Transocean 4Q profit falls 49 pct on low fleet utilization

The Swiss-based offshore drilling contractor reported 4Q 2013 revenues of $2.332 billion, similar to the $2,326 billion achieved in the same period last year. The company’s cash flow was $773 million, down from $923 million a year ago.

Total fleet utilization was 75 per cent in the fourth quarter of 2013, compared with 83 percent in the prior quarter, primarily reflecting the expected increase in planned out-of-service time as well as idle and stacked rigs. The fleet utilization rate in 4Q 2012 was 79 per cent..

Total fleet revenue efficiency fell to 91.7 percent in the fourth quarter, compared with 94.0 percent in the third quarter of 2013, which was below the company’s expectations. The decrease in revenue efficiency was primarily due to well control equipment downtime on certain ultra-deepwater rigs.

Capital expenditures increased $498 million to $948 million for the fourth quarter, compared with $450 million in the third quarter of 2013. The increase in capital expenditures was primarily associated with the company’s newbuild program. Capital expenditures in 4Q 2012 were $657 million.

The company said it expects its full year capital expenditures to be at approximately $2.6 billion.

Transocean last night announced it had ordered two new drillships at a yard in Singapore, slated for delivery in 2Q 2017 and 1Q 2018. The drillships are priced at $540 million each. The company has the option to order three more units of a similar design.