Transocean posts 1Q loss. CEO optimistic about future rig demand
- Exploration & Production
Offshore driller Transocean posted a net loss of $212 million for the first quarter of 2018, a drop compared to an income of $95 million in the first quarter 2017, however the CEO is optimistic about future demand for its rigs.
Contract drilling revenues were down to $664 million, versus $738 million a year ago, but were higher compared to the $629 million in the fourth quarter of 2017.
During the first quarter, the company acquired Songa Offshore, adding $3.7 billion in contract backlog and the combined company’s contract backlog was $12.5 billion
Transocean President and Chief Executive Officer Jeremy Thigpen said:”We consummated the Songa Offshore acquisition, which added four new, contracted, high‑specification, harsh environment semisubmersibles to our fleet, and further bolstered our industry-leading backlog. We also welcomed another newbuild ultra‑deepwater drillship to our fleet, the Deepwater Poseidon, and mobilized her to the Gulf of Mexico where she recently commenced operations on a ten‑year contract.’
Thigpen added: “Operationally, we delivered another solid quarter. When adjusting for the time to safely return the Petrobras 10000 to work, our revenue efficiency for the quarter exceeded 96%. This strong operating performance, when combined with our unwavering commitment to safely streamline our cost structure, enabled us to generate approximately $100 million in cash flow from operations, resulting in a quarter-end cash and short‑term investments balance of approximately $2.9 billion.”
‘We remain encouraged by the increase in floater contracting activity that we have experienced in recent months; and, we believe that the combination of stable oil prices, lower project breakeven economics, and historically low global reserve replacement will continue to drive increased demand for Transocean’s industry‑leading assets and services.’