Transocean Ltd. reported a net loss attributable to controlling interest for the fourth quarter ended December 31, 2014 of $739 million, or $2.04 per diluted share.
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Fourth quarter 2014 results included net unfavorable items of $1.083 billion, $2.99 per diluted share. Those items were $992 million, $2.75 per diluted share, resulting from a non-cash goodwill impairment. The impairment is due to the decline in the market valuation of the company's contract drilling services business. As the result of this impairment, the company has no goodwill remaining on its balance sheet.
There were $148 million, $0.40 per diluted share, in impairments of assets classified as held for sale; and $9 million, $0.02 per diluted share, primarily associated with a loss on retirement of debt and other items.
These net unfavorable items were partially offset by $66 million, $0.18 per diluted share, of favorable discrete tax benefits.
After consideration of these net unfavorable items, fourth quarter adjusted net income was $344 million, or $0.95 per diluted share.
For the three months ended December 31, 2013, the company reported net income attributable to controlling interest of $233 million, $0.64 per diluted share, which included net unfavorable items of $27 million, or $0.07 per diluted share. After consideration of these net unfavorable items, adjusted net income was $260 million, or $0.71 per diluted share.
Revenues for the three months ended December 31, 2014 decreased $33 million sequentially to $2.237 billion. The decrease was due primarily to increased idle time on several rigs partly offset by higher revenue efficiency, lower out-of-service days, and the commencement of operations in the third quarter of the company's two newbuild ultra-deepwater drillships, Deepwater Asgard and Deepwater Invictus.
Operating and maintenance expenses decreased $8 million sequentially to $1.310 billion due primarily to lower shipyard and maintenance expenses.
General and administrative expenses increased $10 million from the prior quarter to $62 million. The increase was due primarily to costs associated with the company's cost reduction initiatives and, to a lesser extent, personnel costs associated with Transocean Partners. ■