EmailStory Stocks®
Archive
Last Update: 04-Mar-13 07:45 ET
Transocean shares rise 3% following better than expected earnings
Transocean (RIG $53.70 +1.55) reported fourth quarter of $0.91 per share, excluding non-recurring items, $0.11 better than the Capital IQ consensus of $0.80, while revenues rose 9.0% year/year to $2.33 billion versus the $2.38 bln consensus. Contract drilling revenues decreased $35 million primarily due to the expected increase in out of service time, partly offset by higher average dayrates. Revenue efficiency from continuing operations was 94.7 percent for the fourth quarter, compared with 94.9 percent in the third quarter 2012. Other revenues decreased $70 million to $51 million for the fourth quarter 2012, compared with $121 million in the prior quarter, primarily due to lower drilling management services activity. In 2013 co sees Other Revenues of $400-420 million. Fleet Average Revenue Efficiency of approximately 93%, Capital Expenditures of approximately $3 billion. The company also announced has recommended certain agenda items for the 2013 Annual General Meeting of Shareholders. The AGM will be held on May 17, 2013. The Board of Directors is recommending that the co's shareholders approve at the AGM a U.S. dollar-denominated dividend of $2.24 per share, or ~ $800 mln in the aggregate, out of additional paid-in capital. The Board expects that the proposed dividend will be payable in four quarterly installments, set for June 2013, September 2013, December 2013 and March 2014. The Board believes that the level of the proposed dividend supports these key objectives and, to facilitate continued progress towards achieving its articulated gross debt target of $7 billion to $9 billion, the company intends to accelerate repayment of its debt with the objective of retiring approximately $1 billion of debt in excess of existing repayment obligations by the end of 2014. In addition, the Board is recommending the re-adoption of the co's authorized share capital, corresponding to 19.99% of the co's stated share capital, for a further two-year period.
