ZUG, Switzerland--(BUSINESS WIRE)--Feb. 17, 2009--
Transocean Ltd. (NYSE:RIG) today reported net income for the three
months ended December 31, 2008 of $800 million, or $2.50 per diluted
share. Revenues for the fourth quarter 2008 totaled a record $3.270
billion. The results compare to net income of $1.056 billion, or $4.17
per diluted share, for the three months ended December 31, 2007. For the
three months ended December 31, 2007, revenues were $2.077 billion.
Fourth quarter 2008 results were adversely impacted by certain net
charges, after tax, totaling $385 million, or $1.19 per diluted share,
as follows:
-
$208 million of goodwill and other impairments related to drilling
management services,
-
$97 million of write-downs to fair market value for the GSF Arctic
II and GSF Arctic IV semi-submersible rigs held for sale,
-
$46 million for depreciation, depletion and amortization expense
resulting from an adjustment to the useful life assigned to certain
rigs acquired in the merger with GlobalSantaFe Corporation (the
“Merger”),
-
$20 million of discrete tax items, write-downs of oil and gas
properties and costs related to the Merger,
-
$17 million of write-offs for uncollectible accounts receivable
associated with the Sedco 712 rig contract after the operator
announced it had been placed into administration (a form of bankruptcy
protection under U.K. law),
-
$18 million for materials and supplies obsolescence, and
-
Partially offset by $21 million of income related to the sales
contract termination fee on the Transocean Nordic and income
from the TODCO tax sharing agreement.
Net income of $1.056 billion for the three months ended December 31,
2007 included after-tax income of $194 million, or $0.77 per diluted
share, resulting primarily from the sale of the Peregrine I
drillship and benefits from discrete tax items (which were partially
offset by Merger-related costs and losses on the early retirement of
debt). On November 27, 2007, Transocean Inc. reclassified its ordinary
shares into cash and shares (the “Reclassification”) in connection with
the Merger. Reported results for the fourth quarter and full year 2007
included approximately one month from GlobalSantaFe's operations and the
impact of recording GlobalSantaFe's assets and liabilities at fair
market value as required by generally accepted accounting principles.
Diluted earnings per share for the fourth quarter 2007 is based on a
weighted average diluted share count of 254 million shares, which
included the effect of restating the historical share count for the
Reclassification. The weighted average diluted share count for the
fourth quarter 2007 without restatement would have been 309(1)
million shares.
For the year ended December 31, 2008, net income totaled $4.202 billion,
or $13.09 per diluted share, on revenues of $12.674 billion. Net income
for the twelve months ended December 31, 2008 included after-tax charges
of $401 million, or $1.24 per diluted share, resulting primarily from
the fourth quarter items listed above, in addition to a loss on
short-term investments and a loss from the early retirement of debt.
For 2007, net income was $3.131 billion, or $14.14 per diluted share, on
revenues of $6.377 billion. Net income for the year ended December 31,
2007 included after-tax income of $563 million relating to payments
received under the TODCO tax sharing agreement, rig sales and discrete
tax items.
On December 18, 2008, Transocean completed the change of place of
incorporation of its holding company from the Cayman Islands to
Switzerland (the “Redomestication”). As a result of the Redomestication,
Transocean Ltd. succeeded Transocean Inc. as the holding company for the
Transocean group of companies. The financial results disclosed herein
are provided on a consolidated basis for the Transocean group of
companies.
Operations Quarterly Review
Revenues for the three months ended December 31, 2008 increased to
$3.270 billion, compared to revenues of $3.192 billion during the three
months ended September 30, 2008. The $78 million quarter-to-quarter
increase in total revenues included $131 million of higher contract
drilling revenues, reflecting an increase in average dayrates and a
decrease in out-of-service time for planned shipyards. A $43 million
decrease in other revenues partially offset these increases and resulted
primarily from decreases in non-drilling activities. The average dayrate
for the fleet increased 3.8 percent from $242,200 in the third quarter
to $251,500 in the fourth quarter.
Operating and maintenance expenses totaled $1.408 billion for the fourth
quarter 2008, down $18 million or 1.3 percent, compared to $1.426
billion for the prior quarter. The quarter-to-quarter reduction in
operating and maintenance costs was primarily the result of non-drilling
cost reductions of $46 million and a $17 million decline in maintenance
and shipyard costs, partially offset by $23 million of bad debt expense
related to the Sedco 712 customer receivable and $21 million of
charges related to obsolescence of materials and supplies.
