- Revenues were $1.61 billion, compared with $1.88
billion in the second quarter of 2015;
- Operating and maintenance expenses were $880
million. This compares with $197 million in the prior period that
included $788 million in net favorable items associated with
Macondo-related settlement agreements, insurance recoveries and
other items;
- Adjusted net income was $316 million, $0.87 per
diluted share, excluding net favorable items. This compares with
$408 million, $1.11 per diluted share, in the second quarter of
2015, excluding net unfavorable items;
- Net income attributable to controlling interest
was $321 million, $0.88 per diluted share, including $5 million of
net favorable items. This compares with second quarter net income
of $342 million, $0.93 per diluted share, including $66 million of
net unfavorable items;
- The Annual Effective Tax Rate(1) was
7.5 percent, down from 16.9 percent in the prior quarter;
- Cash flows from operating activities were $648
million, down sequentially from $1.31 billion due primarily
to favorable Macondo-related insurance proceeds in the second
quarter of 2015;
- Fleet revenue efficiency(2) was 95.0
percent, compared with 97.2 percent in the second quarter of
2015;
- Fleet utilization(3) was 70
percent, down from 75 percent in the prior quarter; and
- Contract backlog was $16.9 billion as of the
October 26, 2015, Fleet Status Report.
ZUG, SWITZERLAND-November 4, 2015-Transocean Ltd. (NYSE: RIG) (SIX:
RIGN) today reported net income attributable to controlling
interest of $321 million, $0.88 per diluted share, for the three
months ended September 30, 2015. Third quarter 2015 results
included net favorable items of $5 million, $0.01 per diluted
share, as follows:
- $8 million, $0.02 per diluted share, in discrete
tax benefits;
- $7 million, $0.02 per diluted share, in net gains
on early debt retirements; and
- $5 million associated with discontinued
operations and asset disposal gains.
These net favorable items were partially offset by:
- $15 million, $0.03 per diluted share, related to
a loss on impairment of GSF Rig 135, which the
company intends to scrap; and severance costs.
After consideration of these net favorable items,
third quarter 2015 adjusted net income was $316 million, or $0.87
per diluted share.
For the three months ended September 30, 2014, the company reported
net loss attributable to controlling interest of $2.22 billion,
$6.12 per diluted share, including net unfavorable items of $2.57
billion, $7.08 per diluted share, mainly associated with
impairments of goodwill and the Deepwater Floater asset group.
After consideration of these net unfavorable items, adjusted net
income was $352 million, or $0.96 per diluted share.
Revenues for the three months ended September 30, 2015, decreased
$276 million sequentially to $1.61 billion due primarily to lower
fleet utilization and a decline in other revenues related to
contract termination fees recognized in the second quarter of 2015.
To a lesser extent, the decline was impacted by less favorable
revenue efficiency.
Operating and maintenance expenses were $880 million during the
period. This compares with $985 million in the prior quarter, which
excluded $788 million in net favorable Macondo-related items. The
decrease of $105 million was due primarily to reduced activity. The
third quarter was also favorably impacted by the company's actions
to reduce costs.
General and administrative expenses were $45 million, compared with
$44 million in the prior quarter.
Depreciation expense decreased $39 million sequentially to $210
million primarily the result of the impairment of the Midwater
Floater asset group in the second quarter of 2015.
Transocean's third quarter 2015 Effective Tax Rate(4) was 4.9
percent, compared with 10.3 percent in the previous quarter. The
decrease was due mainly to jurisdictional and operational structure
changes for certain rigs that impacted the company's deferred tax
assets, partially offset by changes in estimates, and the impact of
foreign currency fluctuations. Transocean's Annual Effective Tax
Rate for the third quarter of 2015 was 7.5 percent, down from 16.9
percent in the prior quarter. Third quarter income tax expense also
included a tax benefit of $18 million, $0.05 per diluted share, to
reflect the decrease in the Annual Effective Tax Rate to 18.0
percent for the nine months ended September 30, 2015 from 21.6
percent for the six months ended June 30, 2015.
