2013-03-02 00:44:21 -
Transocean Ltd. /
Transocean Ltd. Reports Fourth Quarter and Full Year 2012 Results
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
ZUG, SWITZERLAND--(Marketwire - March 1, 2013) - Transocean Ltd. (NYSE: RIG)
(SIX: RIGN)
* Fourth quarter 2012 revenues were $2.326 billion, compared with $2.431
billion in the third quarter 2012;
* Operating and maintenance expenses for the fourth quarter were $1.438
billion, compared with $1.321 billion in the third quarter 2012;
* Fourth quarter 2012 net income attributable to controlling interest was $456
million, which included $126 million of net favorable items. This compares
with the third quarter 2012 net loss attributable to controlling interest of
$381 million, which included $887 million of net unfavorable items;
* Fourth quarter Annual Effective Tax Rate((1)) from continuing operations was
7.8 percent, compared with 15.2 percent in the third quarter 2012;
* Fourth quarter net income attributable to controlling interest was $1.26 per
diluted share. After adjusting for net favorable items, adjusted earnings
from continuing operations were $330 million, or $0.91 per diluted share;
* Cash flows from operating activities were $923 million in the fourth
quarter, compared with $786 million in the third quarter 2012;
* Revenue efficiency((2)) from continuing operations was 94.7 percent in the
fourth quarter, compared with 94.9 percent, in the third quarter
2012. Ultra-Deepwater revenue efficiency was 95.5 percent, compared with
95.9 percent in the prior quarter. Total rig utilization((3)) from
continuing operations was 79 percent in the fourth quarter, compared with
80 percent in the third quarter 2012;
* New contracts associated with continuing operations totaling $2.0 billion
were secured in the Fleet Status Report periods October 17, 2012 through
February 14, 2013. Backlog from continuing operations was $28.8 billion at
February 14, 2013; and
* During the fourth quarter of 2012, the company reclassified its drilling
management services operations in the U.S. Gulf of Mexico to discontinued
operations, reducing other revenues and operating and maintenance expenses
in the period by $51 million and $50 million, respectively.
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported net income attributable
to controlling interest of $456 million, or $1.26 per diluted share, for the
three months ended December 31, 2012. Fourth quarter 2012 results included net
favorable items of $126 million, or $0.35 per diluted share. The results compare
with a net loss attributable to controlling interest of $6.2 billion, or $18.76
per diluted share, for the three months ended December 31, 2011. Fourth quarter
2011 results included net unfavorable items of $6.3 billion, or $19.02 per
diluted share. The net unfavorable items in 2011 were primarily due to a loss on
goodwill impairment of $5.2 billion, or $15.83 per diluted share, related to the
contract drilling services reporting unit; and $1.0 billion, or $3.04 per
diluted share, for estimated loss contingencies associated with the Macondo well
incident.
Fourth quarter 2012 net favorable items, after tax, included the following:
* $101 million, or $0.28 per diluted share, associated with favorable discrete
tax items, and
* $25 million, or $0.07 per diluted share, of income from discontinued
operations primarily associated with the sale of the shallow water rigs.
After consideration of these net favorable items, adjusted earnings from
continuing operations were $330 million, or $0.91 per diluted share. A
reconciliation of the non-GAAP adjusted net income and diluted earnings per
share is included in the accompanying schedules.
Revenues from continuing operations for the three months ended December
31, 2012 were $2.326 billion, compared with revenues of $2.431 billion during
the preceding three month period. Contract drilling revenues decreased $35
million primarily due to the expected increase in out of service time, partly
offset by higher average dayrates. Revenue efficiency from continuing operations
was 94.7 percent for the fourth quarter, compared with 94.9 percent in the third
quarter 2012. Other revenues decreased $70 million to $51 million for the fourth
quarter 2012, compared with $121 million in the prior quarter, primarily due to
lower drilling management services activity.
As expected, operating and maintenance expenses from continuing operations
increased $117 million to $1.438 billion for the fourth quarter of 2012,
compared with $1.321 billion for the prior quarter. Contract drilling expenses
increased $173 million primarily due to higher maintenance and shipyard costs
associated with rigs undergoing surveys and other projects. Costs associated
primarily with the company's drilling management services reporting unit
decreased $56 million due to reduced activity.
General and administrative expenses were $65 million for the fourth quarter
2012, compared with $69 million in the previous quarter.