Depreciation, depletion and amortization expense increased to $396
million in the fourth quarter 2008 versus $336 million for the third
quarter 2008. The $60 million quarter-to-quarter increase includes $46
million for adjustments to the depreciable lives of certain rigs
acquired in the Merger, a $6 million write-down of oil and gas
properties and $8 million of other miscellaneous items.
General and administrative expenses were $59 million for the fourth
quarter 2008 compared to $46 million in the prior quarter. The $13
million increase was due, in part, to $8 million of additional
professional fees, including $4 million related to the Redomestication
and $4 million of additional Merger-related costs.
For the fourth quarter 2008, field operating income(2)
(defined as revenues less operating and maintenance expenses) increased
5.4 percent to $1.862 billion compared to $1.766 billion for the third
quarter 2008. The increase was primarily due to the higher revenues and
reduced operating and maintenance expenses, as discussed above.
Liquidity and Interest Expense
Interest expense, net of amounts capitalized for the fourth quarter
2008, increased to $121 million compared to $100 million in the third
quarter 2008. The increase included $11 million from higher interest
rates and $10 million from reduced capitalized interest. As of December
31, 2008, total debt was $14.186 billion, a decrease of $597 million
from September 30, 2008.
Cash flow from operating activities decreased to $1.196 billion for the
fourth quarter 2008 compared to $1.270 billion for the third quarter
2008. For the full year 2008, cash flow from operating activities
totaled $4.959 billion compared to $3.073 billion for the full year 2007.
Effective Tax Rate
Transocean’s Annual Effective Tax Rate(3), which excludes
various discrete items, for each of the fourth quarter 2008 and the full
year ended December 31, 2008 was 15.8 percent and 14.0 percent,
respectively. The Effective Tax Rate(4) for each of the
fourth quarter 2008 and the full year ended December 31, 2008 was 20.8
percent and 15.0 percent, respectively. Transocean’s Effective Tax Rate(4)
for both periods reflects the impact of various discrete items primarily
related to the tax effect of the impairment losses that are
non-deductible for tax purposes, largely offset by changes in estimates.
Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. Eastern
time, 4:00 p.m. Swiss time, on February 17, 2009. To participate, dial
913-312-1268 and refer to confirmation code 5215304 approximately five
to 10 minutes prior to the scheduled start time of the call.
In addition, the conference call will be simultaneously broadcast over
the Internet in a listen-only mode and can be accessed by logging onto
Transocean’s website at www.deepwater.com
and selecting “Investor Relations/News & Events/Webcasts &
Presentations.” A file containing four charts to be discussed during the
conference call, titled “4Q08 Charts,” has been posted to Transocean’s
website and can also be found by selecting “Investor Relations/News &
Events/Webcasts & Presentations.” The conference call may also be
accessed via the Internet at www.CompanyBoardroom.com
by typing in Transocean’s New York Stock Exchange trading symbol, “RIG.”
A telephonic replay of the conference call should be available after
1:00 p.m. Eastern time, 7:00 p.m. Swiss time, on February 17, 2009 and
can be accessed by dialing 719-457-0820 and referring to the passcode
5215304. Also, a replay will be available through the Internet and can
be accessed by visiting either of the above-referenced Worldwide Web
addresses.
Transocean is the world's largest offshore drilling contractor and the
leading provider of drilling management services worldwide. With a fleet
of 136 mobile offshore drilling units plus 10 announced ultra-deepwater
newbuild units, Transocean's fleet is considered one of the most modern
and versatile in the world due to its emphasis on technically demanding
segments of the offshore drilling business. Transocean owns or operates
a contract drilling fleet of 39 High-Specification Floaters
(Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and
drillships), 28 Midwater Floaters, 10 High-Specification Jackups, 55
Standard Jackups and other assets utilized in the support of offshore
drilling activities worldwide.
(1) The weighted average diluted share count for the quarter
without restatement is calculated by assuming the Transocean share count
without the effect of the Reclassification for October 2007 and November
2007 and with the effect of the Reclassification for December 2007. The
weighted average diluted share count for 2007 without restatement is
calculated by assuming the Transocean share count without the effect of
the Reclassification for January 2007 through November 2007 and with the
effect of the Reclassification for December 2007.