Interest expense, net of amounts capitalized, decreased $11 million
sequentially to $109 million, reflecting, in part, the company's
early debt retirements. Capitalized interest was $36 million,
compared with $29 million in the second quarter of 2015. Interest
income was $5 million, compared with $6 million in the prior
quarter.
Cash flows from operating activities decreased $663 million
sequentially to $648 million due primarily to the favorable
Macondo-related insurance proceeds collected in the second quarter
of 2015.
Capital expenditures were $940 million, compared with $195 million
in the prior quarter. The increase of $745 million was largely
associated with the company's newbuild program and included the
final shipyard payment for the Deepwater
Thalassa.
"Our continued focus on equipment reliability, uptime, and cost
management resulted in another strong quarter for Transocean," said
President and Chief Executive Officer, Jeremy Thigpen. "As we move
forward in this challenging market, we will continue to identify
opportunities to drive unnecessary cost out of our business, while
simultaneously investing in opportunities that will enable us to
continue to exceed the performance expectations of our
customers."
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, fleet utilization,
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 9:00 a.m. EST, 3:00 p.m. CET, on Thursday, November 5,
2015, to discuss the results. To participate, dial +1 913-312-1444
and refer to confirmation code 9465171 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 12:00 p.m.
EST, 6:00 p.m. CET, on November 5, 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 9465171. 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 62 mobile offshore drilling units consisting of 27
ultra-deepwater floaters, seven harsh-environment semisubmersibles,
six deepwater floaters, 12 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:
Bradley
Alexander
+1 713-232-7515
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
September 30, |
|
|
|
Nine months ended
September 30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
1,569 |
|
|
$ |
2,215 |
|
|
|
$ |
5,346 |
|
|
$ |
6,785 |
|
Other revenues |
|
|
39 |
|
|
|
55 |
|
|
|
|
189 |
|
|
|
152 |
|
|
|
|
1,608 |
|
|
|
2,270 |
|
|
|
|
5,535 |
|
|
|
6,937 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
880 |
|
|
|
1,318 |
|
|
|
|
2,161 |
|
|
|
3,800 |
|
Depreciation |
|
|
210 |
|
|
|
288 |
|
|
|
|
750 |
|
|
|
849 |
|
General and administrative |
|
|
45 |
|
|
|
52 |
|
|
|
|
135 |
|
|
|
172 |
|
|
|
|
1,135 |
|
|
|
1,658 |
|
|
|
|
3,046 |
|
|
|
4,821 |
|
Loss on impairment |
|
|
(13 |
) |
|
|
(2,768 |
) |
|
|
|
(1,839 |
) |
|
|
(2,833 |
) |
Loss on disposal of assets, net |
|
|
(15 |
) |
|
|
(12 |
) |
|
|
|
(20 |
) |
|
|
(14 |
) |
Operating income (loss) |
|
|
445 |
|
|
|
(2,168 |
) |
|
|
|
630 |
|
|
|
(731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
5 |
|
|
|
6 |
|
|
|
|
17 |
|
|
|
31 |
|
Interest expense, net of amounts capitalized |
|
|
(109 |
) |
|
|
(122 |
) |
|
|
|
(345 |
) |
|
|
(360 |
) |
Other, net |
|
|
3 |
|
|
|
6 |
|
|
|
|
