Transocean Ltd. reports Q1 2014 results

Transocean has published its results from Q1 2014.

A summary follows:

• Revenues were US$ 2.339 billion, compared with US$ 2.252 billion in Q4 2013.
• Operating and maintenance expenses were US$ 1.269 billion, compared with US$ 1.461 billion in Q4 2013.
• Net income attributable to controlling interest was US$ 456 million, which included US$ 64 million of net unfavourable items. This compares with the Q4 2013 net income attributable to controlling interest of US$ 233 million, which included US$ 27 million of net unfavorable items.
• The Annual Effective Tax rate from continuing operations was 15.1%, compared with 17.7% in Q4 2013.
• Net income attributable to controlling interest was US$ 456 million, or US$ 1.25 per diluted share. After adjusting for net unfavourable items, adjusted earnings from continuing operations were US$ 520 million, or US$ 1.43 per diluted share.
• Cash flows from operating activities were US$ 136 million in Q1, compared with US$ 773 million in Q4 2013.
• Fleet revenue efficiency was 95.7% in Q1, compared with 91.7% in Q4 2013. Revenue efficiency on ultra-deepwater rigs was 96.4%, compared with 90% in the prior quarter.
• Fleet utilisation was 78%, compared with 75% in the prior quarter.
• Contract backlog was US$ 26.1 billion as of the 17th April, 2014 Fleet Status Report. Since this report, additional contracts totalling US$ 470 million were secured.
• The company completed the sale of Applied Drilling Technology International Limited. As a result of the sale, the company has reclassified the results of operations of this segment to discontinued operations for all periods presented.
• Operating and maintenance expenses decreased US$ 192 million to US$ 1.269 billion, compared with US$ 1.461 billion for the prior quarter. The decrease primarily reflects lower shipyard and maintenance costs and the effect of the company's cost reduction initiatives.
• General and administrative expenses decreased US$ 18 million to US$ 57 million for Q1 2014, compared with US$ 75 million in the previous quarter. The decrease was due mainly to personnel costs and professional fees incurred in Q4 2013 that were not repeated.
• Capital expenditures increased US$ 183 million to US$ 1.1 billion, compared with US$ 948 million in Q4 2013. The increase in capital expenditures was primarily associated with the company's newbuild programme including shipyard milestone payments on the Deepwater Asgard and the Deepwater Invictus and initial deposits on the two ultra-deepwater drillships announced during the period.

Edited from source by Elizabeth Corner

Read the article online at: https://www.worldpipelines.com/business-news/08052014/transocean_ltd_reports_q1_2014_results/