Transocean Ltd. (NYSE: RIG) today reported net loss attributable to
controlling interest of $1.135 billion, $2.46 per diluted
share, for the three months ended June 30, 2018.
Second quarter 2018 results included net unfavorable items of
$1.117 billion, or $2.42 per diluted share, as
follows:
- $548 million, $1.18 per diluted share, loss on impairment
of three floaters previously announced for retirement;
- $463 million, $1.00 per diluted share, associated with a
goodwill impairment charge;
- $91 million, $0.20 per diluted share, in discrete tax
expense;
- $11 million, $0.03 per diluted share, in restructuring
charges;
- $3 million, $0.01 per diluted share, loss on impairment of
the deepwater floater asset group; and
- $1 million loss related to the early retirement of debt, offset
by gain on disposal of assets.
After consideration of these net unfavorable items,
second quarter 2018 adjusted net loss was $18 million, or
$0.04 per diluted share.
Contract drilling revenues for the three months ended
June 30, 2018, sequentially increased $126 million to
$790 million. The increase was primarily due to a full
quarter’s contribution from the four, CAT-D harsh environment
semisubmersibles acquired from Songa in January 2018 and the
newbuild ultra-deepwater drillship, Deepwater Poseidon, that
commenced operations in February 2018. The second quarter was also
favorably impacted by higher revenue efficiency and utilization on
the company’s ultra-deepwater fleet.
Contract drilling revenues included customer early termination
fees of $37 million on the Discoverer Clear Leader,
a decrease of $1 million from the prior quarter. The second quarter
also included a non-cash revenue reduction of $30 million from
contract intangible amortization associated with the Songa
acquisition.
Operating and maintenance expense was $431 million,
compared with $424 million in the prior quarter. The second quarter
included a full quarter’s activity from both the Songa rigs and the
newbuild drillship, Deepwater Poseidon.
General and administrative expense was $52 million,
compared with $47 million in the first quarter of 2018. The
second quarter was impacted by un-forecasted charges, including $7
million related to the early retirement of certain personnel.
Depreciation expense was $211 million, up from
$202 million in the first quarter of 2018. The increase
was primarily due to the acquisition of Songa.
Interest expense, net of amounts capitalized, was
$148 million, compared with $147 million in the prior
quarter. Capitalized interest sequentially decreased
$6 million to $7 million primarily due to the
commencement of operations of the Deepwater Poseidon. Interest
income was $13 million, compared with $12 million in the prior
quarter.
The Effective Tax Rate(2) was (8.0) percent, up from
(42.2) percent in the prior quarter. The increase was
primarily due to impairment losses in jurisdictions with no tax
benefit. Also, the second quarter of 2018 included estimated
transition taxes associated with the U.S. tax reform (“2017 Tax
Act”). This estimate was partly offset by changes in the
utilization of U.S. foreign tax credits. The Effective Tax Rate
excluding discrete items(3) was 22.0 percent, compared
with (42.8) percent in the previous quarter.
Cash flows from operating activities were $3 million,
compared with $103 million in the prior quarter. The decrease
was largely associated with increased interest payments, as well as
income tax payments partly related to the aforementioned transition
taxes.
Second quarter 2018 capital expenditures were $39 million,
compared with $53 million in the previous quarter.
Additionally, during the second quarter, the company acquired a 33%
interest in the newbuild, harsh environment semisubmersible
Transocean Norge through a joint venture with Hayfin, with an
initial investment of $91 million.
“Operationally, we delivered another solid quarter, with an
Adjusted Normalized EBITDA margin of 40% on Adjusted Normalized
Revenue of $783 million, representing a 21% sequential increase,”
said President and Chief Executive Officer, Jeremy Thigpen. “This
performance was driven by strong revenue efficiency, exceeding 97
percent, and increased activity, as the second quarter marked the
first full quarter of operations for all five of our newest
ultra-deepwater drillships, as well as the four recently acquired
CAT-D harsh environment semisubmersibles from Songa.”
“During the quarter, we continued to high-grade our fleet,
acquiring a 33% interest in the newbuild, harsh environment
semisubmersible Transocean Norge, while retiring four, less
competitive floaters.”
“We also further strengthened our balance sheet and extended our
liquidity runway by negotiating a new $1 billion revolving credit
facility extending into 2023, refinancing debt associated with the
Songa acquisition, and executing on a secured facility for the
Deepwater Pontus.”
