- Revenues were $1.884 billion, compared with
$2.043 billion in the first quarter of 2015;
- Operating and maintenance expenses were $197
million, including $788 million in net favorable items associated
with Macondo-related settlement agreements and insurance
recoveries. This compares with $1.084 billion in the prior
period;
- Adjusted net income was $408 million, $1.11 per
diluted share, excluding net unfavorable items. This compares with
$398 million, $1.10 per diluted share, in the first quarter of
2015;
- Net income attributable to controlling interest
was $342 million, $0.93 per diluted share, including $66 million of
net unfavorable items. This compares with first quarter net loss of
$483 million, $1.33 per diluted share, including $881 million of
net unfavorable items;
- The Annual Effective Tax Rate(1) was
16.9 percent, down from 25.8 percent in the prior quarter;
- Cash flows from operating activities were $1.311
billion, up from $526 million in the first quarter of 2015
primarily due to $445 million of Macondo-related insurance
recoveries;
- Fleet revenue efficiency(2) was 97.3
percent, up from 95.9 percent in the first quarter of 2015;
- Fleet utilization(3) was 75
percent, compared with 79 percent in the first quarter of 2015;
and
- Subsequent to the April 16, 2015 Fleet Status
Report, the total value of new contracts secured was approximately
$178 million. Contract backlog was $18.6 billion as of the July 15,
2015 Fleet Status Report.
ZUG, SWITZERLAND-August 5, 2015-Transocean Ltd. (NYSE: RIG) (SIX:
RIGN) today reported net income attributable to controlling
interest of $342 million, $0.93 per diluted share, for the three
months ended June 30, 2015. Second quarter 2015 results included
net unfavorable items of $66 million, $0.18 per diluted share, as
follows:
- $653 million, $1.79 per diluted share, associated
with an impairment of the Midwater Floater asset group due
primarily to the deterioration of the market outlook for this rig
class;
- $144 million, $0.39 per diluted share, primarily
related to impairment of assets held for sale; and
- $11 million, $0.03 per diluted share, in costs
related to one-time termination benefits.
These net unfavorable items were partially offset
by:
- $735 million, $2.02 per diluted share, associated
with Macondo-related settlement agreements and insurance
recoveries; and
- $7 million, $0.01 per diluted share, associated
with the gain on disposal of assets and other miscellaneous
items.
After consideration of these net unfavorable items, second quarter
2015 adjusted net income was $408 million, or $1.11 per diluted
share.
For the three months ended June 30, 2014, the company reported both
net income attributable to controlling interest and adjusted net
income of $587 million, or $1.61 per diluted share.
Revenues for the three months ended June 30, 2015 decreased $159
million sequentially to $1.884 billion due primarily to lower
utilization partly offset by higher revenue efficiency.
Excluding $788 million ($735 million after taxes) in net favorable
items associated with Macondo-related insurance proceeds,
reimbursement of legal fees, crew claims and other contingent
liability adjustments, operating and maintenance expenses were $985
million. This compares with $1.084 billion in the prior quarter.
The decrease of $99 million was due primarily to reduced activity
mainly related to rig retirements, stacked and idle rigs, and the
company's ongoing cost reduction initiatives.
General and administrative expenses decreased $2 million to $44
million from the prior quarter.
Depreciation expense decreased $42 million sequentially to $249
million due to rig retirements and the impairment of the Deepwater
Floater asset group.
Transocean's second quarter 2015 Effective Tax Rate(4) was 10.3
percent, compared with (21.6) percent in the previous quarter. The
increase was due mainly to the Macondo-related settlements.
Transocean's Annual Effective Tax Rate for the second quarter of
2015 was 16.9 percent, down from 25.8 percent in the prior quarter.
The decrease was due to the overall level of adjusted pre-tax
income. Second quarter income tax expense also included a tax
benefit of $23 million, $0.06 per diluted share, to reflect the
decrease in the Annual Effective Tax Rate to 21.6 percent for the
six months ended June 30, 2015 from 25.8 percent for the three
months ended March 31, 2015.
Interest expense, net of amounts capitalized, was $120 million in
the second quarter, compared with $116 million in the previous
quarter. Interest income was $6 million, unchanged from the prior
quarter. Capitalized interest was $29 million, compared with $26
million in the first quarter of 2015.
Cash flows from operating activities increased $785 million from
the first quarter of 2015 to $1.311 billion due mainly to the
Macondo-related settlements.
