Transocean Ltd. (NYSE: RIG) today reported net loss attributable to
controlling interest of $208 million, $0.34 per diluted
share, for the three months ended June 30, 2019.
Second quarter 2019 results included net favorable items of
$1 million as follows:
- $9 million, $0.01 per diluted share, gain on bargain
purchase, and
- $5 million related to discrete tax items.
These favorable items were partially offset by:
- $9 million, $0.01 per diluted share, loss on
retirement of debt,
- $3 million loss on impairment or disposal assets, and
- $1 million in acquisition and restructuring costs.
After consideration of these net favorable items,
second quarter 2019 adjusted net loss was $209 million,
or $0.34 per diluted share.
Contract drilling revenues for the three months ended
June 30, 2019, sequentially increased $4 million,
primarily due to an additional operating day.
The second quarter included a non-cash revenue reduction of
$47 million from contract intangible amortization associated
with the Songa and Ocean Rig acquisitions. The first quarter
non-cash revenue reduction from contract intangible amortization
was $45 million.
Operating and maintenance expense was $510 million,
compared with $508 million in the prior quarter. The
sequential increase was the result of higher in-service maintenance
cost across our fleet.
General and administrative expense was $45 million,
compared with $49 million in the prior quarter. The decrease
was primarily due to costs related to the Ocean Rig acquisition
incurred in the first quarter that were not repeated in the second
quarter.
Interest expense, net of amounts capitalized, was
$168 million, compared with $166 million in the prior
quarter and capitalized interest was $9 million in each
quarter. Interest income was $12 million, compared with
$10 million in the prior quarter.
The Effective Tax Rate(2) was (21.9)%, down from 4.5% in
the prior quarter. The decrease was primarily due to settlements of
various uncertain tax positions, partially offset by changes in the
valuation allowance related to deferred tax assets and adjustments
to our deferred taxes on a new operating structure in the U.S.
Additionally, the relative blend of income from operations from
certain jurisdictions and first quarter financial results impacted
the effective tax rate.
Cash flows provided by operating activities was
$153 million, compared to cash used in operating activities of
$51 million in the prior quarter. Second quarter cash provided
by operating activities increased primarily due to increased
collections from customers.
Second quarter 2019 capital expenditures of $86 million
were related to the company’s newbuild drillships coupled with
capital expenditures primarily relating to capital upgrades for
certain rigs in our existing fleet. This compares with
$52 million in the previous quarter.
“We continued to operate at a high level throughout the second
quarter, with strong rig uptime and attained performance bonuses
producing revenue efficiency of approximately 98% across our global
floater fleet,” said Jeremy Thigpen, President and Chief Executive
Officer. “As importantly, we generated strong cash flows from
operations of $153 million through the efficient conversion of
our industry best $11.4 billion backlog.”
Thigpen added, “Despite some continued uncertainty around oil
prices, offshore project economics remain compelling, driving
increases in floater contracting and increasing dayrates in both
the harsh environment and ultra-deepwater markets.”
Thigpen concluded: “Our industry-leading floater fleet,
consistently strong operating performance, solid liquidity
position, and enviable backlog, position us well as the market
continues to recover.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting
principles generally accepted in the U.S. (U.S. GAAP). We believe
certain financial measures, such as Adjusted Contract Drilling
Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which
are non-GAAP measures, provide users of our financial statements
with supplemental information that may be useful in evaluating our
operating performance. We believe that such non-GAAP measures, when
read in conjunction with our operating results presented under U.S.
GAAP, can be used to better assess our performance from period to
period and relative to performance of other companies in our
industry, without regard to financing methods, historical cost
basis or capital structure. Such non-GAAP measures should be
considered as a supplement to, and not as a substitute for,
financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative
U.S. GAAP measures are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
About Transocean
Transocean is a leading international provider of offshore
contract drilling services for oil and gas wells. The company
specializes in technically demanding sectors of the global offshore
drilling business with a particular focus on ultra-deepwater and
harsh environment drilling services, and believes that it operates
one of the most versatile offshore drilling fleets in the
world.
