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Analysts Estimate a 22.3% Fall in Transocean’s 3Q17 Revenue

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Analysts’ revenue estimates

For Transocean (RIG), Wall Street analysts project revenue of just over $701 million in 3Q17, which would be a 1.4% fall from its revenue of $711 million in 2Q17 and a 22.3% fall on a year-over-year basis.

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Revenue sources

Transocean only earns its revenue through the Floater segment. The company sold off its jack-up fleet to Borr Drilling in March 2017. Transocean operates 37 high specification floaters, which include 30 ultra-deepwater floaters and seven harsh environment floaters. The company also has newbuilds under construction.

Long-term estimates

With a weak backlog and low chances of securing new contracts in the short term, Transocean is expected to report another fall in its fourth-quarter revenue to $674 million. Its 2017 revenue is expected to be $2.86 billion—31.2% lower than its revenue of $4.16 billion in 2016. Analysts expect the company’s revenue to fall even more in the future. Its revenue is expected to fall to $2.68 billion in 2018.

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Backlog

As of October 26, 2017, Transocean has a backlog of $9.4 billion—lower than $10.2 billion recorded in July and $10.8 billion recorded in April 2017.

Peer revenue

Below are analysts’ estimates for other offshore drilling (IYE) companies’ 3Q17 revenues:

  • Diamond Offshore Drilling’s (DO) 3Q17 revenue estimates stand at $364 million—4.5% higher than its 3Q16 revenue of $349 million.
  • Noble’s (NE) 3Q17 revenue estimates stand at $368 million—30.2% lower than its 3Q16 revenue of $385 million.
  • Seadrill’s (SDRL) 3Q17 revenue estimates stand at $490 millios—33.9% lower than its 3Q16 revenue of $743 million.
  • Rowan Companies’ (RDC) 3Q17 revenue estimate stands at $281 million—25.9% lower than its 3Q16 revenue of $379 million.

In the next part, we’ll discuss Transocean’s EBITDA estimates.

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