ZUG, Switzerland, Nov. 5 (UPI) -- Offshore rig company Transocean reported an adjusted net income for the third quarter that was more than 20 percent less than the previous quarter.
Total revenues for the rig company were $1.61 billion, down 14 percent from the previous quarter. Adjusted net income of $316 million was 22.5 percent lower than second quarter 2015.
Lower crude oil prices means energy companies have less capital to invest in oil and gas exploration, a trend reflected in a decline in the number of rigs actively engaged in exploration and production in the United States.
In early 2015, Transocean announced plans to scrap four of its offshore rigs. Of those, only Transocean Legend was active this year. It was last leased by ConocoPhillips for exploration off the coast of Australia, with a day rate of $415,000.
Transocean President and Chief Executive Officer Jeremy Thigpen said the company was focusing on equipment reliability and cost management as it navigates the market downturn.
"As we move forward in this challenging market, we will continue to identify opportunities to drive unnecessary cost out of our business, while simultaneously investing in opportunities that will enable us to continue to exceed the performance expectations of our customers," he said in a statement.
Transocean cancelled plans in August to issue stock dividends, citing the deterioration in the offshore drilling market.
Rival rig company Hercules Offshore announced in mid-August it filed for bankruptcy as part of a financial restructuring effort in an era of lower crude oil prices.
