Transocean reported net income attributable to controlling interest of $249 million, $0.68 per diluted share, for the first quarter ended March 31, 2016.
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For the three months ended March 31, 2015, the company reported a net loss attributable to controlling interest of $483 million, or $1.33 per diluted share.
The first quarter of 2015 included net unfavorable items of $881 million, $2.43 per diluted share, associated with losses on the impairment of the deepwater floater asset group and other assets classified as held for sale.
After consideration of these net unfavorable items, adjusted net income was $398 million, or $1.10 per diluted share.
Contract drilling revenues for the three months ended March 31, 2016, decreased $345 million sequentially to $1.11 billion due primarily to reduced activity associated with stacked and idle rigs, and rig disposals.
Other revenues decreased $165 million sequentially to $230 million. First quarter 2016 included $209 million in early contract termination fees ($133 million, net of expected quarterly contract drilling revenues for the cancelled rigs) primarily associated with the Discoverer Deep Seas and Deepwater Millennium.
Operating and maintenance expense decreased to $665 million, compared with $794 million in the prior quarter.
The decrease was due largely to lower activity, cost savings related to the company's operational and restructuring initiatives, and reduced stacking costs primarily associated with the company's dynamically positioned floaters offset partially by the reactivation costs of the Henry Goodrich.
The quarter also included deferred mobilization cost of $18 million on the GSF Development Driller I that was previously expected in the second quarter of 2016.
General and administrative expense was $43 million, down from $58 million in the prior quarter reflecting the company's ongoing restructuring efforts.
Depreciation expense was $217 million, compared with $213 million in the previous quarter.
The Effective Tax Rate was 22.4 percent, up from 9.7 percent in the fourth quarter of 2015. The Annual Effective Tax Rate was 22.8 percent, up from 13.1 percent in the previous quarter. The increase was due largely to lower adjusted pre-tax income and the change in the mix of operating results from certain jurisdictions.
Interest expense, net of amounts capitalized, increased $2 million sequentially to $89 million.
Capitalized interest was $49 million, unchanged from the prior quarter. Interest income was $6 million, compared with $5 million in the prior quarter.
Cash flows from operating activities were $631 million, compared with $960 million in the prior quarter.
Capital expenditures totaled $368 million, down from $665 million in the prior quarter. The decline was due primarily to reduced spending associated with the company's newbuild program. ■