Fleet-wide capital expenditures were $195 million, including costs
associated with the company's newbuild program. Capital
expenditures were $201 million in the first quarter of
2015.
"Despite the challenging market conditions, Transocean delivered
strong operating results and underlying cash flow in the period due
to exceptional revenue efficiency and a relentless emphasis on cost
management," said President and Chief Executive Officer, Jeremy
Thigpen. "Although this is a full team effort, I particularly
commend our operations teams and crews for their hard work and
dedication to maximizing uptime on our rigs. In addition, I remind
all of our stakeholders of our commitment to the continuous
improvement of our business, which includes taking the necessary
steps to ensure that we have the right rig fleet to compete
effectively in all market conditions."
Non-GAAP Financial Measures
All non-GAAP financial measure
reconciliations to the most comparative GAAP measure are displayed
in quantitative schedules on the company's website at
www.deepwater.com.
Forward-Looking Statements
The statements described in this press
release that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements contain words such as "possible," "intend,"
"will," "if," "expect" or other similar expressions.
Forward-looking statements are based on management's current
expectations and assumptions, and are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, actual results could differ
materially from those indicated in these forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, changes in tax
estimates, impairment of goodwill, asset impairments, operating
hazards and delays, risks associated with international operations,
actions by customers and other third parties, the future prices of
oil and gas, capital markets and other factors, including those and
other risks discussed in the company's most recent Annual Report on
Form 10-K for the year ended December 31, 2014, and in the
company's other filings with the SEC, which are available free of
charge on the SEC's website at www.sec.gov. Should one or more of
these risks or uncertainties materialize (or the other consequences
of such a development worsen), or should underlying assumptions
prove incorrect, actual results may vary materially from those
indicated or expressed or implied by such forward-looking
statements. All subsequent written and oral forward-looking
statements attributable to the company or to persons acting on our
behalf are expressly qualified in their entirety by reference to
these risks and uncertainties. You should not place undue reliance
on forward-looking statements. Each forward-looking statement
speaks only as of the date of the particular statement, and we
undertake no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances that
occur, or which we become aware of, after the date hereof, except
as otherwise may be required by law.
This press release, or referenced documents, do not constitute an
offer to sell, or a solicitation of an offer to buy, any
securities, and do not constitute an offering prospectus within the
meaning of article 652a or article 1156 of the Swiss Code of
Obligations or a listing prospectus within the meaning of the
listing rules of the SIX Swiss Exchange. Investors must rely on
their own evaluation of Transocean and its securities, including
the merits and risks involved. Nothing contained herein is, or
shall be relied on as, a promise or representation as to the future
performance of Transocean.
Conference Call Information
Transocean will conduct a teleconference
starting at 9:30 a.m. EDT, 3:30 p.m. CEST, on Thursday, August 6,
2015, to discuss the results. To participate, dial +1 913-312-9323
and refer to confirmation code 5105813 approximately 10 minutes
prior to the scheduled start time.
The teleconference will be simulcast in a listen-only mode over the
Internet and can be accessed at Transocean's website,
www.deepwater.com, by selecting "Investor Relations/Overview."
Supplemental materials that may be referenced during the
teleconference will be posted to Transocean's website and can be
found by selecting "Investor Relations/Financial
Reports."
A replay of the conference call will be available after 12:30 p.m.
EDT, 6:30 p.m. CEST, on August 6, 2015. The replay, which will be
archived for approximately 30 days, can be accessed by dialing +1
719-457-0820 and referring to the confirmation code 5105813. The
replay will also be available on the company's website.
About Transocean
Transocean is a leading international
provider of offshore contract drilling services for oil and gas
wells. The company specializes in technically demanding sectors of
the global offshore drilling business with a particular focus on
deepwater and harsh environment drilling services, and believes
that it operates one of the most versatile offshore drilling fleets
in the world.
Transocean owns or has partial ownership interests in, and operates
a fleet of 63 mobile offshore drilling units consisting of 27
ultra-deepwater floaters, seven harsh-environment semisubmersibles,
six deepwater floaters, 13 midwater semisubmersibles and 10
high-specification jackups. In addition, the company has seven
ultra-deepwater drillships and five high-specification jackups
under construction.
For more information about Transocean, please visit:
www.deepwater.com.
