Transocean Ltd. Q3 FY2025 earnings call

• Keelan Adamson highlighted a strong third quarter with superior operational performance, debt reduction of ~$1.2 billion vs scheduled maturities, fleet rationalization including disposal of 4 drillships and 1 harsh environment semisubmersible, rig contracting activities like BP exercising an option for the Deepwater Atlas and Petrobras exercising an option for the Deepwater Mykonos, and strong safety/reliability performance with 100% revenue efficiency in September and 97.5% for the third quarter. • Thad Vayda recapped third quarter results (contract drilling revenue $1.03B, O&M expense $584M, etc.), provided fourth quarter and 2026 guidance, discussed debt reduction through capital market transactions reducing gross debt by ~$1.2B and annualized interest expense by ~$87M, and liquidity details.

No specific product segment financial performance with revenue contribution % provided in the transcript.

• Fourth quarter 2025 contract drilling revenue expected between $1.03 billion and $1.05 billion. • 2026 contract drilling revenue forecast between $3.8 billion and $3.95 billion. • Reduced gross debt by approximately $1.2 billion vs scheduled maturities of $714 million, with annualized interest expense reduced by about $87 million. • Preliminary projected liquidity at year-end 2026 between $1.6 billion and $1.7 billion.

• Global macro uncertainties impacting commodity prices, which affect customer capital discipline and drilling demand. • Customer capital discipline leading to deferred near-term demand for drilling services.

Q: Eddie Kim asked about confidence in deepwater utilization increase, timing, and impact of potential rate prints.

A: Keelan Adamson and Roddie Mackenzie responded on utilization expected to bridge over 90% by end of 2026 into 2027, rates being competitive as utilization builds, and resilience of seventh gen units.

Q: Doug Becker inquired if Transocean had meetings with Petrobras on cost reduction, outcome.

A: Keelan Adamson and Roddie Mackenzie stated they engaged with Petrobras on cost reduction, saw it as a positive effort to gain efficiencies.

Q: Noel Parks asked about exploratory drilling lead time.

A: Keelan Adamson and Roddie Mackenzie discussed increased conversation about exploration leading to rig activity in out years from 2027 on, driven by macro environment and customer discussions on supply needs.