- Contract drilling revenues were $918 million,
compared to $1.11 billion in the first quarter of 2016; Other
revenues were $25 million, compared with $230 million in the prior
quarter;
- Operating and maintenance expense was $500
million, down from $665 million in the prior period;
- Net income attributable to controlling interest
was $77 million, $0.21 per diluted share, compared with $249
million, $0.68 per diluted share, in the first quarter of
2016;
- Adjusted net income was $64 million, $0.17 per
diluted share, excluding $13 million of net favorable items. This
compares with $254 million, $0.69 per diluted share, in the prior
quarter, excluding $5 million of net unfavorable items;
- The Annual Effective Tax Rate(1) was
16.3 percent, compared with 22.8 percent in the first quarter of
2016;
- Cash flows from operating activities were $207
million, compared with $631 million in the previous quarter;
- Revenue efficiency(2) was 96.5
percent, up from 95.0 percent in the first quarter of 2016;
and
- Contract backlog was $13.7 billion as of the July
2016 Fleet Status Report.
ZUG, SWITZERLAND-August 3, 2016-Transocean Ltd.
(NYSE: RIG) today reported net income attributable to controlling
interest of $77 million, $0.21 per diluted share, for the three
months ended June 30, 2016. Second quarter 2016 results included
net favorable items of $13 million, $0.04 per diluted share, as
follows:
- $38 million, $0.10 per diluted share, in net
gains on early debt retirements; and
- $5 million, $0.01 per diluted share, associated
with gains on rig disposals and discontinued operations.
These net favorable items were partially offset
by:
- $18 million, $0.04 per diluted share, related to
the loss on impairment of assets;
- $7 million, $0.02 per diluted share, in
restructuring costs including employee severance; and
- $5 million, $0.01 per diluted share, in discrete
tax expense.
After consideration of these net favorable items,
second quarter 2016 adjusted net income was $64 million, or $0.17
per diluted share.
For the three months ended June 30, 2015, the
company reported a net income attributable to controlling interest
of $342 million, or $0.93 per diluted share. The second quarter of
2015 included net unfavorable items of $66 million, $0.18 per
diluted share, associated with losses on the impairment of the
midwater floater asset group and other assets classified as held
for sale, partially offset by Macondo-related settlements and
insurance recoveries. After consideration of these net unfavorable
items, adjusted net income was $408 million, or $1.11 per diluted
share.
Contract drilling revenues for the three months
ended June 30, 2016, decreased $193 million sequentially to $918
million due primarily to lower rig utilization(3) and
dayrates. The decrease was partially offset by contributions from
the newbuild, ultra-deepwater drillships Deepwater
Proteus and Deepwater Thalassa and the
reactivated harsh-environment floater Henry
Goodrich, and higher revenue efficiency.
Other revenues decreased $205 million sequentially
to $25 million due primarily to significant first quarter 2016
early contract termination fees.
Operating and maintenance expense was $500
million, down from $665 million in the previous quarter. The
decrease was due largely to reduced activity and lower stacking
costs. The quarter was also favorably impacted by a decline in
reactivation costs associated with the Henry
Goodrich, and lower shore-based expenses.
General and administrative expense was $42
million, down from $43 million in the first quarter of 2016.
Depreciation expense was $225 million, compared
with $217 million in the previous quarter. The increase was
primarily associated with the commencement of operations of the
newbuild drillships.
The Effective Tax Rate(4) was 16.2
percent, down from 22.4 percent in the first quarter of 2016. The
Annual Effective Tax Rate was 16.3 percent, down from 22.8 percent
in the previous quarter. The decrease was due largely to changes in
adjusted pre-tax income and the mix of operating results from
certain jurisdictions. As a result, income tax expense included a
benefit of $22 million, $0.06 per diluted share, to reflect the
decrease in the Annual Effective Tax Rate to 21.5 percent for the
six months ended June 30, 2016, from 22.8 percent in the previous
quarter.
Interest expense, net of amounts capitalized, was
$95 million, compared with $89 million in the prior quarter.
