Transocean Ltd. (NYSE:RIG) Q4 2019 Earnings Conference Call - Final Transcript

Feb 18, 2020 • 09:00 am ET

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Transocean Ltd. (NYSE:RIG) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, good day, and welcome to the Quarter Four 2019 Transocean Earnings Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Brad Alexander, Vice President, Investor Relations. Please go ahead, sir.

Executive
Bradley Alexander

Thank you, David. Good morning and welcome to Transocean's fourth quarter and year-end 2019 earnings conference call. A copy of our press release covering financial results, along with supporting statements and schedules including reconciliations and disclosures regarding non-GAAP financial measures, are posted on our website at deepwater.com.

Joining me on this morning's call are Jeremy Thigpen, President and Chief Executive Officer; Mark Mey, Executive Vice President and Chief Financial Officer; and Roddie MacKenzie, Senior Vice President of Marketing and Contracts.

During the course of this call, Transocean management may make certain forward-looking statements regarding various matters related to our business and company that are not historical facts. Such statements are based upon the current expectations and certain assumptions and are therefore subject to certain risks and uncertainties. Many factors could cause actual results to differ materially. Please refer to our SEC filings for more information regarding our forward-looking statements, including the risks and uncertainties that could impact our future results. Also, please note that the Company undertakes no duty to update or revise forward-looking statements.

Following Jeremy and Mark's prepared comments, we will conduct a question-and-answer session. During this time, to get more participants an opportunity to speak on this call, please limit yourself to one initial question and one follow-up.

Thank you very much. I'll now turn the call over to Jeremy.

Executive
Jeremy D. Thigpen

Thank you, Brad, and welcome to everyone participating in Transocean's fourth quarter and full year 2019 earnings call. I'd like to start today's call with a recap of 2019. As reported in yesterday's earnings release, for 2019, the Company generated adjusted EBITDA of $979 million on $3.3 billion in adjusted revenue, resulting in an industry-best adjusted EBITDA margin of 30%.

As I've stated many times previously, Transocean is acutely focused on enhancing the quality of our fleet; driving operational excellence through continuous improvements in safety, uptime and drilling efficiency; expanding our position as our customers' universal first choice through relationships, exceptional operating performance and the introduction of new technologies; and extending our liquidity runway by adding to our industry-leading $10.2 billion backlog, converting the maximum percentage of that backlog to cash and prudently bolstering our balance sheet through timely transactions. In 2019, we again took actions to further each of these objectives.

Looking first at our fleet, in August, the Transocean Norge entered our active fleet, commencing her maiden contract with Equinor Norway. This high-specification harsh environment asset is the sixth floater we now have working for Equinor, and we will soon increase that total to seven when we commence the contract for the Barents in Canada, quite a testament to the relationship we have built with the industry's largest harsh environment operator. As a further example of the strength of the relationship and Transocean's ability to