Thu, May 5, 10:58 AM
- Transocean (RIG +3.6%) is higher after Q1 earnings and revenues easily topped expectations, as cost cutting helped mitigate the effects of lower crude oil prices.
- RIG says Q1 rig utilization fell to 51% from 60% in the prior quarter and 79% a year ago, as contract backlog continued its slide to $14.6B as of the company’s most recent fleet status report in April; Q1 expenses fell to $925M from $1.42B a year earlier.
- RBC analysts say the results are a "slight positive" as RIG continues to execute well, but shares "have limited upside until the market gains more confidence in the supply/demand outlook for floating rigs in 2017-18... fundamentals continue to weaken for floating rigs, and it remains unclear where dayrates and utilization may bottom."
- Now read Why Transocean is set to decline
Wed, May 4, 5:13 PM
Tue, May 3, 5:35 PM
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Mon, May 2, 3:45 PM
- Diamond Offshore (DO +1.4%) is higher after Q1 earnings easily exceeded analyst estimates, but it is not helping shares of other oilfield services companies in today's trade.
- Wells Fargo views DO's report positively, although results likely included noise from the accounting of a demobilization fee and notes that another contract termination in Mexico could be viewed as a partial negative offset.
- The Zephirin Group contends that DO's do not overshadow weak fundamental conditions in the offshore industry likely to persist, hurting earnings through 2018 and beyond for the likes of Noble Corp. (NE -2%) and Ensco (ESV -3.2%), which reported earnings last week (I, II).
- Zephirin rates NE and ESV at Hold - High Risk, forecasting a 30% reduction in dayrates for NE's Sam Croft and Tom Madden drillships and rate reductions of up to 25% or termination in the near future for ESV's four rigs working in Brazil for Petrobras at a day rate range of $300K-345K.
- Also: RIG -0.7%, RDC -1.4%, ATW -0.7%.
- Now read Diamond Offshore names Youngblood as new CFO
Wed, Mar. 9, 3:23 PM
- Ocean Rig UDW (ORIG -22.9%) plunges after missing Q4 earnings expectations and saying "prospects for the industry remain bleak” and “are likely to remain so at least until 2018.”
- ORIG says it is in discussions with lenders of its loan agreement related to the consequences of Ocean Rig Apollo termination, and that the situation could evolve into a "significant prepayment" of the loan.
- ORIG says its fleet operated at 99.5% utilization during Q4, and FY 2015 fleet operating efficiency was ~98.2%.
- Although ORIG’s comments were more bearish than the outlook described by other offshore drillers, the company’s earnings are hurting other names in the space: DRYS -19.6%, SDRL -16.4%, RIG -2.3%, NE -5.7%, ESV -3.9%, DO -1.4%, RDC -4.4%, ATW -3.3%.
Thu, Feb. 25, 11:26 AM
- Transocean (RIG -4%) turns sharply lower, failing to hold an opening gain, after reporting a "messy quarter" that would have seen a 34% Y/Y decline in revenues without $367M in early termination fees.
- While acknowledging ample liquidity for near-term capex and debt needs, Evercore ISI's James West remains concerned about RIG's fleet, with a third of the ultra-deepwater and half of the midwater floaters now stacked.
- Credit Suisse’s Gregory Lewis maintains an Underperform rating while cutting his price target to $5 from $10, expects a delay in the industry's recovery.
- RIG says a total of 11 rig contracts have been canceled early since 2015, and expects "very few drilling contracts to be awarded in 2016, exacerbating the excess rig capacity and placing continued downward pressure on dayrates."
- Earlier: Transocean +4% AH after easily beating Q4 estimates (Feb. 24)
Wed, Feb. 24, 6:58 PM
- Transocean (NYSE:RIG) +4.2% AH after Q4 earnings easily beat expectations, which analysts attribute to the company's steep cost cuts to adapt to falling demand from customers in the crude market downturn.
- RIG reported a 17% Y/Y drop in revenue but this result also handily beat estimates, in part by cutting operating and maintenance expenses by 39%; contract drilling revenues fell by $113M due to reduced activity and rig retirements, partially offset by higher ultra-deepwater revenue efficiency and higher demobilization revenues.
- Q4 cash flows from operating activities rose by $312M Q/Q to $960M due mostly to early contract terminations.
