- Revenues were $974 million, up from $906 million
in the third quarter of 2016
- Operating and maintenance expense was $314
million, including $30 million in favorable items associated with
litigation matters. This compares with $407 million in the prior
period;
- Net income attributable to controlling interest
was $226 million, $0.60 per diluted share, compared with $230
million, $0.62 per diluted share, in the third quarter of
2016;
- Adjusted net income was $239 million, $0.63 per
diluted share, excluding $13 million of net unfavorable items. This
compares with $100 million, $0.27 per diluted share, in the prior
quarter, excluding $130 million of net favorable items;
- Effective Tax Rate excluding discrete items
(1) was 11.6
percent, compared with 18.2 percent in the third quarter of
2016;
- Cash flows from operating activities were $633
million, up from $440 million in the previous quarter;
- Revenue efficiency(2) was 100.3
percent, compared with 100.7 percent in the third quarter of 2016;
and
- Contract backlog was $11.3 billion as of the
February 2017 Fleet Status Report.
ZUG, SWITZERLAND-February 23, 2017-Transocean Ltd.
(NYSE: RIG) today reported net income attributable to controlling
interest of $226 million, $0.60 per diluted share, for the three
months ended December 31, 2016. Other income included $39 million
of royalties associated with the company's patented dual-activity
technology.
Fourth quarter 2016 results included net
unfavorable items of $13 million, or $0.03 per diluted share as
follows:
- $66 million, $0.16 per diluted share, related to
loss on impairment of assets; and
- $11 million, $0.03 per diluted share, in
restructuring costs.
These net unfavorable items were partially offset
by:
- $31 million, $0.08 per diluted share, in discrete
tax benefits;
- $28 million, $0.07 per diluted share, in
favorable items related to litigation matters; and
- $5 million, $0.01 per diluted share, related to a
gain on rig sales.
After consideration of these net unfavorable
items, fourth quarter 2016 adjusted net income was $239 million, or
$0.63 per diluted share.
Contract drilling revenues for the three months ended December 31,
2016, decreased $93 million sequentially to $793 million due
primarily to reduced activity and lower dayrates.
Other revenues increased $161 million sequentially to $181 million
due to early contract termination fees associated with the
Discoverer India.
Operating and maintenance expense was $314 million, compared with
$407 million in the prior quarter. The decrease was due to the
benefits of the company's restructuring initiatives, lower
maintenance and other expenses on both active and stacked rigs, and
lower costs related to the Transocean Winner
incident. Fourth quarter 2016 was also favorably impacted by $30
million associated with litigation matters, and certain other
favorable items that are not expected to reoccur in the first
quarter of 2017.
General and administrative expense was $47 million, compared with
$43 million in the third quarter of 2016. The increase was due
primarily to restructuring costs, including acquisition expenses
related to the Transocean Partners merger.
The Effective Tax Rate(4) was 1.0
percent, up from (2.5) percent in the prior quarter. The Effective
Tax Rate excluding discrete items was 11.6 percent, down from 18.2
percent in the previous quarter. The decrease was due to changes in
adjusted pre-tax income and mix of operating results from certain
jurisdictions.
Interest expense, net of amounts capitalized, was
$113 million, compared with $109 million in the prior quarter.
Capitalized interest increased $5 million sequentially to $46
million. Interest income was $5 million, unchanged from the prior
quarter.
Cash flows from operating activities increased $193 million
sequentially to $633 million. The increase was due primarily to
payments associated with the company's contracted, undelivered
newbuild drillships.
Fourth quarter 2016 capital expenditures of $272 million were
primarily related to the company's newbuild program. This compares
with $246 million in the previous quarter.
"In the face of a very challenging market, we again produced
impressive operational and financial results in the fourth
quarter," said President and Chief Executive Officer Jeremy
Thigpen. "For the second consecutive quarter, driven by our stellar
uptime performance, and our acute focus on value creation, we
delivered revenue efficiency in excess of 100% and EBITDA margins
surpassing 50%."