Transocean owns or has partial ownership interests in, and
operates a fleet of 47 mobile offshore drilling units
consisting of 31 ultra-deepwater floaters, 13 harsh
environment floaters and three midwater floaters. In addition,
Transocean is constructing four ultra-deepwater drillships and
one harsh environment semisubmersible in which the company
holds a 33.0% interest.
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. CEST, on Tuesday, July 30, 2019, to discuss
the results. To participate, dial +1 323-794-2590 and refer to
conference code 6485183 approximately 10 minutes prior to the
scheduled start time.
The teleconference will be simulcast in a listen-only mode at:
www.deepwater.com, by selecting Investors, News, and Webcasts.
Supplemental materials that may be referenced during the
teleconference will be available at: www.deepwater.com, by
selecting Investors, Financial Reports.
A replay of the conference call will be available after
12 p.m. EST, 6 p.m. CEST, on July 30, 2019. The
replay, which will be archived for approximately 30 days, can
be accessed at +1 719-457-0820, passcode 6485183. The replay
will also be available on the company’s website.
Forward-Looking Statements
The statements described in this press release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements contain words such as "possible," "intend,"
"will," "if," "expect," or other similar expressions.
Forward-looking statements are based on management’s current
expectations and assumptions, and are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, actual results could differ
materially from those indicated in these forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, estimated duration of
customer contracts, contract dayrate amounts, future contract
commencement dates and locations, planned shipyard projects and
other out-of-service time, sales of drilling units, timing of the
company’s newbuild deliveries, operating hazards and delays, risks
associated with international operations, actions by customers and
other third parties, the future prices of oil and gas, the
intention to scrap certain drilling rigs, the results of our final
accounting for the periods presented in this press release, the
ability to successfully integrate the Transocean and Ocean Rig
businesses, the success of our business following the acquisition
of Ocean Rig UDW Inc. (“Ocean Rig”) and Songa Offshore SE
(“Songa”), and other factors, including those and other risks
discussed in the company's most recent Annual Report on
Form 10-K for the year ended December 31, 2018, and in
the company's other filings with the SEC, which are available free
of charge on the SEC's website at: www.sec.gov. Should one or more
of these risks or uncertainties materialize (or the other
consequences of such a development worsen), or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated or expressed or implied by such
forward-looking statements. All subsequent written and oral
forward-looking statements attributable to the company or to
persons acting on our behalf are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly
update or revise any forward-looking statements to reflect events
or circumstances that occur, or which we become aware of, after the
date hereof, except as otherwise may be required by law. All
non-GAAP financial measure reconciliations to the most comparative
GAAP measure are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute
an offer to sell, or a solicitation of an offer to buy, any
securities, and do not constitute an offering prospectus within the
meaning of article 652a or article 1156 of the Swiss Code
of Obligations. Investors must rely on their own evaluation of
Transocean and its securities, including the merits and risks
involved. Nothing contained herein is, or shall be relied on as, a
promise or representation as to the future performance of
Transocean.
Notes
- 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.”