(2) For a reconciliation of operating income before general
and administrative expense to field operating income, see the
accompanying schedule entitled "Non-GAAP Financial Measures and
Reconciliations - Operating Income Before General and Administrative
Expense to Field Operating Income."
(3) Annual Effective Tax Rate is defined as income tax
expense excluding various discrete items (such as changes in estimates
and tax on items excluded from income before income taxes) divided by
income before income taxes excluding gains on sales and similar items
pursuant to Financial Accounting Standards Board Interpretation No. 18.
See the accompanying schedule entitled "Supplemental Effective Tax Rate
Analysis."
(4) Effective Tax Rate is defined as income tax expense
divided by income before income taxes. See the accompanying schedule
entitled "Supplemental Effective Tax Rate Analysis."
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
|
|
2008
|
|
2007
|
|
2008
|
|
|
2007
|
|
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues
|
$
|
2,830
|
|
$
|
1,860
|
|
$
|
10,756
|
|
|
$
|
5,948
|
|
|
Contract drilling intangible revenues
|
|
133
|
|
|
88
|
|
|
690
|
|
|
|
88
|
|
|
Other revenues
|
|
307
|
|
|
129
|
|
|
1,228
|
|
|
|
341
|
|
|
|
|
3,270
|
|
|
2,077
|
|
|
12,674
|
|
|
|
6,377
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
1,408
|
|
|
923
|
|
|
5,355
|
|
|
|
2,781
|
|
|
Depreciation, depletion and amortization
|
|
396
|
|
|
195
|
|
|
1,436
|
|
|
|
499
|
|
|
General and administrative
|
|
59
|
|
|
60
|
|
|
199
|
|
|
|
142
|
|
|
|
|
1,863
|
|
|
1,178
|
|
|
6,990
|
|
|
|
3,422
|
|
|
Impairment loss
|
|
(320
|
)
|
|
—
|
|
|
(320
|
)
|
|
|
—
|
|
|
Gain (loss) from disposal of assets, net
|
|
(3
|
)
|
|
254
|
|
|
(7
|
)
|
|
|
284
|
|
|
Operating income
|
|
1,084
|
|
|
1,153
|
|
|
5,357
|
|
|
|
3,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
2
|
|
|
13
|
|
|
32
|
|
|
|
30
|
|
|
Interest expense, net of amounts capitalized
|
|
(121
|
)
|
|
(79
|
)
|
|
(469
|
)
|
|
|
(172
|
)
|
|
Loss on retirement of debt
|
|
—
|
|
|
(8
|
)
|
|
(3
|
)
|
|
|
(8
|
)
|
|
Other, net
|
|
46
|
|
|
—
|
|
|
26
|
|
|
|
295
|
|
|
|
|
(73
|
)
|
|
(74
|
)
|
|
(414
|
)
|
|
|
145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes and minority interest
|
|
1,011
|
|
|
1,079
|
|
|
4,943
|
|
|
|
3,384
|
|
|
Income tax expense
|
|
210
|
|
|
23
|
|
|
743
|
|
|
|
253
|
|
|
Minority interest
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
800
|
|
$
|
1,056
|
|
$
|
4,202
|
|
|
$
|
3,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.51
|
|
$
|
4.27
|
|
$
|
13.20
|
|
|
$
|
14.65
|
|
|
Diluted
|
$
|
2.50
|
|
$
|
4.17
|
|
$
|
13.09
|
|
|
$
|
14.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
319
|
|
|
247
|
|
|
318
|
|
|
|
214
|
|
|
Diluted
|
|
320
|
|
|
254
|
|
|
321
|
|
|
|
222
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2008
|
|
|
2007
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
