Transocean Tops Estimates on Increased Rig Rental Rates

| About: Transocean Ltd. (RIG)
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Offshore oil and gas driller Transocean Inc. saw its Q3 profit more than triple to nearly a billion dollars, on record daily rental rates for its advanced ocean drilling rigs and a tax sharing agreement. Net income jumped to $973 million, good for EPS of $3.24, versus EPS of $0.96 a year ago (full earnings call transcript later today). On an adjusted basis, EPS climbed to $2.12 - well above consensus analyst EPS estimates of $1.99. Revenue increased 50% Y/Y to $1.54 billion. Analysts were looking for $1.51 billion in revenue. Transocean received an average daily rent for its most advanced offshore drilling rigs of $323,200 in Q3, up 31% from a year ago. The news sent shares of RIG higher by 2.06% at the open. Transocean plans to merge with GlobalSantaFe, pending the results of a November 9 shareholder vote (full summary).

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