Analyst Contacts:
Thad
Vayda
+1 713-232-7551
Diane Vento
+1 713-232-8015
Media Contact:
Pam Easton
+1 713-232-7647
Notes
(1) Annual Effective Tax Rate is defined as
income tax expense from continuing operations excluding various
discrete items (such as changes in estimates and tax on items
excluded from income before income tax expense), divided by income
from continuing operations before income tax expense excluding
gains on sales and similar items pursuant to the accounting
standards for income taxes. See the accompanying schedule entitled
"Supplemental Effective Tax Rate Analysis."
(2) Revenue efficiency is defined as actual contract drilling
revenues for the measurement period divided by the maximum revenue
calculated for the measurement period, expressed as a
percentage. Maximum revenue is defined as the greatest amount
of contract drilling revenues the drilling unit could earn for the
measurement period, excluding amounts related to incentive
provisions. See the accompanying schedule entitled "Revenue
Efficiency."
(3) Rig utilization is defined as the total number of operating
days divided by the total number of rig calendar days in the
measurement period, expressed as a percentage. See the accompanying
schedule entitled "Utilization."
(4) Effective Tax Rate is defined as income tax expense for
continuing operations divided by income from continuing operations
before income taxes. See the accompanying schedule entitled
"Supplemental Effective Tax Rate Analysis."
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share data)
(Unaudited)
| |
|
Three months ended
June 30, |
|
|
|
Six months ended
June 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Contract drilling revenues |
|
$ |
1,777 |
|
|
$ |
2,278 |
|
|
|
$ |
3,777 |
|
|
$ |
4,570 |
|
| Other revenues |
|
|
107 |
|
|
|
50 |
|
|
|
|
150 |
|
|
|
97 |
|
| |
|
|
1,884 |
|
|
|
2,328 |
|
|
|
|
3,927 |
|
|
|
4,667 |
|
| Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance |
|
|
197 |
|
|
|
1,213 |
|
|
|
|
1,281 |
|
|
|
2,482 |
|
| Depreciation |
|
|
249 |
|
|
|
288 |
|
|
|
|
540 |
|
|
|
561 |
|
| General and administrative |
|
|
44 |
|
|
|
63 |
|
|
|
|
90 |
|
|
|
120 |
|
| |
|
|
490 |
|
|
|
1,564 |
|
|
|
|
1,911 |
|
|
|
3,163 |
|
| Loss on impairment |
|
|
(890 |
) |
|
|
- |
|
|
|
|
(1,826 |
) |
|
|
(65 |
) |
| Gain (loss) on disposal of assets, net |
|
|
2 |
|
|
|
1 |
|
|
|
|
(5 |
) |
|
|
(2 |
) |
| Operating income |
|
|
506 |
|
|
|
765 |
|
|
|
|
185 |
|
|
|
1,437 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
6 |
|
|
|
15 |
|
|
|
|
12 |
|
|
|
25 |
|
| Interest expense, net of amounts capitalized |
|
|
(120 |
) |
|
|
(112 |
) |
|
|
|
(236 |
) |
|
|
(238 |
) |
| Other, net |
|
|
(5 |
) |
|
|
8 |
|
|
|
|
42 |
|
|
|
6 |
|
| |
|
|
(119 |
) |
|
|
(89 |
) |
|
|
|
(182 |
) |
|
|
(207 |
) |
| Income
(loss) from continuing operations before income tax expense |
|
|
387 |
|
|
|
676 |
|
|
|
|
3 |
|
|
|
1,230 |
|
| Income tax expense |
|
|
40 |
|
|
|
72 |
|
|
|
|
123 |
|
|
|
152 |
|
| Income (loss) from continuing
operations |
|
|
347 |
|
|
|
604 |
|
|
|
|
(120 |
) |
|
|
1,078 |
|
| Income (loss) from discontinued operations, net of
tax |
|
|
1 |
|
|
|
(7 |
) |
|
|
|
(1 |
) |
|
|
(15 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
348 |
|
|
|
597 |
|
|
|
|
(121 |
) |
|
|
1,063 |
|
| Net income attributable to noncontrolling interest |
|
|
6 |
|
|
|
10 |
|
|
|
|
20 |
|
|
|
20 |
|
| Net income (loss) attributable to
controlling interest |
|
$ |
342 |
|
|
$ |
587 |
|
|
|
$ |
(141 |
) |
|
$ |
1,043 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per