963
|
|
|
$
|
1,241
|
|
|
Short-term investments
|
|
|
333
|
|
|
|
—
|
|
|
Accounts receivable, net
|
|
|
|
|
|
|
|
|
|
Trade
|
|
|
2,798
|
|
|
|
2,209
|
|
|
Other
|
|
|
66
|
|
|
|
161
|
|
|
Materials and supplies, net
|
|
|
432
|
|
|
|
333
|
|
|
Deferred income taxes, net
|
|
|
63
|
|
|
|
119
|
|
|
Assets held for sale
|
|
|
464
|
|
|
|
—
|
|
|
Other current assets
|
|
|
230
|
|
|
|
233
|
|
|
Total current assets
|
|
|
5,349
|
|
|
|
4,296
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
|
25,802
|
|
|
|
24,545
|
|
|
Less accumulated depreciation
|
|
|
4,975
|
|
|
|
3,615
|
|
|
Property and equipment, net
|
|
|
20,827
|
|
|
|
20,930
|
|
|
Goodwill
|
|
|
8,128
|
|
|
|
8,219
|
|
|
Other assets
|
|
|
867
|
|
|
|
919
|
|
|
Total assets
|
|
$
|
35,171
|
|
|
$
|
34,364
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
914
|
|
|
$
|
805
|
|
|
Accrued income taxes
|
|
|
317
|
|
|
|
99
|
|
|
Debt due within one year
|
|
|
664
|
|
|
|
6,172
|
|
|
Other current liabilities
|
|
|
806
|
|
|
|
826
|
|
|
Total current liabilities
|
|
|
2,701
|
|
|
|
7,902
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
13,522
|
|
|
|
11,085
|
|
|
Deferred income taxes, net
|
|
|
666
|
|
|
|
681
|
|
|
Other long-term liabilities
|
|
|
1,755
|
|
|
|
2,125
|
|
|
Total long-term liabilities
|
|
|
15,943
|
|
|
|
13,891
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Minority interest
|
|
|
3
|
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference shares, none authorized, issued and outstanding at
December 31, 2008; preference shares, $0.10 par value, 50,000,000
shares authorized, none issued and outstanding at December 31, 2007
|
|
|
—
|
|
|
|
—
|
|
|
Shares, CHF 15.00 par value, 502,852,947 authorized, 167,617,649
contingently authorized, 335,235,298 issued and 319,262,113
outstanding at December 31, 2008; ordinary shares, $0.01 par value,
800,000,000 shares authorized, 317,222,909 shares issued and
outstanding at December 31, 2007
|
|
|
4,444
|
|
|
|
3
|
|
|
Additional paid-in capital
|
|
|
6,492
|
|
|
|
10,799
|
|
|
Accumulated other comprehensive loss
|
|
|
(420
|
)
|
|
|
(42
|
)
|
|
Retained earnings
|
|
|
6,008
|
|
|
|
1,806
|
|
|
Total shareholders’ equity
|
|
|
16,524
|
|
|
|
12,566
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
35,171
|
|
|
$
|
34,364
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net income
|
$
|
800
|
|
|
$
|
1,056
|
|
|
$
|
4,202
|
|
|
$
|
3,131
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Amortization of drilling contract intangibles
|
|
(133
|
)
|
|
|
(88
|
)
|
|
|
(690
|
)
|
|
|
(88
|
)
|
|
Depreciation, depletion and amortization
|
|
396
|
|
|
|
195
|
|
|
|
1,436
|
|
|
|
499
|
|
|
Share-based compensation expense
|
|
15
|
|
|
|
48
|
|
|
|
64
|
|
|
|
78
|
|
|
Excess tax benefit from share-based compensation plans
|
|
1
|
|
|
|
(37
|
)
|
|
|
(10
|
)
|
|
|
(70
|
)
|
|
(Gain) loss from disposal of assets, net