Thigpen added, "As a direct result of our strong performance in
2016, we generated cash flows from operations of $1.9 billion,
which, when combined with the multiple financing transactions
consummated throughout the year, further strengthened our
liquidity. This enviable position, coupled with our
industry-leading $11.3 billion backlog, allows us to prudently
evaluate strategic opportunities, and continue to invest in our
people and our business."
"Looking forward, improving market fundamentals along with a steady
flow of customer inquiries are increasing our confidence that the
offshore drilling market trough is near."
Full Year 2016
For the year ended December 31, 2016, net income attributable to
controlling interest totaled $782 million, or $2.10 per diluted
share. Full year results included $127 million, $0.35 per diluted
share, of net favorable items as follows:
- $161 million, $0.44 per diluted share, in gains
on early debt retirement and asset disposals;
- $55 million, $0.15 per diluted share, in discrete
tax benefits; and
- $28 million, $0.08 per diluted share, associated
with litigation matters.
These net favorable items were partially offset
by:
- $91 million, $0.25 per diluted share, associated
with the loss on impairment of assets; and
- $26 million, $0.07 per diluted share, in
restructuring costs.
After excluding these net favorable items,
adjusted net income for 2016 was $655 million, or $1.75 per diluted
share.
Financial Statements and Tables
An abbreviated set of financial statements and tables have been
provided with this earnings press release, as the company is in the
process of completing its year-end audit procedures. In connection
with these year-end procedures, the company is addressing the
resolution of certain non-cash, tax accounting matters related to
prior years.
The company expects the resolution of these matters to favorably
impact net income and does not anticipate that they will be
material to any year presented.
The company intends to file its Annual Report on Form 10-K next
week by the filing deadline.
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 56 mobile offshore drilling units consisting of 30
ultra-deepwater floaters, seven harsh-environment floaters, three
deepwater floaters, six midwater floaters and 10 high-specification
jackups. In addition, the company has four 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. EST, 3 p.m. CET, on Thursday, February 23, 2017,
to discuss the results. To participate, dial +1 913-981-5549 and
refer to confirmation code 4063107 approximately 10 minutes prior
to the scheduled start time.
The teleconference will be simulcast in a
listen-only mode over the internet and can be accessed at:
www.deepwater.com, by selecting Investors, News, and Webcasts.
Supplemental materials that may be referenced during the
teleconference will be posted to Transocean's website and can be
found 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 23, 2017. The
replay, which will be archived for approximately 30 days, can be
accessed at +1 719-457-0820, passcode 4063107, 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 results of our final
accounting for the periods presented in this press release 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) Effective Tax Rate excluding discrete
items 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
