Transocean Ltd. secured a $130 million six‑well contract in Australia for its Deepwater Skyros drillship, a deal that will generate revenue over a 320‑day campaign beginning in the first quarter of 2027. The award adds roughly $130 million to the company’s backlog, raising it to about $6.83 billion from $6.7 billion before the contract. The contract also includes priced options that could extend work into early 2030, giving the company a long‑term revenue stream tied to a high‑specification asset.
The contract comes at a time when Transocean’s financials are under pressure. In the third quarter of 2025 the company posted a net loss of $1.92 billion, a net margin of –75.71 % and a negative EPS of –$3.28. Gross margin remained strong at 82.14 %, but the loss was driven largely by asset‑impairment charges and debt‑conversion costs. Backlog levels have been fluctuating—$7.9 billion in April 2025, $7.2 billion in July 2025, and $6.7 billion at the time of the award—so the new contract represents a modest but meaningful addition to an otherwise declining backlog trend.
Strategically, the Skyros win aligns with Transocean’s focus on ultra‑deepwater drilling and high‑specification assets. The 320‑day campaign will keep the ship in service for the next two years, and the optional extensions to 2030 provide additional revenue visibility. The deal also supports the company’s broader plan to maintain high utilization of its fleet while managing debt and pursuing disciplined cost control, as highlighted in recent earnings commentary.
Management has emphasized disciplined fleet management, cost reductions, and debt‑management as key priorities. While the contract adds to backlog and revenue prospects, investors have remained cautious because the company’s net losses and high debt‑to‑equity ratio (0.77) continue to weigh on sentiment. The market reaction to the announcement was muted, reflecting concerns about valuation and ongoing financial challenges.
Overall, the contract is a positive development that strengthens Transocean’s backlog and provides long‑term revenue visibility, but it does not offset the company’s current profitability issues. The deal underscores the company’s strategy to secure high‑specification projects while navigating a challenging financial environment.
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