- RIG says it took delivery of the newbuild ultra-deepwater drillship Deepwater Proteus during Q4, and expects the floater to be placed into service in Q2.
- Shares had dropped 4% in today's regular trade after the contract for one of its rigs was terminated; in response, RBC analysts said RIG has limited upside until the market gains more confidence in the supply and demand outlook for floating rigs in 2017-18, adding that it remains unclear when dayrates and utilization may bottom.
Wed, Feb. 24, 5:02 PM
Tue, Feb. 23, 5:35 PM
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Thu, Feb. 4, 11:48 AM
- Offshore drillers are on the move today as rising oil prices ease concerns about the difficult market that remains apparent in earnings releases from Noble Corp. (NE +1.1%), which reported last night, and Atwood Oceanics (ATW +17.2%), which reported earlier this week.
- NE reported below consensus Q4 earnings, but Evercore ISI's James West says the company continues to perform well operationally, with YTD unpaid fleet operational downtime edging up slightly to 5% from 4.6% in Q3.
- NE also announced plans to retire two rigs, the drillship Noble Discoverer and jackup Noble Charles Copeland, bringing its total rig attrition to four floaters and one jackup during the oil downturn.
- Jefferies says ATW has the most challenged balance sheet over the longer-term among its mid-cap coverage, but it is encouraged by ATW’s prospects to better position itself for the near-term with a covenant amendment, and maintains its Buy rating with a $9 price target (Q4 earnings).
- Related peers: RIG +3.6%, DO +3.8%, ESV +5.2%, RDC +4.3%, SDRL +2.5%.
Nov. 4, 2015, 6:18 PM
- Transocean (NYSE:RIG) reports a 10% Y/Y drop in Q3 earnings and a 29% decline in revenue, but both figures beat analyst expectations, which the company says was driven by its focus on managing costs and making reliable equipment.
- RIG says it collected less revenue for its contract drilling services in Q3, with average daily revenue for its fleet slipping to $385.3K from $403.1K a year ago.
- RIG also says fleet utilization fell to 70% from 75% in the previous quarter and the year-ago period, demonstrating declining usage of its ultradeep-water floaters, harsh environment floaters and high-specification jackups.
- Operating and maintenance expenses fell by $105M Q/Q largely due to the drop-off in activity.
- Capital spending surged to $940M in Q3 from $195M in Q2, driven by the final shipyard payment for the ultra-deepwater drillship Deepwater Thalassa, which was delivered in September.
- RIG -0.3% AH.
Nov. 4, 2015, 5:30 PM
- Transocean (NYSE:RIG): Q3 EPS of $0.87 beats by $0.19.
- Revenue of $1.61B (-29.1% Y/Y) beats by $20M.
- Shares -2% AH.
Nov. 3, 2015, 5:35 PM
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Aug. 5, 2015, 7:32 PM
- Transocean (NYSE:RIG) +3.9% AH after easily beating Q2 earnings and revenue estimates, citing "exceptional revenue efficiency and a relentless emphasis on cost management."
- Demand for offshore rigs declined because of the oil slump, as RIG's Q2 fleet utilization fell to 75% from 79% in Q1 and 78% in the year-ago period; for H1, fleet utilization was slightly down at 77%, vs. 78% a year ago.
- RIG says it contract backlog totaled $18.6B as of July 15, down from $19.9B as of April 16 and $21.2B on Feb. 17; Shell and Chevron accounted for a respective 41% and 20% of RIG's contract backlog as of Feb. 17, with further cuts likely ahead as crude oil still trades below their lowered price assumptions.
- RIG's Q2 cash flows from operating activities were $1.31B, up from $526M in Q1, primarily due to $445M of Macondo-related insurance recoveries.
- Wrote down $653M in charges associated with an impairment of the midwater floater asset group primarily due to the deterioration of the market outlook for the rig class, and another $144M related to the impairment of assets held for sale.
Aug. 5, 2015, 5:32 PM
- Transocean (NYSE:RIG): Q2 EPS of $1.11 beats by $0.61.
- Revenue of $1.88B (-19.3% Y/Y) beats by $180M.
- Shares +2.3% AH.
Transocean Ltd. provides offshore contract drilling services for oil and gas wells. The company operates through Contract Drilling Services segment. The Contract Drilling Services segment comprises mobile offshore drilling fleet, related equipment and work crews primarily on a day rate basis to... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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