Transocean (RIG) Q4 Loss Wider Than Expected, Sales Lag
Zacks Investment Research | Feb 19, 2020 10:33PM ET
Transocean Ltd. (NYSE:RIG) posted fourth-quarter 2019 adjusted loss of 43 cents a share, wider than the Zacks Consensus Estimate of a loss of 31 cents and also the year-ago loss of 34 cents due to higher year-over-year costs and expenses.
Meanwhile, this offshore drilling powerhouse generated total revenues of $792 million, missing the Zacks Consensus Estimate of $818 million. But the top line improved 5.8% from the prior-year figure of $748 million. Strong revenues from the Ultra-deepwater and Harsh Environment floaters along with increased dayrates led to this outperformance.
Segmental Revenue Break-Up
Transocean’s Ultra-deepwater floaters contributed to 63.4% of total contract drilling revenues while Harsh Environment floaters and Midwater floaters accounted for the remainder. In the quarter under review, revenues from Ultra-deepwater and Harsh Environment floaters totalled $502 million and $278 million each, indicating a 9.8% and 9.9% improvement from the year-ago reported figures of $457 million and $253 million, respectively.
Revenue efficiency was 96.2%, marginally lower than the third-quarter level. The figure was in line with the year-ago number.
Dayrates and Utilization
On an encouraging note, average dayrate in the quarter under review rose to $317,700 from the year-ago level of $293,100 owing to an uptick in activity in the Asia Pacific and Australia. The company witnessed year-over-year higher average revenues per day from midwater floaters. Overall, fleet utilization was 61% during the quarter, down from the prior-year utilization rate of 62%.
Transocean Ltd. Price, Consensus and EPS Surprise
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