45 |
|
|
|
12 |
|
|
|
|
(101 |
) |
|
|
(110 |
) |
|
|
|
(283 |
) |
|
|
(317 |
) |
Income
(loss) from continuing operations before income tax expense |
|
|
344 |
|
|
|
(2,278 |
) |
|
|
|
347 |
|
|
|
(1,048 |
) |
Income tax expense (benefit) |
|
|
17 |
|
|
|
(16 |
) |
|
|
|
140 |
|
|
|
136 |
|
Income (loss) from continuing
operations |
|
|
327 |
|
|
|
(2,262 |
) |
|
|
|
207 |
|
|
|
(1,184 |
) |
Income (loss) from discontinued operations, net of
tax |
|
|
3 |
|
|
|
(1 |
) |
|
|
|
2 |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
330 |
|
|
|
(2,263 |
) |
|
|
|
209 |
|
|
|
(1,200 |
) |
Net income (loss) attributable to noncontrolling
interest |
|
|
9 |
|
|
|
(46 |
) |
|
|
|
29 |
|
|
|
(26 |
) |
Net income (loss) attributable to
controlling interest |
|
$ |
321 |
|
|
$ |
(2,217 |
) |
|
|
$ |
180 |
|
|
$ |
(1,174 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
|
$ |
0.87 |
|
|
$ |
(6.12 |
) |
|
|
$ |
0.48 |
|
|
$ |
(3.20 |
) |
Earnings (loss) from discontinued operations |
|
|
0.01 |
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
(0.04 |
) |
Earnings (loss) per share |
|
$ |
0.88 |
|
|
$ |
(6.12 |
) |
|
|
$ |
0.49 |
|
|
$ |
(3.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
|
$ |
0.87 |
|
|
$ |
(6.12 |
) |
|
|
$ |
0.48 |
|
|
$ |
(3.20 |
) |
Earnings (loss) from discontinued operations |
|
|
0.01 |
|
|
|
- |
|
|
|
|
0.01 |
|
|
|
(0.04 |
) |
Earnings (loss) per share |
|
$ |
0.88 |
|
|
$ |
(6.12 |
) |
|
|
$ |
0.49 |
|
|
$ |
(3.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
364 |
|
|
|
362 |
|
|
|
|
363 |
|
|
|
362 |
|
Diluted |
|
|
364 |
|
|
|
362 |
|
|
|
|
363 |
|
|
|
362 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions, except per share data)
(Unaudited)
|
|
September 30,
2015 |
|
December 31,
2014 |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,234 |
|
|
$ |
2,635 |
|
Accounts receivable, net of allowance for doubtful
accounts
of $15 and $14 at September 30, 2015 and December 31,
2014, respectively |
|
|
1,482 |
|
|
|
2,120 |
|
Materials and supplies, net of allowance for obsolescence
of $139 and $109 at September 30, 2015 and December 31,
2014, respectively |
|
|
696 |
|
|
|
818 |
|
Assets held for sale |
|
|
9 |
|
|
|
25 |
|
Deferred income taxes, net |
|
|
99 |
|
|
|
161 |
|
Other current assets |
|
|
386 |
|
|
|
242 |
|
Total current assets |
|
|
4,906 |
|
|
|
6,001 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
25,612 |
|
|
|
28,516 |
|
Less accumulated depreciation |
|
|
(5,260 |
) |
|
|
(6,978 |
) |
Property and equipment, net |
|
|
20,352 |
|
|
|
21,538 |
|
Deferred income taxes, net |
|
|
84 |
|
|
|
- |
|
Other assets |
|
|
493 |
|
|
|
874 |
|
Total assets |
|
$ |
25,835 |
|
|
$ |
28,413 |
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
432 |
|
|
$ |
784 |
|
Accrued income taxes |
|
|
82 |
|
|
|
131 |
|
Debt due within one year |
|
|
123 |
|
|
|
1,033 |
|
Other current liabilities |
|
|
1,193 |
|
|
|
1,822 |
|
Total current liabilities |
|
|
1,830 |
|
|
|
3,770 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
8,630 |
|
|
|
9,059 |
|
Deferred income taxes, net |
|
|
172 |
|
|
|
237 |
|
Other long-term liabilities |
