Transocean Ltd. (NYSE: RIG) today reported net loss attributable to
controlling interest of $51 million, $0.08 per diluted
share, for the three months ended December 31, 2019.
Fourth quarter 2019 results included net favorable items of
$212 million, or $0.35 per diluted share, as follows:
- $132 million, $0.22 per diluted share, gain on
termination of construction contracts,
- $110 million, $0.18 per diluted share, related to
discrete tax items; and
- $2 million, gain on disposal of assets.
These favorable items were partially offset by:
- $25 million, $0.04 per diluted share, loss on
impairment of assets,
- $5 million, $0.01 per diluted share, in acquisition
and restructuring costs; and
- $2 million, loss on retirement of debt.
After consideration of these net favorable items,
fourth quarter 2019 adjusted net loss was $263 million,
or $0.43 per diluted share.
Contract drilling revenues for the three months ended
December 31, 2019, increased sequentially by $8 million,
primarily due to rig reactivations, including of the
ultra‑deepwater floaters Deepwater Mykonos and Deepwater Corcovado.
The quarter was also favorably impacted by higher utilization on
the rest of the company’s ultra‑deepwater fleet and a full quarter
of revenues from the newbuild harsh environment floater
Transocean Norge. These increases were partially offset by
lower reimbursable revenue and lower revenue efficiency.
Fourth quarter 2019 results reflected a non-cash revenue
reduction of $47 million, compared to $48 million in the
third quarter, from contract intangible amortization associated
with the Songa and Ocean Rig acquisitions.
Operating and maintenance expense was $575 million,
compared with $547 million in the prior quarter. The
sequential increase was the result of a full quarter of operations
from the harsh environment floater Transocean Norge and higher
concentration of maintenance expenses in the fourth quarter related
to our capital spares program and in service fleet. This was
partially offset by lower expenses reimbursed by our customers.
General and administrative expense was $54 million, up from
$45 million in the third quarter of 2019. The increase was
primarily due to legal, professional and advisory fees.
Interest expense, net of amounts capitalized, was
$160 million, compared with $166 million in the prior
quarter and capitalized interest was $10 million, unchanged
from the prior quarter. Interest income was $10 million,
compared with $11 million in the previous quarter.
The Effective Tax Rate(2) was 30.3%, up from (6.9)% in the
prior quarter. The increase was primarily due to releases of
unrecognized tax benefits. The Effective Tax Rate excluding
discrete items was (47.2)% compared to (37.5)% in previous
quarter.
Cash flows provided by operating activities were
$147 million, compared to $91 million in the prior
quarter. The fourth quarter increase was primarily due to increased
cash received from our unconsolidated affiliates for delivery and
mobilization of Transocean Norge.
Fourth quarter 2019 capital expenditures of $128 million
were related to the company’s maintenance capital which includes
the reactivation of Deepwater Corcovado and
Deepwater Mykonos and our newbuild drillships under
construction. This compares with $121 million in the previous
quarter.
“I would like to recognize, and thank, the entire Transocean
team for once again delivering solid operating and financial
results in the fourth quarter,” said President and Chief Executive
Officer Jeremy Thigpen. “As utilization across our floating fleet
improved for the first time in over five years, and dayrates for
high‑specification ultra‑deepwater assets increased 75% over the
course of the year, we believe that 2019 marked the beginning of
the much-anticipated recovery in the offshore drilling
industry.”
Thigpen added, “As a direct result of our strong performance in
2019, we generated almost $1 billion in adjusted EBITDA,
which, when combined with the multiple financing transactions
consummated throughout the year, further bolstered our liquidity
position. This liquidity, coupled with our industry‑leading
$10.2 billion backlog, provides us the financial stability to
continue to invest in our people, the maintenance of our assets,
and new technologies that will further differentiate us in the eyes
of our customers and shareholders.”
“Looking forward, we are mindful of the risks COVID-19 presents
to near-term oil demand, but believe that improving longer-term
market fundamentals, along with an increasing list of
opportunities, bodes well for a year-over-year increase in
contracting activity, utilization and dayrates.”
Full Year 2019
For the year ended December 31, 2019, net loss attributable
to controlling interest totaled $1.3 billion, or
$2.05 per diluted share. Full year results included
$368 million, or $0.60 per diluted share, net of
unfavorable items listed as follows:
- $609 million, $0.99 per diluted share, loss on
impairment, primarily for three floaters previously announced for
retirement,
- $41 million, $0.07 per diluted share, loss on
retirement of debt,
- $6 million, $0.01 per diluted share, in acquisition
costs and restructuring; and
- $5 million, $0.01 per diluted share, loss on disposal
of assets.