|
|
3
|
|
|
|
(254
|
)
|
|
|
7
|
|
|
|
(284
|
)
|
|
Impairment loss
|
|
320
|
|
|
|
—
|
|
|
|
320
|
|
|
|
—
|
|
|
Impairment of short-term investments
|
|
—
|
|
|
|
—
|
|
|
|
16
|
|
|
|
—
|
|
|
Deferred revenues, net
|
|
(11
|
)
|
|
|
34
|
|
|
|
11
|
|
|
|
52
|
|
|
Deferred expenses, net
|
|
17
|
|
|
|
(38
|
)
|
|
|
(115
|
)
|
|
|
(55
|
)
|
|
Deferred income taxes
|
|
4
|
|
|
|
(42
|
)
|
|
|
8
|
|
|
|
(40
|
)
|
|
Other, net
|
|
28
|
|
|
|
16
|
|
|
|
31
|
|
|
|
22
|
|
|
Changes in operating assets and liabilities
|
|
(244
|
)
|
|
|
25
|
|
|
|
(321
|
)
|
|
|
(172
|
)
|
|
Net cash provided by operating activities
|
|
1,196
|
|
|
|
915
|
|
|
|
4,959
|
|
|
|
3,073
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(505
|
)
|
|
|
(320
|
)
|
|
|
(2,208
|
)
|
|
|
(1,380
|
)
|
|
Business combination
|
|
—
|
|
|
|
(5,129
|
)
|
|
|
—
|
|
|
|
(5,129
|
)
|
|
Cash balances acquired in business combination
|
|
—
|
|
|
|
695
|
|
|
|
—
|
|
|
|
695
|
|
|
Proceeds from disposal of assets, net
|
|
—
|
|
|
|
317
|
|
|
|
348
|
|
|
|
379
|
|
|
Short-term investments
|
|
—
|
|
|
|
—
|
|
|
|
(408
|
)
|
|
|
—
|
|
|
Proceeds from maturities of short-term investments
|
|
59
|
|
|
|
—
|
|
|
|
59
|
|
|
|
—
|
|
|
Joint ventures and other investments, net
|
|
(2
|
)
|
|
|
(239
|
)
|
|
|
13
|
|
|
|
(242
|
)
|
|
Net cash used in investing activities
|
|
(448
|
)
|
|
|
(4,676
|
)
|
|
|
(2,196
|
)
|
|
|
(5,677
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Change in short-term borrowings, net
|
|
(684
|
)
|
|
|
1,500
|
|
|
|
(837
|
)
|
|
|
1,500
|
|
|
Proceeds from issuance of debt and borrowings under other credit
facilities
|
|
307
|
|
|
|
24,095
|
|
|
|
2,661
|
|
|
|
24,095
|
|
|
Repayments of debt and payments under other credit facilities
|
|
(220
|
)
|
|
|
(11,333
|
)
|
|
|
(4,893
|
)
|
|
|
(12,033
|
)
|
|
Financing costs
|
|
(14
|
)
|
|
|
(96
|
)
|
|
|
(24
|
)
|
|
|
(106
|
)
|
|
Repurchase of shares
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(400
|
)
|
|
Payment to shareholders for Reclassification
|
|
—
|
|
|
|
(9,859
|
)
|
|
|
(1
|
)
|
|
|
(9,859
|
)
|
|
Proceeds from (payments for) exercise of warrants, net
|
|
(3
|
)
|
|
|
24
|
|
|
|
(7
|
)
|
|
|
40
|
|
|
Proceeds from share-based compensation plans, net
|
|
2
|
|
|
|
16
|
|
|
|
51
|
|
|
|
72
|
|
|
Excess tax benefit from share-based compensation plans
|
|
(1
|
)
|
|
|
37
|
|
|
|
10
|
|
|
|
70
|
|
|
Other, net
|
|
(1
|
)
|
|
|
—
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
Net cash provided by (used in) financing activities
|
|
(614
|
)
|
|
|
4,384
|
|
|
|
(3,041
|
)
|
|
|
3,378
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
134
|
|
|
|
623
|
|
|
|
(278
|
)
|
|
|
774
|
|
|
Cash and cash equivalents at beginning of period
|
|
829
|
|
|
|
618
|
|
|
|
1,241
|
|
|
|
467
|
|
|
Cash and cash equivalents at end of period
|
$
|
963
|
|
|
$
|
1,241
|
|
|
$
|
963
|
|
|
$
|
1,241
|
|
|
Transocean Ltd.
