Saving the day: deep-water drilling units
Transocean posts 33% drop
Rig contractor Transocean's third-quarter profit slumped 33% as it wrote down the value of rigs held for sale because of weak demand as results missed analysts' expectations.
Most oil-services companies have been under pressure to reduce rates because of a sharp drop in demand. However, the deep-water drillers have been less vulnerable because the sector tends to have longer contracts and charges higher rates.
The offshore-drilling contractor's profit fell to $710 million, or $2.19 per share, from $1.06 billion, or $3.30 per share, a year earlier reported Reuters.
The latest quarter included $46 million in write-downs and $10 million in other losses.
Revenue dropped 11% to $2.82 billion.
Analysts polled by Thomson Reuters most recently were looking for earnings of $2.67 on revenue of $2.85 billion.
Average day rates rose 12% while utilisation rates declined to 75% from 89% a year earlier and 84% in the second quarter.
Shares closed Tuesday at $85.91 and didn't trade premarket. The stock has risen 82% this year.