Transocean Q3 Earnings & Sales Surpass Estimates, Increase Y/Y

Transocean Ltd. RIG reported third-quarter 2025 adjusted earnings of 6 cents per share, beating the Zacks Consensus Estimate of 4 cents. The bottom line also improved from the year-ago period’s breakeven earnings. This improvement can be attributed to a strong third-quarter result from the company's segments.This Switzerland-based offshore drilling powerhouse’s total adjusted revenues of $1 billion beat the Zacks Consensus Estimate by $21 million. The top line also increased 8.4% from the prior-year figure of $948 million. This was fueled by higher revenues associated with improved rig utilization, improved revenue efficiency and an increase in day rate for one rig. Ultra-deepwater and harsh environment revenues beat the consensus mark of $684 million and $265 million, respectively.Transocean Ltd. Price, Consensus and EPS Surprise Transocean Ltd. price-consensus-eps-surprise-chart | Transocean Ltd. QuoteTransocean’s Segmental Revenue BreakupTransocean’s ultra-deepwater floaters contributed 67.7% to net contract drilling revenues, while harsh environment floaters accounted for the remaining 32.3%.Revenues from the ultra-deepwater and harsh environment floaters totaled $696 million and $332 million, respectively, compared with the year-ago quarter’s reported figures of $668 million and $280 million.Revenues from ultra-deepwater operations were down from the model estimate of $733.9 million, while those from harsh environment operations exceeded the prediction of $269.1 million. Revenue efficiency was 97.5%, up from 96.6% in the previous quarter and also from 94.5% reported in the year-ago quarter.RIG’s Day Rates, Utilization & BacklogAverage day rates in the reported quarter increased to $462,300 from $436,800 in the year-ago quarter. However, the figure beat the Zacks Consensus Estimate of $450,000.Average revenues per day from ultra-deepwater floaters increased to $460,200 from $426,700 in the year-ago quarter. The same from harsh environment floaters also increased to $467,100 from $464,900 in the prior-year quarter.Fleet utilization rate was 76% in the quarter, which increased from the prior-year period’s 63.9%.As of October 2025, Transocean’s total backlog was $6.7 billion.RIG’s Costs, Capex & Balance SheetThis Zacks Rank #3 (Hold) company reported $791 million in costs and expenses, which was 1.1% lower than the year-ago quarter’s level of $800 million. However, operations and maintenance costs increased to $584 million from $563 million a year ago.The oil and gas drilling company spent $11 million on capital investments in the third quarter. Cash provided by operating activities was $246 million. Cash and cash equivalents were $833 million as of Sept. 30, 2025. Long-term debt amounted to $4.8 billion, with a debt-to-capitalization of 37.5% as of the same period.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Q4, 2025 & Preliminary 2026 Guidance by TransoceanFor the fourth quarter of 2025, the company expects contract drilling revenues between $1.03 billion and $1.05 billion, including $60 million to $70 million from additional services and reimbursable expenses. This outlook assumes a fleet-wide revenue efficiency of 96.5%. Operating and maintenance expenses are predicted to range from $595 million to $615 million. General and administrative expenses are expected to be between $45 million and $50 million.Net cash interest expense is anticipated to be approximately $122 million, indicating $131 million in interest expense and $9 million in interest income. Capital expenditures are estimated at $25 million to $30 million and cash taxes paid are expected to total around $18 million.For the full year 2025, the company expects that its total liquidity will be slightly more than $1.4 billion, which includes $510 million capacity of an undrawn credit facility. The remaining debt and capital lease balance is predicted at approximately $5.9 billion.For the full year 2026, RIG’s preliminary contract drilling revenues are expected to be between $3.8 billion and $3.95 billion, which includes $230 million to $270 million from additional services and reimbursables. Operating and maintenance expenses are predicted at $2.275 billion to $2.4 billion, while G&A expenses are expected to range from $170 million to $180 million. RIG’s cash interest expense is anticipated to be about $480 million.By the end of 2026, the company’s preliminary liquidity is projected to be between $1.6 billion and $1.7 billion, which includes $510 million of revolving credit facility. The company anticipates remaining undrawn with restricted cash of about $380 million. For 2026, its CapEx is expected to be between $125 million and $135 million, which is included in its liquidity forecast.Important Energy Earnings at a GlanceWhile we have discussed RIG’s third-quarter results in detail, let us take a look at three other key reports in this space.Oil and gas equipment and services provider TechnipFMC plc FTI reported third-quarter 2025 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 65 cents. The bottom line also topped the year-ago quarter’s reported profit of 64 cents. The outperformance is primarily driven by strong results in the Subsea segment.Houston, TX-based oil and gas equipment and services provider’s revenues of $2.6 billion beat the Zacks Consensus Estimate by 1.2%. Moreover, the top line increased from the year-ago quarter’s reported figure of $2.3 billion.As of Sept. 30, FTI had cash and cash equivalents worth $876.6 million and long-term debt of $404.1 million, with a debt-to-capitalization of 10.8%.Expand Energy Corporation EXE reported third-quarter 2025 adjusted earnings per share of 97 cents, beating the Zacks Consensus Estimate of 88 cents. Additionally, the company’s bottom line increased from the year-ago adjusted profit of 16 cents, fueled by strong production and higher natural gas price realization.Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. However, the top line was outstandingly higher than the year-ago figure of $407 million.As of Sept. 30, 2025, the company had $613 million in cash and cash equivalents. Expand Energy had a long-term debt of $5 billion, reflecting a debt-to-capitalization of 21.6%.Nabors Industries Ltd. NBR reported a third-quarter 2025 adjusted loss of $3.67 per share, wider than the Zacks Consensus Estimate of a loss of $2.37. This underperformance was mainly due to lower adjusted operating income from its U.S. Drilling and Rig Technologies segments. Additionally, the metric also widened from the prior-year quarter’s reported loss of $3.35 per share.The oil and gas drilling company’s operating revenues of $818.2 million missed the Zacks Consensus Estimate of $842 million due to lower revenue contributions from the aforementioned segments. However, the figure increased from the year-ago quarter’s $731.8 million, driven by stronger revenue contributions from the International Drilling and Drilling Solutions segments.As of Sept. 30, 2025, NBR had $428.1 million in cash and short-term investments. Long-term debt was about $2.3 billion, with a debt-to-capitalization of 80.2%. Capital expenditures totaled $202.3 million during the same time.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transocean Ltd. (RIG): Free Stock Analysis Report Nabors Industries Ltd. (NBR): Free Stock Analysis Report TechnipFMC plc (FTI): Free Stock Analysis Report Expand Energy Corporation (EXE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks