Houston-based Transocean said net income for the quarter rose to $170.4 million, or 50 cents a share, from $154.9 million, or 47 cents, a year earlier.
Revenue for the three months ended Sept. 30 was $762.6 million compared with $651.8 million a year ago.
But the company also warned that its fourth-quarter results are likely to be stunted by $40 million to $50 million due to repairs to some of its biggest rigs, which took a beating from the summer's Gulf of Mexico hurricanes, and lost revenue while the rigs are in dock
The market reacted to the news by sending Transocean briefly down as much as 1.6% before it popped back into positive territory on a 1.6% gain to $59.67.
The company also warned that higher operating and maintenance expenses are expected to more than offset any increase in revenues the company might realize in the fourth quarter of 2005.