Fleet Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues ($ Millions) (1)
|
|
|
Three months ended
|
|
Twelve months ended
December 31,
|
|
|
December 31,
2008
|
|
September 30,
2008
|
|
December 31,
2007
|
|
2008
|
|
2007
|
|
Contract Drilling Revenues
|
|
|
|
|
|
|
|
|
|
|
High-Specification Floaters:
|
|
|
|
|
|
|
|
|
|
|
Ultra Deepwater Floaters
|
$
|
673
|
|
|
$
|
617
|
|
|
$
|
453
|
|
|
$
|
2,456
|
|
|
$
|
1,509
|
|
|
Deepwater Floaters
|
|
331
|
|
|
|
323
|
|
|
|
290
|
|
|
|
1,355
|
|
|
|
1,069
|
|
|
Harsh Environment Floaters
|
|
164
|
|
|
|
163
|
|
|
|
120
|
|
|
|
646
|
|
|
|
478
|
|
|
Total High-Specification Floaters
|
|
1,168
|
|
|
|
1,103
|
|
|
|
863
|
|
|
|
4,457
|
|
|
|
3,056
|
|
|
Midwater Floaters
|
|
797
|
|
|
|
690
|
|
|
|
534
|
|
|
|
2,812
|
|
|
|
1,711
|
|
|
High-Specification Jackups
|
|
146
|
|
|
|
144
|
|
|
|
64
|
|
|
|
594
|
|
|
|
100
|
|
|
Standard Jackups
|
|
709
|
|
|
|
749
|
|
|
|
386
|
|
|
|
2,842
|
|
|
|
1,023
|
|
|
Other Rigs
|
|
10
|
|
|
|
13
|
|
|
|
13
|
|
|
|
51
|
|
|
|
58
|
|
|
Subtotal
|
|
2,830
|
|
|
|
2,699
|
|
|
|
1,860
|
|
|
|
10,756
|
|
|
|
5,948
|
|
|
Contract Intangible Revenue
|
|
133
|
|
|
|
143
|
|
|
|
88
|
|
|
|
690
|
|
|
|
88
|
|
|
Other Revenues
|
|
|
|
|
|
|
|
|
|
|
Client Reimbursable Revenues
|
|
51
|
|
|
|
55
|
|
|
|
35
|
|
|
|
203
|
|
|
|
126
|
|
|
Integrated Services and Other
|
|
49
|
|
|
|
58
|
|
|
|
50
|
|
|
|
186
|
|
|
|
171
|
|
|
Drilling Management Services
|
|
194
|
|
|
|
211
|
|
|
|
35
|
|
|
|
758
|
|
|
|
35
|
|
|
Oil and Gas Properties
|
|
13
|
|
|
|
26
|
|
|
|
9
|
|
|
|
81
|
|
|
|
9
|
|
|
Subtotal
|
|
307
|
|
|
|
350
|
|
|
|
129
|
|
|
|
1,228
|
|
|
|
341
|
|
|
Total Company
|
$
|
3,270
|
|
|
$
|
3,192
|
|
|
$
|
2,077
|
|
|
$
|
12,674
|
|
|
$
|
6,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Dayrates (1)
|
|
|
Three months ended
|
|
Twelve months ended
December 31,
|
|
|
December 31,
2008
|
|
September 30,
2008
|
|
December 31,
2007
|
|
2008
|
|
2007
|
|
High-Specification Floaters:
|
|
|
|
|
|
|
|
|
|
|
Ultra Deepwater Floaters
|
$
|
423,600
|
|
|
$
|
401,300
|
|
|
$
|
346,100
|
|
|
$
|
399,200
|
|
|
$
|
316,000
|
|
|
Deepwater Floaters
|
$
|
299,000
|
|
|
$
|
322,700
|
|
|
$
|
265,300
|
|
|
$
|
305,400
|
|
|
$
|
236,600
|
|
|
Harsh Environment Floaters
|
$
|
358,900
|
|
|
$
|
363,500
|
|
|
$
|
326,300
|
|
|
$
|
361,500
|
|
|
$
|
291,300
|
|
|
Total High-Specification Floaters
|
$
|
370,500
|
|
|
$
|
369,300
|
|
|
$
|
311,600
|
|
|
$
|
360,100
|
|
|
$
|
279,500
|
|
|
Midwater Floaters
|
$
|
329,200
|
|
|
$
|
292,900
|
|
|
$
|
274,600
|
|
|
$
|
303,800
|
|
|
$
|
249,900
|
|
|
High-Specification Jackups
|
$
|
169,100
|
|
|
$
|
178,500
|
|
|
$
|
173,400
|
|
|
$
|
174,800
|
|
|
$
|
155,700
|
|
|
Standard Jackups
|
$
|
156,100
|
|
|
$
|
158,700
|
|
|
$
|
130,800
|
|
|
$
|
152,500
|
|
|
$
|
119,600
|
|
|
Other Rigs
|
$
|
37,800
|
|
|
$
|
48,900
|
|
|
$
|
48,500
|
|
|
$
|
46,200
|
|
|
$
|
52,700
|
|
|
Total Drilling Fleet
|
$
|
251,500
|
|
|
$
|
242,200
|
|
|
$
|
224,000
|
|
|
$
|
240,300
|
|
|
$
|
211,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilization (1)
|
|
|
Three months ended
|
|
Twelve months ended
December 31,
|
|
|
December 31,
2008
|
|
September 30,
2008
|
|
December 31,
2007
|
|
2008
|
|
2007
|
|
High-Specification Floaters:
