Transocean +7.2% in Tuesday's trading despite reporting a larger than forecast
Q1 adjusted loss, as strong results from leading oil and gas names including BP, Devon Energy and Marathon Petroleum appear to lift the entire sector.
In the company's
earnings conference call, CEO Jeremy Thigpen noted significant growth in day rates in high specification assets in the U.S. Gulf of Mexico, "from the low $200,000s just a few years ago to over $300,000 per day for recently announced fixtures. It is very possible we will see awards in the near future at day rates above $400,000 per day, which reflects the increasing tightening of this nearly already sold-out market."
Q1 results themselves look mixed: adjusted loss was a larger than expected $0.28/share compared to a year-ago $0.19/share loss, adjusted EBITDA fell 33% Y/Y to $163M but beat $150.1M analyst consensus estimate, adjusted contract drilling revenues of $615M met consensus of $611M, rig utilization was 52.7% vs. 53% a year earlier.