Capitalized interest decreased $9 million sequentially to $40
million due primarily to the commencement of operations of the
newbuild drillships. Interest income was $4 million, compared with
$6 million in the prior quarter.
Cash flows from operating activities were $207
million, compared with $631 million in the prior quarter. The
decline was largely related to early contract termination fees that
primarily impacted the first quarter of 2016.
Capital expenditures totaled $458 million, up from
$368 million in the prior quarter. The increase was primarily
associated with the company's newbuild program. Capital
expenditures in the second quarter of 2016 included shipyard
payments primarily on the contracted newbuild, ultra-deepwater
drillships Deepwater Pontus and Deepwater Conqueror.
"I am very pleased with the company's second
quarter operating and financial results," said President and Chief
Executive Officer Jeremy Thigpen. "Thanks to the continued focus
and commitment of the entire Transocean team, we delivered
excellent safety and uptime performance for our customers,
resulting in 96.5 percent quarterly revenue efficiency. We also
continued to improve our cost structure through the streamlining of
both our organization and our processes."
"In addition to the strong operating results, we
further strengthened our balance sheet, and enhanced our liquidity
position, by closing a $1.25 billion note offering and simultaneous
tender to repurchase debt," said Executive Vice President and Chief
Financial Officer Mark Mey. "We also announced the merger agreement
to acquire the remaining interest in Transocean Partners which will
improve our liquidity position going forward."
Additionally, Thigpen said, "though we continue to
face market headwinds, the combination of our industry-leading
backlog, exceptional operating performance, and solid financial
position ensures that we will maintain our position as the
industry's leading deepwater driller."
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.
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 60 mobile offshore drilling units
consisting of 29 ultra-deepwater floaters, seven harsh-environment
floaters, four deepwater floaters, 10 midwater floaters and 10
high-specification jackups. In addition, the company has five
ultra-deepwater drillships and five high-specification jackups
under construction or under contract to be constructed.
For more information about Transocean, please
visit: www.deepwater.com.
Conference Call
Information
Transocean will conduct a teleconference starting
at 9 a.m. EDT, 3 p.m. CEST, on Thursday, August 4, 2016, to discuss
the results. To participate, dial +1 913-981-5519 and refer to
confirmation code 3940977 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 on
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 p.m. EDT, 6 p.m. CEST, on August 4, 2016. The replay,
which will be archived for approximately 30 days, can be accessed
at +1 719-457-0820, passcode 3940977, and PIN 9876. 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 benefits, effects or
results of the anticipated merger with Transocean Partners LLC, the
failure to obtain Transocean Partners LLC unitholder approval for
the merger and the satisfaction of other conditions to the
consummation of the merger 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, 2015, 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) 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 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. 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."
Analyst Contacts:
Bradley Alexander
+1 713-232-7515
Diane Vento
+1 713-232-8015
Media Contact:
Pam Easton
+1 713-232-7647
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
918 |
|
$ |
1,777 |
|
$ |
2,029 |
|
$ |
3,777 |
|
Other revenues |
|
|
25 |
|
|
107 |
|
|
255 |
|
|
150 |
|
|
|
|
943 |
|
|
1,884 |
|
|
2,284 |
|
|
3,927 |
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
500 |
|
|
197 |
|
|
1,165 |
|
|
1,281 |
|
Depreciation |
|
|
225 |
|
|
249 |
|
|
442 |
|
|
540 |
|
General and administrative |
|
|
42 |
|
|
44 |
|
|
85 |
|
|
90 |
|
|
|
|
767 |
|
|
490 |
|
|
1,692 |
|
|
1,911 |
|
Loss on impairment |
|
|
(20) |
|
|
(890) |
|
|
(23) |
|
|
(1,826) |
|
Gain (loss) on disposal of assets, net |
|
|
(2) |
|
|
2 |
|
|
(1) |
|
|
(5) |
|
Operating income |
|
|
154 |
|
|
506 |
|
|
568 |
|
|
185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
4 |
|
|
6 |
|
|
10 |
|
|
12 |
|
Interest expense, net of amounts capitalized |
|
|
(95) |
|
|
(120) |
|
|
(184) |
|
|
(236) |
|
Gain
on retirement of debt |
|
|
38 |
|
|
- |
|
|
38 |
|
|
- |
|
Other, net |
|
|
3 |
|
|
(5) |
|
|
2 |
|
|
42 |
|
|
|
|
(50) |
|
|
(119) |
|
|
(134) |
|
|
(182) |
|
Income from continuing operations before income tax
expense |
|
|
104 |
|
|
387 |
|
|
434 |
|
|
3 |
|
Income tax expense |
|
|
17 |
|
|
40 |
|
|
91 |
|
|
123 |
|
Income (loss) from continuing
operations |
|
|
87 |
|
|
347 |
|
|
343 |
|
|
(120) |
|
Income (loss) from discontinued operations, net of
tax |
|
|
1 |
|
|
1 |
|
|
- |
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
88 |
|
|
348 |
|
|
343 |
|
|
(121) |
|
Net income attributable to noncontrolling interest |
|
|
11 |
|
|
6 |
|
|
17 |
|
|
20 |
|
Net income (loss) attributable to
controlling interest |
|
$ |
77 |
|
$ |
342 |
|
$ |
326 |
|
$ |
(141) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
|
$ |
0.21 |
|
$ |
0.93 |
|
$ |
0.88 |
|
$ |
(0.39) |
|
Earnings (loss) from discontinued operations |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Earnings (loss) per share |
|
$ |
0.21 |
|
$ |
0.93 |
|
$ |
0.88 |
|
$ |
(0.39) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
|
$ |
0.21 |
|
$ |
0.93 |
|
$ |
0.88 |
|
$ |
(0.39) |
|
Earnings (loss) from discontinued operations |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Earnings (loss) per share |
|
$ |
0.21 |
|
$ |
0.93 |
|
$ |
0.88 |
|
$ |
(0.39) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
365 |
|
|
363 |
|
|
365 |
|
|
363 |
|
Diluted |
|
|
365 |
|
|
363 |
|
|
365 |
|
|
363 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,153 |
|
$ |
2,339 |
|
Accounts receivable, net of allowance for doubtful
accounts
of less than $1 at June 30, 2016 and December 31, 2015 |
|
|
936 |
|
|
1,379 |
|
Materials and supplies, net of allowance for obsolescence
of $159 and $148 at June 30, 2016 and December 31, 2015,
respectively |
|
|
597 |
|
|
635 |
|
Assets held for sale |
|
|
2 |
|
|
8 |
|
Restricted cash |
|
|
360 |
|
|
340 |
|
Other current assets |
|
|
81 |
|
|
84 |
|
Total current assets |
|
|
4,129 |
|
|
4,785 |
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
26,977 |
|
|
26,274 |
|
Less accumulated depreciation |
|
|
(5,888) |
|
|
(5,456) |
|
Property and equipment, net |
|
|
21,089 |
|
|
20,818 |
|
Deferred income taxes, net |
|
|
256 |
|
|
316 |
|
Other assets |
|
|
365 |
|
|
410 |
|
Total assets |
|
$ |
25,839 |
|
$ |
26,329 |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
