May 1 (UPI) — A net loss for the first quarter was attributed in part to the acquisition of rival Songa Offshore, which Transocean said supported its rig fleet.
The rig company, which has its headquarters in Switzerland, reported an adjusted net loss for the first quarter of $210 million, compared with a net loss of $93 million in the fourth quarter. Of that, $7 million was tied to costs from the acquisition of Songa Offshore.
“We consummated the Songa Offshore acquisition, which added four new, contracted, high-specification, harsh environment semisubmersibles to our fleet, and further bolstered our industry-leading backlog,” CEO Jeremy Thigpen said in a statement.
Energy companies that provide services for the exploration and production side of the industry, like Transocean and Songa Offshore, have tried to streamline operations even though crude oil prices are recovering. Drilling services company Baker Hughes is now a GE company and rival Schlumberger spent much of last year establishing joint ventures with its industry partners.
Schlumberger reported first quarter earnings of $7.8 billion were up 14 percent from the same period last year, but down 4 percent from the fourth quarter. For the three months ending March 31, Transocean said its contract drilling revenues increased $35 million to $664 million, but most of that was from the new rigs added to its fleet in the Songa acquisition.
When the bid for Songa Offshore was announced last year, the company had seven rigs to its name, including four designated for harsh environments.
Transocean reported capital expenditures for the first quarter at $53 million, compared with $122 million in the same period last year. The day rate for its ultra-deepwater rigs, which accounted for most of the company’s drilling revenues, was $381,600 during the first quarter, down 26 percent from first quarter 2017.