Thigpen concluded: “Our industry-leading floater fleet,
consistently strong operating performance, solid liquidity
position, and enviable backlog, which includes several new
contracts approximating $400 million, positions us well at a time
when our optimism about the market’s recovery is growing.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting
principles generally accepted in the U.S. (U.S. GAAP). We believe
certain financial measures, such as Adjusted Net Income, EBITDA,
Adjusted EBITDA and Adjusted Normalized EBITDA, which are non-GAAP
measures, provide users of our financial statements with
supplemental information that may be useful in evaluating our
operating performance. We believe that such non-GAAP measures, when
read in conjunction with our operating results presented under U.S.
GAAP, can be used to better assess our performance from period to
period and relative to performance of other companies in our
industry, without regard to financing methods, historical cost
basis or capital structure. Such non-GAAP measures should be
considered as a supplement to, and not as a substitute for,
financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative
U.S. GAAP measures are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
About Transocean
Transocean is a leading international provider of offshore
contract drilling services for oil and gas wells. The company
specializes in technically demanding sectors of the global offshore
drilling business with a particular focus on ultra-deepwater and
harsh environment drilling services, and believes that it operates
one of the most versatile offshore drilling fleets in the
world.
Transocean owns or has partial ownership interests in, and
operates a fleet of 43 mobile offshore drilling units
consisting of 24 ultra-deepwater floaters, 12 harsh
environment floaters, two deepwater floaters and
five midwater floaters. In addition, the company is
constructing two ultra-deepwater drillships and one harsh
environment semisubmersible that the company has one-third
interest. We also continue to operate one high-specification
jackup that was under a drilling contract when we sold the rig, and
we will continue to operate this jackup until completion or
novation of the drilling contract.
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 Tuesday, July 31, 2018, to discuss the
results. To participate, dial +1 334-323-0522 and refer to
conference code 3966625 approximately 10 minutes prior to the
scheduled start time.
The teleconference will be simulcast in a listen-only mode at:
www.deepwater.com, by selecting Investors, News, and Webcasts.
Supplemental materials that may be referenced during the
teleconference will be available at: www.deepwater.com, by
selecting Investors, Financial Reports.
A replay of the conference call will be available after
12 p.m. EDT, 6 p.m. CEST, on July 31, 2018. The
replay, which will be archived for approximately 30 days, can
be accessed at +1 719-457-0820, passcode 3966625 and
PIN 7706. The replay will also be available on the company’s
website.
Forward-Looking Statements
The statements described in this press release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements contain words such as "possible," "intend,"
"will," "if," "expect," or other similar expressions.
Forward-looking statements are based on management’s current
expectations and assumptions, and are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, actual results could differ
materially from those indicated in these forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, estimated duration of
customer contracts, contract dayrate amounts, future contract
commencement dates and locations, planned shipyard projects and
other out-of-service time, sales of drilling units, timing of the
company’s newbuild deliveries, operating hazards and delays, risks
associated with international operations, actions by customers and
other third parties, the future prices of oil and gas, the
intention to scrap certain drilling rigs, the results of our final
accounting for the periods presented in this press release, the
success of our business following the acquisition of Songa Offshore
SE (“Songa”), the ability to successfully integrate the Transocean
and Songa businesses 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, 2017, and in
the company's other filings with the SEC, which are available free
of charge on the SEC's website at: www.sec.gov. Should one or more
of these risks or uncertainties materialize (or the other
consequences of such a development worsen), or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or expressed or implied by such
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to the company or to
persons acting on our behalf are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly
update or revise any forward-looking statements to reflect events
or circumstances that occur, or which we become aware of, after the
date hereof, except as otherwise may be required by law. All
non-GAAP financial measure reconciliations to the most comparative
GAAP measure are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute
an offer to sell, or a solicitation of an offer to buy, any
securities, and do not constitute an offering prospectus within the
meaning of article 652a or article 1156 of the Swiss Code
of Obligations. Investors must rely on their own evaluation of
Transocean and its securities, including the merits and risks
involved. Nothing contained herein is, or shall be relied on as, a
promise or representation as to the future performance of
Transocean.
Notes
(1) Revenue efficiency is defined as actual contract drilling
revenues 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.”
(2) 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.”
