30 Jul

What You Need to Know before Transocean’s Q2 2018 Earnings

WRITTEN BY Sue Goodridge

Second quarter

Transocean (RIG) is set to release its second-quarter results today after the markets close. Let’s see what analysts expect.

What You Need to Know before Transocean’s Q2 2018 Earnings

According to Reuters consensus, Transocean’s estimated second-quarter revenue stands at $765.6 million—22.3% higher than its $626 million last quarter and 7.69% higher year-over-year.

Analysts expect a spike in Transocean’s revenue. The second-quarter revenue should find support in early termination revenues of $38 million and the amortization of the Songa contract of $29 million. This rise would be the second consecutive rise in Transocean’s quarterly revenues. In the first quarter, Transocean’s revenue rose 5.5% sequentially.

Ensco (ESV) and Diamond Offshore (DO) have already released their second-quarter results. Ensco’s Q2 2018 revenue was $458.5 million—9.9% higher than the previous quarter. Diamond Offshore’s Q2 2018 revenue was $268.8 million—9% lower than the previous quarter.

Analysts expect Transocean’s EBITDA at $285.3 million in Q2 2018, compared to $208 million in the first quarter and $349 million in Q2 2017. This EBITDA would represent a 37% rise quarter-over-quarter. Analysts expect Rowan Companies’ (RDC) second-quarter EBITDA to be 34% lower than the previous quarter and Noble’s (NE) EBITDA to be 14% higher quarter-over-quarter. Transocean’s estimated second-quarter EPS are -$0.17.

Stock performance

Transocean’s stock reached a 52-week high of $14.34 on July 10. Currently, the stock is trading 9.97% lower than its 52-week high and 79.3% higher than its 52-week low. The stock has risen 20.8% since the beginning of the year.

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