share-basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) from continuing operations |
|
$ |
0.93 |
|
|
$ |
1.63 |
|
|
|
$ |
(0.39 |
) |
|
$ |
2.90 |
|
| Loss from discontinued operations |
|
|
- |
|
|
|
(0.02 |
) |
|
|
|
- |
|
|
|
(0.04 |
) |
| Earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
1.61 |
|
|
|
$ |
(0.39 |
) |
|
$ |
2.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) per
share-diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (loss) from continuing operations |
|
$ |
0.93 |
|
|
$ |
1.63 |
|
|
|
$ |
(0.39 |
) |
|
$ |
2.90 |
|
| Loss from discontinued operations |
|
|
- |
|
|
|
(0.02 |
) |
|
|
|
- |
|
|
|
(0.04 |
) |
| Earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
1.61 |
|
|
|
$ |
(0.39 |
) |
|
$ |
2.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
363 |
|
|
|
362 |
|
|
|
|
363 |
|
|
|
362 |
|
| Diluted |
|
|
363 |
|
|
|
362 |
|
|
|
|
363 |
|
|
|
362 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions, except per share data)
(Unaudited)
| |
|
June 30,
2015 |
|
December 31,
2014 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
3,769 |
|
|
$ |
2,635 |
|
Accounts receivable, net of allowance for doubtful
accounts
of $14 at June 30, 2015 and December 31 |
|
|
1,806 |
|
|
|
2,120 |
|
Materials and supplies, net of allowance for obsolescence
of $107 and $109 at June 30, 2015 and December 31, 2014,
respectively |
|
|
741 |
|
|
|
818 |
|
| Assets held for sale |
|
|
9 |
|
|
|
25 |
|
| Deferred income taxes, net |
|
|
180 |
|
|
|
161 |
|
| Other current assets |
|
|
214 |
|
|
|
242 |
|
| Total current assets |
|
|
6,719 |
|
|
|
6,001 |
|
| |
|
|
|
|
|
|
|
|
| Property and equipment |
|
|
24,708 |
|
|
|
28,516 |
|
| Less accumulated depreciation |
|
|
(5,051 |
) |
|
|
(6,978 |
) |
| Property and equipment, net |
|
|
19,657 |
|
|
|
21,538 |
|
| Other assets |
|
|
597 |
|
|
|
874 |
|
| Total assets |
|
$ |
26,973 |
|
|
$ |
28,413 |
|
| |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
| Accounts payable |
|
$ |
585 |
|
|
$ |
784 |
|
| Accrued income taxes |
|
|
76 |
|
|
|
131 |
|
| Debt due within one year |
|
|
1,026 |
|
|
|
1,033 |
|
| Other current liabilities |
|
|
1,215 |
|
|
|
1,822 |
|
| Total current liabilities |
|
|
2,902 |
|
|
|
3,770 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
8,989 |
|
|
|
9,059 |
|
| Deferred income taxes, net |
|
|
188 |
|
|
|
237 |
|
| Other long-term liabilities |
|
|
1,236 |
|
|
|
1,354 |
|
| Total long-term liabilities |
|
|
10,413 |
|
|
|
10,650 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
10 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 15.00 par value, 396,260,487 authorized, 167,617,649
conditionally authorized, 373,830,649 issued at June 30, 2015
and December 31, 2014 and 363,548,290 and 362,279,530
outstanding at June 30, 2015 and December 31, 2014,
respectively |
|
|
5,186 |
|
|
|
5,169 |
|
| Additional paid-in capital |
|
|
5,596 |
|
|
|
5,797 |
|
| Treasury shares, at cost, 2,863,267 held at
June 30, 2015 and December 31, 2014 |
|
|
(240 |
) |
|
|
(240 |
) |
| Retained earnings |
|
|
3,208 |
|
|
|
3,349 |
|
| Accumulated other comprehensive loss |
|
|
(410 |
) |
|
|
(404 |
) |
| Total controlling interest shareholders' equity |
|
|
13,340 |
|
|
|
13,671 |
|
| Noncontrolling interest |
|
|
308 |
|
|
|
311 |
|
| Total equity |
|
|
13,648 |
|
|
|
13,982 |
|
| Total liabilities and equity |
|
$ |
26,973 |
|
|
$ |
28,413 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)
(Unaudited)
| |
|
Three months ended
June 30, |
|
|
|
Six months ended
June 30, |
|
| |