Transocean's fourth quarter Effective Tax Rate((4) )from continuing operations
was (20.7) percent, compared with 16.5 percent in the third quarter 2012. The
decrease in the Effective Tax Rate was due to changes in estimates primarily
related to settlements of prior years' tax liabilities. Transocean's Annual
Effective Tax Rate from continuing operations for the fourth quarter 2012 was
7.8 percent. This compares with 15.2 percent for the prior quarter. The decrease
was primarily due to changes in the blend of income that is taxed based on gross
revenues versus pre-tax income, the foreign exchange effect of the strengthened
Norwegian krone versus the U.S. dollar, and rig movements between
jurisdictions. Fourth quarter 2012 income tax expense included a favorable
adjustment of $37 million, or $0.10 per diluted share, required to decrease the
2012 Annual Effective Tax Rate to 17.8 percent from 20.5 percent for the nine
months ended September 30, 2012.
Interest expense, net of amounts capitalized, was $180 million, unchanged from
the prior quarter. Capitalized interest for the fourth quarter was $18 million,
compared with $12 million in the third quarter 2012. Interest income decreased
to $13 million in the fourth quarter, compared with $15 million in the third
quarter 2012.
Cash flows from operating activities were $923 million for the fourth quarter,
compared with $786 million for the third quarter 2012. Capital expenditures from
continuing operations were $657 million for the fourth quarter, compared with
$201 million in the third quarter of 2012.
Full Year 2012
For the year ended December 31, 2012, net loss attributable to controlling
interest totaled $219 million, or $0.62 per diluted share. Full year results
included $1.638 billion, or $4.58 per diluted share, of net unfavorable items as
follows:
* $961 million, or $2.70 per diluted share, loss on impairment of assets
included in discontinued operations;
* $756 million, or $2.11 per diluted share, primarily for estimated loss
contingencies associated with the Macondo well incident;
* $135 million, or $0.38 per diluted share, additional charges associated with
the estimated 2011 goodwill impairment of the contract drilling services
reporting unit and the 2012 impairment of the intangible assets of ADTI;
* $66 million, or $0.19 per diluted share, net loss from discontinued
operations, offset by;
* $232 million or $0.67 per diluted share, related to favorable discrete taxes
and other items; and
* $48 million, or $0.13 per diluted share, gain on the sale of two deepwater
floaters.
After consideration of these net unfavorable items, adjusted earnings from
continuing operations for the full year 2012 were $1.419 billion, or $3.96 per
diluted share. A reconciliation of the non-GAAP adjusted net income and diluted
earnings per share is included in the accompanying schedules.
During the fourth quarter of 2012, the company reclassified its drilling
management services operations in the U.S. Gulf of Mexico to discontinued
operations, reducing other revenues and operating and maintenance expenses by
$103 million and $112 million, respectively, for the year ended December
31, 2012.
Interest expense, net of amounts capitalized, was $723 million for the full year
2012, compared with $621 million for the full year 2011. Capitalized interest
for the full year 2012 was $54 million, compared with $39 million in
2011. Interest income was $56 million for the full year 2012, compared with $44
million in 2011.
For the full year 2012, cash flow from operating activities totaled $2.708
billion, compared with $1.825 billion for 2011.
For the year ended December 31, 2011, net loss attributable to controlling
interest totaled $5.754 billion, or $17.88 per diluted share, resulting
primarily from the loss on the goodwill impairment associated with the contract
drilling services reporting unit of $5.2 billion, or $16.15 per diluted share;
and the estimated loss contingencies associated with the Macondo well incident
of $1.0 billion, or $3.10 per diluted share.
Full Year 2013 Guidance Summary
The following table is a summary of the company's full year 2013 guidance for
key income statement and balance sheet items. This information is based on
current expectations and certain management assumptions, and is subject to
change.