(3) Effective Tax Rate, excluding discrete items, is defined 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. 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 per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues (1) |
|
$ |
790 |
|
|
$ |
705 |
|
|
$ |
1,454 |
|
|
$ |
1,443 |
|
|
Other revenues |
|
|
— |
|
|
|
46 |
|
|
|
— |
|
|
|
93 |
|
|
|
|
|
790 |
|
|
|
751 |
|
|
|
1,454 |
|
|
|
1,536 |
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
431 |
|
|
|
331 |
|
|
|
855 |
|
|
|
678 |
|
|
Depreciation |
|
|
211 |
|
|
|
219 |
|
|
|
413 |
|
|
|
451 |
|
|
General and administrative |
|
|
52 |
|
|
|
35 |
|
|
|
99 |
|
|
|
74 |
|
|
|
|
|
694 |
|
|
|
585 |
|
|
|
1,367 |
|
|
|
1,203 |
|
|
Loss on impairment |
|
|
(1,014 |
) |
|
|
(113 |
) |
|
|
(1,014 |
) |
|
|
(113 |
) |
|
Gain (loss) on disposal of assets, net |
|
|
1 |
|
|
|
(1,595 |
) |
|
|
6 |
|
|
|
(1,593 |
) |
|
Operating loss |
|
|
(917 |
) |
|
|
(1,542 |
) |
|
|
(921 |
) |
|
|
(1,373 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
13 |
|
|
|
7 |
|
|
|
25 |
|
|
|
13 |
|
|
Interest expense, net of amounts capitalized |
|
|
(148 |
) |
|
|
(129 |
) |
|
|
(295 |
) |
|
|
(256 |
) |
|
Loss on retirement of debt |
|
|
(2 |
) |
|
|
(48 |
) |
|
|
(2 |
) |
|
|
(48 |
) |
|
Other, net |
|
|
— |
|
|
|
(4 |
) |
|
|
(10 |
) |
|
|
3 |
|
|
|
|
|
(137 |
) |
|
|
(174 |
) |
|
|
(282 |
) |
|
|
(288 |
) |
|
Loss before income tax expense (benefit) |
|
|
(1,054 |
) |
|
|
(1,716 |
) |
|
|
(1,203 |
) |
|
|
(1,661 |
) |
|
Income tax expense (benefit) |
|
|
85 |
|
|
|
(37 |
) |
|
|
148 |
|
|
|
(77 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(1,139 |
) |
|
|
(1,679 |
) |
|
|
(1,351 |
) |
|
|
(1,584 |
) |
|
Net income (loss) attributable to noncontrolling
interest |
|
|
(4 |
) |
|
|
11 |
|
|
|
(6 |
) |
|
|
15 |
|
|
Net loss attributable to controlling
interest |
|
$ |
(1,135 |
) |
|
$ |
(1,690 |
) |
|
$ |
(1,345 |
) |
|
$ |
(1,599 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(2.46 |
) |
|
$ |
(4.32 |
) |
|
$ |
(2.99 |
) |
|
$ |
(4.09 |
) |
|
Diluted |
|
$ |
(2.46 |
) |
|
$ |
(4.32 |
) |
|
$ |
(2.99 |
) |
|
$ |
(4.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
462 |
|
|
|
391 |
|
|
|
450 |
|
|
|
391 |
|
|
Diluted |
|
|
462 |
|
|
|
391 |
|
|
|
450 |
|
|
|
391 |
|
|
___________________________________
(1) Contract drilling revenues, in the three and
six months ended June 30, 2018, includes revenues of
(a) $37 million and $75 million, respectively, resulting
from contract early terminations and cancellations,
(b) $25 million and $51 million, respectively, from
customer reimbursements and (c) a reduction of
$30 million and $49 million, respectively, resulting from the
amortization of contract intangible assets.