279 |
|
$ |
448 |
|
Accrued income taxes |
|
|
57 |
|
|
82 |
|
Debt due within one year |
|
|
1,063 |
|
|
1,093 |
|
Other current liabilities |
|
|
800 |
|
|
1,046 |
|
Total current liabilities |
|
|
2,199 |
|
|
2,669 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
7,155 |
|
|
7,397 |
|
Deferred income taxes, net |
|
|
300 |
|
|
339 |
|
Other long-term liabilities |
|
|
1,027 |
|
|
1,108 |
|
Total long-term liabilities |
|
|
8,482 |
|
|
8,844 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
18 |
|
|
8 |
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value, 393,397,220 authorized, 167,617,649
conditionally authorized, 370,967,382 issued and 365,389,695
outstanding at June 30, 2016 and CHF 15.00 par value, 396,260,487
authorized, 167,617,649 conditionally authorized, 373,830,649
issued and 364,035,397 outstanding at December 31, 2015 |
|
|
34 |
|
|
5,193 |
|
Additional paid-in capital |
|
|
10,680 |
|
|
5,739 |
|
Treasury shares, at cost, 2,863,267 held at
December 31, 2015 |
|
|
- |
|
|
(240) |
|
Retained earnings |
|
|
4,466 |
|
|
4,140 |
|
Accumulated other comprehensive loss |
|
|
(343) |
|
|
(334) |
|
Total controlling interest shareholders' equity |
|
|
14,837 |
|
|
14,498 |
|
Noncontrolling interest |
|
|
303 |
|
|
310 |
|
Total equity |
|
|
15,140 |
|
|
14,808 |
|
Total liabilities and equity |
|
$ |
25,839 |
|
$ |
26,329 |
|
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
Six months
ended |
|
|
June 30, |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Net
income (loss) |
$ |
343 |
|
$ |
(121) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation |
|
442 |
|
|
540 |
|
Share-based compensation expense |
|
26 |
|
|
33 |
|
Loss
on impairment |
|
23 |
|
|
1,826 |
|
Loss
on disposal of assets, net |
|
1 |
|
|
5 |
|
Gain
on retirement of debt |
|
(38) |
|
|
- |
|
Deferred income tax expense (benefit) |
|
14 |
|
|
(90) |
|
Other,
net |
|
7 |
|
|
21 |
|
Changes in deferred revenues, net |
|
(28) |
|
|
(107) |
|
Changes in deferred costs, net |
|
54 |
|
|
116 |
|
Changes in operating assets and liabilities |
|
(6) |
|
|
(386) |
|
Net cash provided by operating activities |
|
838 |
|
|
1,837 |
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
Capital expenditures |
|
(826) |
|
|
(396) |
|
Proceeds from disposal of assets, net |
|
15 |
|
|
33 |
|
Proceeds from repayment of loans receivable |
|
- |
|
|
15 |
|
Net cash used in investing activities |
|
(811) |
|
|
(348) |
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
Repayments of debt |
|
(251) |
|
|
(69) |
|
Deposit to cash account restricted for financing activities |
|
(24) |
|
|
- |
|
Proceeds from cash investments restricted for financing
activities |
|
73 |
|
|
57 |
|
Distributions of qualifying additional paid-in capital |
|
- |
|
|
(327) |
|
Distributions to holders of noncontrolling interest |
|
(16) |
|
|
(14) |
|
Other, net |
|
5 |
|
|
(2) |
|
Net cash used in financing activities |
|
(213) |
|
|
(355) |
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
(186) |
|
|
1,134 |
|
Cash and cash equivalents at beginning of period |
|
2,339 |
|
|
2,635 |
|
Cash and cash equivalents at end of period |
$ |
2,153 |
|
$ |
3,769 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS
|
Operating Revenues (in millions) |
|
Three months ended |
|
|
Six months ended |
|
June 30,
2016 |
|
|
March 31,
2016 |
|
|
June 30,
2015 |
|
|
June 30,
2016 |
|
|
June 30,
2015 |
Contract drilling revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters |
$ |
556 |
|
|
$ |
621 |
|
|
$ |
853 |
|
|
$ |
1,177 |
|
|
$ |
1,785 |
Harsh Environment Floaters |
|
100 |
|
|
|
181 |
|
|
|
241 |
|
|
|
281 |
|
|
|
502 |
Deepwater Floaters |
|
51 |
|
|
|
85 |
|
|
|
162 |
|
|
|
136 |
|
|
|
381 |
Midwater Floaters |
|
133 |
|
|
|
138 |
|
|
|
381 |
|
|
|
271 |
|
|
|
810 |
High-Specification Jackups |
|
74 |
|
|
|
82 |
|
|
|
136 |
|
|
|
157 |
|
|
|
291 |
Contract intangible revenue |
|
4 |
|
|
|
4 |
|
|
|
4 |
|
|
|
7 |
|
|
|
8 |
Total
contract drilling revenues |
|
918 |
|
|
|
1,111 |
|
|
|
1,777 |
|
|
|
2,029 |
|
|
|
3,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer early termination fees |
|
9 |
|
|
|
209 |
|
|
|
66 |
|
|
|
218 |
|
|
|
66 |
Customer reimbursement revenues and other |
|
16 |
|
|
|
21 |
|
|
|
41 |
|
|
|
37 |
|
|
|
84 |
Total
other revenues |
|
25 |
|
|
|
230 |
|
|
|
107 |
|
|
|
255 |
|
|
|
150 |
Total
revenues |
|
943 |
|
|
|
1,341 |
|
|
|
1,884 |
|
|
|
2,284 |
|
|
|
3,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Revenue (1) |
|
Three months ended |
|
|
Six months ended |
|
June 30,
2016 |
|
|
March 31,
2016 |
|
|
June 30,
2015 |
|
|
June 30,
2016 |
|
|
June 30,
2015 |
Ultra-Deepwater Floaters |
$ |
503,000 |
|
|
$ |
490,300 |
|
|
$ |
531,400 |
|
|
$ |
496,200 |
|
|
$ |
532,900 |
Harsh Environment Floaters |
|
343,500 |
|
|
|
548,600 |
|
|
|
513,300 |
|
|
|
452,500 |
|
|
|
522,600 |
Deepwater Floaters |
|
238,600 |
|
|
|
310,000 |
|
|
|
364,000 |
|
|
|
278,600 |
|
|
|
351,100 |
Midwater Floaters |
|
304,600 |
|
|
|
361,400 |
|
|
|
338,800 |
|
|
|
331,200 |
|
|
|
341,200 |
High-Specification Jackups |
|
137,900 |
|
|
|
150,200 |
|
|
|
172,100 |
|
|
|
144,100 |
|
|
|
173,300 |
Total
Drilling Fleet |
$ |
353,700 |
|
|
|
395,400 |
|
|
$ |
399,700 |
|
|
$ |
375,400 |
|
|
$ |
398,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
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 |
|
|
Six months ended |
|
June 30,
2016 |
|
|
March 31,
2016 |
|
|
June 30,
2015 |
|
|
June 30,
2016 |
|
|
June 30,
2015 |
Ultra-Deepwater Floaters |
43% |
|
|
50% |
|
|
65% |
|
|
46% |
|
|
66% |
Harsh Environment Floaters |
46% |
|
|
52% |
|
|
74% |
|
|
49% |
|
|
76% |
Deepwater Floaters |
52% |
|
|
60% |
|
|
71% |
|
|
56% |
|
|
79% |
Midwater Floaters |
48% |
|
|
39% |
|
|
89% |
|
|
43% |
|
|
87% |
High-Specification Jackups |
59% |
|
|
60% |
|
|
87% |
|
|
60% |
|
|
93% |
Total
Drilling Fleet |
47% |
|
|
51% |
|
|
75% |
|
|
49% |
|
|
77% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
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) |
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30,
2016 |
|
|
March 31,
2016 |
|
|
June 30,
2015 |
|
|
June 30,
2016 |
|
|
June 30,
2015 |
|
|
Ultra-Deepwater
Floaters |
97.2% |
|
|
94.3% |
|
|
97.0% |
|
|
95.6% |
|
|
97.1% |
|
|
Harsh Environment Floaters |
98.3% |
|
|
98.6% |
|
|
98.4% |
|
|
98.5% |
|
|
97.5% |
|
|
Deepwater Floaters |
96.9% |
|
|
97.4% |
|
|
100.3% |
|
|
97.2% |
|
|
97.7% |
|
|
Midwater Floaters |
98.6% |
|
|
97.6% |
|
|
95.3% |
|
|
98.1% |
|
|
93.2% |
|
|
High-Specification Jackups |
86.8% |
|
|
86.7% |
|
|
98.6% |
|
|
86.7% |
|
|
99.0% |
|
|
Total Drilling Fleet |
96.5% |
|
|
95.0% |
|
|
97.2% |
|
|
95.7% |
|
|
96.5% |
|
-
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 |
|
|
Six months
ended |
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|
2016 |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Income from continuing operations before income
taxes |
$ |
104 |
|
|
$ |
330 |
|
|
$ |