Item Range
+-----------------------------------+------------------------------------------+
|Other Revenues * | $400 million - $420 million |
+-----------------------------------+------------------------------------------+
|Fleet Average Revenue Efficiency | Approximately 93 percent |
+-----------------------------------+------------------------------------------+
|Operating and Maintenance Expenses | $5.7 billion - $5.9 billion |
+-----------------------------------+------------------------------------------+
|Depreciation and Amortization | $1.1 billion - $1.2 billion |
+-----------------------------------+------------------------------------------+
|General and Administrative Expenses| $280 million - $300 million |
+-----------------------------------+------------------------------------------+
|Net Interest Expense ** | $540 million - $550 million |
+-----------------------------------+------------------------------------------+
|Annual Effective Tax Rate | Between 18% and 22% |
+-----------------------------------+------------------------------------------+
|Capital Expenditures | Approximately $3.0 billion |
+-----------------------------------+------------------------------------------+
| |Net loss of $15 million to $20 million per|
|Discontinued Operations | quarter |
+-----------------------------------+------------------------------------------+
* Other Revenues includes Drilling Management Services, recharge revenues, and
other miscellaneous revenues.
** Net Interest Expense is net of capitalized interest of approximately $90
million and Interest Income of approximately $50 million.
Forward-Looking Statements
Statements included in this news release including, but not limited to, those
regarding estimates of Transocean's full year 2013 guidance, goodwill or long-
lived asset impairments, estimated loss contingencies associated with the
Macondo well incident, are forward-looking statements that involve certain
assumptions. These statements are based on currently available competitive,
financial, and economic data along with our current operating plans and involve
risks and uncertainties including, but not limited to, market conditions,
Transocean's results of operations, the effect and results of litigation,
assessments and contingencies, and other factors detailed in "Risk Factors" and
elsewhere in Transocean's filings with the Securities and Exchange Commission.
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 outcomes may vary materially from those forecasted or
expected. Transocean disclaims any intention or obligation to update publicly or
revise such statements, whether as a result of new information, future events or
otherwise.
Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. EST, 4:00 p.m. CET,
on Monday, March 4, 2013. To participate, dial +1 913-312-0407 and refer to
confirmation code 8254413 approximately five to 10 minutes prior to the
scheduled start time of the call.
In addition, the conference call will be simultaneously broadcast over the
Internet in a listen-only mode and can be accessed by logging onto Transocean's
website at www.deepwater.com and selecting "Investor Relations." A file
containing four charts that may be discussed during the conference call, titled
"4Q12 Charts," has been posted to Transocean's website and can also be found by
selecting "Investor Relations/Quarterly Toolkit." The conference call may also
be accessed via the Internet at www.CompanyBoardroom.com by typing in
Transocean's New York Stock Exchange trading symbol, "RIG."
A telephonic replay of the conference call should be available after 3:00 p.m.
EST, 9:00 p.m. CET, on March 4, 2013, and can be accessed by dialing
+1 719-457-0820 or +1 888-203-1112 and referring to the confirmation code
8254413. Also, a replay will be available through the Internet and can be
accessed by visiting either of the above-referenced internet addresses. Both
replay options will be available for approximately 30 days.
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,
82 mobile offshore drilling units consisting of 48 High-Specification Floaters
(Ultra-Deepwater, Deepwater and Harsh-Environment drilling rigs), 25 Midwater
Floaters and nine High-Specification Jackups. In addition, we have six Ultra-
Deepwater Drillships and three High-Specification Jackups under construction.
For more information about Transocean, please visit the website
www.deepwater.com.
