Transocean (NYSE:RIG) -5.3% after-hours following a larger than forecast Q1 loss and a 4% Y/Y drop in contract drilling revenues to $759M, primarily due to reduced activity related to rigs that were idle and lower revenue efficiency.
The revenue decline occurred despite a full quarter of revenues from the recently reactivated ultra‑deepwater floaters Deepwater Mykonos and Deepwater Corcovado.
Q1 adjusted EBITDA was $235M, compared with adjusted EBITDA of $223M in previous quarter.
Q1 revenue efficiency was 94.4% vs. 98% in the year-ago quarter; rig utilization 60% vs. 56% a year earlier.
Average dayrate for Transocean's total drilling fleet rose 2.7% Y/Y to $314.9K, with improvements in harsh environment floaters and midwater floaters but a decline in dayrates for ultra-deepwater floaters.
Contract backlog was $9.6B as of the April fleet status report, down 21% Y/Y.
"We recognize the dramatic decline in oil prices, coupled with the continued uncertainties surrounding the containment of COVID-19... will invariably delay the contracting activity that we expected in 2020."
The revenue decline occurred despite a full quarter of revenues from the recently reactivated ultra‑deepwater floaters Deepwater Mykonos and Deepwater Corcovado.
Q1 adjusted EBITDA was $235M, compared with adjusted EBITDA of $223M in previous quarter.
Q1 revenue efficiency was 94.4% vs. 98% in the year-ago quarter; rig utilization 60% vs. 56% a year earlier.
Average dayrate for Transocean's total drilling fleet rose 2.7% Y/Y to $314.9K, with improvements in harsh environment floaters and midwater floaters but a decline in dayrates for ultra-deepwater floaters.
Contract backlog was $9.6B as of the April fleet status report, down 21% Y/Y.
"We recognize the dramatic decline in oil prices, coupled with the continued uncertainties surrounding the containment of COVID-19... will invariably delay the contracting activity that we expected in 2020."
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.