387 |
|
|
$ |
434 |
|
|
$ |
3 |
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
- |
|
|
|
- |
|
|
|
(788 |
) |
|
|
- |
|
|
|
(788 |
) |
Restructuring charges |
|
8 |
|
|
|
5 |
|
|
|
12 |
|
|
|
13 |
|
|
|
17 |
|
Loss on impairment of goodwill and other
assets |
|
20 |
|
|
|
3 |
|
|
|
890 |
|
|
|
23 |
|
|
|
1,826 |
|
Gain on disposal of other assets, net |
|
(4 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Gain on retirement of debt |
|
(38 |
) |
|
|
- |
|
|
|
- |
|
|
|
(38 |
) |
|
|
- |
|
Adjusted income from continuing operations before
income taxes |
|
90 |
|
|
|
337 |
|
|
|
498 |
|
|
|
427 |
|
|
|
1,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense from continuing operations |
|
17 |
|
|
|
74 |
|
|
|
40 |
|
|
|
91 |
|
|
|
123 |
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
- |
|
|
|
- |
|
|
|
(53 |
) |
|
|
- |
|
|
|
(53 |
) |
Restructuring
charges |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Loss on impairment of goodwill and other
assets |
|
2 |
|
|
|
1 |
|
|
|
93 |
|
|
|
3 |
|
|
|
155 |
|
Loss on disposal of other assets, net |
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
1 |
|
Changes in estimates (1) |
|
(5 |
) |
|
|
1 |
|
|
|
1 |
|
|
|
(4 |
) |
|
|
- |
|
Adjusted income tax expense from
continuing operations (2) |
$ |
15 |
|
|
$ |
77 |
|
|
$ |
84 |
|
|
$ |
92 |
|
|
$ |
227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (3) |
|
16.2 |
% |
|
|
22.4 |
% |
|
|
10.3 |
% |
|
|
21.0 |
% |
|
|
4100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annual Effective Tax Rate
(4) |
|
16.3 |
% |
|
|
22.8 |
% |
|
|
16.9 |
% |
|
|
21.5 |
% |
|
|
21.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
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.
|
-
The three months and six months ended June 30,
2016 includes $(22) million of additional tax expense (benefit)
reflecting the catch-up effect of an increase (decrease) in the
annual effective tax rate from the previous quarter estimate.
|
-
Effective Tax Rate is income tax expense for
continuing operations, divided by income from continuing operations
before income taxes.
|
-
Annual Effective Tax Rate is income tax expense
for continuing operations, excluding various discrete items (such
as changes in estimates and tax on items excluded from income
before income taxes) divided by income from continuing operations
before income tax expense excluding gains and losses on sales and
similar items pursuant to the accounting standards for income taxes
and estimating the annual effective tax rate.
|
TRANSOCEAN LTD.
AND SUBSIDIARIES |
Non-GAAP
Financial Measures and Reconciliations |
Adjusted Net
Income and Adjusted Diluted Earnings Per Share |
(in US$ millions, except per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
|
QTD |
|
|
YTD |
|
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
06/30/16 |
|
|
06/30/16 |
|
|
03/31/16 |
|
Net income (loss) attributable to controlling interest, as
reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
326 |
|
$ |
77 |
|
$ |
249 |
|
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11 |
|
|
7 |
|
|
4 |
|
|
Loss
on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20 |
|
|
18 |
|
|
2 |
|
|
Gain
on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5 |
) |
|
(4 |
) |
|
(1 |
) |
|
Gain
on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(38 |
) |
|
(38 |
) |
|
- |
|
|
(Income) loss from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
(1 |
) |
|
1 |
|
|