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 available 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 from 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three months ended Year ended
December 31, December 31,
---------------------------- -----------------------
2012 2011 2012 2011
--------- ---------------- ---------- ----------
Operating revenues
Contract drilling
revenues $ 2,275 $ 2,011 $ 8,773 $ 7,407
Other revenues 51 122 423 620
--------- ---------------- ---------- ----------
2,326 2,133 9,196 8,027
--------- ---------------- ---------- ----------
Costs and expenses
Operating and
maintenance 1,438 2,355 6,106 6,179
Depreciation and
amortization 278 290 1,123 1,109
General and
administrative 65 88 282 288
--------- ---------------- ---------- ----------
1,781 2,733 7,511 7,576
--------- ---------------- ---------- ----------
Loss on impairment -- (5,201 ) (140 ) (5,201 )
Gain (loss) on disposal
of assets, net (4 ) (10 ) 36 (12 )
--------- ---------------- ---------- ----------
Operating income 541 (5,811 ) 1,581 (4,762 )
--------- ---------------- ---------- ----------
Other income (expense),
net
Interest income 13 17 56 44
Interest expense, net
of amounts
capitalized (180 ) (178 ) (723 ) (621 )
Gain on retirement of
debt -- -- 2 --
Other, net (16 ) (3 ) (50 ) (99 )
--------- ---------------- ---------- ----------
(183 ) (164 ) (715 ) (676 )
--------- ---------------- ---------- ----------
Income (loss) from
continuing operations
before income tax
expense 358 (5,975 ) 866 (5,438 )
Income tax expense
(benefit) (74 ) 119 50 324
--------- ---------------- ---------- ----------
Income (loss) from
continuing operations 432 (6,094 ) 816 (5,762 )
Income (loss) from
discontinued
operations, net of tax 25 (28 ) (1,027 ) 85
--------- ---------------- ---------- ----------
Net income (loss) 457 (6,122 ) (211 ) (5,677 )
Net income attributable
to noncontrolling
interest 1 43 8 77
--------- ---------------- ---------- ----------
Net income (loss)
attributable to
controlling interest $ 456 $ (6,165 ) $ (219 ) $ (5,754 )
--------- ---------------- ---------- ----------
Earnings (loss) per
share-basic
Earnings (loss) from
continuing operations $ 1.19 $ (18.67 ) $ 2.27 $ (18.14 )
Earnings (loss) from
discontinued
operations 0.07 (0.09 ) (2.89 ) 0.26
--------- ---------------- ---------- ----------
Earnings (loss) per
share $ 1.26 $ (18.76 ) $ (0.62 ) $ (17.88 )
--------- ---------------- ---------- ----------
Earnings (loss) per
share-diluted
Earnings (loss) from
continuing operations $ 1.19 $ (18.67 ) $ 2.27 $ (18.14 )
Earnings (loss) from
discontinued
operations 0.07 (0.09 ) (2.89 ) 0.26
--------- ---------------- ---------- ----------
Earnings (loss) per
share $ 1.26 $ (18.76 ) $ (0.62 ) $ (17.88 )
--------- ---------------- ---------- ----------
Weighted-average shares
outstanding
Basic 359 329 356 322
Diluted 360 329 356 322
TRANSOCEAN LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
December 31,
-------------------------------
2012 2011
------------ ----------------
Assets
Cash and cash equivalents $ 5,134 $ 4,017
Accounts receivable, net
Trade 1,940 2,049
Other 260 127
Materials and supplies, net 610 529
Assets held for sale 179 26
Deferred income taxes, net 142 142
Other current assets 382 646
------------ ----------------
Total current assets 8,647 7,536
------------ ----------------
Property and equipment 26,967 24,833
Property and equipment of consolidated
variable interest entities 1,092 2,252
Less accumulated depreciation 7,179 6,297
------------ ----------------
Property and equipment, net 20,880 20,788
------------ ----------------
Goodwill 2,987 3,217
Other assets 1,741 3,491
------------ ----------------
Total assets $ 34,255 $ 35,032
------------ ----------------
Liabilities and equity
Accounts payable $ 1,047 $ 880
Accrued income taxes 116 86
Debt due within one year 1,339 1,942
Debt of consolidated variable interest
