Transocean Earnings Beat Forecasts

Transocean Offshore Inc. posted earnings for the second quarter that just beat expectations as low oil prices early in the year caused continued depressed exploration and production spending worldwide. Transocean reported net income for the second quarter of $56.4 million on revenues of $235.6 million. For the corresponding three months in 1998, Transocean reported net income of $69.7 million. Transocean Chairman and CEO J. Michael Talbert said although crude oil prices improved better than 30 percent during the second quarter of 1999, relative to average levels experienced during the initial three months of the year, the dayrates for its rigs fell in the second quarter. Transocean's operating income fell 15 percent with revenues from the company's mobile units totaling $221.8 million while operating income, before depreciation and amortization and general expenses was $111.8 million. That compares to revenues of $233.6 million and operating income of $132.3 million during the corresponding three months of last year. The average fleet dayrate experienced on the company's 20 fully-owned and active semisubmersibles and drillships was $128,100 during the second quarter of 1999, compared to $132,100 during the first quarter of 1999.