Discrete tax items and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
5 |
|
|
(1 |
) |
Net income, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
318 |
|
$ |
64 |
|
$ |
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per
Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.88 |
|
$ |
0.21 |
|
$ |
0.68 |
|
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
|
0.02 |
|
|
0.01 |
|
|
Loss
on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
|
0.04 |
|
|
- |
|
|
Gain
on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
(0.01 |
) |
|
- |
|
|
Gain
on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.10 |
) |
|
(0.10 |
) |
|
- |
|
|
(Income) loss from discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
|
Discrete tax items and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
|
0.01 |
|
|
- |
|
Diluted earnings per share, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.86 |
|
$ |
0.17 |
|
$ |
0.69 |
|
|
|
|
YTD |
|
|
QTD |
|
|
YTD |
|
|
QTD |
|
|
YTD |
|
|
QTD |
|
|
QTD |
|
Adjusted Net Income |
|
|
12/31/15 |
|
|
12/31/15 |
|
|
09/30/15 |
|
|
09/30/15 |
|
|
06/30/15 |
|
|
06/30/15 |
|
|
03/31/15 |
|
Net income (loss) attributable to controlling interest, as
reported |
|
$ |
791 |
|
$ |
611 |
|
$ |
180 |
|
$ |
321 |
|
$ |
(141 |
) |
$ |
342 |
|
$ |
(483 |
) |
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(735 |
) |
|
- |
|
|
(735 |
) |
|
- |
|
|
(735 |
) |
|
(735 |
) |
|
- |
|
|
Restructuring charges |
|
|
40 |
|
|
22 |
|
|
18 |
|
|
2 |
|
|
16 |
|
|
11 |
|
|
5 |
|
|
Loss
on impairment of assets |
|
|
1,713 |
|
|
29 |
|
|
1,684 |
|
|
13 |
|
|
1,671 |
|
|
797 |
|
|
874 |
|
|
Gain
on disposal of assets, net |
|
|
(12 |
) |
|
(5 |
) |
|
(7 |
) |
|
(1 |
) |
|
(6 |
) |
|
(5 |
) |
|
(1 |
) |
|
Gain
on retirement of debt |
|
|
(23 |
) |
|
(16 |
) |
|
(7 |
) |
|
(7 |
) |
|
- |
|
|
- |
|
|
- |
|
|
Gain
on disposal of assets in discontinued operations |
|
|
(1 |
) |
|
- |
|
|
(1 |
) |
|
(1 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(Income) loss from discontinued operations |
|
|
(1 |
) |
|
1 |
|
|
(2 |
) |
|
(3 |
) |
|
1 |
|
|
(1 |
) |
|
2 |
|
|
Discrete tax items and other, net |
|
|
(35 |
) |
|
(27 |
) |
|
(8 |
) |
|
(8 |
) |
|
- |
|
|
(1 |
) |
|
1 |
|
Net income, as adjusted |
|
$ |
1,737 |
|
$ |
615 |
|
$ |
1,122 |
|
$ |
316 |
|
$ |
806 |
|
$ |
408 |
|
$ |
398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per
Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share, as reported |
|
$ |
2.16 |
|
$ |
1.66 |
|
$ |
0.49 |
|
$ |
0.88 |
|
$ |
(0.39 |
) |
$ |
0.93 |
|
$ |
(1.33 |
) |
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(2.02 |
) |
|
- |
|
|
(2.02 |
) |
|
- |
|
|
(2.02 |
) |
|
(2.02 |
) |
|
- |
|
|
Restructuring charges |
|
|
0.11 |
|
|
0.06 |
|
|
0.04 |
|
|
- |
|
|
0.04 |
|
|
0.03 |
|
|
0.01 |
|
|
Loss
on impairment of assets |
|
|
4.67 |
|
|
0.08 |
|
|
4.61 |
|
|
0.03 |
|
|
4.60 |
|
|
2.18 |
|
|
2.41 |
|
|
Gain
on disposal of assets, net |
|
|
(0.02 |
) |
|
(0.01 |
) |
|
(0.02 |
) |
|
- |
|
|
(0.02 |
) |
|
(0.01 |
) |
|
- |
|
|
Gain
on retirement of debt |
|
|
(0.06 |
) |
|
(0.04 |
) |
|
(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 |
|
|
(0.10 |
) |
|
(0.07 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
- |
|
|
- |
|
|
- |
|
Diluted earnings per share, as adjusted |
|
$ |
4.74 |
|
$ |
1.68 |
|
$ |
3.06 |
|
$ |
0.87 |
|
$ |
2.21 |
|
$ |
1.11 |
|
$ |
1.10 |
|
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#2033048
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