Transocean Beats Big on the Bottom Line

Offshore contract drilling services specialist Transocean reported third-quarter results today after the markets closed, showing that it posted net revenues of $2.56 billion, a 5% increase from the same period in the previous year and ahead of the $2.47 billion Capital IQ consensus estimate.

While adjusted net income came in at $499 million, or $1.37 per share, a complete turnaround from losses of $506 million, or $1.06 per share, in the same period in 2012, it was $0.30-per-share better than the CapIQ estimates of $1.07 per share.

Transocean says it benefited from higher utilization rates, higher fleet revenue efficiency, and higher day rates, particularly in the North Sea, leading to increases in contract drilling revenues.

The contract driller didn't provide guidance for the coming quarter, but analysts anticipate it to post earnings of $0.89 per share in the fourth quarter on revenues of $2.42 billion.

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