entities due within one year 28 245
Other current liabilities 2,933 2,375
------------ ----------------
Total current liabilities 5,463 5,528
------------ ----------------
Long-term debt 10,929 10,756
Long-term debt of consolidated variable
interest entities 163 593
Deferred income taxes, net 366 487
Other long-term liabilities 1,604 1,925
------------ ----------------
Total long-term liabilities 13,062 13,761
------------ ----------------
Commitments and contingencies
Redeemable noncontrolling interest -- 116
Shares, CHF 15.00 par value, 402,282,355
authorized, 167,617,649 conditionally
authorized at December 31, 2012 and
2011; 373,830,649 and 365,135,298 issued at
December 31, 2012 and 2011, respectively; and
359,505,251 and 349,805,793 outstanding at
December 31, 2012 and 2011, respectively 5,130 4,982
Additional paid-in capital 7,521 7,211
Treasury shares, at cost, 2,863,267 held at
December 31, 2012 and 2011 (240 ) (240 )
Retained earnings 3,855 4,180
Accumulated other comprehensive loss (521 ) (496 )
------------ ----------------
Total controlling interest shareholders'
equity 15,745 15,637
------------ ----------------
Noncontrolling interest (15 ) (10 )
------------ ----------------
Total equity 15,730 15,627
------------ ----------------
Total liabilities and equity $ 34,255 $ 35,032
------------ ----------------
TRANSOCEAN LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three months ended Twelve months ended
December 31, December 31,
----------------------------- -----------------------
2012 2011 2012 2011
---------------- ---------- ---------- ----------
Cash flows from
operating activities
Net income (loss) $ 457 $ (6,122 ) $ (211 ) $ (5,677 )
Adjustments to
reconcile to net
cash provided by
operating activities
Amortization of
drilling contract
intangibles (10 ) (13 ) (42 ) (45 )
Depreciation and
amortization 278 290 1,123 1,109
Depreciation and
amortization of
assets in
discontinued
operations -- 82 183 342
Share-based
compensation
expense 25 21 97 95
Loss on impairment -- 5,201 140 5,201
Loss on impairment
of assets in
discontinued
operations 3 6 986 38
(Gain) loss on
disposal of
assets, net 4 11 (36 ) 12
Gain on disposal
of assets in
discontinued
operations, net (12 ) (8 ) (82 ) (183 )
Amortization of
debt issue costs,
discounts and
premiums, net 16 30 68 125
Deferred income
taxes (29 ) (92 ) (133 ) (62 )
Other, net 25 59 72 144
Changes in
deferred revenue,
net 15 (23 ) (54 ) (16 )
Changes in
deferred expenses,
net 55 5 85 (61 )
Changes in
operating assets
and liabilities 96 1,156 512 803
---------------- ---------- ---------- ----------
Net cash provided by
operating activities 923 603 2,708 1,825
---------------- ---------- ---------- ----------
Cash flows from
investing activities
Capital expenditures (657 ) (341 ) (1,303 ) (974 )
Capital expenditures
for discontinued
operations (31 ) (9 ) (106 ) (46 )
Investment in
business
combination, net of
cash acquired -- (1,047 ) -- (1,246 )
Proceeds from
disposal of assets,
net 2 2 191 14
Proceeds from
disposal of assets
in discontinued
operations, net 593 94 789 447
Payment for
settlement of
forward exchange
contract -- -- -- (78 )
Other, net 8 14 40 (13 )
---------------- ---------- ---------- ----------
Net cash used in
investing activities (85 ) (1,287 ) (389 ) (1,896 )
---------------- ---------- ---------- ----------
Cash flows from
financing activities
Changes in short-
term borrowings, net -- (146 ) (260 ) (88 )
Proceeds from debt -- 2,934 1,493 2,939
Repayments of debt (1,698 ) (2,137 ) (2,282 ) (2,409 )
Proceeds from
restricted cash
investments 13 479 311 479
Deposits to
restricted cash
investments (9 ) (523 ) (167 ) (523 )
Proceeds from share
issuance, net -- 1,211 -- 1,211
Distribution of
qualifying
additional paid-in
capital -- (255 ) (278 ) (763 )
Other, net (11 ) (108 ) (19 ) (112 )
---------------- ---------- ---------- ----------
Net cash provided by
