Transocean Confirms $2B of New Contracts

Transocean, the world's largest offshore drilling contractor, confirmed late Friday that it secured new contracts amounting to $2 billion between Oct. 17 2012 through to Feb. 14 2013. Reporting its fourth quarter results for 2012, the firm also said that the backlog of orders from continuing operations stood at $28.8 billion on February 14.

Transocean generated 4Q 2012 revenues of $2.32 billion – down from $2.43 billion in the previous quarter. Contract drilling revenues decreased by $35 million primarily due to the expected increase in "out of service" time, which was partly offset by higher average day rates. Other revenues decreased by $70 million, which was mainly due to lower drilling management services activity.

Operating and maintenance expenses in 4Q 2012 were $1.44 billion (3Q 2012: $1.32 billion), while 4Q 2012 net income came in at $456 million (3Q 2013: $381 million loss).

During 4Q 2012 the firm reclassified its drilling management services operations in the US Gulf of Mexico to the status of "discontinued operations", reducing its revenues for the period by $51 million and operating and maintenance expenses by $50 million.

For 2013, Transocean issued guidance that its fleet average revenue efficiency would be approximately 93 percent (compared with 94.7 percent during 4Q 2012). Operating and maintenance expenses for 2013 are estimated at between $5.7 billion and $5.9 billion.

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