One of the world’s largest offshore drilling contractors, Transocean, returned to profit in the first quarter of the year as opposed to a loss in the corresponding period last year. The company’s revenues dropped due to reduced rig activity.
Transocean reported net income attributable to controlling interest of $249 million for the three months ended March 31, 2016, compared to a loss of $483 million in the same period last year. The first quarter of 2015 included net unfavorable items of $881 million, associated with losses on the impairment of the deepwater floater asset group and other assets classified as held for sale.
According to Transocean, first quarter 2016 results included net unfavorable items of $5 million where $4 million was in restructuring costs associated with employee severance; and $2 million related to the loss on impairment of the midwater floater Transocean John Shaw, which the company has identified for recycling.
Transocean’s contract drilling revenues for the three months ended March 31, 2016, decreased $345 million sequentially to $1.11 billion due primarily to reduced activity associated with stacked and idle rigs, and rig disposals. The revenues for the first quarter 2016 were $1.34 billion, compared to $2.043 billion in the same period last year.
Offshore Energy Today Staff