Ending a long-drawn losing streak, offshore drilling company Transocean (RIG) Monday reported a profit for the third quarter, defying expectations for a net loss. The rebound was supported by a double-digit increase in revenues. Following the announcement, the company’s stock gained 2% in the after-hours trading.
The Switzerland-based petroleum explorer having its US headquarters in Houston reported a net income of $30 million or $0.06 per share for the third quarter, on an adjusted basis. Analysts had expected a loss of $0.10 per share. On a reported basis, the company posted a loss of $0.88 per share for the three-month period.
The Switzerland-based petroleum explorer reported a net income of $30 million or $0.06 per share for the third quarter
At $816 billion, total contract drilling revenues were 17% higher compared to last year. The top line also came in above analysts’ forecast. During the quarter, the company’s main growth driver was its robust floater contracting activity. Revenue efficiency was 95.2%.
“Consistent with our objective of protecting near-term liquidity, last week we successfully issued $750 million of seven-year priority guaranteed notes replacing the committed Ocean Rig acquisition financing with permanent financing,” said Transocean CFO Mark Mey.
In the September quarter, the management entered into an agreement to acquire submersible rig operator Ocean Rig, as part of its efforts to high-grading the fleet. The deal will be closed by year-end after obtaining shareholders’ approval at the extraordinary general meeting to be held next month.
Transocean shares, which lost about 2% over the past twelve months, traded lower during Monday’s regular session. The stock gained 2% during the extended session following the earnings report.