(used in) financing
activities (1,705 ) 1,455 (1,202 ) 734
---------------- ---------- ---------- ----------
Net increase
(decrease) in cash and
cash equivalents (867 ) 771 1,117 663
Cash and cash
equivalents at
beginning of period 6,001 3,246 4,017 3,354
---------------- ---------- ---------- ----------
Cash and cash
equivalents at end of
period $ 5,134 $ 4,017 $ 5,134 $ 4,017
---------------- ---------- ---------- ----------
TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS
Operating Revenues (in millions)
-------------------------------------------------------------
Years ended
Three months ended December 31,
------------------------------------- -----------------------
December September December
31, 2012 30, 2012 31, 2011 2012 2011
----------- ------------ ------------ ------------ ----------
Contract Drilling
Revenues
High-
Specification
Floaters:
Ultra
Deepwater
Floaters $ 1,198 $ 1,213 $ 1,066 $ 4,643 $ 3,945
Deepwater
Floaters 275 306 256 1,152 969
Harsh
Environment
Floaters 220 247 285 985 806
----------- ------------ ------------ ------------ ----------
Total High-
Specification
Floaters 1,693 1,766 1,607 6,780 5,720
Midwater
Floaters 464 424 333 1,573 1,462
High-
Specification
Jackups 108 110 58 378 176
----------- ------------ ------------ ------------ ----------
Total Contract
Drilling Revenues
- continuing
operations 2,265 2,300 1,998 8,731 7,358
----------- ------------ ------------ ------------ ----------
Contract
Intangible
Revenue 10 10 13 42 45
Other Revenues
Client
Reimbursable
Revenues 40 46 36 162 142
Integrated
Services and
Other 3 - 13 10 53
Drilling
Management
Services 8 75 73 251 429
----------- ------------ ------------ ------------ ----------
Total Other
Revenues 51 121 122 423 624
----------- ------------ ------------ ------------ ----------
Total Revenue
from continuing
operations $ 2,326 $ 2,431 $ 2,133 $ 9,196 $ 8,027
----------- ------------ ------------ ------------ ----------
Average Daily Revenue ((1))
-------------------------------------------------------------
Years ended
Three months ended December 31,
------------------------------------- -----------------------
December September December
31, 2012 30, 2012 31, 2011 2012 2011
----------- ------------ ------------ ------------ ----------
Continuing
operations:
High-
Specification
Floaters:
Ultra
Deepwater
Floaters $ 514,300 $ 515,000 $ 490,200 $ 500,300 $ 461,000
Deepwater
Floaters 337,100 356,300 315,200 338,200 340,000
Harsh
Environment
Floaters 476,400 421,000 463,000 444,500 428,400
----------- ------------ ------------ ------------ ----------
Total High-
Specification
Floaters 469,300 464,600 446,100 455,000 430,400
Midwater
Floaters 280,300 264,500 264,800 262,200 286,400
High-
Specification
Jackups 162,400 154,600 107,300 141,300 108,500
----------- ------------ ------------ ------------ ----------
Total Drilling
Fleet: $ 382,000 $ 376,200 $ 369,900 $ 370,300 $ 367,600
----------- ------------ ------------ ------------ ----------
(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.
TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS (continued)
Utilization ((2))
--------------------------------------------------------
Years ended
Three months ended December 31,
-------------------------------------- ---------------
December September December
31, 2012 30, 2012 31, 2011 2012 2011
---------- ----------- ----------- ------ ------
Continuing
operations:
High-
Specification
Floaters:
Ultra
Deepwater
Floaters 94 % 95 % 88 % 94 % 88 %
Deepwater
Floaters 64 % 63 % 55 % 61 % 49 %
Harsh
Environment
Floaters 72 % 91 % 96 % 87 % 94 %
---------- ----------- ----------- ------ ------
Total High-
Specification
Floaters 82 % 85 % 78 % 83 % 76 %
Midwater
Floaters 72 % 70 % 57 % 66 % 59 %
High-
Specification
Jackups 81 % 86 % 74 % 84 % 57 %
---------- ----------- ----------- ------ ------
Total Drilling
Fleet 79 % 80 % 72 % 78 % 69 %
---------- ----------- ----------- ------ ------
