Transocean Ltd.: Demand for High-Specification Ultra-Deepwater Drillships & 3 Critical Factors Impacting Its Performance!

Transocean reported adjusted EBITDA of $199 million on $767 million of adjusted contract drilling revenues for the first quarter, achieving an adjusted EBITDA margin of approximately 26%. Despite a slowdown in contract awards compared to last year, demand for high-specification ultra-deepwater drillships and harsh environment semisubmersibles remains robust, with improving day rates and longer contract terms. The company announced a 365-day contract extension for the Deepwater Asgard in the U.S. Gulf of Mexico, valued at approximately $195 million, and a contract for additional wells on the Deepwater Atlas at a day rate of $505,000. TotalEnergies exercised an option on the Deepwater Skyros at a below-market rate of $400,000 per day. Transocean is optimistic about future long-term contracts reflecting improved supply/demand dynamics and customers’ willingness to invest in new technologies like K-BOS and HaloGuard.