Offshore drilling contractor Transocean recorded a wider loss within the first quarter of 2020 when in comparison with the identical interval final yr as a result of asset impairments.

Net loss attributable to controlling curiosity was $392 million in contrast with a internet lack of $51 million within the fourth quarter of 2019 and a internet lack of $171 million in 1Q 2019.

First-quarter 2020 outcomes included internet unfavourable objects of $205 million. This included $167 million loss on impairment of property and $57 million loss on retirement of debt.

After consideration of those internet unfavourable objects, first quarter 2020 adjusted internet loss was $187 million. This compares with an adjusted internet lack of $263 million within the earlier quarter.

Total contract drilling revenues had been $759 million in contrast with $792 million within the fourth quarter of 2019 and $754 million in 1Q 2019.

Contract drilling revenues for 1Q 2020 decreased sequentially by $33 million, primarily as a result of lowered exercise associated to rigs that had been idle and decrease income effectivity.

These decreases had been partially offset by a full quarter of revenues from the lately reactivated extremely‑deepwater floaters Deepwater Mykonos and Deepwater Corcovado.

Jeremy Thigpen, Transocean President and Chief Executive Officer, mentioned: “Looking ahead, we acknowledge the dramatic decline in oil costs, coupled with the continued uncertainties surrounding the containment of COVID-19, and the resumption of the worldwide financial system, will invariably delay the contracting exercise that we anticipated in 2020”.

Transocean’s present contract backlog is $9.6 billion.

Photo by SP Mac

The submit Impairments take Transocean deeper into the purple appeared first on Offshore Energy.

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