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,506 |
|
|
$ |
2,519 |
|
|
Short-term investments |
|
|
— |
|
|
|
450 |
|
|
Accounts
receivable, net of allowance for doubtful accounts of less than $1
at June 30, 2018 and December 31, 2017 |
|
|
619 |
|
|
|
596 |
|
|
Materials
and supplies, net of allowance for obsolescence of $145 and $141 at
June 30, 2018 and December 31, 2017, respectively |
|
|
414 |
|
|
|
418 |
|
|
Restricted cash accounts and investments |
|
|
490 |
|
|
|
466 |
|
|
Other current assets |
|
|
188 |
|
|
|
157 |
|
|
Total current assets |
|
|
4,217 |
|
|
|
4,606 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
24,236 |
|
|
|
22,693 |
|
|
Less accumulated depreciation |
|
|
(5,278 |
) |
|
|
(5,291 |
) |
|
Property and equipment, net |
|
|
18,958 |
|
|
|
17,402 |
|
|
Contract
intangible assets |
|
|
583 |
|
|
|
— |
|
|
Deferred income taxes, net |
|
|
44 |
|
|
|
47 |
|
|
Other assets |
|
|
444 |
|
|
|
355 |
|
|
Total assets |
|
$ |
24,246 |
|
|
$ |
22,410 |
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
163 |
|
|
$ |
201 |
|
|
Accrued income taxes |
|
|
76 |
|
|
|
79 |
|
|
Debt due within one year |
|
|
1,816 |
|
|
|
250 |
|
|
Other current liabilities |
|
|
771 |
|
|
|
839 |
|
|
Total current liabilities |
|
|
2,826 |
|
|
|
1,369 |
|
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
7,814 |
|
|
|
7,146 |
|
|
Deferred income taxes, net |
|
|
72 |
|
|
|
44 |
|
|
Other long-term liabilities |
|
|
1,172 |
|
|
|
1,082 |
|
|
Total long-term liabilities |
|
|
9,058 |
|
|
|
8,272 |
|
|
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
Redeemable
noncontrolling interest |
|
|
— |
|
|
|
58 |
|
|
|
|
|
|
|
|
|
|
Shares, CHF
0.10 par value, 490,568,452 authorized, 143,771,173 conditionally
authorized, 462,864,563 issued and 461,862,248 outstanding at
June 30, 2018, and 417,060,033 authorized, 143,783,041
conditionally authorized, 394,801,990 issued and 391,237,308
outstanding at December 31, 2017 |
|
|
44 |
|
|
|
37 |
|
|
Additional paid-in capital |
|
|
12,022 |
|
|
|
11,031 |
|
|
Retained earnings |
|
|
584 |
|
|
|
1,929 |
|
|
Accumulated other comprehensive loss |
|
|
(291 |
) |
|
|
(290 |
) |
|
Total controlling interest shareholders’ equity |
|
|
12,359 |
|
|
|
12,707 |
|
|
Noncontrolling interest |
|
|
3 |
|
|
|
4 |
|
|
Total equity |
|
|
12,362 |
|
|
|
12,711 |
|
|
Total liabilities and equity |
|
$ |
24,246 |
|
|
$ |
22,410 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(In millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
June 30, |
|
|
|
2018 |
|
|
2017 |
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net loss |
|
$ |
(1,351 |
) |
|
$ |
(1,584 |
) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Contract intangible asset amortization |
|
|
49 |
|
|
|
— |
|
|
Depreciation |
|
|
413 |
|
|
|
451 |
|
|
Share-based compensation expense |
|
|
28 |
|
|
|
21 |
|
|
Loss on impairment |
|
|
1,014 |
|
|
|
113 |
|
|
(Gain) loss on disposal of assets, net |
|
|
(6 |
) |
|
|
1,593 |
|
|
Loss on retirement of debt |
|
|
2 |
|
|
|
48 |
|
|
Deferred income tax expense (benefit) |
|
|
46 |
|
|
|
(39 |
) |
|
Other, net |
|
|
5 |
|
|
|
18 |
|
|
Changes in deferred revenues, net |
|
|
(72 |
) |
|
|
(104 |
) |
|
Changes in deferred costs, net |
|
|
7 |
|
|
|
28 |
|
|
Changes in other operating assets and liabilities,
net |
|
|
(29 |
) |
|
|
(1 |
) |
|
Net cash provided by operating activities |
|
|
106 |
|
|
|
544 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(92 |
) |
|
|
(258 |
) |
|
Proceeds from disposal of assets, net |
|
|
23 |
|
|
|
329 |
|
|
Unrestricted and restricted cash acquired in business
combination |
|
|
131 |
|
|
|
— |
|
|
Investment in unconsolidated affiliates |
|
|
(106 |
) |
|
|
— |
|
|
Deposits into short-term investments |
|
|
(50 |
) |
|
|
— |
|
|
Proceeds from maturities of short-term investments |
|
|
500 |
|
|
|
— |
|
|
Other, net |
|
|
— |
|
|
|
(15 |
) |
|
Net cash provided by investing activities |
|
|
