Transocean Profits Down as Winner Costs Total $21 Million
Deep-water rig operator Transocean posted lower quarterly profit, partly as a result of a $21 million expense related to the grounding and scrapping of one of its rigs in the UK.
In the three months to 30 September 2016, Transocean reported net income of $229 million, or 62 cents per share. That compared to the 2015 quarter when income was $321 million, or 88 cents per share.
Revenues in the 2016 quarter were $903 million, compared with $1.6 billion a year earlier. The drop was due primarily to “reduced activity associated with rig retirements” and was partly offset by higher revenue efficiency, which hit 100.7%.
Operating and maintenance expenses were $404 million, down from $880 million a year ago. The decrease was due largely to lower costs associated with stacked rigs and rig retirements, as well as lower personnel expense related to the company’s continuing cost management initiatives.
“These decreases were partly offset by $21 million related to the grounding, salvage and preparation for recycling of the Transocean Winner,” the company said.
The semi-submersible rig was on its way to the scrap yard in August when it ran into stormy seas off Scotland and broke its tow.
Transocean announced no new contracts in an earnings release on Wednesday after market close in the US. Its contract backlog was $12.2 billion as of late October.
Source: Upstream Online
