $1.043 billion, up 1.5% compared to the prior quarter, primarily related to improved rig utilization, partially offset by lower revenue performance across the fleet. Operating and maintenance expenses were $605 million, an increase of 3.6% compared to the prior quarter, primarily related to four vessel requalifications or shipyard maintenance, partially offset by lower costs sold or held for sale.
Interest expense was $132 million, excluding the impact of the bifurcated exchange factor for the 4.625% convertible bonds due 2029, down 6% compared to the prior quarter, primarily due to our debt reduction efforts achieved in the fourth quarter. The capital expenditure was $28 million.
The effective tax rate was 68.8%, up from (1.4)% in the previous quarter. The increase was primarily due to a loss on equipment damage in the previous quarter. Excluding miscellaneous items, the Effective Tax Rate was 72.3% compared to 34.8% in the previous quarter. Income taxes paid during that period were $18 million.
Fleet Status Report and Contract Backlog
We published our State of Aviation report today. Since the October 2025 report, we have added 10 new fixes with a total backlog of approximately $610 million and a weighted daily average of $417,000 per day. As of February 19, 2026, the outstanding amount is approximately $6.1 billion.
Q1 and 2026 Outlook
In the first quarter of 2026, contract drilling revenue is expected to be between $1,020 million and $1,050 million. For the full year of 2026, revenue is expected to be between $3,800 million and $3,950 million. Airline comprehensive revenue efficiency is expected to be 96.5% for both the first quarter and full year 2026, indicating continued solid performance.
Operating and maintenance expenses are expected to be between $605 million and $625 million in the first quarter. For the full year, these costs are expected to be between $2,250 million and $2,375 million. General and administrative expenses are estimated to be $40 million to $50 million in the first quarter and $170 million to $180 million in the full year 2026.
Interest expense is expected to reach $125 million in the first quarter and $480 million for the full year. Interest income is expected to be between $(5) and $(10) billion in the first quarter, and between $(30) million and $(35) million for the full year 2026.
Capital expenditures are expected to be between $35 million and $45 million in the first quarter and total approximately $130 million for the full year. Income taxes are estimated at $15 million in the first quarter and between $85 million and $90 million in the full year of 2026. The total payment amount was not provided for the first quarter. In the full year of 2026, the total amount is expected to be between $1,600 million and $1,700 million.