|
|
|
|
|
|
|
|
|
|
|
Ultra Deepwater Floaters
|
|
96
|
%
|
|
|
93
|
%
|
|
|
97
|
%
|
|
|
93
|
%
|
|
|
98
|
%
|
|
Deepwater Floaters
|
|
75
|
%
|
|
|
68
|
%
|
|
|
75
|
%
|
|
|
76
|
%
|
|
|
78
|
%
|
|
Harsh Environment Floaters
|
|
100
|
%
|
|
|
98
|
%
|
|
|
80
|
%
|
|
|
98
|
%
|
|
|
90
|
%
|
|
Total High-Specification Floaters
|
|
88
|
%
|
|
|
83
|
%
|
|
|
85
|
%
|
|
|
87
|
%
|
|
|
87
|
%
|
|
Midwater Floaters
|
|
92
|
%
|
|
|
88
|
%
|
|
|
95
|
%
|
|
|
87
|
%
|
|
|
95
|
%
|
|
High-Specification Jackups
|
|
94
|
%
|
|
|
87
|
%
|
|
|
100
|
%
|
|
|
93
|
%
|
|
|
100
|
%
|
|
Standard Jackups
|
|
90
|
%
|
|
|
93
|
%
|
|
|
91
|
%
|
|
|
91
|
%
|
|
|
87
|
%
|
|
Other Rigs
|
|
99
|
%
|
|
|
100
|
%
|
|
|
97
|
%
|
|
|
100
|
%
|
|
|
99
|
%
|
|
Total Drilling Fleet
|
|
90
|
%
|
|
|
89
|
%
|
|
|
90
|
%
|
|
|
89
|
%
|
|
|
90
|
%
|
|
(1)
|
|
Average daily revenue is defined as contract drilling revenue earned
per revenue earning day in the period. A revenue earning day is
defined as a day for which a rig earns dayrate after commencement of
operations. Utilization is defined as the total actual number of
revenue earning days in the period as a percentage of the total
number of calendar days in the period for all drilling rigs in our
fleet.
|
|
Transocean Ltd. and Subsidiaries
|
|
Non-GAAP Financial Measures and Reconciliations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Before General and Administrative Expense
|
|
to Field Operating Income
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
|
|
|
2008
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenue
|
|
$
|
3,270
|
|
$
|
3,192
|
|
$
|
2,077
|
|
|
$
|
12,674
|
|
$
|
6,377
|
|
|
Operating and maintenance expense
|
|
|
1,408
|
|
|
1,426
|
|
|
923
|
|
|
|
5,355
|
|
|
2,781
|
|
|
Depreciation, depletion and amortization
|
|
|
396
|
|
|
336
|
|
|
195
|
|
|
|
1,436
|
|
|
499
|
|
|
Impairment loss
|
|
|
320
|
|
|
-
|
|
|
-
|
|
|
|
320
|
|
|
0
|
|
|
(Gain) loss from disposal of assets, net
|
|
|
3
|
|
|
1
|
|
|
(254
|
)
|
|
|
7
|
|
|
(284
|
)
|
|
Operating income before general and administrative expense
|
|
|
1,143
|
|
|
1,429
|
|
|
1,213
|
|
|
|
5,556
|
|
|
3,381
|
|
|
Add back (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
396
|
|
|
336
|
|
|
195
|
|
|
|
1,436
|
|
|
499
|
|
|
Impairment loss
|
|
|
320
|
|
|
-
|
|
|
-
|
|
|
|
320
|
|
|
-
|
|
|
(Gain) loss from disposal of assets, net
|
|
|
3
|
|
|
1
|
|
|
(254
|
)
|
|
|
7
|
|
|
(284
|
)
|
|
Field operating income
|
|
$
|
1,862
|
|
$
|
1,766
|
|
$
|
1,154
|
|
|
$
|
7,319
|
|
$
|
3,596
|
|
|
Transocean Ltd. and Subsidiaries
|
|
Supplemental Effective Tax Rate Analysis
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Twelve months ended
|
|
|
|
|
Dec. 31,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
Dec. 31,
|
|
|
|
|
2008
|
|
2008
|
|
2007
|
|
2008
|
|
2007
|
|
Income (Loss) before income taxes and minority interest
|
|
$
|
1,011
|
|
|
$
|
1,278
|
|
|
$
|
1,079
|
|
|
$
|
4,943
|
|
|
$
|
3,384
|
|
|
Add back (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment loss
|
|
|
326
|
|
|
|
-
|
|
|
|
-
|
|
|
|
326
|
|
|
|
-
|
|
|
|
Change to estimated useful lives of certain LGSF rigs
|
|
|
46
|
|
|
|
-
|
|
|
|
-
|
|
|
|
46
|
|
|
|
-
|
|
|
|
Sedco 712 bad debt provision
|
|
|
23
