Transocean posted an adjusted second quarter net income of $64 million on Wednesday, beating analysts targets.
The Switzerland-based company reported an adjusted net income of $64 million, or $0.17 per diluted share, excluding $13 million of net favorable items.
While earnings were down from $254 million in the year-ago quarter the results soundly beat analysts estimates collected by Bloomberg that had expected a loss of $0.02 per share.
Second quarter net income declined to $88 million compared to $348 million in the prior year quarter.
Contract drilling revenues were $918 million for the quarter, down from $1.77 billion in the prior year quarter.
Other revenues slipped down to $25 million in the second quarter from $107 million in the second quarter of 2015.
Transocean said that decline was tied to ” significant first quarter 2016 early contract termination fees.”
Operating income fell to $154 million in the second quarter compared to $506 million in the year ago quarter.
The company narrowed its loss on impairment to $20 million in the second quarter compared to an $890 million loss on impairment in the same quarter last year.
Income from continuing operations was $87 million for the second quarter compared to $347 million in the second quarter of 2015.
Total drilling fleet utilization rates were 47 percent during the second quarter, down from 75 percent in the prior year quarter but only a slight decline from 51 percent in the first quarter.
Total drilling fleet revenue efficiency ticked up 1.5 percent sequentially to 96.5 percent in the second quarter.
Total current assets decreased slightly to $4.12 billion as of June 30 compared to $4.78 billion at the end of December.
Transocean had $2.15 billion of cash and cash equivalents at the end of June, down slightly from $2.33 billion at the end of December.
“Though we continue to face market headwinds, the combination of our industry-leading backlog, exceptional operating performance, and solid financial position ensures that we will maintain our position as the industry’s leading deepwater driller,” Transocean president and CEO Jeremy Thigpen said.