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income (loss) |
|
$ |
348 |
|
|
$ |
597 |
|
|
|
$ |
(121 |
) |
|
$ |
1,063 |
|
|
Adjustments to reconcile to net cash provided by operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of drilling contract intangibles |
|
|
(3 |
) |
|
|
(4 |
) |
|
|
|
(7 |
) |
|
|
(8 |
) |
|
Depreciation |
|
|
249 |
|
|
|
288 |
|
|
|
|
540 |
|
|
|
561 |
|
|
Share-based compensation expense |
|
|
14 |
|
|
|
23 |
|
|
|
|
33 |
|
|
|
51 |
|
| Loss
on impairment |
|
|
890 |
|
|
|
- |
|
|
|
|
1,826 |
|
|
|
65 |
|
| (Gain)
loss on disposal of assets, net |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
|
5 |
|
|
|
2 |
|
| Loss
on disposal of assets in discontinued operations, net |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
10 |
|
|
Deferred income taxes |
|
|
8 |
|
|
|
(25 |
) |
|
|
|
(90 |
) |
|
|
(40 |
) |
| Other,
net |
|
|
16 |
|
|
|
5 |
|
|
|
|
28 |
|
|
|
17 |
|
|
Changes in deferred revenues, net |
|
|
(68 |
) |
|
|
96 |
|
|
|
|
(107 |
) |
|
|
70 |
|
|
Changes in deferred costs, net |
|
|
59 |
|
|
|
(18 |
) |
|
|
|
116 |
|
|
|
20 |
|
| Changes in operating assets and liabilities |
|
|
(200 |
) |
|
|
(325 |
) |
|
|
|
(386 |
) |
|
|
(1,039 |
) |
| Net cash provided by operating activities |
|
|
1,311 |
|
|
|
636 |
|
|
|
|
1,837 |
|
|
|
772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(195 |
) |
|
|
(351 |
) |
|
|
|
(396 |
) |
|
|
(1,482 |
) |
|
Proceeds from disposal of assets, net |
|
|
23 |
|
|
|
10 |
|
|
|
|
30 |
|
|
|
101 |
|
|
Proceeds from disposal of assets in discontinued operations,
net |
|
|
1 |
|
|
|
22 |
|
|
|
|
3 |
|
|
|
36 |
|
|
Proceeds from repayment of loans and notes receivable |
|
|
15 |
|
|
|
98 |
|
|
|
|
15 |
|
|
|
101 |
|
| Other, net |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
(15 |
) |
| Net cash used in investing activities |
|
|
(156 |
) |
|
|
(221 |
) |
|
|
|
(348 |
) |
|
|
(1,259 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of debt |
|
|
(6 |
) |
|
|
(6 |
) |
|
|
|
(69 |
) |
|
|
(243 |
) |
|
Proceeds from restricted cash investments |
|
|
- |
|
|
|
- |
|
|
|
|
57 |
|
|
|
107 |
|
|
Deposits to restricted cash investments |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
(20 |
) |
|
Distributions of qualifying additional paid-in capital |
|
|
(55 |
) |
|
|
(272 |
) |
|
|
|
(327 |
) |
|
|
(474 |
) |
|
Distributions to holders of noncontrolling interest |
|
|
(7 |
) |
|
|
- |
|
|
|
|
(14 |
) |
|
|
- |
|
| Other, net |
|
|
- |
|
|
|
(7 |
) |
|
|
|
(2 |
) |
|
|
(9 |
) |
| Net cash used in financing activities |
|
|
(68 |
) |
|
|
(285 |
) |
|
|
|
(355 |
) |
|
|
(639 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
increase (decrease) in cash and cash equivalents |
|
|
1,087 |
|
|
|
130 |
|
|
|
|
1,134 |
|
|
|
(1,126 |
) |
| Cash and cash equivalents at beginning of period |
|
|
2,682 |
|
|
|
1,987 |
|
|
|
|
2,635 |
|
|
|
3,243 |
|
| Cash and cash equivalents at end of period |
|
$ |
3,769 |
|
|
$ |
2,117 |
|
|
|
$ |
3,769 |
|
|
$ |
2,117 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS
|
|
Operating Revenues (in millions) |
|
|
Three months ended |
|
|
Six months ended
June 30, |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
June 30,
2014 |
|
|
2015 |
|
|
2014 |
|
Contract drilling revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters |
$ |
853 |
|
|
$ |
932 |
|
|
$ |
1,167 |
|
|
$ |
1,785 |
|
|
$ |
2,363 |
|
Harsh Environment Floaters |
|
241 |
|
|
|
261 |
|
|
|
254 |
|
|
|
502 |
|
|
|
540 |
|
Deepwater Floaters |
|
162 |
|
|
|
219 |
|
|
|
252 |
|
|
|
381 |
|
|
|
511 |
|
Midwater Floaters |
