Transocean soars in Q2

Good quarter: Steven Newman-led Transocean soars

Rig contractor Transocean soared past expectations in the second quarter, posting higher profits helped by lower operating and maintenance costs.

The Swiss-based offshore giant reported income of $587 million, or $1.61 per share, in the three months that ended in June.

Analysts polled by Reuters had expected earnings per share of $1.02.

The profit beat compared to income of $307 million in the second quarter of 2013.

Revenues for the 2014 period were slightly lower on $2.328 billion, compared with revenues $2.364 billion a year earlier.

However, Transocean recorded $56 million less in operating and maintenance expenses sequentially at $1.213 billion. The decrease was due primarily to lower shipyard expenses, Transocean said.

Total costs for the quarter came in at $1.56 billion, down from $1.72 billion in the 2013 quarter.

The company's effective tax rate was also lower sequentially at 10.7%, compared to 14.4% in the first quarter of 2014. The decrease was the result of idle time on certain rigs in high-tax jurisdictions and the movement of rigs between jurisdictions, Transocean said.

Fleet utilisation was 78%, on par with the first quarter.

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