|
|
1,162 |
|
|
|
1,354 |
|
Total long-term liabilities |
|
|
9,964 |
|
|
|
10,650 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
15 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
Shares, CHF 15.00 par value, 396,260,487 authorized, 167,617,649
conditionally authorized, 373,830,649 issued at September 30,
2015 and December 31, 2014 and 363,719,800 and 362,279,530
outstanding at September 30, 2015 and December 31, 2014,
respectively |
|
|
5,189 |
|
|
|
5,169 |
|
Additional paid-in capital |
|
|
5,610 |
|
|
|
5,797 |
|
Treasury shares, at cost, 2,863,267 held at
September 30, 2015 and December 31, 2014 |
|
|
(240 |
) |
|
|
(240 |
) |
Retained earnings |
|
|
3,529 |
|
|
|
3,349 |
|
Accumulated other comprehensive loss |
|
|
(368 |
) |
|
|
(404 |
) |
Total controlling interest shareholders' equity |
|
|
13,720 |
|
|
|
13,671 |
|
Noncontrolling interest |
|
|
306 |
|
|
|
311 |
|
Total equity |
|
|
14,026 |
|
|
|
13,982 |
|
Total liabilities and equity |
|
$ |
25,835 |
|
|
$ |
28,413 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)
(Unaudited)
|
|
Three months ended
September 30, |
|
|
|
Nine months ended
September 30, |
|
|
|
2015 |
|
|
2014 |
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
330 |
|
|
$ |
(2,263 |
) |
|
|
$ |
209 |
|
|
$ |
(1,200 |
) |
Adjustments to reconcile to net cash provided by operating
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of drilling contract intangibles |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
|
(11 |
) |
|
|
(12 |
) |
Depreciation |
|
|
210 |
|
|
|
288 |
|
|
|
|
750 |
|
|
|
849 |
|
Share-based compensation expense |
|
|
14 |
|
|
|
24 |
|
|
|
|
47 |
|
|
|
75 |
|
Loss
on impairment |
|
|
13 |
|
|
|
2,768 |
|
|
|
|
1,839 |
|
|
|
2,833 |
|
Loss
on disposal of assets, net |
|
|
15 |
|
|
|
12 |
|
|
|
|
20 |
|
|
|
14 |
|
Loss
on disposal of assets in discontinued operations, net |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
10 |
|
Deferred income taxes |
|
|
(14 |
) |
|
|
(94 |
) |
|
|
|
(104 |
) |
|
|
(134 |
) |
Other,
net |
|
|
31 |
|
|
|
10 |
|
|
|
|
59 |
|
|
|
27 |
|
Changes in deferred revenues, net |
|
|
(11 |
) |
|
|
10 |
|
|
|
|
(118 |
) |
|
|
80 |
|
Changes in deferred costs, net |
|
|
26 |
|
|
|
(52 |
) |
|
|
|
142 |
|
|
|
(32 |
) |
Changes in operating assets and liabilities |
|
|
38 |
|
|
|
183 |
|
|
|
|
(348 |
) |
|
|
(856 |
) |
Net cash provided by operating activities |
|
|
648 |
|
|
|
882 |
|
|
|
|
2,485 |
|
|
|
1,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(940 |
) |
|
|
(365 |
) |
|
|
|
(1,336 |
) |
|
|
(1,847 |
) |
Proceeds from disposal of assets, net |
|
|
3 |
|
|
|
102 |
|
|
|
|
33 |
|
|
|
203 |
|
Proceeds from disposal of assets in discontinued operations,
net |
|
|
- |
|
|
|
(1 |
) |
|
|
|
3 |
|
|
|
35 |
|
Investment in loans receivable |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
(15 |
) |
Proceeds from repayment of loans and notes receivable |
|
|
- |
|
|
|
- |
|
|
|
|
15 |
|
|
|
101 |
|
Net cash used in investing activities |
|
|
(937 |
) |
|
|
(264 |
) |
|
|
|
(1,285 |
) |
|
|
(1,523 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of debt |
