(RTTNews) -  Wednesday, major offshore drilling contractor Transocean Ltd. (RIG: News ), reported a sharp drop in profit for the third quarter, negatively impacted by one-time charges, predominantly on various litigation matters and impairment charges as well as sharp reduction in revenue due to the stacking of rigs and decreased activity.

The Vernier, Switzerland-based company's net income attributable to controlling interest for the third quarter dropped sharply to $710 million or $2.19 per share from $1.06 billion or $3.30 per share in the year-ago quarter.

The results for the latest quarter were adversely impacted by certain net charges, after tax, totaling $148 million or $0.46 per share. This includes $139 million related to various litigation matters, $46 million for impairment of intangible assets related to drilling management services, and $10 million primarily related to the retirement of debt and expenses associated with the GlobalSantaFe merger. The results also include $40 million of income related to discrete tax items and gains on settlements of certain tax matters.

On average, 35 analysts polled by Thomson Reuters expected the company to earn $2.67 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

In the sequentially preceding quarter, Transocean reported net income attributable to controlling interest of $806 million or $2.49 per share, down from $1.07 billion or $3.31 per share, in the year-ago quarter.

Revenues for the recent third quarter dropped to $2.82 billion from $3.19 billion reported in the corresponding quarter a year earlier. Street analysts' revenue estimate was $2.85 billion for the quarter.
The deepwater drilling contractor said the decrease in its revenue was primarily due to a $164 million reduction resulting from the stacking of rigs and decreased activity, partially offset by a $108 million increases from the commencement of operations of two new drillships as well as improved day-rates and revenue efficiency.

Segment-wise, Contract drilling revenues for the quarter decreased to $2.60 billion from $2.70 billion in the year-ago period, while contract drilling intangible revenues dropped to $58 million from $143 million a year ago. Other revenues for the quarter declined to $163 million from $350 million last year.

For the preceding second quarter, Transocean reported revenues that declined 7.10% to $2.88 billion from $3.10 billion a year ago.

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