Transocean Swings to 2Q Profit

Transocean Ltd., the largest offshore drilling contractor in the world, today reported its second quarter 2013 adjusted earnings from continuing operations were $392 million, or $1.08 per diluted share.  

Total fleet rig utilization was 80 percent in the second quarter, unchanged from the first quarter of 2013

The second quarter 2013 results compare with a net loss attributable to controlling interest of $304 million, or $0.86 per diluted share, for the three months ended June 30, 2012, which included net unfavorable items of $622 million, or $1.75 per diluted share. The net unfavorable items were primarily due to estimated loss contingencies of $750 million, or $2.11 per diluted share, associated with the Macondo well incident, partly offset by $141 million, or $0.40 per diluted share, of favorable discrete tax items. After consideration of these net unfavorable items, second quarter 2012 adjusted earnings from continuing operations were $318 million, or $0.89 per diluted share.

Revenues for the three months ended June 30, 2013 were $2.397 billion, compared with revenues of $2.197 billion during the quarter ended March 31, 2013.  Contract drilling revenues increased $176 million primarily due to higher revenue efficiency on high-specification floaters and the contribution from Transocean Siam Driller and Transocean Andaman, two recently-delivered high-specification jackups.  Total fleet revenue efficiency was 93.1 percent in the second quarter, compared with 88.0 percent in the first quarter of 2013.  Other revenues increased $24 million to $76 million for the second quarter of 2013, compared with $52 million in the prior quarter primarily due to increased drilling management services activity.

Operating and maintenance expenses increased $18 million to $1.393 billion for the second quarter of 2013, compared with $1.375 billion for the prior quarter. First quarter 2013 operating and maintenance expenses included $74 million of charges related to crew claim loss contingencies associated with the Macondo well incident that were not repeated in the second quarter.  Excluding these charges, the sequential increase in operating and maintenance expenses was primarily due to higher maintenance and shipyard expenses for the reactivation of the Sedco 712 and expenses related to several other rigs undergoing contract preparation, periodic surveys, and other projects; as well as increased drilling management services activity.