CONSOLIDATED STATEMENT OF OPERATIONS
(In millions, except share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended |
|
|
|
December 31, 2016 |
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
Contract drilling revenues |
|
|
$ |
3,705 |
|
Other revenues |
|
|
|
456 |
|
|
|
|
|
4,161 |
|
Costs and expenses |
|
|
|
|
|
Operating and maintenance |
|
|
|
1,875 |
|
Depreciation |
|
|
|
893 |
|
General and administrative |
|
|
|
172 |
|
|
|
|
|
2,940 |
|
Loss on impairment |
|
|
|
(93) |
|
Gain on disposal of assets, net |
|
|
|
4 |
|
Operating income |
|
|
|
1,132 |
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
|
|
|
Interest income |
|
|
|
20 |
|
Interest expense, net of amounts capitalized |
|
|
|
(409) |
|
Gain
on retirement of debt |
|
|
|
148 |
|
Other, net |
|
|
|
43 |
|
|
|
|
|
(198) |
|
Income from continuing operations before income tax
expense |
|
|
|
934 |
|
Income tax expense |
|
|
|
103 |
|
Income from continuing
operations |
|
|
|
831 |
|
Income from discontinued operations, net of tax |
|
|
|
- |
|
|
|
|
|
|
|
Net income |
|
|
|
831 |
|
Net income attributable to noncontrolling interest |
|
|
|
49 |
|
Net income attributable to controlling
interest |
|
|
$ |
782 |
|
|
|
|
|
|
|
Earnings per share-basic |
|
|
|
|
|
Earnings from continuing operations |
|
|
$ |
2.10 |
|
Earnings from discontinued operations |
|
|
|
- |
|
Earnings per share |
|
|
$ |
2.10 |
|
|
|
|
|
|
|
Earnings per
share-diluted |
|
|
|
|
|
Earnings from continuing operations |
|
|
$ |
2.10 |
|
Earnings from discontinued operations |
|
|
|
- |
|
Earnings per share |
|
|
$ |
2.10 |
|
|
|
|
|
|
|
Weighted-average shares
outstanding |
|
|
|
|
|
Basic |
|
|
|
367 |
|
Diluted |
|
|
|
367 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31, |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
1,911 |
|
|
3,445 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(1,344) |
|
|
(2,001) |
|
Proceeds from disposal of assets, net |
|
|
30 |
|
|
54 |
|
Proceeds from repayment of loans receivable |
|
|
- |
|
|
15 |
|
Investment in loans receivable |
|
|
- |
|
|
- |
|
Other, net |
|
|
1 |
|
|
- |
|
Net cash used in investing activities |
|
|
(1,313) |
|
|
(1,932) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Proceeds from issuance of debt, net of discounts and costs |
|
|
2,401 |
|
|
- |
|
Repayments of debt |
|
|
(2,295) |
|
|
(1,506) |
|
Deposit to cash accounts restricted for financing activities |
|
|
(85) |
|
|
- |
|
Proceeds from cash accounts and investments restricted for
financing activities |
|
|
124 |
|
|
110 |
|
Proceeds from sale of noncontrolling interest, net of issue
costs |
|
|
- |
|
|
- |
|
Distributions of qualifying additional paid-in capital |
|
|
- |
|
|
(381) |
|
Distributions to holders of noncontrolling interest |
|
|
(30) |
|
|
(29) |
|
Other, net |
|
|
- |
|
|
(3) |
|
Net cash provided by (used in) financing activities |
|
|
115 |
|
|
(1,809) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
|
713 |
|
|
(296) |
|
Cash and cash equivalents at beginning of period |
|
|
2,339 |
|
|
2,635 |
|
Cash and cash equivalents at end of period |
|
$ |
3,052 |
|
$ |
2,339 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Revenues (in millions) |
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Contract drilling revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
|
$ |
