Transocean (RIG) investor relations material

Executive summary

• Achieved strong operational performance with 98% uptime, adjusted EBITDA of $440 million (margin over 40%), and net income of $71 million, reversing a prior-year loss.

• Average daily revenue reached $476,000, the highest in over a decade, with revenue efficiency at 97.3%.

• Secured $1.6 billion in new backlog, raising total backlog to over $7.1 billion.

• Retired $358 million in debt, accelerating deleveraging and reducing future interest expense.

• Announced acquisition of Valaris Limited, with integration and business continuity planning underway.

Financial highlights

• Contract drilling revenues were $1.08 billion, up 19% year-over-year, with revenue efficiency exceeding 97%.

• Adjusted EBITDA was $440 million, margin above 40%; operating income rose to $287 million from $64 million year-over-year.

• Cash flow from operations was $164 million; free cash flow was $136 million after $28 million in capex.

• Ended the quarter with $330 million in unrestricted cash and total liquidity of $1.125 billion.

• Total debt reduced to $5.14 billion from $6.73 billion year-over-year.

Outlook and guidance

• Deepwater utilization expected to approach 100% by end of 2027; full-year revenue guidance at $3.8–$3.9 billion.

• Capex guidance increased by $20 million, mainly for environmental upgrades in Norway; 2026 capex guided at $150 million.

• Expect to retire at least $750 million in debt in 2026, ending with ~$4.9 billion principal balance.

• Anticipate total liquidity of $1.25–$1.35 billion at year-end.

• Revenue efficiency projected at 96.5% for Q2 and full year.