(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
------------------------------------------------------------------------------------
FY
FY FY
4Q 2012 3Q 2012 2Q 2012 1Q 2012 4Q 2011 2012
2011 2010
--------- --------- --------- --------- --------- ------ ------
------
Ultra
Deepwater 95.5 % 95.9 % 92.4 % 89.0 % 89.6 % 93.2 % 87.9 %
89.0 %
Deepwater 90.9 % 96.1 % 94.5 % 83.1 % 89.7 % 91.4 %
90.7 % 91.5 %
Harsh
Environment
Floaters 97.3 % 95.4 % 97.9 % 97.8 % 98.0 % 97.1 % 97.4 %
96.0 %
Midwater
Floaters 93.9 % 90.4 % 88.2 % 90.6 % 95.4 % 90.9 % 93.4 %
92.8 %
High
Specification
Jackups 95.2 % 97.2 % 94.3 % 92.1 % 93.4 % 95.0 % 94.8 %
94.7 %
--------- --------- --------- --------- --------- ------ ------
------
Total Fleet 94.7 % 94.9 % 92.7 % 89.6 % 91.8 % 93.0 %
90.5 % 91.2 %
--------- --------- --------- --------- --------- ------ ------
------
(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 percentages)
Three months ended Years ended
------------------------------------- -----------------------
December December December December
31, September 31, 31, 31,
2012 30, 2012 2011 2012 2011
---------- ----------- ---------- ---------- ----------
Income (loss)
from continuing
operations
before income
taxes $ 358 $ 638 $ (5,975 ) $ 866 $ (5,438 )
Add back
(subtract):
Litigation
matters -- 8 1,000 758 1,000
Acquisition
costs -- -- 17 1 22
Gain on
disposal of
other assets,
net -- (51 ) -- (51 ) --
Loss on
impairment of
goodwill and
other assets -- -- 5,201 140 5,201
Loss on
redeemed
noncontrolling
interest -- -- -- 25 --
Loss on
forward
exchange
contract -- -- -- -- 78
Loss on
marketable
security -- -- 13 -- 13
Gain on
retirement of
debt -- (2 ) -- (2 ) --
Other, net -- -- -- --
6
---------- ----------- ---------- ---------- ----------
Adjusted income
from continuing
operations
before income
taxes 358 593 256 1,737 882
Income tax
(benefit)
expense from
continuing
operations (74 ) 105 119 50 324
Add back
(subtract):
Litigation
matters -- 2 -- 2 --
Gain on
disposal of
other
assets, net -- (3 ) -- (3 ) --
Loss on
impairment
of goodwill
and other
assets -- -- -- 5 --
Changes in
estimates
(1) 102 (14 ) 7 256 (14 )
Other, net -- -- -- --
2
---------- ----------- ---------- ---------- ----------
Adjusted income
tax expense from
continuing
operations (2) $ 28 $ 90 $ 126 $ 310 $ 312
---------- ----------- ---------- ---------- ----------
Effective Tax
Rate (3) -20.7 % 16.5 % -2.0 % 5.8 % -6.0 %
Annual Effective
Tax Rate (4) 7.8 % 15.2 % 49.2 % 17.8 % 35.4 %
(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.
(2) The three months and year ended December 31, 2012 includes $(37) million of additional
tax
expense (benefit) reflecting the catch-up effect of an increase (decrease) in the annual
effective tax rate from the previous quarter estimate.
(3) Effective Tax Rate is income tax expense divided by income before income taxes.
(4) Annual Effective Tax Rate is income tax expense excluding various discrete items (such
as changes
in estimates and tax on items excluded from income before income taxes) divided by
income before
income taxes excluding gains and losses on sales and similar items pursuant to the
accounting
standards for income taxes and estimating the annual effective tax rate.
Transocean Ltd. and Subsidiaries
Non-GAAP Financial Measures and Reconciliations
Adjusted Net Income and Diluted Earnings Per Share
(in US$ millions, except per share data)
YTD QTD YTD QTD YTD
QTD QTD
12/31/ 12/31/ 09/30/ 09/30/ 06/30/ 06/30/
03/31/
12 12 12 12 12 12
12
---------- ---------- --------- --------- --------- ---------
---------
Adjusted Net
Income
Net income (loss)
attributable to
controlling
interest, as
reported $ (219 ) $ 456 $ (675 ) $ (381 ) $ (294 ) $ (304 )
$ 10
Add back
(subtract):
Litigation
matters 756 - 756 6 750
750 -
Loss on
impairment of
goodwill and
other assets 135 - 135 - 135
- 135
Gain on
disposal of
assets, net (48 ) - (48 ) (48 ) -