406 |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Proceeds from issuance of debt, net of issue costs |
|
|
— |
|
|
|
403 |
|
|
Repayments of debt |
|
|
(388 |
) |
|
|
(1,533 |
) |
|
Proceeds from investments restricted for financing
activities |
|
|
26 |
|
|
|
50 |
|
|
Payments to terminate derivative instruments |
|
|
(92 |
) |
|
|
— |
|
|
Other, net |
|
|
(26 |
) |
|
|
(3 |
) |
|
Net cash used in financing activities |
|
|
(480 |
) |
|
|
(1,083 |
) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) in unrestricted and restricted
cash and cash equivalents |
|
|
32 |
|
|
|
(483 |
) |
|
Unrestricted and restricted cash and cash equivalents
at beginning of period |
|
|
2,975 |
|
|
|
3,433 |
|
|
Unrestricted and restricted cash and cash equivalents
at end of period |
|
$ |
3,007 |
|
|
$ |
2,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND
SUBSIDIARIES |
|
FLEET OPERATING
STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
Contract Drilling Revenues (1) (in
millions) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Contract
drilling revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
|
$ |
470 |
|
$ |
378 |
|
$ |
497 |
|
$ |
848 |
|
$ |
1,002 |
|
Harsh environment floaters |
|
|
252 |
|
|
204 |
|
|
104 |
|
|
456 |
|
|
226 |
|
Deepwater floaters |
|
|
35 |
|
|
35 |
|
|
36 |
|
|
70 |
|
|
71 |
|
Midwater floaters |
|
|
18 |
|
|
20 |
|
|
18 |
|
|
38 |
|
|
31 |
|
High-specification jackups |
|
|
15 |
|
|
27 |
|
|
50 |
|
|
42 |
|
|
113 |
|
Total
contract drilling revenues |
|
|
790 |
|
|
664 |
|
|
705 |
|
|
1,454 |
|
|
1,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer early termination fees |
|
|
— |
|
|
— |
|
|
40 |
|
|
— |
|
|
77 |
|
Customer reimbursement revenues and other |
|
|
— |
|
|
— |
|
|
6 |
|
|
— |
|
|
16 |
|
Total other
revenues |
|
|
— |
|
|
— |
|
|
46 |
|
|
— |
|
|
93 |
|
Total
revenues |
|
$ |
790 |
|
$ |
664 |
|
$ |
751 |
|
$ |
1,454 |
|
$ |
1,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
Average Daily Revenue (2) |
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Ultra-deepwater floaters |
|
$ |
377,600 |
|
$ |
381,600 |
|
$ |
482,200 |
|
$ |
379,300 |
|
$ |
500,500 |
|
Harsh
environment floaters |
|
|
304,600 |
|
|
279,100 |
|
|
262,200 |
|
|
292,700 |
|
|
269,900 |
|
Deepwater
floaters |
|
|
189,800 |
|
|
193,400 |
|
|
199,000 |
|
|
191,600 |
|
|
195,500 |
|
Midwater
floaters |
|
|
99,100 |
|
|
111,500 |
|
|
100,300 |
|
|
105,300 |
|
|
96,700 |
|
High-specification jackups |
|
|
150,600 |
|
|
150,000 |
|
|
142,800 |
|
|
150,200 |
|
|
141,900 |
|
Total drilling fleet |
|
$ |
308,300 |
|
|
287,600 |
|
$ |
329,900 |
|
$ |
298,600 |
|
$ |
333,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
Utilization (3) |
|
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Ultra-deepwater floaters |
|
|
47 |
% |
|
35 |
% |
|
38 |
% |
|
41 |
% |
|
37 |
% |
|
Harsh
environment floaters |
|
|
81 |
% |
|
84 |
% |
|
62 |
% |
|
82 |
% |
|
66 |
% |
|
Deepwater
floaters |
|
|
100 |
% |
|
100 |
% |
|
67 |
% |
|
100 |
% |
|
67 |
% |
|
Midwater
floaters |
|
|
35 |
% |
|
38 |
% |
|
33 |
% |
|
36 |
% |
|
30 |
% |
|
High-specification jackups |
|
|
95 |
% |
|
97 |
% |
|
54 |
% |
|
96 |
% |
|
52 |
% |
|
Total drilling fleet |
|
|
57 |
% |
|
52 |
% |
|
44 |
% |
|
55 |
% |
|
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
Revenue Efficiency (4) |
|
|
2018 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Ultra-deepwater floaters |
|
|
99.7 |
% |
|
88.3 |
% |
|
97.1 |
% |
|
94.4 |
% |
|
97.5 |
% |
Harsh
environment floaters |
|
|
94.5 |
% |
|
95.2 |
% |
|
98.4 |
% |
|
94.8 |
% |
|
97.6 |
% |
Deepwater
floaters |
|
|
92.3 |
% |
|
93.0 |
% |
|
95.6 |
% |
|
92.7 |
% |
|
94.1 |
% |
Midwater
floaters |
|
|
99.1 |
% |
|
96.6 |
% |
|
98.8 |
% |
|
97.8 |
% |
|
95.4 |
% |
High-specification jackups |
|
|
99.7 |
% |
|
99.4 |
% |
|
98.7 |
% |
|
99.5 |
% |
|
101.6 |
% |
Total drilling fleet |
|
|
97.4 |
% |
|
91.5 |
% |
|
97.4 |
% |
|
94.7 |
% |
|
