Transocean — Income Statement, Cash Flows & Balance Sheet
Is Transocean profitable?
Revenue is growing strongly, but massive asset write-downs are drowning out operating progress.
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Contract drilling revenues ($M) | $2,832 | $3,524 | +$692 |
| Contract drilling revenues ($M) | $3,524 | $3,965 | +$441 |
| Operating & maintenance costs ($M) | $1,986 | $2,199 | +$213 |
| Operating & maintenance costs ($M) | $2,199 | $2,406 | +$207 |
Revenue has grown meaningfully over three years, but operating costs have risen in step, keeping margins tight. Without impairments, the business is moving in the right direction — but profitability at the bottom line remains elusive.
Enormous impairment charges on older rigs are the defining story of 2025.
| Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Loss on impairment of assets ($M) | $(57) | $(772) | $(3,049) |
| Net loss ($M) | $(954) | $(512) | $(2,915) |
| Loss per share (basic) | $(1.24) | $(0.60) | $(3.04) |
Transocean wrote down the value of nine older drilling rigs by over $3 billion in 2025 — a non-cash charge (meaning no actual cash left the business) that inflates the reported loss dramatically. The losses in each year are primarily accounting-driven by fleet rationalization, not operational failure.
Where does Transocean's revenue come from?
The U.S. and Brazil are the two biggest revenue engines, with Brazil growing fastest.
| Geography | 2023 | 2024 | 2025 | Change ('23–'25) |
|---|---|---|---|---|
| U.S. ($M) | $1,433 | $1,566 | $1,635 | +$202 |
| Brazil ($M) | $298 | $727 | $872 | +$574 |
| Norway ($M) | $603 | $654 | $639 | +$36 |
| Other ($M) | $498 | $577 | $819 | +$321 |
Brazil has been the standout growth market, nearly tripling revenue over two years as Transocean ramped up work with Petrobras. No single segment is declining; the entire fleet is more active than it was two years ago.
Does Transocean generate cash?
Actual cash generation is improving significantly, even as reported losses balloon.
| Item | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net cash from operations ($M) | $164 | $447 | $749 |
| Capital expenditures ($M) | $(427) | $(254) | $(123) |
| Free cash flow (GAAP-derived) ($M) | $(263) | $193 | $626 |
The non-cash impairment charges add back into operating cash flow, revealing a business generating more real cash each year. Capital spending is also declining sharply as the major newbuild program winds down — a combination that is producing meaningfully positive free cash flow (operating cash minus capex) for the first time.
How strong is Transocean's balance sheet?
Debt remains very large, but Transocean is actively paying it down.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total debt — principal ($M) | $6,944 | $5,686 | −$1,258 |
| Long-term debt — carrying amount ($M) | $6,195 | $5,212 | −$983 |
| Debt due within one year ($M) | $686 | $445 | −$241 |
| Cash & cash equivalents ($M) | $560 | $620 | +$60 |
Transocean carried nearly $5.7 billion in debt at year-end, but reduced the total by over $1.2 billion in 2025 through repayments and debt-for-equity exchanges. With $462 million of undrawn credit facility capacity and improving cash generation, near-term liquidity looks manageable — though the debt load remains the central financial risk to monitor.
The accumulated deficit is large and growing, but equity still provides a meaningful cushion.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Total equity ($M) | $10,285 | $8,108 | −$2,177 |
| Accumulated deficit ($M) | $(4,545) | $(7,460) | −$2,915 |
| Additional paid-in capital ($M) | $14,880 | $15,604 | +$724 |
Years of losses have pushed the accumulated deficit to over $7 billion, eroding book equity. The company has offset some of this by issuing new shares — raising $421 million in a September 2025 public offering — which dilutes existing shareholders but bolsters the balance sheet.