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The Vernier, Switzerland-based company's net income attributable to controlling interest for the third quarter dropped sharply to $710 million or $2.19 per share from $1.06 billion or $3.30 per share in the year-ago quarter.
The results for the latest quarter were adversely impacted by certain net charges, after tax, totaling $148 million or $0.46 per share. This includes $139 million related to various litigation matters, $46 million for impairment of intangible assets related to drilling management services, and $10 million primarily related to the retirement of debt and expenses associated with the GlobalSantaFe merger. The results also include $40 million of income related to discrete tax items and gains on settlements of certain tax matters.
On average, 35 analysts polled by Thomson Reuters expected the company to earn $2.67 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
In the sequentially preceding quarter, Transocean reported net income attributable to controlling interest of $806 million or $2.49 per share, down from $1.07 billion or $3.31 per share, in the year-ago quarter.
Revenues for the recent third quarter dropped to $2.82 billion from $3.19 billion reported in the corresponding quarter a year earlier. Street analysts' revenue estimate was $2.85 billion for the quarter.
The deepwater drilling contractor said the decrease in its revenue was primarily due to a $164 million reduction resulting from the stacking of rigs and decreased activity, partially offset by a $108 million increases from the commencement of operations of two new drillships as well as improved day-rates and revenue efficiency.
Segment-wise, Contract drilling revenues for the quarter decreased to $2.60 billion from $2.70 billion in the year-ago period, while contract drilling intangible revenues dropped to $58 million from $143 million a year ago. Other revenues for the quarter declined to $163 million from $350 million last year.
For the preceding second quarter, Transocean reported revenues that declined 7.10% to $2.88 billion from $3.10 billion a year ago.
Costs and expenses for the recent third quarter were $1.81 billion, compared to $1.80 billion in the year earlier period. Operating and maintenance expenses for the quarter slipped to $1.39 billion from $1.42 billion in the previous year quarter.
Transocean's operating income for the quarter plunged to $957 million from $1.38 billion a year earlier.
As at September 30, 2009, Transocean's total debt was $11.92 billion, compared to total debt of $12.05 billion as at June 30, 2009. During the quarter, the company repaid around $1.2 billion of debt. This was offset by an increase of debt of $1.1 billion, including $716 million associated with the Petrobras 10000 capital lease and $353 million of other borrowings.
The company's cash flow from operating activities for the quarter totaled $1.40 billion
For the nine-month period, net income attributable to controlling interest decreased to $2.45 billion or $7.61 per share from $3.27 billion or $10.19 per share in the corresponding period last year.
Revenues for nine months decreased to $8.82 billion from $9.40 billion in the year ago period.
Amongst others in the sector, Sugar Land, Texas-based Noble Corp. (NE | Quote | Chart | News | PowerRating), on October 21 reported that its third quarter profit increased over last year, helped by higher operating revenues. The company posted net earnings to common shareholders of $421.6 million or $1.63 per share for the third quarter, up from $379.2 million or $1.42 per share in the prior year quarter. The company's operating revenues for the quarter increased to $905.64 million from $861.98 million in the same quarter last year.
Houston, Texas-based Diamond Offshore Drilling Inc. (DO | Quote | Chart | News | PowerRating), on October 22 reported higher profit for the third-quarter, reflecting foreign currency transaction gain, lower income tax expense and higher sales. The company earned $364.1 million or $2.62 per share, compared with $310.5 million or $2.23 per share in the same period a year earlier. Revenues for the third quarter grew to $908.4 million from $900.4 million in the same quarter last year.
RIG closed Tuesday's trading at $85.91 on the NYSE. In the past 52 weeks, the stock trended in a broad range of $41.95 - $94.44, with a three-month average volume of 4.49 million shares.
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