- 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
Lexington May+1 832-587-6515
Media Contact:Pam Easton+1 713-232-7647
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In millions, except per share data) |
(Unaudited) |
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
|
$ |
758 |
|
|
$ |
790 |
|
|
$ |
1,512 |
|
|
$ |
1,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
510 |
|
|
|
431 |
|
|
|
1,018 |
|
|
|
855 |
|
|
Depreciation and amortization |
|
|
219 |
|
|
|
211 |
|
|
|
436 |
|
|
|
413 |
|
|
General and administrative |
|
|
45 |
|
|
|
52 |
|
|
|
94 |
|
|
|
99 |
|
|
|
|
|
774 |
|
|
|
694 |
|
|
|
1,548 |
|
|
|
1,367 |
|
|
Loss on impairment |
|
|
(1 |
) |
|
|
(1,014 |
) |
|
|
(1 |
) |
|
|
(1,014 |
) |
|
Gain (loss) on disposal of assets, net |
|
|
(10 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
6 |
|
|
Operating loss |
|
|
(27 |
) |
|
|
(917 |
) |
|
|
(40 |
) |
|
|
(921 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
12 |
|
|
|
13 |
|
|
|
22 |
|
|
|
25 |
|
|
Interest expense, net of amounts capitalized |
|
|
(168 |
) |
|
|
(148 |
) |
|
|
(334 |
) |
|
|
(295 |
) |
|
Loss on retirement of debt |
|
|
(9 |
) |
|
|
(2 |
) |
|
|
(27 |
) |
|
|
(2 |
) |
|
Other, net |
|
|
23 |
|
|
|
— |
|
|
|
31 |
|
|
|
(10 |
) |
|
|
|
|
(142 |
) |
|
|
(137 |
) |
|
|
(308 |
) |
|
|
(282 |
) |
|
Loss before income tax expense |
|
|
(169 |
) |
|
|
(1,054 |
) |
|
|
(348 |
) |
|
|
(1,203 |
) |
|
Income
tax expense |
|
|
37 |
|
|
|
85 |
|
|
|
29 |
|
|
|
148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(206 |
) |
|
|
(1,139 |
) |
|
|
(377 |
) |
|
|
(1,351 |
) |
|
Net income (loss) attributable to noncontrolling interest |
|
|
2 |
|
|
|
(4 |
) |
|
|
2 |
|
|
|
(6 |
) |
|
Net loss attributable to controlling interest |
|
$ |
(208 |
) |
|
$ |
(1,135 |
) |
|
$ |
(379 |
) |
|
$ |
(1,345 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.34 |
) |
|
$ |
(2.46 |
) |
|
$ |
(0.62 |
) |
|
$ |
(2.99 |
) |
|
Diluted |
|
$ |
(0.34 |
) |
|
$ |
(2.46 |
) |
|
$ |
(0.62 |
) |
|
$ |
(2.99 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
612 |
|
|
|
462 |
|
|
|
612 |
|
|
|
450 |
|
|
Diluted |
|
|
612 |
|
|
|
462 |
|
|
|
612 |
|
|
|
450 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
June 30, |
|
December 31, |
|
|
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,243 |
|
|
$ |
2,160 |
|
|
Accounts receivable, net of allowance for doubtful accounts |
|
|
|
|
|
|
|
of less than $1 at December 31, 2018 |
|
|
645 |
|
|
|
604 |
|
|
Materials and supplies, net of allowance for obsolescence |
|
|
|
|
|
|
|
of $133 and $134 at June 30, 2019 and December 31, 2018,
respectively |
|
|
488 |
|
|
|
474 |
|
|
Restricted cash accounts and investments |
|
|
610 |
|
|
|
551 |
|
|
Other current assets |
|
|
222 |
|
|
|
159 |
|
|
Total current assets |
|
|
4,208 |
|
|
|
3,948 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
25,220 |
|
|
|
25,811 |
|
|
Less accumulated depreciation |
|
|
(5,626 |
) |
|
|
(5,403 |
) |
|
Property and equipment, net |
|
|
19,594 |
|
|
|
20,408 |
|
|
Contract intangible
assets |
|
|
703 |
|
|
|
795 |
|
|
Deferred income taxes, net |
|
|
71 |
|
|
|
66 |
|
|
Other assets |
|
|
1,048 |
|
|
|
448 |
|
|
Total assets |
|
$ |
25,624 |
|
|
$ |
25,665 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
276 |
|
|
$ |
269 |
|
|