These unfavorable items were partially offset by:
- $150 million, $0.24 per diluted share, related to
discrete tax items,
- $132 million, $0.22 per diluted share, gain on
termination of construction contracts; and
- $11 million, $0.02 per diluted share, gain on bargain
purchase.
After consideration of these net unfavorable items, adjusted net
loss for 2019 was $887 million, or $1.45 per diluted
share.
Non-GAAP Financial Measures
We present our operating results in accordance with accounting
principles generally accepted in the U.S. (U.S. GAAP). We believe
certain financial measures, such as Adjusted Contract Drilling
Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which
are non-GAAP measures, provide users of our financial statements
with supplemental information that may be useful in evaluating our
operating performance. We believe that such non-GAAP measures, when
read in conjunction with our operating results presented under U.S.
GAAP, can be used to better assess our performance from period to
period and relative to performance of other companies in our
industry, without regard to financing methods, historical cost
basis or capital structure. Such non-GAAP measures should be
considered as a supplement to, and not as a substitute for,
financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative
U.S. GAAP measures are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
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 ultra-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 45 mobile offshore drilling units
consisting of 28 ultra-deepwater floaters, 14 harsh
environment floaters and three midwater floaters. In addition,
Transocean is constructing two ultra-deepwater drillships.
For more information about Transocean, please visit:
www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference starting at 9 a.m.
EST, 3 p.m. CET, on Tuesday, February 18, 2020, to
discuss the results. To participate, dial +1 334-777-6978 and refer
to conference code 5581050 approximately 10 minutes prior to
the scheduled start time.
The teleconference will be simulcast in a listen-only mode at:
www.deepwater.com, by selecting Investors, News, and Webcasts.
Supplemental materials that may be referenced during the
teleconference will be available at: www.deepwater.com, by
selecting Investors, Financial Reports.
A replay of the conference call will be available after
12 p.m. EST, 6 p.m. CET, on February 18, 2020. The
replay, which will be archived for approximately 30 days, can
be accessed at +1 719-457-0820, passcode 5581050 and pin 3332.
The replay will also be available on the company’s website.
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, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
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, estimated duration of
customer contracts, contract dayrate amounts, future contract
commencement dates and locations, planned shipyard projects and
other out-of-service time, sales of drilling units, timing of the
company’s newbuild deliveries, operating hazards and delays, risks
associated with international operations, actions by customers and
other third parties, the future prices of oil and gas, the
intention to scrap certain drilling rigs, the results of our final
accounting for the periods presented in this press release, the
ability to successfully integrate the Transocean and Ocean Rig
businesses, the success of our business following the acquisition
of Ocean Rig UDW Inc. (“Ocean Rig”) and Songa Offshore SE
(“Songa”), 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, 2018, 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. 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.
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. 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.
Notes
(1) |
Revenue efficiency is defined as actual contract drilling revenues,
excluding revenues for contract terminations and reimbursements,
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, excluding revenues for contract terminations and
reimbursements, the drilling unit could earn for the measurement
period, excluding amounts related to incentive provisions. See the
accompanying schedule entitled “Revenue Efficiency.” |
|
|
(2) |
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.” |
Analyst Contacts:Bradley
Alexander+1 713-232-7515
Lexington May+1 832-587-6515
Media Contact:Pam Easton+1 713-232-7647
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In millions, except per share data) |
(Unaudited) |
|
|
Years ended December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
3,088 |
|
|
$ |
3,018 |
|
|
$ |
2,731 |
|
|
Other
revenues |
|
|
— |
|
|
|
— |
|
|
|
242 |
|
|
|
|
|
3,088 |
|
|
|
3,018 |
|
|
|
2,973 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
2,140 |
|
|
|
1,799 |
|
|
|
1,389 |
|
|
Depreciation and amortization |
|
|
855 |
|
|
|
818 |
|
|
|
832 |
|
|
General and administrative |
|
|
193 |
|
|
|
188 |
|
|
|
156 |
|
|
|
|
|
3,188 |
|
|
|
2,805 |
|
|
|
2,377 |
|
|
Loss on impairment |
|
|
(609 |
) |
|
|
(1,464 |
) |
|
|
(1,498 |
) |
|
Loss on disposal of assets, net |
|
|
(12 |
) |
|
|
— |
|
|
|
(1,603 |
) |
|
Operating loss |
|
|
(721 |
) |
|
|
(1,251 |
) |
|
|
(2,505 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
43 |
|
|
|
53 |
|
|
|
43 |
|
|
Interest expense, net of amounts capitalized |
|
|
(660 |
) |
|
|
(620 |
) |
|
|
(491 |
) |
|
Loss on retirement of debt |
|
|
(41 |
) |
|
|
(3 |
) |
|
|
(55 |
) |
|
Other, net |
|
|
181 |
|
|
|
46 |
|
|
|
5 |
|
|
|
|
|
(477 |
) |
|
|
(524 |
) |
|
|
(498 |
) |
|
Loss before income tax expense |
|
|
(1,198 |
) |
|
|
(1,775 |
) |
|
|
(3,003 |
) |
|
Income
tax expense |
|
|
59 |
|
|
|
228 |
|
|
|
94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(1,257 |
) |
|
|
(2,003 |
) |
|
|
(3,097 |
) |
|
Net income (loss) attributable to noncontrolling interest |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
30 |
|
|
Net loss attributable to controlling interest |
|
$ |
(1,255 |
) |
|
$ |
(1,996 |
) |
|
$ |
(3,127 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.05 |
) |
|
$ |
(4.27 |
) |
|
$ |
(8.00 |
) |
|
Diluted |
|
$ |
(2.05 |
) |
|
$ |
(4.27 |
) |
|
$ |
(8.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
612 |
|
|
|
468 |
|
|
|
391 |
|
|
Diluted |
|
|
612 |
|
|
|
468 |
|
|
|
391 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,790 |
|
|
$ |
2,160 |
|
|
Accounts receivable, net |
|
|
654 |
|
|
|
604 |
|
|
Materials and supplies, net |
|
|
479 |
|
|
|
474 |
|
|
Restricted cash accounts and investments |
|
|
558 |
|
|
|
551 |
|
|
Other current assets |
|
|
159 |
|
|
|
159 |
|
|
Total current assets |
|
|
3,640 |
|
|
|
3,948 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
24,281 |
|
|
|
25,811 |
|
|
Less accumulated depreciation |
|
|
(5,434 |
) |
|
|
(5,403 |
) |
|
Property and equipment, net |
|
|
18,847 |
|
|
|
20,408 |
|
|
Contract intangible
assets |
|
|
608 |
|
|
|
795 |
|
|
Deferred income taxes, net |
|
|
20 |
|
|
|
66 |
|
|
Other assets |
|
|
990 |
|
|
|
448 |
|
|
Total assets |
|
$ |
24,105 |
|
|
$ |
25,665 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
311 |
|
|
$ |
269 |
|
|
Accrued income taxes |
|
|
64 |
|
|
|
70 |
|
|
Debt due within one year |
|
|
568 |
|
|
|
373 |
|
|
Other current liabilities |
|
|
781 |
|
|
|
746 |
|
|
Total current liabilities |
|
|
1,724 |
|
|
|
1,458 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
8,693 |
|
|
|
9,605 |
|
|
Deferred income taxes, net |
|
|
266 |
|
|
|
64 |
|
|
Other
long-term liabilities |
|
|
1,555 |
|
|
|
1,424 |
|
|
Total long-term liabilities |
|
|
10,514 |
|
|
|
11,093 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value,
639,674,422 authorized, 142,365,398 conditionally authorized,
617,970,525 issued |
|
|
|
|
|
|
|
and 611,871,374 outstanding at December 31, 2019, and
638,285,574 authorized, 143,754,246 conditionally |
|
|
|
|
|
|
|
authorized, 610,581,677 issued and 609,649,291 outstanding at
December 31, 2018 |
|
|
59 |
|
|
|
59 |
|
|
Additional paid-in capital |
|
|
13,424 |
|
|
|
13,394 |
|
|
Accumulated deficit |
|
|
(1,297 |
) |
|
|
(67 |
) |
|
Accumulated other comprehensive loss |
|
|
(324 |
) |
|
|
(279 |
) |
|
Total controlling interest shareholders’ equity |
|
|
11,862 |
|
|
|
13,107 |
|
|
Noncontrolling interest |
|
|
5 |
|
|
|
7 |
|
|
Total equity |
|
|
11,867 |
|
|
|
13,114 |
|
|
Total liabilities and equity |
|
$ |
24,105 |
|
|
$ |
25,665 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
Years ended December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,257 |
) |
|
$ |
(2,003 |
) |
|
$ |
(3,097 |
) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
Contract intangible asset amortization |
|
|
187 |
|
|
|
112 |
|
|
|
— |
|
|
Depreciation and amortization |
|
|
855 |
|
|
|
818 |
|
|
|
832 |
|
|
Share-based compensation expense |
|
|
37 |
|
|
|
45 |
|
|
|
41 |
|
|
Loss on impairment |
|
|
609 |
|
|
|
1,464 |
|
|
|
1,498 |
|
|
Loss on disposal of assets, net |
|
|
12 |
|
|
|
— |
|
|
|
1,603 |
|
|
Loss on retirement of debt |
|
|
41 |
|
|
|
3 |
|
|
|
55 |
|
|
Gain on termination of construction contracts |
|
|
(132 |
) |
|
|
— |
|
|
|
— |
|
|
Deferred income tax expense (benefit) |
|
|
248 |
|
|
|
(16 |
) |
|
|
89 |
|
|
Other, net |
|
|
41 |
|
|
|
6 |
|
|
|
55 |
|
|
Changes in deferred revenues, net |
|
|
43 |
|
|
|
(139 |
) |
|
|
33 |
|
|
Changes in deferred costs, net |
|
|
(33 |
) |
|
|
34 |
|
|
|
54 |
|
|
Changes in other operating assets and liabilities, net |
|
|
(311 |
) |
|
|
234 |
|
|
|
7 |
|
|
Net
cash provided by operating activities |
|
|
340 |
|
|
|
558 |
|
|
|
1,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(387 |
) |
|
|
(184 |
) |
|
|
(497 |
) |
|
Proceeds from disposal of assets, net |
|
|
70 |
|
|
|
43 |
|
|
|
350 |
|
|
Investments in unconsolidated affiliates |
|
|
(77 |
) |
|
|
(107 |
) |
|
|
— |
|
|
Cash paid in business combinations, net of cash acquired |
|
|
— |
|
|
|
(883 |
) |
|
|
— |
|
|
Proceeds from maturities of unrestricted and restricted
investments |
|
|
123 |
|
|
|
507 |
|
|
|
— |
|
|
Deposits to unrestricted investments |
|
|
— |
|
|
|
(173 |
) |
|
|
(450 |
) |
|
Other, net |
|
|
3 |
|
|
|
— |
|
|
|
10 |
|
|
Net
cash used in investing activities |
|
|
(268 |
) |
|
|
(797 |
) |
|
|
(587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of debt, net of discounts and issue
costs |
|
|
1,056 |
|
|
|
2,054 |
|
|
|
1,144 |
|
|
Repayments of debt |
|
|
(1,325 |
) |
|
|
(2,105 |
) |
|
|
(2,284 |
) |
|
Proceeds from investments restricted for financing activities |
|
|
— |
|
|
|
26 |
|
|
|
102 |
|
|
Payments to terminate derivative instruments |
|
|
— |
|
|
|
(92 |
) |
|
|
— |
|
|
Other, net |
|
|
(43 |
) |
|
|
(30 |
) |
|
|
(3 |
) |
|
Net
cash used in financing activities |
|
|
(312 |
) |
|
|
(147 |
) |
|
|
(1,041 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
decrease in unrestricted and restricted cash and cash
equivalents |
|
|
(240 |
) |
|
|
(386 |
) |
|
|
(458 |
) |
|
Unrestricted and restricted cash and cash equivalents, beginning of
period |
|
|
2,589 |
|
|
|
2,975 |
|
|
|
3,433 |
|
|
Unrestricted and restricted cash and cash equivalents, end of
period |
|
$ |
2,349 |
|
|
$ |
2,589 |
|
|
$ |
2,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
