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Transocean continues to increase revenue and reduce debt

Rig Lynx
  • By Rig Lynx
  • Feb 23, 2021
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Transocean released their fourth quarter report on Monday and its total contract drilling revenues was $690 million compared with $773 million in the third quarter of 2020 and $792 million in the fourth quarter of 2019.

 

Contract drilling revenues for 4Q 2020 decreased sequentially by $83 million primarily due to reduced activities for two rigs that were idle, one rig that demobilized from Canada to Norway and two rigs undertaking out-of-service maintenance in Brazil.

 

Revenue efficiency in 4Q 2020 was 97.2 per cent, compared with 96.6 per cent in the prior quarter and reduced its operating and maintenance expense in 4Q 2020 to $465 million from $470 million in the prior quarter.

 

President and CEO Jeremy Thigpen said: “As a direct result of our strong performance in 2020, we generated over $1 billion in EBITDA, which, when combined with the multiple financing transactions consummated throughout the year, further bolstered our liquidity position. This liquidity, coupled with our industry-leading $7.8 billion backlog, provides us the financial stability to continue to invest in our people, the maintenance of our assets, and the development and deployment of new technologies that will further differentiate us in the eyes of our customers and shareholders”.

 

Thigpen added: “Looking forward, we are mindful of the various challenges facing us; however, we believe that improving longer-term market fundamentals, and the increasing list of opportunities on the horizon bode well for an improvement in contracting activity later this year and into next”.

 

As of February 2021, Transocean’s contract backlog was $7.8 billion.

 

Source: Transocean

 

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