Transocean posts $208M loss

Floating rig contractor Transocean has reported a net loss attributable to controlling interest of $208 million for the second quarter of 2019. The company’s loss in the second quarter of 2018 was around $1.1 billion.

Total contract drilling revenues were $758 million for the second quarter of 2019, down from $790 million in the corresponding quarter a year ago.

Operating and maintenance expense was $510 million, an increase vs. Q2 2018 O&M expense of $431 million. Contract backlog was $11.4 billion as of the July 2019 Fleet Status Report. This is a decrease compared to July 2018 contract backlog of $11.7 billion.

Second-quarter 2019 capital expenditures of $86 million were related to the company’s newbuild drillships and capital upgrades for some rigs in the existing fleet.

The offshore drilling company’s rig fleet-wide average daily revenue for the quarter was $314,900, an increase compared to Q2 2018 when the average dayrate was $308,300.

Ultra-deepwater floaters commanded an average daily revenue of $335,400, harsh-environment floaters had an average of $301,700, and midwater floaters had an average of $163,700 in Q2 2019. Utilization was 56 percent for the whole fleet, down from 57 percent a year ago.

Transocean has total current assets of $4.2 billion. The offshore drilling company has long-term liabilities of $11,4 billion, and total current liabilities of $1,46 billion.

Jeremy Thigpen, President, and Chief Executive Officer said: “We continued to operate at a high level throughout the second quarter, with strong rig uptime and attained performance bonuses producing revenue efficiency of approximately 98% across our global floater fleet.”

“As importantly, we generated strong cash flows from operations of $153 million through the efficient conversion of our industry-best $11,4 billion backlog.”

Thigpen said that despite some continued uncertainty around oil prices, offshore project economics remain compelling, driving increases in floater contracting and increasing dayrates in both the harsh environment and ultra-deepwater markets.

Transocean last week released a fleet status report according to which it has recently managed to find work for two semi-submersible drilling rigs and three drillships. The contracts have added around $158 million to the company’s backlog.

Offshore Energy Today Staff

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