Transocean reports second-quarter profit


Transocean reports second-quarter profits

ZUG -- Transocean Ltd. swung to a second-quarter profit as the offshore driller was helped by fewer costs related to the Deepwater Horizon oil spill, and as revenue grew.

Transocean is the owner of the Deepwater Horizon, the rig that exploded in the Gulf of Mexico in 2010, killing 11 people and setting off the largest oil spill in U.S. waters.

The company is the world's biggest deep-water driller. It has cut jobs and closed facilities tied to its onshore businesses this year, as it focuses on the higher end of the offsore drilling market.

For the latest period, Transocean reported a profit of $307 million, or 84 cents a share, compared with a year-earlier loss of $304 million, or 86 cents a share, a year earlier. The latest period included impairment costs and other charges of $85 million, while the year-earlier period included charges of $622 million, primarily related to the Deepwater Horizon disaster. Excluding items, adjusted earnings on continuing operations were $1.08 in the latest period.

Revenue climbed 2.9% to $2.4 billion.

Analysts polled by Thomson Reuters were expecting a per-share profit of $1.08 on revenue of $2.41 billion.

Operating and maintenance expenses declined 34%.

Average daily revenue was up 3.2% from a year earlier, and rose 6% from the prior quarter. Its fleet utilization rate was 80%, unchanged from the previous quarter.

Transocean's shareholders in May rebuffed activist investor Carl Icahn's efforts to raise the company's returns to shareholders. But the company's longtime chairman, Michael Talbert, was voted out after coming under criticism by Mr. Icahn, who has argued that the company's shares are undervalued.

Shares were up two cents at $48.50 in after-hours trading. Through Wednesday's close, the stock was up 9% since the start of the year.

Dow Jones Newswires

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