560 |
|
$ |
583 |
|
$ |
813 |
|
$ |
2,318 |
|
$ |
3,365 |
|
Harsh
environment floaters |
|
|
100 |
|
|
103 |
|
|
178 |
|
|
483 |
|
|
890 |
|
Deepwater floaters |
|
|
35 |
|
|
43 |
|
|
128 |
|
|
214 |
|
|
646 |
|
Midwater floaters |
|
|
30 |
|
|
87 |
|
|
222 |
|
|
388 |
|
|
1,359 |
|
High-specification jackups |
|
|
66 |
|
|
66 |
|
|
111 |
|
|
289 |
|
|
527 |
|
Contract intangible revenue |
|
|
2 |
|
|
4 |
|
|
4 |
|
|
13 |
|
|
15 |
|
Total
contract drilling revenues |
|
|
793 |
|
|
886 |
|
|
1,456 |
|
|
3,705 |
|
|
6,802 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer early termination fees |
|
|
169 |
|
|
9 |
|
|
367 |
|
|
396 |
|
|
433 |
|
Customer reimbursement revenues and other |
|
|
12 |
|
|
11 |
|
|
28 |
|
|
60 |
|
|
151 |
|
Total
other revenues |
|
|
181 |
|
|
20 |
|
|
395 |
|
|
456 |
|
|
584 |
|
Total
revenues |
|
$ |
974 |
|
$ |
906 |
|
$ |
1,851 |
|
$ |
4,161 |
|
$ |
7,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Revenue (1) |
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Ultra-deepwater floaters |
|
$ |
490,600 |
|
$ |
487,800 |
|
$ |
512,600 |
|
$ |
492,100 |
|
$ |
513,900 |
|
Harsh
environment floaters |
|
|
253,500 |
|
|
225,900 |
|
|
702,200 |
|
|
329,100 |
|
|
542,600 |
|
Deepwater floaters |
|
|
204,500 |
|
|
234,100 |
|
|
349,700 |
|
|
253,900 |
|
|
354,400 |
|
Midwater floaters |
|
|
128,600 |
|
|
240,400 |
|
|
380,800 |
|
|
274,100 |
|
|
349,200 |
|
High-specification jackups |
|
|
143,500 |
|
|
143,100 |
|
|
172,100 |
|
|
143,800 |
|
|
172,900 |
|
Total
drilling fleet |
|
$ |
329,400 |
|
|
332,000 |
|
$ |
422,800 |
|
$ |
353,500 |
|
$ |
400,500 |
|
(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) |
|
|
|
|
Three months ended |
|
Years ended |
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Ultra-deepwater floaters |
|
|
43 |
% |
|
45 |
% |
|
64 |
% |
|
45 |
% |
|
65 |
% |
|
Harsh
environment floaters |
|
|
61 |
% |
|
71 |
% |
|
39 |
% |
|
57 |
% |
|
64 |
% |
|
Deepwater floaters |
|
|
53 |
% |
|
50 |
% |
|
67 |
% |
|
54 |
% |
|
73 |
% |
|
Midwater floaters |
|
|
37 |
% |
|
42 |
% |
|
53 |
% |
|
42 |
% |
|
77 |
% |
|
High-specification jackups |
|
|
50 |
% |
|
50 |
% |
|
70 |
% |
|
55 |
% |
|
83 |
% |
|
Total
drilling fleet |
|
|
46 |
% |
|
49 |
% |
|
60 |
% |
|
48 |
% |
|
71 |
% |
|
(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) |
|
|
|
Three months ended |
|
Years ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Ultra-deepwater floaters |
|
|
100.1 |
% |
|
100.1 |
% |
|
94.1 |
% |
|
97.8 |
% |
|
95.1 |
% |
Harsh
environment floaters |
|
|
97.1 |
% |
|
96.6 |
% |
|
99.0 |
% |
|
97.8 |
% |
|
98.1 |
% |
Deepwater floaters |
|
|
93.4 |
% |
|
96.0 |
% |
|
95.1 |
% |
|
96.3 |
% |
|
97.4 |
% |
Midwater floaters |
|
|
94.7 |
% |
|
103.5 |
% |
|
98.7 |
% |
|
99.0 |
% |
|
95.2 |
% |
High-specification jackups |
|
|
115.0 |
% |
|
114.5 |
% |
|
99.8 |
% |
|
97.6 |
% |
|
99.2 |
% |
Total
drilling fleet |
|
|
100.3 |
% |
|
100.7 |
% |
|
95.9 |
% |
|
97.8 |
% |
|
96.0 |
% |
(3) Revenue efficiency is defined
as actual contract drilling revenues for the measurement period
divided by the maximum revenue calculation for the measurement
period, expressed as a percentage. Maximum revenue is defined
as the greatest amount of contract drilling revenues the drilling
unit could earn for the measurement period, excluding amounts
related to incentive provisions.