|
381 |
|
|
|
429 |
|
|
|
441 |
|
|
|
810 |
|
|
|
853 |
|
High-Specification Jackups |
|
136 |
|
|
|
155 |
|
|
|
160 |
|
|
|
291 |
|
|
|
295 |
|
Contract intangible revenue |
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
8 |
|
|
|
8 |
| Total
contract drilling revenues |
|
1,777 |
|
|
|
2,000 |
|
|
|
2,278 |
|
|
|
3,777 |
|
|
|
4,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Client reimbursable revenues |
|
34 |
|
|
|
42 |
|
|
|
43 |
|
|
|
76 |
|
|
|
87 |
|
Integrated services and other |
|
73 |
|
|
|
1 |
|
|
|
7 |
|
|
|
74 |
|
|
|
10 |
| Total
other revenues |
|
107 |
|
|
|
43 |
|
|
|
50 |
|
|
|
150 |
|
|
|
97 |
| Total
revenues |
|
1,884 |
|
|
|
2,043 |
|
|
|
2,328 |
|
|
|
3,927 |
|
|
|
4,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Revenue (1) |
|
|
Three months ended |
|
|
Six months ended
June 30, |
|
|
June 30,
2015 |
|
|
March 31, 2015 |
|
|
June 30,
2014 |
|
|
2015 |
|
|
2014 |
|
Ultra-Deepwater Floaters |
$ |
531,400 |
|
|
$ |
534,300 |
|
|
$ |
538,700 |
|
|
$ |
532,900 |
|
|
$ |
542,900 |
|
Harsh Environment Floaters |
|
513,300 |
|
|
|
531,300 |
|
|
|
452,000 |
|
|
|
522,600 |
|
|
|
453,400 |
|
Deepwater Floaters |
|
364,000 |
|
|
|
342,100 |
|
|
|
371,100 |
|
|
|
351,100 |
|
|
|
381,400 |
|
Midwater Floaters |
|
338,800 |
|
|
|
343,300 |
|
|
|
363,100 |
|
|
|
341,200 |
|
|
|
348,700 |
|
High-Specification Jackups |
|
172,100 |
|
|
|
174,400 |
|
|
|
173,400 |
|
|
|
173,300 |
|
|
|
168,000 |
|
Total |
$ |
399,700 |
|
|
|
398,100 |
|
|
$ |
410,000 |
|
|
$ |
398,800 |
|
|
$ |
411,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
Average daily revenue is defined as contract
drilling revenues earned per operating day. An operating day
is defined as a calendar day during which a rig is contracted to
earn a dayrate during the firm contract period after commencement
of operations.
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS (continued)
|
|
Utilization (2) |
|
|
Three months ended |
|
|
Six months ended
June 30, |
|
|
June 30,
2015 |
|
|
March 31,
2015 |
|
|
June 30,
2014 |
|
|
2015 |
|
|
2014 |
|
Ultra-Deepwater Floaters |
65% |
|
|
68% |
|
|
88% |
|
|
66% |
|
|
89% |
|
Harsh Environment Floaters |
74% |
|
|
78% |
|
|
88% |
|
|
76% |
|
|
94% |
|
Deepwater Floaters |
71% |
|
|
85% |
|
|
62% |
|
|
79% |
|
|
62% |
|
Midwater Floaters |
89% |
|
|
85% |
|
|
64% |
|
|
87% |
|
|
63% |
|
High-Specification Jackups |
87% |
|
|
99% |
|
|
95% |
|
|
93% |
|
|
89% |
| Total
Drilling Fleet |
75% |
|
|
79% |
|
|
78% |
|
|
77% |
|
|
78% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2. Rig utilization is defined as the total number of
operating days divided by the total number of available rig
calendar days in the measurement period, expressed as a
percentage. |
| Revenue
Efficiency(3) |
|
| Trailing Five
Quarters and Historical Data |
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
2Q 2014 |
FY 2014 |
FY 2013 |
|
Ultra-Deepwater Floaters |
97.2% |
97.2% |
95.4% |
91.6% |
94.0% |
94.3% |
89.4% |
| Harsh
Environment Floaters |
98.5% |
96.8% |
96.0% |
94.7% |
95.7% |
95.7% |
96.9% |
|
Deepwater Floaters |
100.3% |
95.9% |
96.3% |
93.3% |
94.5% |
96.2% |
91.0% |
|
Midwater Floaters |
95.3% |
91.4% |
93.0% |
92.2% |
97.0% |
93.3% |
93.5% |
|
High-Specification Jackups |
98.6% |
99.3% |
99.0% |
97.0% |
97.3% |
97.0% |
97.8% |
|
Total |
97.3% |
95.9% |
95.3% |
92.6% |
95.0% |
94.7% |
91.7% |
|
|
|
|
|
|
|
|
|
| 3. Revenue efficiency is defined as actual contract drilling
revenues for the measurement period divided by the maximum revenue
calculation for the measurement period, expressed as a
