Transocean Revenue Falls 29% on Global Oil Glut
November 04 2015 - 6:00PM
Dow Jones News
Transocean Ltd.'s revenue fell 29% in the third quarter as the
oil driller continued to grapple with the impact of an global oil
supply glut.
Fleet utilization declined to 70%, from 75% in the previous
quarter and the year-ago period. Contract backlog was $16.9 billion
as of the company's most recent fleet status report on Oct. 26,
continuing a downward trend and showing no sign of easing pressure
on the Switzerland-based company as oil trades below $50 a
barrel.
Shares, down 8% this year, fell 2% to $16.50 in after-hours
trading.
Transocean, which boasts the world's largest fleet of offshore
drilling rigs, is trying to recover from an ill-timed expansion
just before oil prices collapsed. It has sharply cut its number of
rigs, taking some out of service and scrapped others. In February,
it slashed its dividend to 60 cents a share from $3. Last month,
shareholders approved canceling the third and fourth dividend
payouts of the year. Shareholders also approved an adjustment to
the stock's face value, or par value, to align it with market
price.
Meanwhile, the oil-price slump has also impaired results of the
master limited partnership it formed to boost its financial
structure and mollify friction with billionaire investor Carl
Icahn. Shares of Transocean Partners LLC, closed at $11.53 on
Wednesday, down 21% for the year.
Over all, Transocean reported a profit of $321 million, or 88
cents a share, compared with a year-earlier loss of $2.22 billion,
or $6.12 a share. The year-ago results included $2.8 billion in
impairment charges.
Excluding impairments and other tax items, profit was 87 cents a
share, down from 96 cents a share a year earlier. Revenue fell 29%
to $1.61 billion.
Analysts surveyed by Thomson Reuters had projected adjusted
profit of 71 cents a share on $1.6 billion in revenue.
Write to Maria Armental at maria.armental@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 04, 2015 17:45 ET (22:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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