(RTTNews.com) - Switzerland-based offshore drilling contractor Transocean Ltd. ( RIG ) on Wednesday reported a 42 percent surge in profit for the first quarter from last year, reflecting higher revenues as well as lower costs and expenses. Adjusted earnings per share for the quarter beat analysts' estimates. The company's shares rose more than 3 percent in extended trades.
http://www.nasdaq.com/article/...ofit-up-42-beats-view-20140507-01787The company's fleet revenue efficiency for the first quarter was 95.7 percent, up from 88.0 percent in the year-ago period. However, fleet utilization in the quarter was 78 percent, down from 80 percent in the prior-year period.
Transocean's first-quarter net income was $456 million or $1.25 per share, up from $321 million or $0.88 per share in the same period last year.
The latest quarter's results include net unfavorable items of $64 million or $0.18 per share, including $0.19 per share in impairment of assets held for sale, $0.02 per share in net losses from discontinued operations and $0.01 per share related to an unfavourable adjustment in contingencies associated with the Macondo well incident. These were partly offset by $0.04 per share in favourable discrete tax benefits.
The prior-year quarter's results include net unfavorable items of $21 million or $0.06 per share, mostly due to $0.14 per associated with contingencies related to the Macondo well incident, partly offset by $0.10 per share related to favorable discrete tax items.
Excluding these items, adjusted earnings for the latest quarter were $520 million or $1.43 per share, compared to $342 million or $0.94 per share in the year-ago quarter. On average, 34 analysts polled by Thomson Reuters expected the company to earn $1.02 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew 7 percent to $2.34 billion from $2.18 billion in the same period last year. Analysts had a consensus revenue estimate of $2.27 billion.
Contract drilling revenues also rose 7 percent to $2.29 billion, due primarily to higher revenue efficiency and fleet utilization.
Costs and expenses for the quarter declined 6 percent from last year to $1.60 billion, primarily reflecting lower shipyard and maintenance costs as well as the effect of the company's cost reduction initiatives.
Transocean's contract backlog was $26.1 billion as of the April 17, 2014 Fleet Status Report. Since this report, the company has secured additional contracts totalling $470 million.
RIG closed Wednesday's regular trading session at $43.33, up $0.27 or 0.63 percent on a volume of 4.54 million shares. In after-hours, the stock further gained $1.41 or 3.25 percent to $44.74.
Read more:
http://www.nasdaq.com/article/...ts-view-20140507-01787#ixzz319CwBBwZ