97.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Contract drilling revenues, in the three and six months
ended June 30, 2018, includes revenues of (a) $37 million and $75
million, respectively, resulting from |
contract early terminations and cancellations, (b) $25
million and $51 million, respectively, from customer reimbursements
and (c) a reduction of $30 million and$49 million, respectively,
resulting from the amortization of contract intangible assets. |
|
|
|
|
|
|
|
|
(2) 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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) 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 |
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
|
ADJUSTED NET INCOME (LOSS) AND
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE |
|
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
|
|
|
|
|
|
|
|
|
|
06/30/18 |
|
06/30/18 |
|
03/31/18 |
|
Adjusted Net Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to controlling interest, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(1,345 |
) |
|
$ |
(1,135 |
) |
|
$ |
(210 |
) |
|
Acquisition and restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
Loss on impairment of goodwill and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,014 |
|
|
|
1,014 |
|
|
|
— |
|
|
Gain on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90 |
|
|
|
91 |
|
|
|
(1 |
) |
|
Net loss,
as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(228 |
) |
|
$ |
(18 |
) |
|
$ |
(210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
loss per share, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(2.99 |
) |
|
$ |
(2.46 |
) |
|
$ |
(0.48 |
) |
|
Acquisition and restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
Loss on impairment of goodwill and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.26 |
|
|
|
2.19 |
|
|
|
— |
|
|
Gain on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
— |
|
|
Diluted
loss per share, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.50 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/17 |
|
12/31/17 |
|
09/30/17 |
|
09/30/17 |
|
06/30/17 |
|
06/30/17 |
|
03/31/17 |
|
Adjusted Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to controlling interest, as reported |
|
$ |
(3,127 |
) |
|
$ |
(111 |
) |
|
$ |
(3,016 |
) |
|
$ |
(1,417 |
) |
|
$ |
(1,599 |
) |
|
$ |
(1,690 |
) |
|
$ |
91 |
|
|
Litigation matters |
|
|
(8 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
Acquisition and restructuring costs |
|
|
6 |
|
|
|
1 |
|
|
|
5 |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
Loss on impairment of assets |
|
|
1,497 |
|
|
|
(2 |
) |
|
|
1,499 |
|
|
|
1,386 |
|
|
|
113 |
|
|
|
113 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
1,590 |
|
|
|
(6 |
) |
|
|
1,596 |
|
|
|
1 |
|
|
|
1,595 |
|
|
|
1,597 |
|
|
|
(2 |
) |
|
Loss on retirement of debt |
|
|
55 |
|
|
|
6 |
|
|
|
49 |
|
|
|
1 |
|
|
|
48 |
|
|
|
48 |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
(37 |
) |
|
|
20 |
|
|
|
(57 |
) |
|
|
90 |
|
|
|
(147 |
) |
|
|
(70 |
) |
|
|
(77 |
) |
|
Net income
(loss), as adjusted |
|
$ |
(24 |
) |
|
$ |
(93 |
) |
|
$ |
69 |
|
|
$ |
64 |
|
|
$ |
5 |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings (Loss) Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings (loss) per share, as reported |
|
$ |
(8.00 |
) |
|
$ |
(0.28 |
) |
|
$ |
(7.72 |
) |
|
$ |
(3.62 |
) |
|
$ |
(4.09 |
) |
|
$ |
(4.32 |
) |
|
$ |
0.23 |
|
|
Litigation matters |
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Acquisition and restructuring costs |
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of assets |
|
|
3.84 |
|
|
|
— |
|
|
|
3.84 |
|
|
|
3.54 |
|
|
|
0.29 |
|
|
|
0.29 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
4.07 |
|
|
|
(0.01 |
) |
|
|
4.08 |
|
|
|
— |
|
|
|
4.08 |
|
|
|
4.08 |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
0.14 |
|
|
|
0.01 |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.12 |
|
|
|