FLEET OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
Contract Drilling
Revenues (in millions) |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
|
$ |
502 |
|
$ |
494 |
|
$ |
457 |
|
$ |
1,957 |
|
$ |
1,787 |
|
Harsh environment floaters |
|
|
278 |
|
|
281 |
|
|
253 |
|
|
1,068 |
|
|
974 |
|
Deepwater floaters |
|
|
— |
|
|
— |
|
|
18 |
|
|
8 |
|
|
124 |
|
Midwater floaters |
|
|
12 |
|
|
9 |
|
|
17 |
|
|
55 |
|
|
75 |
|
High-specification jackups |
|
|
— |
|
|
— |
|
|
3 |
|
|
— |
|
|
58 |
|
Total contract drilling
revenues |
|
$ |
792 |
|
$ |
784 |
|
$ |
748 |
|
$ |
3,088 |
|
$ |
3,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
Average Daily Revenue
(1) |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Ultra-deepwater floaters |
|
$ |
336,800 |
|
$ |
339,400 |
|
$ |
337,100 |
|
$ |
337,900 |
|
$ |
356,700 |
|
Harsh environment
floaters |
|
|
307,700 |
|
|
298,300 |
|
|
290,500 |
|
|
298,500 |
|
|
296,400 |
|
Deepwater floaters |
|
|
— |
|
|
— |
|
|
154,500 |
|
|
— |
|
|
186,700 |
|
Midwater floaters |
|
|
119,400 |
|
|
106,200 |
|
|
90,800 |
|
|
118,400 |
|
|
99,900 |
|
High-specification
jackups |
|
|
— |
|
|
— |
|
|
314,300 |
|
|
— |
|
|
152,900 |
|
Total drilling fleet |
|
$ |
317,700 |
|
|
314,500 |
|
$ |
293,100 |
|
$ |
313,400 |
|
$ |
296,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
Utilization
(2) |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Ultra-deepwater floaters |
|
|
56 |
% |
|
51 |
% |
|
54 |
% |
|
51 |
% |
|
48 |
% |
|
Harsh environment
floaters |
|
|
76 |
% |
|
79 |
% |
|
82 |
% |
|
78 |
% |
|
82 |
% |
|
Deepwater floaters |
|
|
— |
% |
|
— |
% |
|
67 |
% |
|
— |
% |
|
93 |
% |
|
Midwater floaters |
|
|
33 |
% |
|
33 |
% |
|
50 |
% |
|
37 |
% |
|
41 |
% |
|
High-specification
jackups |
|
|
— |
% |
|
— |
% |
|
100 |
% |
|
— |
% |
|
97 |
% |
|
Total drilling fleet |
|
|
61 |
% |
|
58 |
% |
|
62 |
% |
|
58 |
% |
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
Revenue Efficiency
(3) |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Ultra-deepwater floaters |
|
|
98 |
% |
|
98 |
% |
|
99 |
% |
|
99 |
% |
|
96 |
% |
Harsh environment
floaters |
|
|
94 |
% |
|
96 |
% |
|
91 |
% |
|
95 |
% |
|
94 |
% |
Deepwater floaters |
|
|
— |
% |
|
— |
% |
|
91 |
% |
|
— |
% |
|
94 |
% |
Midwater floaters |
|
|
91 |
% |
|
79 |
% |
|
96 |
% |
|
99 |
% |
|
98 |
% |
High-specification
jackups |
|
|
— |
% |
|
— |
% |
|
100 |
% |
|
— |
% |
|
100 |
% |
Total drilling fleet |
|
|
96 |
% |
|
97 |
% |
|
96 |
% |
|
97 |
% |
|
95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Revenue
efficiency is defined as actual contract drilling revenues,
excluding revenues for contract terminations and reimbursements,
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, excluding revenues for
contract terminations and reimbursements, the drilling unit could
earn for the measurement period, excluding amounts related to
incentive provisions. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
|
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS
(LOSS) PER SHARE |
|
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/19 |
|
12/31/19 |
|
09/30/19 |
|
09/30/19 |
|
06/30/19 |
|
06/30/19 |
|
03/31/19 |
|
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to controlling interest, as reported |
|
$ |
(1,255 |
) |
|
$ |
(51 |
) |
|
$ |
(1,204 |
) |
|
$ |
(825 |
) |
|
$ |
(379 |
) |
|
$ |
(208 |
) |
|
$ |
(171 |
) |
|
Acquisition and restructuring costs |
|
|
6 |
|
|
|
5 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
(11 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
Loss on impairment of assets |
|
|
609 |
|
|
|
25 |
|
|
|
584 |
|
|
|
583 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
5 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
