The company did not give guidance but there are consensus estimates of $0.25 in EPS and $1.70 billion in revenue for the second quarter. For the full year, the consensus estimates are $1.44 in EPS on revenue of $6.86 billion.
In this quarter, cash flows from operating activities were $526 million, down sequentially from $566 million.
Fleet revenue efficiency was 95.9%, compared to 95.3% in the fourth quarter of 2014. Revenue efficiency on ultra-deepwater rigs was 97.2%, an increase from 95.4% in the previous quarter. Fleet utilization was 79%, an increase from 73% in the fourth quarter of last year.
Transocean’s contract backlog was $19.9 billion as of the April 16.
Capital expenditures fell $117 million sequentially to $201 million. This was attributed to lower project costs on the existing fleet.
Operating and maintenance expenses decreased $226 million sequentially to $1.084 billion. The decrease was mainly associated with the company’s onshore and offshore cost reduction initiatives, including the optimization of maintenance and out-of-service costs, asset disposals and stacking of rigs.
ALSO READ: 4 Oil Service Stocks to Buy as Rig Count Continues to Plunge
In the weeks ahead of earnings a couple of analysts weighed in on Transocean:
- Deutsche Bank has a Sell rating for Transocean.
- Morgan Stanley downgraded Transocean to an Underweight rating from Equal Weight.
- Edward Jones downgraded the company from a Hold rating to Sell.
Transocean shares closed Wednesday relatively flat at $18.99. In after-hours trading when the earnings were released, shares were initially up 1.6% at $19.30. The stock has a consensus analyst price target of $12.98 and a 52-week trading range of $13.28 to $46.12.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.