US-based offshore drilling company Transocean reported a reduction in net loss for the June quarter to $68mn vs. a net loss of $103mn in the previous year. Total contract drilling revenues rose 5.5% YoY to $692mn, and revenue efficiency was 97.8% against 94.9% in Q1. (Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as %). Contract backlog stood at $6.2bn as of the July 2022 fleet status report. Interest expense, net of amounts capitalized were down 13% to $100mn. Capital expenditure was at $115mn, 10% higher QoQ due to payments related to the company’s newbuild drillships under construction, including the payment for the delivery of drillship Deepwater Atlas in June 2022. During the quarter, the company amended the bank credit agreement, extending the maturity date for a secured credit facility from June 2023 to June 2025. The credit facility’s borrowing capacity stands at $774mn through June 2023 and $600mn through June 2025. As of June, the company had cash and cash equivalents of $729mn and long-term debt of $6.3bn. Earlier this month, the company was downgraded to CCC- from CCC by S&P with a negative outlook.
Transocean’s 6.8% 2038 was up 3.77 points to 51, yielding 15.01%.