6 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
Gain on terminated construction contracts |
|
|
(132 |
) |
|
|
(132 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
41 |
|
|
|
2 |
|
|
|
39 |
|
|
|
12 |
|
|
|
27 |
|
|
|
9 |
|
|
|
18 |
|
|
Discrete tax items and other, net |
|
|
(150 |
) |
|
|
(110 |
) |
|
|
(40 |
) |
|
|
(10 |
) |
|
|
(30 |
) |
|
|
(5 |
) |
|
|
(25 |
) |
|
Net loss, as adjusted |
|
$ |
(887 |
) |
|
$ |
(263 |
) |
|
$ |
(624 |
) |
|
$ |
(234 |
) |
|
$ |
(390 |
) |
|
$ |
(209 |
) |
|
$ |
(181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
$ |
(2.05 |
) |
|
$ |
(0.08 |
) |
|
$ |
(1.97 |
) |
|
$ |
(1.35 |
) |
|
$ |
(0.62 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.28 |
) |
|
Acquisition and restructuring costs |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
Loss on impairment of assets |
|
|
0.99 |
|
|
|
0.04 |
|
|
|
0.97 |
|
|
|
0.96 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on terminated construction contracts |
|
|
(0.22 |
) |
|
|
(0.22 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
0.07 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
Discrete tax items and other, net |
|
|
(0.24 |
) |
|
|
(0.18 |
) |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
Diluted loss per share, as adjusted |
|
$ |
(1.45 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.02 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.64 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/18 |
|
12/31/18 |
|
09/30/18 |
|
09/30/18 |
|
06/30/18 |
|
06/30/18 |
|
03/31/18 |
|
Adjusted Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to controlling interest, as reported |
|
$ |
(1,996 |
) |
|
$ |
(242 |
) |
|
$ |
(1,754 |
) |
|
$ |
(409 |
) |
|
$ |
(1,345 |
) |
|
$ |
(1,135 |
) |
|
$ |
(210 |
) |
|
Acquisition and restructuring costs |
|
|
34 |
|
|
|
12 |
|
|
|
22 |
|
|
|
4 |
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
Gain on bargain purchase |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
1,464 |
|
|
|
18 |
|
|
|
1,446 |
|
|
|
432 |
|
|
|
1,014 |
|
|
|
1,014 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
Loss on retirement of debt |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
143 |
|
|
|
52 |
|
|
|
91 |
|
|
|
1 |
|
|
|
90 |
|
|
|
91 |
|
|
|
(1 |
) |
|
Net income (loss), as
adjusted |
|
$ |
(369 |
) |
|
$ |
(171 |
) |
|
$ |
(198 |
) |
|
$ |
30 |
|
|
$ |
(228 |
) |
|
$ |
(18 |
) |
|
$ |
(210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings (Loss) Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
$ |
(4.27 |
) |
|
$ |
(0.48 |
) |
|
$ |
(3.86 |
) |
|
$ |
(0.88 |
) |
|
$ |
(2.99 |
) |
|
$ |
(2.46 |
) |
|
$ |
(0.48 |
) |
|
Acquisition and restructuring costs |
|
|
0.07 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
Gain on bargain purchase |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
3.13 |
|
|
|
0.03 |
|
|
|
3.18 |
|
|
|
0.93 |
|
|
|
2.26 |
|
|
|
2.19 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Loss on retirement of debt |
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
0.30 |
|
|
|
0.11 |
|
|
|
0.20 |
|
|
|
— |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
— |
|
|
Diluted earnings (loss) per
share, as adjusted |
|
$ |
(0.79 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.44 |
) |
|
$ |
0.06 |
|
|
$ |
(0.50 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
|
ADJUSTED CONTRACT DRILLING REVENUES |
|
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION AND RELATED MARGINS |
|
(In millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/19 |
|
12/31/19 |
|
09/30/19 |
|
09/30/19 |
|
06/30/19 |
|
06/30/19 |
|
03/31/19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
3,088 |
|
|
$ |
792 |
|
|
$ |
2,296 |
|
|
$ |
784 |
