Offshore Driller Transocean Posts 4Q Profit


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. 









Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.