Offshore rig contractor Transocean Ltd posted a fourth-quarter profit, compared with a loss a year earlier, when it booked $1.21 billion in impairment charges. The company’s shares were up 5 percent at $8.60 in extended trading.
Transocean’s operating and maintenance costs fell nearly 40 percent to $794 million in the fourth quarter ended Dec. 31. The company in November forecast 2016 costs to be 25-30 percent lower on sluggish drilling activity.
Total drilling fleet utilization rate decreased to 60 percent in the quarter from 73 percent a year earlier, while average daily revenue rose 4 percent to $422,800. Capital expenditures fell to $665 million from $940 million in the third quarter. Net income attributable to Transocean was $611 million, or $1.66 per share, in the quarter ended Dec. 31, compared with a loss of $739 million, or $2.04 per share, a year earlier.
Excluding items, the company earned $1.68 per share. Total revenue fell 17 percent to $1.85 billion. Up to Wednesday’s close, the company’s U.S.-listed stock had lost nearly a third of its value over the past 12 months.