Transocean’s chief executive today hailed the firm’s fourth quarter output as “impressive”.
The company chief said an uptake in customer inquires showed that the “offshore drilling market trough is near”.
The firm recorded a turnover of $974million in the fourth quarter, up from its third quarter’s $906million.
“In the face of a very challenging market, we again produced impressive operational and financial results in the fourth quarter,” said president and chief executive officer Jeremy Thigpen. “For the second consecutive quarter, driven by our stellar uptime performance, and our acute focus on value creation, we delivered revenue efficiency in excess of 100% and EBITDA margins surpassing 50%.
“As a direct result of our strong performance in 2016, we generated cash flows from operations of $1.9 billion, which, when combined with the multiple financing transactions consummated throughout the year, further strengthened our liquidity. This enviable position, coupled with our industry-leading $11.3 billion backlog, allows us to prudently evaluate strategic opportunities, and continue to invest in our people and our business.
“Looking forward, improving market fundamentals along with a steady flow of customer inquiries are increasing our confidence that the offshore drilling market trough is near.”
Transocean’s operating and maintenance expense was $314million, including $30million in favorable items associated with litigation matters. This compares with $407million in the prior period.
Its contract backlog stands at $11.3billion.
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