Tallahassee, FL 11/3/11 (StreetBeat) --Deepwater driller Transocean (NYSE: RIG) is falling more than 11% this morning after the company posted disappointing earnings late Wednesday and said it is looking to possibly sell its shallow water rig fleet.The company posted 3 cents of EPS from continuing operations for the third quarter, against expectations for 79 cents. Revenue came in below expectations and the company reported high operating and maintenance expenses. The company also saw a dropoff in “revenue efficiency”, defined by RIG as “actual contract drilling revenue divided by the highest amount of total contract drilling revenue which could have been earned during the relevant period(s).”
“The company reported revenue efficiency of 89.5 percent compared to 92.1 percent in the second quarter. Consistent with recent trends, revenue efficiency and out-of-service time continue to be adversely impacted by the need to comply with new well control equipment recertification requirements, higher standards for equipment condition and capacity constraints affecting our vendors.,” the company said.
CEO Steven Newman also said the company is “exploring transactions” for its shallow-water rigs.
StreetBeat Disclaimer
No comments:
Post a Comment