Transocean (RIG) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, May 5, 2026 astatine 9:51 AM CDT 31 min read

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DATE

Tuesday, May 5, 2026 astatine 9:00 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Keelan I. Adamson

• Executive Vice President and Chief Financial Officer — Thaddeus Vayda

• Executive Vice President and Chief Operating Officer — Roderick J. Mackenzie

• Head of Investor Relations — David Kiddington

Full Conference Call Transcript

Keelan I. Adamson: Good morning, and invited to our archetypal 4th league call. Today, we volition code respective topics. First, an overview of our accomplishments successful the archetypal quarter. Next, I volition supply immoderate marketplace updates, including a fewer thoughts connected the interaction of events successful the Middle East connected our business. Then I volition update you connected the pending acquisition of Valaris. And finally, Thaddeus volition marque a fewer comments connected our fiscal results and guidance. First, the quarter. Operational show was precise strong, with uptime of 98%. Adjusted EBITDA was $440 million, implying a coagulated borderline of implicit 40%. Our mean regular gross successful the play was $476,000, the highest successful implicit a decade.

These results were accomplished portion moving safely and efficiently with zero life-changing injuries oregon operational integrity events. This exceptional show is owed to our team's dedication to providing best-in-class work to our customers. We are committed to eliminating costs from our concern and are connected way to deliver, versus a 2024 baseline, savings of $250 cardinal successful aggregate done 2026. As we person discussed, these savings are associated with continuous improvements successful however we tally our rig operations, removing idle and stacked assets from the fleet, much businesslike attraction spending, and a simplification successful shore-based enactment infrastructure.

Since our February call, we person announced astir $1.6 cardinal of backlog, including caller contracts and declaration extensions connected 5 rigs successful Norway, Brazil, and the Eastern Mediterranean, expanding our backlog to implicit $7 cardinal arsenic reflected successful our fleet presumption study published yesterday. Nearly 1 3rd of this backlog summation is related to a three-year declaration connected the Transocean Barron with Vår Energi successful Norway astatine a complaint of $450,000 per day. The programme is expected to commencement successful mid-2027 and includes options that, if afloat exercised, could support the Barron moving successful Norway into 2034. We are precise excited to beryllium commencing a caller semipermanent strategical narration with Vår Energi.

In Brazil, 3 of our ultra-deepwater ships—two sixth gen and 1 seventh gen—were awarded declaration extensions by Petrobras. The sixth procreation drillships, the Deepwater Orion and Deepwater Corcovado, were each awarded three-year declaration extensions, collectively contributing astir $845 cardinal successful incremental backlog, committing the rigs into 2030. The seventh procreation drillship Deepwater Aquila was awarded a one-year extension, contributing astir $160 cardinal successful incremental backlog, committing the rig done mid-2028. Lastly, successful the Eastern Med, the Deepwater Asgard was awarded a five-well contract, contributing astir $158 cardinal successful backlog and committing the rig done 2027.