|
|
(1,237 |
) |
|
|
(75 |
) |
|
|
|
(1,306 |
) |
|
|
(318 |
) |
Proceeds from restricted cash investments |
|
|
53 |
|
|
|
69 |
|
|
|
|
110 |
|
|
|
176 |
|
Deposits to restricted cash investments |
|
|
- |
|
|
|
- |
|
|
|
|
- |
|
|
|
(20 |
) |
Proceeds from sale of noncontrolling interest |
|
|
- |
|
|
|
443 |
|
|
|
|
- |
|
|
|
443 |
|
Distributions of qualifying additional paid-in capital |
|
|
(54 |
) |
|
|
(272 |
) |
|
|
|
(381 |
) |
|
|
(746 |
) |
Distributions to holders of noncontrolling interest |
|
|
(7 |
) |
|
|
- |
|
|
|
|
(21 |
) |
|
|
- |
|
Other, net |
|
|
(1 |
) |
|
|
(27 |
) |
|
|
|
(3 |
) |
|
|
(36 |
) |
Net cash provided by (used in) financing activities |
|
|
(1,246 |
) |
|
|
138 |
|
|
|
|
(1,601 |
) |
|
|
(501 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in cash and cash equivalents |
|
|
(1,535 |
) |
|
|
756 |
|
|
|
|
(401 |
) |
|
|
(370 |
) |
Cash and cash equivalents at beginning of period |
|
|
3,769 |
|
|
|
2,117 |
|
|
|
|
2,635 |
|
|
|
3,243 |
|
Cash and cash equivalents at end of period |
|
$ |
2,234 |
|
|
$ |
2,873 |
|
|
|
$ |
2,234 |
|
|
$ |
2,873 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS
|
Operating Revenues (in millions) |
|
Three months ended |
|
|
Nine months ended
September 30, |
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
September 30,
2014 |
|
|
2015 |
|
|
2014 |
Contract drilling revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters |
$ |
768 |
|
|
$ |
853 |
|
|
$ |
1,135 |
|
|
$ |
2,552 |
|
|
$ |
3,498 |
Harsh Environment Floaters |
|
211 |
|
|
|
241 |
|
|
|
247 |
|
|
|
713 |
|
|
|
787 |
Deepwater Floaters |
|
135 |
|
|
|
162 |
|
|
|
233 |
|
|
|
517 |
|
|
|
744 |
Midwater Floaters |
|
327 |
|
|
|
381 |
|
|
|
442 |
|
|
|
1,137 |
|
|
|
1,295 |
High-Specification Jackups |
|
124 |
|
|
|
136 |
|
|
|
154 |
|
|
|
416 |
|
|
|
449 |
Contract intangible revenue |
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
11 |
|
|
|
12 |
Total
contract drilling revenues |
|
1,569 |
|
|
|
1,777 |
|
|
|
2,215 |
|
|
|
5,346 |
|
|
|
6,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Client reimbursable revenues |
|
34 |
|
|
|
34 |
|
|
|
46 |
|
|
|
109 |
|
|
|
133 |
Integrated services and other |
|
5 |
|
|
|
73 |
|
|
|
9 |
|
|
|
80 |
|
|
|
19 |
Total
other revenues |
|
39 |
|
|
|
107 |
|
|
|
55 |
|
|
|
189 |
|
|
|
152 |
Total
revenues |
|
1,608 |
|
|
|
1,884 |
|
|
|
2,270 |
|
|
|
5,535 |
|
|
|
6,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Revenue (1) |
|
Three months ended |
|
|
Nine months ended
September 30, |
|
September 30,
2015 |
|
|
June 30, 2015 |
|
|
September 30,
2014 |
|
|
2015 |
|
|
2014 |
Ultra-Deepwater Floaters |
$ |
475,800 |
|
|
$ |
531,400 |
|
|
$ |
524,100 |
|
|
$ |
514,300 |
|
|
$ |
536,600 |
Harsh Environment Floaters |
|
493,400 |
|
|
|
513,300 |
|
|
|
493,800 |
|
|
|
513,600 |
|
|
|
465,300 |
Deepwater Floaters |
|
368,600 |
|
|
|
364,000 |
|
|
|
357,700 |
|
|
|
355,600 |
|
|
|
373,700 |
Midwater Floaters |
|
350,000 |
|
|
|
338,800 |
|
|
|
353,000 |
|
|
|
343,700 |
|
|
|
339,200 |
High-Specification Jackups |
|
172,700 |
|
|
|
172,100 |
|
|
|
167,800 |
|
|
|
173,100 |
