Offshore driller Transocean has reported a third quarter 2017 net loss attributable to controlling interest of $1.417 billion, a result mostly affected by impairment related to rig retirements.
For comparison, the company for the same period last year reported a net income attributable to controlling interest of $218 million.
Transocean, which in October announced the acquisition of rival Songa Offshore, said the impairment in the third quarter associated with the retirement of six floaters was $1,386 billion.
Adjusted for impairment and some other net unfavorable items, Transocean’s net income for the quarter was $64 million.
Contract drilling revenues were $699 million, down from $886 million a year ago.
Contract backlog was $9.4 billion as of the October 2017
“Despite the challenging environment, we continue to operate at a high level, delivering another quarter in which Revenue Efficiency exceeded 97% and Adjusted Normalized EBITDA margin approached 50%,” said Jeremy Thigpen, President and Chief Executive Officer. “In addition to the strong operating results, during the quarter, we continued the high-grading of our fleet by announcing our intent to acquire Songa Offshore, which includes the addition of four new, high-specification, harsh environment semi-submersibles. We also announced our decision to recycle six additional floaters, further improving the overall quality and competitiveness of our fleet.”
Thigpen added: “During October, we issued $750 million of senior unsecured debt with the intent of retiring our near-dated maturities. This action, coupled with cash flow from operations of $384 million, and the anticipated incremental backlog of approximately $4 billion attributable to the Songa Offshore transaction, further extends our liquidity runway, and positions us well for a market recovery.”
Offshore Energy Today Staff