|
|
$ |
1,512 |
|
|
$ |
758 |
|
|
$ |
754 |
|
|
Contract intangible amortization |
|
|
187 |
|
|
|
47 |
|
|
|
140 |
|
|
|
48 |
|
|
|
92 |
|
|
|
47 |
|
|
|
45 |
|
|
Adjusted Contract
Drilling Revenues |
|
$ |
3,275 |
|
|
$ |
839 |
|
|
$ |
2,436 |
|
|
$ |
832 |
|
|
$ |
1,604 |
|
|
$ |
805 |
|
|
$ |
799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,257 |
) |
|
$ |
(55 |
) |
|
$ |
(1,202 |
) |
|
$ |
(825 |
) |
|
$ |
(377 |
) |
|
$ |
(206 |
) |
|
$ |
(171 |
) |
|
Interest expense, net of interest income |
|
|
617 |
|
|
|
150 |
|
|
|
467 |
|
|
|
155 |
|
|
|
312 |
|
|
|
156 |
|
|
|
156 |
|
|
Income tax expense (benefit) |
|
|
59 |
|
|
|
(24 |
) |
|
|
83 |
|
|
|
54 |
|
|
|
29 |
|
|
|
37 |
|
|
|
(8 |
) |
|
Depreciation and amortization |
|
|
855 |
|
|
|
207 |
|
|
|
648 |
|
|
|
212 |
|
|
|
436 |
|
|
|
219 |
|
|
|
217 |
|
|
Contract intangible amortization |
|
|
187 |
|
|
|
47 |
|
|
|
140 |
|
|
|
48 |
|
|
|
92 |
|
|
|
47 |
|
|
|
45 |
|
|
EBITDA |
|
|
461 |
|
|
|
325 |
|
|
|
136 |
|
|
|
(356 |
) |
|
|
492 |
|
|
|
253 |
|
|
|
239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and restructuring costs |
|
|
6 |
|
|
|
5 |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
Loss on impairment of assets |
|
|
609 |
|
|
|
25 |
|
|
|
584 |
|
|
|
583 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
5 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
6 |
|
|
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
Gain on bargain purchase |
|
|
(11 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
Loss on retirement of debt |
|
|
41 |
|
|
|
2 |
|
|
|
39 |
|
|
|
12 |
|
|
|
27 |
|
|
|
9 |
|
|
|
18 |
|
|
Gain on termination of construction contracts |
|
|
(132 |
) |
|
|
(132 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted
EBITDA |
|
$ |
979 |
|
|
$ |
223 |
|
|
$ |
756 |
|
|
$ |
245 |
|
|
$ |
511 |
|
|
$ |
257 |
|
|
$ |
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
|
14 |
|
% |
|
39 |
|
% |
|
6 |
|
% |
|
(43 |
) |
% |
|
31 |
|
% |
|
31 |
|
% |
|
30 |
|
% |
Adjusted EBITDA margin |
|
|
30 |
|
% |
|
27 |
|
% |
|
31 |
|
% |
|
29 |
|
% |
|
32 |
|
% |
|
32 |
|
% |
|
32 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/18 |
|
12/31/18 |
|
09/30/18 |
|
09/30/18 |
|
06/30/18 |
|
06/30/18 |
|
03/31/18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
3,018 |
|
|
$ |
748 |
|
|
$ |
2,270 |
|
|
$ |
816 |
|
|
$ |
1,454 |
|
|
$ |
790 |
|
|
$ |
664 |
|
|
Contract intangible amortization |
|
|
112 |
|
|
|
34 |
|
|
|
78 |
|
|
|
29 |
|
|
|
49 |
|
|
|
30 |
|
|
|
19 |
|
|
Contract drilling revenues before amortization |
|
|
3,130 |
|
|
|
782 |
|
|
|
2,348 |
|
|
|
845 |
|
|
|
1,503 |
|
|
|
820 |
|
|
|
683 |
|
|
Drilling contract termination fees |
|
|
(124 |
) |
|
|
(12 |
) |
|
|
(112 |
) |
|
|
(37 |
) |
|
|
(75 |
) |
|
|
(37 |
) |
|
|
(38 |
) |
|
Adjusted Contract
Drilling Revenues |
|
$ |
3,006 |
|
|
$ |
770 |
|
|
$ |
2,236 |
|
|
$ |
808 |
|
|
$ |
1,428 |
|
|
$ |
783 |
|
|
$ |
645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(2,003 |
) |
|
$ |
(243 |
) |
|
$ |
(1,760 |
) |
|
$ |
(409 |
) |
|
$ |
(1,351 |
) |
|
$ |
(1,139 |
) |
|
$ |
(212 |
) |
|
Interest expense, net of interest income |
|
|
567 |
|
|
|
148 |
|
|
|
419 |
|
|
|
149 |
|
|
|
270 |
|
|
|
135 |
|
|
|
135 |
|
|
Income tax expense (benefit) |
|
|
228 |
|
|
|
110 |
|
|
|
118 |
|
|
|
(30 |
) |
|
|
148 |
|
|
|
85 |
|
|
|
63 |
|
|
Depreciation expense |
|
|
818 |
|
|
|
204 |
|
|
|
614 |
|
|
|
201 |
|
|
|
413 |
|
|
|
211 |
|
|
|
202 |
|
|
Contract intangible amortization |
|
|
112 |
|
|
|
34 |
|
|
|
78 |
|
|
|
29 |
|
|
|
49 |
|
|
|
30 |
|
|
|
19 |
|
|
EBITDA |
|
|
(278 |
) |
|
|
253 |
|
|
|
(531 |
) |
|
|
(60 |
) |
|
|
(471 |
) |
|
|
(678 |
) |
|
|
207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and restructuring costs |