|
|
|
167,900 |
Total |
$ |
385,300 |
|
|
|
399,700 |
|
|
$ |
403,100 |
|
|
$ |
394,800 |
|
|
$ |
405,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
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 |
|
|
Nine months ended
September 30, |
|
September 30,
2015 |
|
|
June 30,
2015 |
|
|
September 30,
2014 |
|
|
2015 |
|
|
2014 |
Ultra-Deepwater Floaters |
65% |
|
|
65% |
|
|
84% |
|
|
66% |
|
|
87% |
Harsh Environment Floaters |
66% |
|
|
74% |
|
|
77% |
|
|
73% |
|
|
89% |
Deepwater Floaters |
67% |
|
|
71% |
|
|
59% |
|
|
75% |
|
|
61% |
Midwater Floaters |
78% |
|
|
89% |
|
|
65% |
|
|
84% |
|
|
66% |
High-Specification Jackups |
78% |
|
|
87% |
|
|
99% |
|
|
88% |
|
|
93% |
Total
Drilling Fleet |
70% |
|
|
75% |
|
|
76% |
|
|
75% |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
3Q 2015 |
2Q 2015 |
1Q 2015 |
4Q 2014 |
3Q 2014 |
FY 2014 |
FY 2013 |
Ultra-Deepwater Floaters |
91.5% |
97.0% |
97.2% |
95.4% |
91.6% |
94.3% |
89.4% |
Harsh
Environment Floaters |
98.6% |
98.4% |
96.8% |
96.0% |
94.7% |
95.7% |
96.9% |
Deepwater Floaters |
98.9% |
100.3% |
95.9% |
96.3% |
93.3% |
96.2% |
91.0% |
Midwater Floaters |
98.2% |
95.3% |
91.4% |
93.0% |
92.2% |
93.3% |
93.5% |
High-Specification Jackups |
99.3% |
98.6% |
99.3% |
99.0% |
97.0% |
97.0% |
97.8% |
Total |
95.0% |
97.2% |
95.9% |
95.3% |
92.6% |
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, except tax
rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
Nine months
ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
|
September 30, |
|
|
September 30, |
|
|
2015 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Income from continuing operations before income
taxes |
$ |
344 |
|
|
$ |
387 |
|
|
$ |
(2,278 |
) |
|
$ |
347 |
|
|
$ |
(1,048 |
) |
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
- |
|
|
|
(788) |
|
|
|
(21 |
) |
|
|
(788 |
) |
|
|
(18 |
) |
One-time termination benefits |
|
3 |
|
|
|
12 |
|
|
|
4 |
|
|
|
20 |
|
|
|
9 |
|
Loss on impairment of goodwill and other
assets |
|
13 |
|
|
|
890 |
|
|
|
2,768 |
|
|
|
1,839 |
|
|
|
2,833 |
|
Loss (gain) on disposal of other assets,
net |
|
(1 |
) |
|
|
(3) |
|
|
|
3 |
|
|
|
(6 |
) |
|
|
2 |
|
Loss (gain) on retirement of debt |
|
(7 |
) |
|
|
- |
|
|
|
- |
|
|
|
(7 |
) |
|
|
5 |
|
Adjusted income from continuing operations before
income taxes |
|
352 |
|
|
|
498 |
|
|
|
476 |
|
|
|
1,405 |
|
|
|
1,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense from continuing operations |
|
17 |
|
|
|
40 |
|
|
|
(16 |
) |
|
|
140 |
|
|
|
136 |
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
- |
|
|
|
(53) |
|
|
|
(7 |
) |
|
|
(53 |
) |
|
|
(6 |
) |
One-time termination benefits |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Loss on impairment of goodwill and other
assets |
|
- |
|
|
|
93 |
|
|
|
95 |
|
|
|
155 |
|
|
|
95 |
|
Loss on disposal of other assets, net |
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
1 |
|
|
|
- |
|
Changes in estimates (1) |
|
9 |
|
|
|
1 |
|
|
|
45 |
|
|
|
9 |
|
|
|
72 |
|
Adjusted income tax expense from
continuing operations (2) |
$ |
27 |
|
|
$ |
84 |
|
|
$ |
118 |
|
|
$ |
254 |
|
|
$ |
