Offshore drilling contractor Transocean reported a net loss attributable to controlling interest of $1.92 billion, or $2.00 per diluted share, for the third quarter ended September 30, 2025. This result was heavily influenced by net unfavourable items totalling $1.985 billion, including a $1.908 billion loss on asset impairment.
After adjusting for these items, the company's adjusted net income for the third quarter was $62 million, or $0.06 per diluted share, a significant turnaround from an adjusted net loss in the previous quarter and roughly in line with the adjusted net income from Q3 2024.
Contract drilling revenues for the quarter increased by $40 million sequentially to $1.03 billion, primarily due to higher rig utilisation, improved revenue efficiency, and an increase in dayrate for one rig.
Operating and maintenance expense decreased by $15 million sequentially to $584 million. Adjusted EBITDA for the quarter was $397 million, up from $344 million in the prior quarter and $342 million in the same period last year.
Cash provided by operating activities was $246 million, a sequential increase of $118 million, which the company attributed primarily to a reduction in working capital.
Keelan Adamson, President and Chief Executive Officer, stated, “We took decisive steps to accelerate debt reduction and improve our financial flexibility.”
Adamson noted that these actions are expected to reduce total debt by approximately $1.2 billion by the end of 2025 and annual interest expense by approximately $83 million. The company's contract backlog stood at $6.7 billion as of the October 2025 fleet status report.