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23
|
|
|
|
-
|
|
|
|
Materials and supplies obsolescence provision
|
|
|
21
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21
|
|
|
|
-
|
|
|
|
GSF Merger related costs
|
|
|
2
|
|
|
|
1
|
|
|
|
82
|
|
|
|
6
|
|
|
|
82
|
|
|
|
Contract termination fee - Transocean Nordic
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
Income from TODCO tax sharing agreement
|
|
|
(4
|
)
|
|
|
(14
|
)
|
|
|
(1
|
)
|
|
|
(18
|
)
|
|
|
(277
|
)
|
|
|
Gain on disposal of assets, net
|
|
|
-
|
|
|
|
-
|
|
|
|
(233
|
)
|
|
|
-
|
|
|
|
(264
|
)
|
|
|
Loss on The Reserve Funds
|
|
|
-
|
|
|
|
16
|
|
|
|
-
|
|
|
|
16
|
|
|
|
-
|
|
|
|
Loss on retirement of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
|
|
3
|
|
|
|
8
|
|
|
Adjusted income before income taxes
|
|
|
1,408
|
|
|
|
1,281
|
|
|
|
935
|
|
|
|
5,349
|
|
|
|
2,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
210
|
|
|
|
175
|
|
|
|
23
|
|
|
|
743
|
|
|
|
253
|
|
|
Add back (subtract):
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Impairment loss
|
|
|
17
|
|
|
|
-
|
|
|
|
-
|
|
|
|
17
|
|
|
|
-
|
|
|
|
Sedco 712 bad debt provision
|
|
|
6
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
|
|
Materials and supplies obsolescence provision
|
|
|
3
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
-
|
|
|
|
GSF Merger related costs
|
|
|
-
|
|
|
|
1
|
|
|
|
15
|
|
|
|
1
|
|
|
|
15
|
|
|
|
Loss on The Reserve Funds
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
2
|
|
|
|
-
|
|
|
|
Gain on disposal of assets, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
Changes in estimates (1)
|
|
|
(14
|
)
|
|
|
15
|
|
|
|
36
|
|
|
|
(24
|
)
|
|
|
101
|
|
|
Adjusted income tax expense (2)
|
|
$
|
222
|
|
|
$
|
193
|
|
|
$
|
74
|
|
|
$
|
748
|
|
|
$
|
366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (3)
|
|
|
20.8
|
%
|
|
|
13.7
|
%
|
|
|
2.1
|
%
|
|
|
15.0
|
%
|
|
|
7.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Effective Tax Rate (4)
|
|
|
15.8
|
%
|
|
|
15.1
|
%
|
|
|
7.9
|
%
|
|
|
14.0
|
%
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Our estimates change as we file tax returns, settle disputes with
tax authorities or become aware of other events and include changes
in deferred taxes valuation allowances on deferred taxes and other
tax liabilities.
|
|
(2)
|
|
The three months ended Dec. 31, 2008 include $28 million of
additional tax expense (benefit) reflecting the catch-up effect of
an increase (decrease) in the annual effective tax rate from the
previous quarter estimate.
|
|
(3)
|
|
Effective Tax Rate is income tax expense divided by income before
income taxes and minority interest.
|
|
(4)
|
|
Annual Effective Tax Rate is income tax expense excluding various
discrete items described above (such as changes in estimates and tax
on items excluded from income before income taxes) divided by income
before income taxes and minority interest excluding the items
described above including gains on sales and similar items pursuant
to Financial Accounting Standards Board Interpretation No. 18.
|
Source: Transocean Ltd.
Transocean Ltd.
Analyst Contact:
Greg Panagos,
713-232-7551
or
Media Contact:
Guy A. Cantwell,
713-232-7647
|
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