Transocean. (RIG) has reported 28.66 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $229 million, or $0.62 a share in the quarter, compared with $321 million, or $0.88 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $93 million, or $0.25 a share compared with $64 million or $0.17 a share, a year ago. Revenue during the quarter plunged 43.84 percent to $903 million from $1,608 million in the previous year period. Gross margin for the quarter expanded 999 basis points over the previous year period to 55.26 percent. Total expenses were 75.08 percent of quarterly revenues, up from 72.33 percent for the same period last year. That has resulted in a contraction of 276 basis points in operating margin to 24.92 percent.
Operating income for the quarter was $225 million, compared with $445 million in the previous year period.
"I am extremely pleased with the quarterly results," said president and chief executive officer Jeremy Thigpen. "Due to our unwavering commitment to maximize uptime for our customers, and the outstanding performance of our crews and shore based personnel, we delivered revenue efficiency of 100 percent." Thigpen added, "Of note, we produced this exceptional result, while continuing to realize cost savings across the organization, which enabled us to improve our quarterly Adjusted Normalized EBITDA margin to 51 percent."
Operating cash flow drops significantly
Transocean has generated cash of $1,278 million from operating activities during the nine month period, down 48.57 percent or $1,207 million, when compared with the last year period. The company has spent $1,056 million cash to meet investing activities during the nine month period as against cash outgo of $1,285 million in the last year period. It has incurred net capital expenditure of $1,056 million on net basis during the nine month period, down 18.77 percent or $244 million from year ago period.
The company has spent $27 million cash to carry out financing activities during the nine month period as against cash outgo of $1,601 million in the last year period.
Cash and cash equivalents stood at $2,534 million as on Sep. 30, 2016, up 13.43 percent or $300 million from $2,234 million on Sep. 30, 2015.
Working capital drops significantly
Transocean has witnessed a decline in the working capital over the last year. It stood at $2,185 million as at Sep. 30, 2016, down 28.97 percent or $891 million from $3,076 million on Sep. 30, 2015. Current ratio was at 1.95 as on Sep. 30, 2016, down from 2.68 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 108 days for the quarter from 116 days for the last year period. Days sales outstanding went up to 137 days for the quarter compared with 94 days for the same period last year.
Days inventory outstanding has decreased to 67 days for the quarter compared with 75 days for the previous year period. At the same time, days payable outstanding went up to 96 days for the quarter from 53 for the same period last year.
Debt comes down
Transocean has recorded a decline in total debt over the last one year. It stood at $8,260 million as on Sep. 30, 2016, down 5.63 percent or $493 million from $8,753 million on Sep. 30, 2015. Total debt was 31.57 percent of total assets as on Sep. 30, 2016, compared with 33.88 percent on Sep. 30, 2015. Debt to equity ratio was at 0.54 as on Sep. 30, 2016, down from 0.62 as on Sep. 30, 2015. Interest coverage ratio deteriorated to 2.01 for the quarter from 4.08 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
