Transocean Q1 Preview: Lower UDW Day Rates, Weaker Utilization Will Hurt Results

We expect quarterly adjusted earnings to decline on sequential as well as year-over-year bases owing to weaker utilization rates and dayrates. On a GAAP basis, the numbers will be further weighed down by non-cash charges (possibly upwards of $400 million) related to rig disposals. That said, the full impact of the current market conditions will only factor into earnings in the quarters to come, as higher-priced contracts end and as a greater number of rigs remain idle or work at lower rates.