Transocean 2013 Success Story: Dividend Up 34%

MarineLink.com
Monday, April 14, 2014
Frontispiece courtesy of Transocean

In a letter to shareholders chairman, Ian C. Strachan and Steven L. Newman, president and CEO, set out a summary of offshore drilling specialist Transocean's 2013 operations, excerpted as follows:

• Revenue and Backlog
Full year 2013 net income attributable to controlling interest was $1.4 billion on total revenues of $9.5 billion, increases versus 2012. During the year we added approximately $7.9 billion in backlog, including a five-year contract with Chevron for the newbuild ultra-deepwater drillship, Deepwater Conqueror, to be delivered in the second quarter of 2016. Our industry-leading backlog of over $27 billion provides the Company with a solid foundation to weather what we expect to be temporarily challenging market conditions resulting primarily from deferred customer demand.

• Operations
We continued to take comprehensive actions to improve revenue efficiency, achieving results in-line with and exceeding our 2013 target of 93 percent in the second and third quarters of the year, respectively. Unfortunately, our performance in the first and fourth quarters was disappointing due primarily to widespread vendor quality problems affecting critical fasteners used by the industry and continued challenges with subsea equipment on certain ultra-deepwater rigs. This inconsistent performance resulted in a year-on-year revenue efficiency decline to 91.7 percent from 93.0 percent in 2012.

• Dividend
In 2013 shareholders approved a dividend of $2.24 per share, representing one of the industry’s largest yields and highest implied pay-out ratios. Our Board will recommend that shareholders approve a $3.00 per share dividend at the 2014 Annual General Meeting (AGM), an approximately 34 percent increase. In the context of our balanced capital allocation strategy, we remain committed to returning excess cash to our shareholders.

• Competitiveness and Financial Flexibility
We committed to narrowing the margin differential between Transocean and our comparable peers by the end of 2015 through the implementation of onshore and offshore efficiency improvement initiatives. These initiatives are already yielding a more focused organization that delivers the highest level of support to the Company’s rig operations without compromising safety, operational integrity or customer service.

By almost any measure, 2013 was an exceptionally productive year for Transocean, and progress continues into 2014. While significant strides have been made, there remains much more work to do for the Company to reach its full potential. Our challenge is that much greater given the cyclical pause in which the offshore drilling industry now finds itself.
 
More information at: http://www.deepwater.com/

Maritime Reporter October 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Permanent Magnet Technology for Maritime Propulsion

Multipurpose vessels, especially those that operate primarily at part loads, have been facing pressure when it comes to making money in today’s business environment.

Industry Professionals to Speak at ShipConstructor Conference

The speakers representing various companies at next week's SSI Americas ShipConstructor User Conference, October 7-9, 2014 in Mobile, Alabama, demonstrate SSI's

NY Harbor Supply & Distribution Fall Reception/Buffet

More than 600 attendees are expected at the 52nd annual New York Harbor Supply & Distribution Fall Reception/Buffet for the energy and energy related industries

Finance

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

GasLog Closes First Option Vessels Dropdown

GasLog Ltd.  announced today the closing of the sale of two modern liquefied natural gas (“LNG”) carriers, the Methane Jane Elizabeth and Methane Rita Andrea,

Brent Holds Above $97, Eyes Worst Quarter Since 2012

Brent crude futures hovered above $97 a barrel on Tuesday, aided by firm U.S. and Chinese data, but the oil benchmark was on track for its deepest quarterly drop

Offshore Energy

N-Sea Completes Inaugural System Diving Scope

Inspection, maintenance and repair (IMR) specialist N-Sea has recently completed its inaugural diving scope with the TUP Diving System (Transfer Under Pressure).

Norvestor to Become PG’s Largest Shareholder

Norvestor VI, L.P., a fund advised by Norvestor Equity AS, announced it has signed an agreement to invest in Ing Per Gjerdrum AS including its subsidiaries PG Hydraulics AS and PG Construction AS.

Signet Transports Second LLOG Rig to GofM

On September 14, five Signet Maritime ASD/Z-Drive tugboats, the SIGNET ENTERPRISE, SIGNET RELIANCE, SIGNET MAGIC, SIGNET WEATHERLY, and SIGNET VOLUNTEER successfully

Underwater Engineering

N-Sea Completes Inaugural System Diving Scope

Inspection, maintenance and repair (IMR) specialist N-Sea has recently completed its inaugural diving scope with the TUP Diving System (Transfer Under Pressure).

Schlumberger Releases 2014 Software Platforms

Schlumberger has released the 2014 versions of its industry leading software platforms. The Petrel* E&P software platform, Techlog* wellbore software platform,

Ulstein Wins Design, Equipment SRI Contract

Ulstein  has been awarded the design and equipment contract for Van Oord’s new subsea rock installation (SRI) vessel ‘Bravenes’.   Working in close cooperation with Van Oord,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Port Authority Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3771 sec (3 req/sec)