Transocean Ltd.
and subsidiaries
Supplemental Effective Tax Rate
Analysis
(In US$ millions, except tax rates)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Year ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
2016 |
|
2016 |
|
2016 |
|
Income
from continuing operations before income taxes |
|
$ |
242 |
|
$ |
242 |
|
$ |
934 |
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(30) |
|
|
- |
|
|
(30) |
|
Restructuring charges |
|
|
11 |
|
|
4 |
|
|
28 |
|
Loss
on impairment of assets |
|
|
67 |
|
|
11 |
|
|
93 |
|
Gain
on disposal of assets, net |
|
|
(5) |
|
|
(3) |
|
|
(13) |
|
Gain
on retirement of debt |
|
|
- |
|
|
(110) |
|
|
(148) |
|
Adjusted income from continuing operations before income taxes |
|
|
285 |
|
|
144 |
|
|
864 |
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit) from continuing operations |
|
|
2 |
|
|
(6) |
|
|
103 |
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(2) |
|
|
- |
|
|
(2) |
|
Restructuring charges |
|
|
- |
|
|
- |
|
|
2 |
|
Loss
on impairment of assets |
|
|
1 |
|
|
- |
|
|
2 |
|
Gain
on disposal of assets, net |
|
|
- |
|
|
- |
|
|
- |
|
Changes in estimates (1) |
|
|
31 |
|
|
32 |
|
|
55 |
|
Adjusted income tax expense from continuing
operations |
|
$ |
32 |
|
$ |
26 |
|
$ |
160 |
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (2) |
|
|
1.0 |
% |
|
(2.5) |
% |
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate, excluding discrete items
(3) |
|
|
11.6 |
% |
|
18.2 |
% |
|
18.6 |
% |
-
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.
-
Our effective tax rate is calculated as income
tax expense for continuing operations divided by income from
continuing operations before income taxes.
-
Our effective tax rate, excluding discrete
items, is calculated as income tax expense for continuing
operations, excluding various discrete items (such as changes in
estimates and tax on items excluded from income before income
taxes) divided by income from continuing operations before income
tax expense excluding gains and losses on sales and similar items
pursuant to the accounting standards for income taxes and
estimating the annual effective tax rate.
Transocean Ltd.
and subsidiaries
Non-GAAP Financial Measures and
Reconciliations
Adjusted Net Income and Adjusted Diluted Earnings
Per Share
(in US$ millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
|
QTD |
|
|
|
12/31/16 |
|
12/31/16 |
|
|
09/30/16 |
|
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to controlling interest, as reported |
|
$ |
782 |
|
$ |
226 |
|
|
$ |
230 |
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(28) |
|
|
(28) |
|
|
|
- |
|
Restructuring charges |
|
|
26 |
|
|
11 |
|
|
|
4 |
|
Loss
on impairment of assets |
|
|
91 |
|
|
66 |
|
|
|
11 |
|
Gain
on disposal of assets, net |
|
|
(13) |
|
|
(5) |
|
|
|
(3) |
|
Gain
on retirement of debt |
|
|
(148) |
|
|
- |
|
|
|
(110) |
|
Discrete tax items and other, net |
|
|
(55) |
|
|
(31) |
|
|
|
(32) |
|
Net
income, as adjusted |
|
$ |
655 |
|
$ |
239 |
|
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share: |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as reported |
|
$ |
2.10 |
|
$ |
0.60 |
|
|
$ |
0.62 |
|
Add
back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(0.08) |
|
|
(0.07) |
|
|
|
- |
|
Restructuring charges |
|
|
0.07 |
|
|
0.03 |
|
|
|
0.01 |
|
Loss
on impairment of assets |
|
|
0.25 |
|
|
0.16 |
|
|
|
0.03 |
|
Gain
on disposal of assets, net |
|
|
(0.04) |
|
|
(0.01) |
|
|
|
(0.01) |
|
Gain
on retirement of debt |
|
|
(0.40) |
|
|
- |
|
|
|
(0.30) |
|
Discrete tax items and other, net |
|
|
(0.15) |
|
|
(0.08) |
|
|
|
(0.08) |
|
Diluted earnings per share, as adjusted |
|
$ |
1.75 |
|
$ |
0.63 |
|
|
$ |
0.27 |
|
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
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