One of the world’s largest offshore drilling contractors, Transocean, posted a sharp drop in second quarter 2016 profit while its revenues were almost halved.
Transocean reported net income for the second quarter of 2016 attributable to controlling interest of $77 million, compared to $342 million in the prior-year quarter.
The company’s results included net favorable items of $13 million with $38 million in net gains on early debt retirements; and $5 million associated with gains on rig disposals and discontinued operations.
These net favorable items were partially offset by $18 million related to the loss on impairment of assets; $7 million in restructuring costs including employee severance; and $5 million in discrete tax expense.
After consideration of these net favorable items, second quarter 2016 adjusted net income was $64 million.
Contract drilling revenues for the three months ended June 30, 2016, decreased $193 million sequentially to $918 million due primarily to lower rig utilization and dayrates.
The decrease was partially offset by contributions from the newbuild, ultra-deepwater drillships Deepwater Proteus and Deepwater Thalassa and the reactivated harsh-environment floater Henry Goodrich, and higher revenue efficiency.
Other revenues decreased $205 million sequentially to $25 million due primarily to significant first quarter 2016 early contract termination fees.
The company’s total revenues almost halved totalling $943 million in the second quarter 2016, compared to $1.88 billion in the prior-year quarter.
Offshore Energy Today Staff