OREANDA-NEWS. Transocean Partners LLC (NYSE: RIGP)

  • Distributable cash flow attributable to controlling interest was $34 million, compared with $38 million in the fourth quarter of 2015;

  • A quarterly distribution of $0.3625 per unit has been declared;

  • Fleet revenue efficiency(1) was 92.8 percent, compared with 97.5 percent in the previous quarter;

  • Fleet utilization(2) was 100 percent, unchanged from the fourth quarter of 2015;

  • Revenues were $144 million, compared with $154 million in the prior quarter;

  • Operating and maintenance expense was $55 million, compared with $54 million in the previous quarter;

  • Net income attributable to controlling interest was $31 million, $0.45 per unit, compared with net income attributable to controlling interest of $34 million, $0.49 per unit, in the previous quarter; and

  • The Annual Effective Tax Rate(3) was 5.4 percent, down sequentially from 6.6 percent.

LONDON-May 6, 2016-Transocean Partners LLC (NYSE: RIGP) today reported net income attributable to controlling interest for the three months ended March 31, 2016, of $31 million, or $0.45 per unit.

Distributable cash flow attributable to controlling interest was $34 million, compared with $38 million in the fourth quarter of 2015. For the three months ended March 31, 2016, a quarterly distribution of $0.3625 per unit, or approximately $25 million based upon the number of currently outstanding units, has been declared.

For the three months ended March 31, 2015, the company reported a net loss attributable to controlling interest of $6 million, $0.09 per unit, which included a loss of $67 million on the impairment of goodwill ($34 million attributable to controlling interest). Excluding the impairment, first quarter 2015 adjusted net income was $28 million, or $0.41 per unit.

Revenues decreased $10 million sequentially to $144 million due primarily to lower revenue efficiency on the Discoverer Clear Leader.

Operating and maintenance expense increased $1 million sequentially to $55 million.

General and administrative expense was $6 million, down from $7 million in the prior quarter.

The company's Effective Tax Rate (4) decreased to 5.8 percent from 6.6 percent in the fourth quarter of 2015. The Annual Effective Tax Rate was 5.4 percent, compared with 6.6 percent in the previous quarter. The decrease was due primarily to changes in adjusted pretax income.

"The company continues to generate solid cash flows to support our quarterly distribution," said President, Chief Executive Officer and Chief Financial Officer Kathleen McAllister. "Although our revenue efficiency was lower than anticipated during the quarter, we continue to deliver overall strong operating margins and are on track to meet our 2016 targeted revenue efficiency of 95 percent."