percentage. Maximum revenue is defined as the greatest amount
of contract drilling revenues the drilling unit could earn for the
measurement period, excluding amounts related to incentive
provisions. |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
| Supplemental
Effective Tax Rate Analysis |
|
| (In US$ millions) |
|
| |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Three months
ended |
|
|
Six months
ended |
|
| |
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
| |
2015 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
| Income from continuing operations before income
taxes |
$ |
387 |
|
|
$ |
(384 |
) |
|
$ |
676 |
|
|
$ |
3 |
|
|
$ |
1,230 |
|
| Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Litigation matters |
|
(788) |
|
|
|
- |
|
|
|
- |
|
|
|
(788) |
|
|
|
3 |
|
| One-time termination benefits |
|
12 |
|
|
|
5 |
|
|
|
4 |
|
|
|
17 |
|
|
|
5 |
|
| Loss on impairment of goodwill and other
assets |
|
890 |
|
|
|
936 |
|
|
|
- |
|
|
|
1,826 |
|
|
|
65 |
|
| Gain on disposal of other assets, net |
|
(3) |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(5) |
|
|
|
(1 |
) |
| Loss on retirement of debt |
|
- |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
5 |
|
| Adjusted income from continuing operations before
income taxes |
|
498 |
|
|
|
555 |
|
|
|
683 |
|
|
|
1,053 |
|
|
|
1,307 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense from continuing operations |
|
40 |
|
|
|
83 |
|
|
|
72 |
|
|
|
123 |
|
|
|
152 |
|
| Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Litigation matters |
|
(53) |
|
|
|
- |
|
|
|
- |
|
|
|
(53) |
|
|
|
1 |
|
| One-time termination benefits |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
| Loss on impairment of goodwill and other
assets |
|
93 |
|
|
|
62 |
|
|
|
- |
|
|
|
155 |
|
|
|
- |
|
| Gain on disposal of other assets, net |
|
2 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
1 |
|
|
|
- |
|
| Changes in estimates (1) |
|
1 |
|
|
|
(1 |
) |
|
|
14 |
|
|
|
- |
|
|
|
27 |
|
| Adjusted income tax expense from
continuing operations (2) |
$ |
84 |
|
|
$ |
143 |
|
|
$ |
86 |
|
|
$ |
227 |
|
|
$ |
180 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effective Tax Rate (3) |
|
10.3 |
% |
|
|
(21.6) |
% |
|
|
10.7 |
% |
|
|
4100 |
% |
|
|
12.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annual Effective Tax Rate
(4) |
|
16.9 |
% |
|
|
25.8 |
% |
|
|
12.6 |
% |
|
|
21.6 |
% |
|
|
13.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1. Our estimates change as we file tax returns, settle
disputes with tax authorities or become aware of other events and
include changes in (a) deferred taxes, (b) valuation of allowances
on deferred taxes and (c) other tax liabilities. |
| 2. The three months and six months ended June 30, 2015
includes $(23) million of additional tax expense (benefit)
reflecting the catch-up effect of an increase (decrease) in the
annual effective tax rate from the previous quarter estimate. |
| 3. Effective Tax Rate is income tax expense for continuing
operations, divided by income from continuing operations before
income taxes. |
| 4. Annual Effective Tax Rate is income tax expense for
continuing operations, excluding various discrete items (such as
changes in estimates and tax on items excluded from income before
income taxes) divided by income from continuing operations before
income tax expense excluding gains and losses on sales and similar
items pursuant to the accounting standards for income taxes and
estimating the annual effective tax rate. |
TRANSOCEAN LTD.
