Transocean Ltd on Monday reported $1.08 billion in revenue for the first quarter (Q1), up $38 million from the prior three-month period and $175 million compared to Q1 2025.

“Favorable contract drilling revenues were primarily related to improved rig utilization, higher revenue efficiency and increased average daily revenues across the fleet”, the offshore drilling services provider said in its quarterly report.

President and chief executive Keelan Adamson said, “Recent global events clearly underscore the importance of secure and reliable hydrocarbon supply. We continue to believe that we are in the early days of a multi-year upcycle with increasing demand for offshore exploration and development drilling services”.

Backlog stood at $7.1 billion as of Monday, Transocean said.  “Since the February 2026 [fleet status] report, we added five new fixtures with an aggregate incremental backlog of approximately $1.6 billion and a weighted average day rate of about $410,000”, the Steinhausen, Switzerland-based company said.

Transocean’s adjusted net result for the quarter, however, was a negative $28 million, compared to a net profit of $21 million for Q4 2025. Q1 2026 was an improvement from a net loss of $65 million for Q1 2025.

The sequential decline and year-on-year improvement reflected a $185 million quarter-on-quarter decrease and $138 million year-on-year increase in net cash from operating activities. “Net cash provided by operating activities was $164 million reflecting timing of payments from customers and increased payroll obligations in the period”, Transocean said.

Net income before adjustment for nonrecurring items rose quarter-on-quarter and year-on-year to $71 million. Adjusted EBITDA increased quarter-on-quarter and year-on-year to $440 million, with a 40.7 percent margin. Free cash flow totaled $136 million.

Liquidity stood at $1.13 billion. Transocean retired early the $358 million remaining principal amount of 2028 notes associated with the Deepwater Titan drillship, reducing interest to maturity by nearly $40 million.

Cash and cash equivalents totaled $330 million, plus $285 million of restricted cash and cash equivalents. Current assets totaled $1.77 billion, while current liabilities stood at $1.15 billion including $329 million in debt due within 1 year.

For the whole year Transocean expects $3.8-3.9 billion in revenue, compared to $4 billion for 2025.

What do you think? We’d love to hear from you, join the conversation on the

Rigzone Energy Network.

The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers and industry insiders and engage in a professional community that will empower your career in energy.

This article was automatically fetched from an external source.