Actionable news
0
All posts from Actionable news
Actionable news in RIG: TRANSOCEAN Ltd.,

Transocean Ltd. Reports First Quarter 2016 Results

(GLOBE NEWSWIRE via COMTEX) -- - Revenues were $1.34 billion, compared to $1.85 billion in the fourth quarter of 2015;

- Operating and maintenance expense was $665 million, down from $794 million in the prior period;

- Adjusted net income was $254 million, $0.69 per diluted share, excluding $5 million of net unfavorable items. This compares with $615 million, $1.68 per diluted share, in the fourth quarter of 2015, excluding $4 million of net unfavorable items;

- Net income attributable to controlling interest was $249 million, $0.68 per diluted share, compared with $611 million, $1.66 per diluted share, in the prior quarter;

- The Annual Effective Tax Rate(1) was 22.8 percent, compared with 13.1 percent in the fourth quarter of 2015;

- Cash flows from operating activities were $631 million, compared with $960 million in the previous quarter;

- Revenue efficiency(2) was 95.0 percent, compared with 95.9 percent in the fourth quarter of 2015;

- Rig utilization(3) was 51 percent, compared with 60 percent in the prior quarter; and

- Contract backlog was $14.6 billion as of the April 2016 Fleet Status Report.

ZUG, SWITZERLAND-May 4, 2016-Transocean Ltd. RIG, -2.78% today reported net income attributable to controlling interest of $249 million, $0.68 per diluted share, for the three months ended March 31, 2016. First quarter 2016 results included net unfavorable items of $5 million, $0.01 per diluted share, as follows:

- $4 million, $0.01 per diluted share, in restructuring costs associated with employee severance; and

- $2 million related to the loss on impairment of the midwater floater Transocean John Shaw, which the company has identified for recycling.

These net unfavorable items were partially offset by:

- $1 million in favorable discrete tax benefits and miscellaneous other items.

After consideration of these net unfavorable items, first quarter 2016 adjusted net income was $254 million, or $0.69 per diluted share.

For the three months ended March 31, 2015, the company reported a net loss attributable to controlling interest of $483 million, or $1.33 per diluted share. The first quarter of 2015 included net unfavorable items of $881 million, $2.43 per diluted share, associated with losses on the impairment of the deepwater floater asset group and other assets classified as held for sale. After consideration of these net unfavorable items, adjusted net income was $398 million, or $1.10 per diluted share.

Contract drilling revenues for the three months ended March 31, 2016, decreased $345 million sequentially to $1.11 billion due primarily to reduced activity associated with stacked and idle rigs, and rig disposals.

Other revenues decreased $165 million sequentially to $230 million. First quarter 2016 included $209 million in early contract termination fees ($133 million, net of expected quarterly contract drilling revenues for the cancelled rigs) primarily associated with the Discoverer Deep Seas and Deepwater Millennium.

Operating and maintenance expense decreased to $665 million, compared with $794 million in the prior quarter. The decrease was due largely to lower activity, cost savings related to the company's operational and restructuring initiatives, and reduced stacking costs primarily associated with the company's dynamically positioned floaters offset partially by the reactivation costs of the Henry Goodrich. The quarter also included deferred mobilization cost of $18 million on the GSF Development Driller I that was previously expected in the second quarter of 2016.

General and administrative expense was $43 million, down from $58 million in the prior quarter reflecting the company's ongoing restructuring efforts.

Depreciation expense was $217 million, compared with $213 million in the previous quarter.

The Effective Tax Rate(4) was 22.4 percent, up from 9.7 percent in the fourth quarter of 2015. The Annual Effective Tax Rate was 22.8 percent, up from 13.1 percent in the previous quarter. The increase was due largely to lower adjusted pre-tax income and the change in the mix of operating results from certain jurisdictions.

Interest expense, net of amounts capitalized, increased $2 million sequentially to $89 million. Capitalized interest was $49 million, unchanged from the prior quarter. Interest income was $6 million, compared with $5 million in the prior quarter.

Cash flows from operating activities were $631 million, compared with $960 million in the prior quarter.

Capital expenditures totaled $368 million, down from $665 million in the prior quarter. The decline was due primarily to reduced spending associated with the company's newbuild program.

"Despite the challenging environment, the Transocean team delivered strong operating performance, and solid financial results, adding over $200 million to our cash balance in the first quarter of 2016," said President and Chief Executive Officer Jeremy Thigpen. "As we work through the second quarter, and the balance of the year, we will continue to prepare ourselves for the eventual industry recovery by taking the necessary steps to both maximize internal efficiencies, and further differentiate Transocean in the eyes of our customers through superior safety and operational performance."

Non-GAAP Financial Measures

All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company's website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.

Transocean owns or has partial ownership interests in, and operates a fleet of 60 mobile offshore drilling units consisting of 28 ultra-deepwater floaters, seven harsh-environment semisubmersibles, five deepwater semisubmersibles, 10 midwater semisubmersibles and 10 high-specification jackups. In addition, the company has six ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 10 a.m. EDT, 4 p.m. CEST, on Thursday, May 5, 2016, to discuss the results. To participate, dial +1 913-312-0823 and refer to confirmation code 7646953 approximately 10 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode over the Internet and can be accessed on Transocean's website, www.deepwater.com, by selecting "Investor Relations/Overview." Supplemental materials that may be referenced during the teleconference will be posted to Transocean's website and can be found by selecting "Investor Relations/Financial Reports."

A replay of the conference call will be available after 1 p.m. EDT, 7 p.m. CEST, on May 5, 2016. The replay, which will be archived for approximately 30 days, can be accessed by dialing +1...


More