Transocean Earnings Climb
Two weeks after unveiling a planned merger of the two companies, offshore drillers Transocean (RIG) and GlobalSantaFe (GSF) both reported strong second-quarter earnings growth that beat out analyst expectations.
Transocean reported second-quarter income of $549 million, or $1.84 a share, up from $249 million, or 75 cents a share, during the same period a year ago.
It generated $1.43 billion in revenue in the quarter, compared with $854 million a year earlier. Analysts were expecting second-quarter earnings of $1.72 a share, according to a survey conducted by Thomson Financial.
Transocean's increase in revenue was mostly due to "a combination of a higher average dayrate, increased rig activity and decreased shipyard time," according to the company's press release."For the first time in Transocean's history, the fleet-wide quarterly average dayrate exceeded $200,000. Over the same period, rig utilization rose to 91% from 89%," the company stated. Transocean's high-specification floater ship fleet is fully committed through 2008 and has limited capacity in 2009. The company also has new drill-ships under construction that will come online in 2009 that are already being reserved by producers, said David Mullen, senior vice president of marketing, in a conference call. Demand for rigs in the emerging markets of India and Asia is not being satisfied, and mature markets in Angola, Nigeria, Brazil and the Gulf of Mexico continue to seek more deepwater capacity, Mullen said.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV