TRANSOCEAN REPORTS SECOND QUARTER 2020 RESULTS
Transocean reported a net loss attributable to controlling interest of $497 million for the three months ended June 30, 2020.
Second quarter 2020 results included net unfavorable items of $496 million as follows:
• $430 million, $0.70 per diluted share, loss on impairment of assets
• $59 million loss on impairment of an investment in an unconsolidated affiliate
• $10 million related to discrete tax items; and
• $1 million in restructuring costs.
These unfavorable items were partially offset by:
• $4 million gain on retirement of debt.
After consideration of these net unfavorable items, second quarter 2020 adjusted net loss was $1 million.
Contract drilling revenues for the three months ended June 30, 2020, increased sequentially by $171 million, primarily due to $177 million of revenues recognized in second quarter 2020, resulting from a settlement agreement with a customer for performance disputes.
Additionally, the second quarter was favorably impacted by higher revenue efficiency, and an early termination fee of $21 million for Paul B. Loyd Jr., offset by lower revenues due to reductions in dayrates and a non-cash revenue reduction of $53 million, compared to $48 million in the prior quarter, from contract intangible amortization associated with the Songa and Ocean Rig acquisitions.
Operating and maintenance expense was $525 million, compared with $540 million in the prior quarter. The sequential decrease was the result of lower in-service maintenance cost across our fleet, partially offset by $30 million of higher costs related to the COVID-19 pandemic.
“I recognize and thank the entire Transocean team for producing strong second quarter operating and financial results during these unprecedented times” said Jeremy Thigpen, President and Chief Executive Officer. “Our revenue efficiency of 97% demonstrates our unwavering commitment to delivering reliable and efficient operations for our customers, while keeping personnel on our rigs safe and healthy.”
Transocean owns or has partial ownership interests in, and operates a fleet of 39 mobile offshore drilling units consisting of 27 ultra-deepwater floaters and 12 harsh environment floaters. In addition, Transocean is constructing two ultra-deepwater drillships.