Company: RIG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001451505-25-000079
Chunk: 18

Company: Transocean Ltd.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 7A
Chunk 18
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Item 3.Quantitative and Qualitative Disclosures About Market Risk

Overview—We are exposed to interest rate risk, primarily associated with our long-term debt, including current maturities.  Additionally, we are exposed to equity price risk related to certain of our exchangeable bonds and currency exchange rate risk related to our international operations.  With the exception of the following, there have been no material changes to our market risks as previously disclosed in “Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our annual report on Form 10-K for the year ended December 31, 2024.

Interest rate risk—The following table presents the scheduled installment amounts and related weighted-average interest rates of our long-term debt instruments by contractual maturity date.  The following table presents information as of June 30, 2025 (in millions, except interest rate percentages):

​​​​​​​​​​​​​​​​​​​​​​​​​​​​Twelve months ending June 30,​​​​​​​​​ ​  2026​2027​2028​2029​2030​Thereafter​Total    Fair value Debt​​​​​​​​​​​​​​​​​​​​​​​​​Fixed rate (USD) $ 686​$ 1,402​$ 607​$ 1,147​$ 729​$ 2,083​$ 6,654​$ 6,239​Average interest rate​​ 6.37%  ​ 7.55%  ​ 7.82%  ​ 8.27%  ​ 7.28%  ​ 7.88%  ​​​​​​

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At June 30, 2025 and December 31, 2024, the fair value of our outstanding debt was $6.24 billion and $6.89 billion, respectively.  During the six months ended June 30, 2025, the fair value of our debt decreased by $649 million due to the following: (a) a net decrease of $354 million resulting from changes in the market prices of our outstanding debt, (b) a decrease of $242 million resulting from scheduled repayments and (c) a decrease of $53 million due to principal reduction of the 4.00% Exchangeable Bonds pursuant to the Exchange Agreements.