0.12 |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
(0.10 |
) |
|
|
0.04 |
|
|
|
(0.13 |
) |
|
|
0.23 |
|
|
|
(0.37 |
) |
|
|
(0.17 |
) |
|
|
(0.20 |
) |
|
Diluted
earnings (loss) per share, as adjusted |
|
$ |
(0.06 |
) |
|
$ |
(0.24 |
) |
|
$ |
0.18 |
|
|
$ |
0.16 |
|
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND
SUBSIDIARIES |
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
EARNINGS BEFORE INTEREST, TAXES
AND DEPRECIATION AND RELATED MARGINS |
(In millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
|
|
|
|
|
|
|
|
|
06/30/18 |
|
06/30/18 |
|
03/31/18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,454 |
|
|
$ |
790 |
|
|
$ |
664 |
|
Drilling contract termination fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(75 |
) |
|
|
(37 |
) |
|
|
(38 |
) |
Contract intangible amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49 |
|
|
|
30 |
|
|
|
19 |
|
Adjusted Normalized Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,428 |
|
|
$ |
783 |
|
|
$ |
645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(1,351 |
) |
|
$ |
(1,139 |
) |
|
$ |
(212 |
) |
Interest expense, net of interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
270 |
|
|
|
135 |
|
|
|
135 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
148 |
|
|
|
85 |
|
|
|
63 |
|
Depreciation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
413 |
|
|
|
211 |
|
|
|
202 |
|
Contract intangible amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49 |
|
|
|
30 |
|
|
|
19 |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(471 |
) |
|
|
(678 |
) |
|
|
207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
Loss on impairment of goodwill and other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,014 |
|
|
|
1,014 |
|
|
|
— |
|
Gain loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
556 |
|
|
|
348 |
|
|
|
208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling contract termination fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(75 |
) |
|
|
(37 |
) |
|
|
(38 |
) |
Adjusted Normalized EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
481 |
|
|
$ |
311 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(32 |
)% |
|
|
(86 |
)% |
|
|
31 |
% |
Adjusted
EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38 |
% |
|
|
44 |
% |
|
|
31 |
% |
Adjusted
Normalized EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34 |
% |
|
|
40 |
% |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
12/31/17 |
|
12/31/17 |
|
09/30/17 |
|
09/30/17 |
|
06/30/17 |
|
06/30/17 |
|
03/31/17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
|
$ |
2,973 |
|
|
$ |
629 |
|
|
$ |
2,344 |
|
|
$ |
808 |
|
|
$ |
1,536 |
|
|
$ |
751 |
|
|
$ |
785 |
|
Drilling contract termination fees |
|
|
(201 |
) |
|
|
(25 |
) |
|
|
(176 |
) |
|
|
(99 |
) |
|
|
(77 |
) |
|
|
(40 |
) |
|
|
(37 |
) |
Adjusted Normalized Revenues |
|
$ |
2,772 |
|
|
$ |
604 |
|
|
$ |
2,168 |
|
|
$ |
709 |
|
|
$ |
1,459 |
|
|
$ |
711 |
|
|
$ |
748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
(3,097 |
) |
|
$ |
(102 |
) |
|
$ |
(2,995 |
) |
|
$ |
(1,411 |
) |
|
$ |
(1,584 |
) |
|
$ |
(1,679 |
) |
|
$ |
95 |
|
Interest expense, net of interest income |
|
|
448 |
|
|
|
114 |
|
|
|
334 |
|
|
|
91 |
|
|
|
243 |
|
|
|
122 |
|
|
|
121 |
|
Income tax expense (benefit) |
|
|
94 |
|
|
|
(9 |
) |
|
|
103 |
|
|
|
180 |
|
|
|
(77 |
) |
|
|
(37 |
) |
|
|
(40 |
) |
Depreciation expense |
|
|
832 |
|
|
|
184 |
|
|
|
648 |
|
|
|
197 |
|
|
|
451 |
|
|
|
219 |
|
|
|
232 |
|
EBITDA |
|
|
(1,723 |
) |
|
|
187 |
|
|
|
(1,910 |
) |
|
|
(943 |
) |
|
|
(967 |
) |
|
|
(1,375 |
) |
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation matters |
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(6 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
2 |
|
|
|
(8 |
) |
Acquisition and restructuring costs |
|
|
7 |
|
|
|
1 |
|
|
|
6 |
|
|
|
4 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
Loss on impairment of assets |
|
|
1,498 |