298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (3) |
|
4.9 |
% |
|
|
10.3 |
% |
|
|
0.7 |
% |
|
|
40.3 |
% |
|
|
(13.0) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Effective Tax Rate
(4) |
|
7.5 |
% |
|
|
16.9 |
% |
|
|
24.8 |
% |
|
|
18.0 |
% |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 nine months ended September 30,
2015 includes $(18) million of additional tax expense (benefit)
reflecting the catch-up effect of an increase (decrease) in the
annual effective tax rate from the previous quarter estimate. |
|
3. Effective Tax Rate is income tax expense for continuing
operations, divided by income from continuing operations before
income taxes. |
|
4. Annual Effective Tax Rate is income tax expense for
continuing operations, excluding various discrete items (such as
changes in estimates and tax on items excluded from income before
income taxes) divided by income from continuing operations before
income tax expense excluding gains and losses on sales and similar
items pursuant to the accounting standards for income taxes and
estimating the annual effective tax rate. |
|
Transocean Ltd. and Subsidiaries |
Non-GAAP Financial Measures and
Reconciliations |
Adjusted Net Income and Adjusted Diluted
Earnings Per Share |
(in US$ millions, except per share
data) |
|
YTD |
QTD |
YTD |
QTD |
QTD |
|
|
|
09/30/15 |
09/30/15 |
06/30/15 |
06/30/15 |
03/31/15 |
|
|
Adjusted Net Income |
|
|
|
|
|
|
|
Net income (loss) attributable to controlling interest, as
reported |
$180 |
$321 |
$(141) |
$342 |
$(483) |
|
|
Add back (subtract): |
|
|
|
|
|
|
|
Litigation matters |
(735) |
- |
(735) |
(735) |
- |
|
|
One-time termination benefits |
18 |
2 |
16 |
11 |
5 |
|
|
Loss on impairment of assets |
1,684 |
13 |
1,671 |
797 |
874 |
|
|
Gain on disposal of assets, net |
(7) |
(1) |
(6) |
(5) |
(1) |
|
|
Gain on retirement of debt |
(7) |
(7) |
- |
- |
- |
|
|
Gain on disposal of assets in discontinued operations |
(1) |
(1) |
- |
- |
- |
|
|
(Income) loss from discontinued operations |
(2) |
(3) |
1 |
(1) |
2 |
|
|
Discrete tax items and other, net |
(8) |
(8) |
- |
(1) |
1 |
|
|
Net income, as adjusted |
$1,122 |
$316 |
$806 |
$408 |
$398 |
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per
Share: |
|
|
|
|
|
|
|
Diluted earnings (loss) per share, as reported |
$0.49 |
$0.88 |
$(0.39) |
$0.93 |
$(1.33) |
|
|
Add back (subtract): |
|
|
|
|
|
|
|
Litigation matters |
(2.02) |
- |
(2.02) |
(2.02) |
- |
|
|
One-time termination benefits |
0.04 |
- |
0.04 |
0.03 |
0.01 |
|
|
Loss on impairment of assets |
4.61 |
0.03 |
4.60 |
2.18 |
2.41 |
|
|
Gain on disposal of assets, net |
(0.02) |
- |
(0.02) |
(0.01) |
- |
|
|
Gain on retirement of debt |
(0.02) |
(0.02) |
- |
- |
- |
|
|
Gain on disposal of assets in discontinued operations |
- |
- |
- |
- |
- |
|
|
(Income) loss from discontinued operations |
- |
- |
- |
- |
0.01 |
|
|
Discrete tax items and other, net |
(0.02) |
(0.02) |
- |
- |
- |
|
|
Diluted earnings per share, as adjusted |
$3.06 |
$0.87 |
$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#1964271
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