|
|
34 |
|
|
|
12 |
|
|
|
22 |
|
|
|
4 |
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
Loss on impairment of goodwill and other assets |
|
|
1,464 |
|
|
|
18 |
|
|
|
1,446 |
|
|
|
432 |
|
|
|
1,014 |
|
|
|
1,014 |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
Loss on retirement of debt |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
|
|
1,206 |
|
|
|
272 |
|
|
|
934 |
|
|
|
378 |
|
|
|
556 |
|
|
|
348 |
|
|
|
208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling contract termination fees |
|
|
(124 |
) |
|
|
(12 |
) |
|
|
(112 |
) |
|
|
(37 |
) |
|
|
(75 |
) |
|
|
(37 |
) |
|
|
(38 |
) |
|
Adjusted
EBITDA |
|
$ |
1,082 |
|
|
$ |
260 |
|
|
$ |
822 |
|
|
$ |
341 |
|
|
$ |
481 |
|
|
$ |
311 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
|
(9 |
) |
% |
|
32 |
|
% |
|
(23 |
) |
% |
|
(7 |
) |
% |
|
(31 |
) |
% |
|
(83 |
) |
% |
|
30 |
|
% |
Adjusted EBITDA margin |
|
|
36 |
|
% |
|
34 |
|
% |
|
37 |
|
% |
|
42 |
|
% |
|
34 |
|
% |
|
40 |
|
% |
|
26 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS |
|
(In millions, except tax rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Loss before income taxes |
|
$ |
(79 |
) |
|
$ |
(771 |
) |
|
$ |
(133 |
) |
|
$ |
(1,198 |
) |
|
$ |
(1,775 |
) |
|
Acquisition and restructuring costs |
|
|
5 |
|
|
|
— |
|
|
|
12 |
|
|
|
6 |
|
|
|
34 |
|
|
Gain on bargain purchase |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(11 |
) |
|
|
(10 |
) |
|
Loss on impairment of goodwill and other assets |
|
|
25 |
|
|
|
583 |
|
|
|
18 |
|
|
|
609 |
|
|
|
1,464 |
|
|
(Gain) loss on disposal of assets, net |
|
|
(2 |
) |
|
|
6 |
|
|
|
(1 |
) |
|
|
5 |
|
|
|
(7 |
) |
|
Gain on terminated construction contracts |
|
|
(132 |
) |
|
|
— |
|
|
|
— |
|
|
|
(132 |
) |
|
|
— |
|
|
Loss on retirement of debt |
|
|
2 |
|
|
|
12 |
|
|
|
— |
|
|
|
41 |
|
|
|
3 |
|
|
Adjusted loss before income
taxes |
|
$ |
(181 |
) |
|
$ |
(170 |
) |
|
$ |
(114 |
) |
|
$ |
(680 |
) |
|
$ |
(291 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
$ |
(24 |
) |
|
$ |
54 |
|
|
$ |
110 |
|
|
$ |
59 |
|
|
$ |
228 |
|
|
Acquisition and restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on terminated construction contracts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimates (1) |
|
|
110 |
|
|
|
10 |
|
|
|
(52 |
) |
|
|
150 |
|
|
|
(143 |
) |
|
Adjusted income tax expense
(2) |
|
$ |
86 |
|
|
$ |
64 |
|
|
$ |
58 |
|
|
$ |
209 |
|
|
$ |
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate (3) |
|
|
30.3 |
|
% |
|
(6.9 |
) |
% |
|
(82.6 |
) |
% |
|
(4.9 |
) |
% |
|
(12.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate,
excluding discrete items (4) |
|
|
(47.2 |
) |
% |
|
(37.5 |
) |
% |
|
(50.5 |
) |
% |
|
(30.7 |
) |
% |
|
(29.2 |
) |
% |
|
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(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 allowances on deferred taxes and (c)
other tax liabilities. |
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(2) The three
months ended December 31, 2019 included $30 million of additional
tax expense, reflecting the cumulative effect of an
increase in the annual effective tax rate from the previous
quarter estimate. |
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(3) Our effective
tax rate is calculated as income tax expense divided by income
before income taxes. |
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(4) Our effective
tax rate, excluding discrete items, is calculated 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 tax expense,
excluding gains and losses on sales and similar items pursuant
to the accounting standards for income taxes related to estimating
the annual effective tax rate. |
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