- -
Gain on
retirement of
debt (2 ) - (2 ) (2 ) -
- -
Loss on
redeemed
noncontrolling
interest 25 - 25 - 25
14 11
Loss on
impairment of
discontinued
operations 961 2 959 881 78
12 66
(Gain) loss on
sale of
discontinued
operations (69 ) (1 ) (68 ) 2 (70 )
(72 ) 2
(Gain) loss
from
discontinued
operations 135 (26 ) 161 33 128
59 69
Discrete tax
items and
other, net (255 ) (101 ) (154 ) 15 (169 )
(141 ) (28 )
---------- ---------- --------- --------- --------- ---------
---------
Net income, as
adjusted $ 1,419 $ 330 $ 1,089 $ 506 $ 583 $ 318
$ 265
---------- ---------- --------- --------- --------- ---------
---------
Diluted Earnings
Per Share:
Diluted earnings
(loss) per share,
as reported $ (0.62 ) $ 1.26 $ (1.90 ) $ (1.06 ) $ (0.84 ) $ (0.86 )
$ 0.03
Add back
(subtract):
Litigation
matters 2.11 - 2.12 0.02 2.12
2.11 -
Loss on
impairment of
goodwill and
other assets 0.38 - 0.38 - 0.38
- 0.38
Gain on
disposal of
assets, net (0.13 ) - (0.13 ) (0.13 ) -
- -
Gain on
retirement of
debt (0.01 ) - (0.01 ) (0.01 ) -
- -
Loss on
redeemed
noncontrolling
interest 0.07 - 0.07 - 0.07
0.04 0.03
Loss on
impairment of
discontinued
operations 2.70 - 2.70 2.45 0.23
0.03 0.19
(Gain) loss on
sale of
discontinued
operations (0.19 ) - (0.19 ) 0.01 (0.20 )
(0.20 ) 0.01
(Gain) loss
from
discontinued
operations 0.38 (0.07 ) 0.45 0.09 0.36
0.17 0.19
Discrete tax
items and
other, net (0.73 ) (0.28 ) (0.44 ) 0.03 (0.48 )
(0.40 ) (0.08 )
---------- ---------- --------- --------- --------- ---------
---------
Diluted earnings
per share, as
adjusted $ 3.96 $ 0.91 $ 3.05 $ 1.40 $ 1.64 $ 0.89
$ 0.75
---------- ---------- --------- --------- --------- ---------
---------
YTD QTD YTD QTD YTD
QTD QTD
12/31/ 12/31/ 09/30/ 09/30/ 06/30/ 06/30/
03/31/
11 11 11 11 11 11
11
---------- ---------- --------- --------- --------- ---------
---------
Adjusted Net
Income
Net income (loss)
attributable to
controlling
interest, as
reported $ (5,754 ) $ (6,165 ) $ 411 $ (32 ) $ 443 $ 124
$ 319
Add back
(subtract):
Litigation
matters 1,000 1,000 - - -
- -
Acquisition
costs 22 17 5 5 -
- -
Loss on
impairment of
goodwill and
other assets 5,201 5,201 - - -
- -
Loss on
marketable
security 13 13 - - -
- -
Loss on
forward
exchange
contract 78 - 78 78 -
- -
Loss on
impairment of
discontinued
operations 34 4 30 5 25
25 -
(Gain) loss on
sale of
discontinued
operations (214 ) (24 ) (190 ) (14 ) (176 )
2 (178 )
Loss from
discontinued
operations 95 48 47 11 36
10 26
Discrete tax
items and
other, net 19 (8 ) 27 (6 ) 33
13 20
---------- ---------- --------- --------- --------- ---------
---------
Net income, as
adjusted $ 494 $ 86 $ 408 $ 47 $ 361 $ 174
$ 187
---------- ---------- --------- --------- --------- ---------
---------
Diluted Earnings
Per Share:
Diluted earnings
(loss) per share,
as reported $ (17.88 ) $ (18.76 ) $ 1.28 $ (0.10 ) $ 1.38 $ 0.38
$ 0.99
Add back
(subtract):
Litigation
matters 3.10 3.04 - - -
- -
Acquisition
costs 0.07 0.05 0.02 0.02 -
- -
Loss on
impairment of
goodwill and
other assets 16.15 15.83 - - -
- -
Loss on
marketable
security 0.04 0.04 - - -
- -
Loss on
forward
exchange
contract 0.24 - 0.26 0.25 -
- -
Loss on
impairment of
discontinued
operations 0.11 0.01 0.11 0.02 0.09
0.08 -
(Gain) loss on
sale of
discontinued
operations (0.66 ) (0.07 ) (0.62 ) (0.04 ) (0.56 )
0.01 (0.56 )
Loss from
discontinued
operations 0.29 0.15 0.16 0.03 0.11
0.03 0.08
Discrete tax
items and
other, net 0.06 (0.03 ) 0.06 (0.03 ) 0.10
0.04 0.07
---------- ---------- --------- --------- --------- ---------
---------
Diluted earnings
per share, as
adjusted $ 1.52 $ 0.26 $ 1.27 $ 0.15 $ 1.12 $ 0.54
$ 0.58
---------- ---------- --------- --------- --------- ---------
---------
Analyst Contacts:
Thad Vayda
+1 713-232-7551
Diane Vento
+1 713-232-8015
Media Contact:
Guy A. Cantwell
+1 713-232-7647
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Transocean Ltd. via Thomson Reuters ONE
[HUG#1682591]
