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How Did Transocean Perform in 3Q17?

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How Did Transocean Perform in 3Q17? PART 1 OF 6

How Transocean Performed in 3Q17

Results in 3Q17

On November 2, 2017, Transocean (RIG) released its 3Q17 earnings, followed by a conference call.

 

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Actual versus estimates

In 3Q17, Transocean’s revenue exceeded Reuters’s estimate by 1%, and its EBITDA (earnings before interest, tax, depreciation, and amortization) were 11% higher than Reuters’ estimate. Transocean’s 3Q17 adjusted normalized EBITDA were $349 million, compared with $347 million in the previous quarter.

Transocean’s take on its third-quarter results

Transocean seemed quite satisfied with its third-quarter performance. According to CNBC, Transocean president and CEO Jeremy Thigpen said that “despite the challenging environment, we continue to operate at a high level, delivering another quarter in which Revenue Efficiency exceeded 97% and Adjusted Normalized EBITDA margin approached 50%.”

Stock performance

Transocean stock has had a good run in the last three months, rising 17.6%. Other offshore drillers’ (IYE) performance was as follows:

  • Diamond Offshore Drilling (DO) rose 30.7%
  • Noble (NE) fell 1.9%
  • Rowan Companies (RDC) rose 20.7%
  • Ensco (ESV) fell 1.1%

The VanEck Vectors Oil Services ETF (OIH), which has a 22.3% exposure to oil and drilling stocks, has risen 1.2% in the last three months.

In this series

In this series, we’ll look at Transocean’s 3Q17 results and conference call highlights. We’ll also discuss the company’s current position and plans for the future, as well as analysts’ views. Let’s begin by looking at Transocean’s revenue.

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