Transocean Ltd. (NYSE:RIG) followed in the footsteps of competitors Diamond Offshore Drilling Inc. (NYSE: DO) and Schlumberger Ltd. (NYSE: SLB), reporting fourth quarter and full-year results that missed expectations. Transocean announced net income for the quarter of $800 million (EPS of $2.50) on revenue of $3.27 billion. Analysts had expected EPS of $3.70 on revenue of $3.29 billion.
For the year, Transocean reported net income of $4.20 billion (EPS of $13.09) on revenue of $12.67 billion, while analysts expected EPS of $14.34 on revenue of $12.62 billion. Average day rates at the end of the year had increased from $242,000 at the end of the third quarter to $251,500.
To counter the bad news, Transocean yesterday announced that it would seek shareholder approval to repurchase up to $3.02 billion worth of outstanding shares. That seems like a waste of money, especially given the $400 million in charges that the company took in the fourth quarter.
Transocean did not provide any guidance or backlog information, so it’s hard to figure out where the company’s going in the next 12 months. Investors appear to believe it’s going south, as pre-open trading has moved the share price down by about 3%.
Paul Ausick
February 17, 2009
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.