|
|
|
— |
|
|
|
1,498 |
|
|
|
1,385 |
|
|
|
113 |
|
|
|
113 |
|
|
|
— |
|
(Gain) loss on disposal of assets, net |
|
|
1,590 |
|
|
|
(6 |
) |
|
|
1,596 |
|
|
|
1 |
|
|
|
1,595 |
|
|
|
1,597 |
|
|
|
(2 |
) |
Loss on retirement of debt |
|
|
55 |
|
|
|
6 |
|
|
|
49 |
|
|
|
1 |
|
|
|
48 |
|
|
|
48 |
|
|
|
— |
|
Adjusted EBITDA |
|
|
1,419 |
|
|
|
186 |
|
|
|
1,233 |
|
|
|
448 |
|
|
|
785 |
|
|
|
387 |
|
|
|
398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling contract termination fees |
|
|
(201 |
) |
|
|
(25 |
) |
|
|
(176 |
) |
|
|
(99 |
) |
|
|
(77 |
) |
|
|
(40 |
) |
|
|
(37 |
) |
Adjusted Normalized EBITDA |
|
$ |
1,218 |
|
|
$ |
161 |
|
|
$ |
1,057 |
|
|
$ |
349 |
|
|
$ |
708 |
|
|
$ |
347 |
|
|
$ |
361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
margin |
|
|
(58 |
) |
% |
|
30 |
|
% |
|
(81 |
) |
% |
|
(117 |
) |
% |
|
(63 |
) |
% |
|
(183 |
) |
% |
|
52 |
% |
Adjusted
EBITDA margin |
|
|
48 |
|
% |
|
30 |
|
% |
|
53 |
|
% |
|
55 |
|
% |
|
51 |
|
% |
|
52 |
|
% |
|
51 |
% |
Adjusted
Normalized EBITDA margin |
|
|
44 |
|
% |
|
27 |
|
% |
|
49 |
|
% |
|
49 |
|
% |
|
49 |
|
% |
|
49 |
|
% |
|
48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND
SUBSIDIARIES |
|
SUPPLEMENTAL EFFECTIVE TAX RATE
ANALYSIS |
|
(In millions, except tax rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2018 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
Income
(loss) before income taxes |
|
$ |
(1,054 |
) |
|
$ |
(149 |
) |
|
$ |
(1,716 |
) |
|
$ |
(1,203 |
) |
|
$ |
(1,661 |
) |
|
Litigation matters |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
(6 |
) |
|
Acquisition and restructuring costs |
|
|
11 |
|
|
|
7 |
|
|
|
2 |
|
|
|
18 |
|
|
|
2 |
|
|
Loss on impairment of goodwill and other assets |
|
|
1,014 |
|
|
|
— |
|
|
|
113 |
|
|
|
1,014 |
|
|
|
113 |
|
|
(Gain) loss on disposal of assets, net |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
1,597 |
|
|
|
(7 |
) |
|
|
1,595 |
|
|
Loss on retirement of debt |
|
|
2 |
|
|
|
— |
|
|
|
48 |
|
|
|
2 |
|
|
|
48 |
|
|
Adjusted
income (loss) before income taxes |
|
$ |
(28 |
) |
|
$ |
(148 |
) |
|
$ |
46 |
|
|
$ |
(176 |
) |
|
$ |
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense (benefit) |
|
$ |
85 |
|
|
$ |
63 |
|
|
$ |
(37 |
) |
|
$ |
148 |
|
|
$ |
(77 |
) |
|
Litigation matters |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
Acquisition and restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimates (1) |
|
|
(91 |
) |
|
|
1 |
|
|
|
70 |
|
|
|
(90 |
) |
|
|
147 |
|
|
Adjusted
income tax expense (benefit) (2) |
|
$ |
(6 |
) |
|
$ |
64 |
|
|
$ |
34 |
|
|
$ |
58 |
|
|
$ |
71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (3) |
|
|
(8.0 |
) |
% |
|
(42.2 |
) |
% |
|
2.2 |
|
% |
|
(12.3 |
) |
% |
|
4.7 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate, excluding discrete items
(4) |
|
|
22.0 |
|
% |
|
(42.8 |
) |
% |
|
74.0 |
|
% |
|
(32.5 |
) |
% |
|
78.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 ended June 30, 2018 includes $18 million
of additional tax benefit reflecting the catch-up effect of a
decrease |
|
in the annual effective tax rate from the previous quarter
estimate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Our effective tax rate is calculated as income tax
expense divided by income before income taxes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Our effective tax rate, excluding discrete items, is
calculated as income tax expense, excluding various discrete items
(such as changes |
|
in estimates and tax on items excluded from income before
income taxes), divided by income before income tax expense,
excluding |
|
gains and losses on sales and similar items pursuant to the
accounting standards for income taxes and estimating the annual
effective tax rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transocean (NYSE:RIG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Transocean (NYSE:RIG)
Historical Stock Chart
From Apr 2023 to Apr 2024