AND SUBSIDIARIES
Non-GAAP Financial Measures and
Reconciliations
Adjusted Net Income and Adjusted Diluted Earnings
Per Share
(in US$ millions, except per share data)
|
|
YTD |
QTD |
QTD |
|
|
06/30/15 |
06/30/15 |
03/31/15 |
|
Adjusted Net Income |
|
|
|
| Net
income (loss) attributable to controlling interest, as
reported |
$(141) |
$342 |
$(483) |
| Add
back (subtract): |
|
|
|
|
Litigation matters |
(735) |
(735) |
- |
|
One-time termination benefits |
16 |
11 |
5 |
| Loss
on impairment of assets |
1,671 |
797 |
874 |
| Gain
on disposal of assets, net |
(6) |
(5) |
(1) |
| Loss
(income) from discontinued operations |
1 |
(1) |
2 |
|
Discrete tax items and other, net |
- |
(1) |
1 |
| Net
income, as adjusted |
$806 |
$408 |
$398 |
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share: |
|
|
|
|
Diluted earnings (loss) per share, as reported |
$(0.39) |
$0.93 |
$(1.33) |
| Add
back (subtract): |
|
|
|
|
Litigation matters |
(2.02) |
(2.02) |
- |
|
One-time termination benefits |
0.04 |
0.03 |
0.01 |
| Loss
on impairment of assets |
4.60 |
2.18 |
2.41 |
| Gain
on disposal of assets, net |
(0.02) |
(0.01) |
- |
| Loss
(income) from discontinued operations |
- |
- |
0.01 |
|
Discrete tax items and other, net |
- |
- |
- |
|
Diluted earnings per share, as adjusted |
$2.21 |
$1.11 |
$1.10 |
|
|
YTD |
QTD |
YTD |
QTD |
YTD |
QTD |
QTD |
|
|
12/31/14 |
12/31/14 |
09/30/14 |
09/30/14 |
06/30/14 |
06/30/14 |
03/31/14 |
|
Adjusted Net Income |
|
|
|
|
|
|
|
| Net
income (loss) attributable to controlling interest, as
reported |
$(1,913) |
$(739) |
$(1,174) |
$(2,217) |
$1,043 |
$587 |
$456 |
| Add
back (subtract): |
|
|
|
|
|
|
|
|
Litigation matters |
(12) |
- |
(12) |
(14) |
2 |
- |
2 |
|
One-time termination benefits |
9 |
1 |
8 |
3 |
5 |
4 |
1 |
| Loss
on impairment of goodwill and other assets |
3,826 |
1,140 |
2,686 |
2,621 |
65 |
- |
65 |
| (Gain)
loss on disposal of assets, net |
(2) |
(4) |
2 |
3 |
(1) |
(1) |
- |
| Loss
on retirement of debt |
13 |
8 |
5 |
- |
5 |
4 |
1 |
| Loss
on disposal of assets in discontinued operations |
10 |
- |
10 |
- |
10 |
- |
10 |
| Loss
(income) from discontinued operations |
10 |
4 |
6 |
1 |
5 |
7 |
(2) |
|
Discrete tax items and other, net |
(138) |
(66) |
(72) |
(45) |
(27) |
(14) |
(13) |
| Net
income, as adjusted |
$1,803 |
$344 |
$1,459 |
$352 |
$1,107 |
$587 |
$520 |
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share, as reported |
$(5.29) |
$(2.04) |
$(3.24) |
$(6.12) |
$2.86 |
$1.61 |
$1.25 |
| Add
back (subtract): |
|
|
|
|
|
|
|
|
Litigation matters |
(0.03) |
- |
(0.03) |
(0.04) |
0.01 |
- |
0.01 |
|
One-time termination benefits |
0.02 |
- |
0.02 |
0.01 |
0.01 |
0.01 |
- |
| Loss
on impairment of goodwill and other assets |
10.53 |
3.15 |
7.39 |
7.22 |
0.19 |
- |
0.19 |
| (Gain)
loss on disposal of assets, net |
(0.01) |
(0.01) |
0.01 |
0.01 |
- |
- |
- |
| Loss
on retirement of debt |
0.04 |
0.02 |
0.01 |
- |
0.01 |
0.01 |
- |
| Loss
on disposal of assets in discontinued operations |
0.03 |
- |
0.03 |
- |
0.03 |
- |
0.03 |
| Loss
(income) from discontinued operations |
0.03 |
0.01 |
0.02 |
- |
0.01 |
0.02 |
(0.01) |
|
Discrete tax items and other, net |
(0.38) |
(0.18) |
(0.21) |
(0.12) |
(0.08) |
(0.04) |
(0.04) |
|
Diluted earnings per share, as adjusted |
$4.94 |
$0.95 |
$4.00 |
$0.96 |
$3.04 |
$1.61 |
$1.43 |
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Transocean Ltd via Globenewswire
HUG#1943971
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