Accrued income taxes |
|
|
29 |
|
|
|
70 |
|
|
Debt due within one year |
|
|
349 |
|
|
|
373 |
|
|
Other current liabilities |
|
|
807 |
|
|
|
746 |
|
|
Total current liabilities |
|
|
1,461 |
|
|
|
1,458 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
9,378 |
|
|
|
9,605 |
|
|
Deferred income taxes, net |
|
|
208 |
|
|
|
64 |
|
|
Other
long-term liabilities |
|
|
1,820 |
|
|
|
1,424 |
|
|
Total long-term liabilities |
|
|
11,406 |
|
|
|
11,093 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value,
639,674,422 authorized, 142,365,398 conditionally authorized,
617,970,525 issued |
|
|
|
|
|
|
|
and 611,741,184 outstanding at June 30, 2019, and 638,285,574
authorized, 143,754,246 conditionally |
|
|
|
|
|
|
|
authorized, 610,581,677 issued and 609,649,291 outstanding at
December 31, 2018 |
|
|
59 |
|
|
|
59 |
|
|
Additional paid-in capital |
|
|
13,405 |
|
|
|
13,394 |
|
|
Accumulated deficit |
|
|
(421 |
) |
|
|
(67 |
) |
|
Accumulated other comprehensive loss |
|
|
(295 |
) |
|
|
(279 |
) |
|
Total controlling interest shareholders’ equity |
|
|
12,748 |
|
|
|
13,107 |
|
|
Noncontrolling interest |
|
|
9 |
|
|
|
7 |
|
|
Total equity |
|
|
12,757 |
|
|
|
13,114 |
|
|
Total liabilities and equity |
|
$ |
25,624 |
|
|
$ |
25,665 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
Six months ended |
|
|
|
June 30, |
|
|
|
2019 |
|
2018 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
Net loss |
|
$ |
(377 |
) |
|
$ |
(1,351 |
) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Contract intangible asset amortization |
|
|
92 |
|
|
|
49 |
|
|
Depreciation and amortization |
|
|
436 |
|
|
|
413 |
|
|
Share-based compensation expense |
|
|
19 |
|
|
|
28 |
|
|
Loss on impairment |
|
|
1 |
|
|
|
1,014 |
|
|
(Gain) loss on disposal of assets, net |
|
|
3 |
|
|
|
(6 |
) |
|
Loss on retirement of debt |
|
|
27 |
|
|
|
2 |
|
|
Deferred income tax expense |
|
|
109 |
|
|
|
46 |
|
|
Other, net |
|
|
11 |
|
|
|
5 |
|
|
Changes in deferred revenues, net |
|
|
4 |
|
|
|
(72 |
) |
|
Changes in deferred costs, net |
|
|
(6 |
) |
|
|
7 |
|
|
Changes in other operating assets and liabilities, net |
|
|
(217 |
) |
|
|
(29 |
) |
|
Net
cash provided by operating activities |
|
|
102 |
|
|
|
106 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(138 |
) |
|
|
(92 |
) |
|
Proceeds from disposal of assets, net |
|
|
40 |
|
|
|
23 |
|
|
Investments in unconsolidated affiliates |
|
|
(62 |
) |
|
|
(106 |
) |
|
Unrestricted and restricted cash acquired in business
combination |
|
|
— |
|
|
|
131 |
|
|
Proceeds from maturities of unrestricted and restricted
investments |
|
|
123 |
|
|
|
500 |
|
|
Deposits to unrestricted investments |
|
|
— |
|
|
|
(50 |
) |
|
Other, net |
|
|
3 |
|
|
|
— |
|
|
Net
cash provided by (used in) investing activities |
|
|
(34 |
) |
|
|
406 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
Proceeds from issuance of debt, net of discount and issue
costs |
|
|
1,056 |
|
|
|
— |
|
|
Repayments of debt |
|
|
(834 |
) |
|
|
(388 |
) |
|
Proceeds from investments restricted for financing activities |
|
|
— |
|
|
|
26 |
|
|
Payments to terminate derivative instruments |
|
|
— |
|
|
|
(92 |
) |
|
Other, net |
|
|
(26 |
) |
|
|
(26 |
) |
|
Net
cash provided by (used in) financing activities |
|
|
196 |
|
|
|
(480 |
) |
|
|
|
|
|
|
|
|
|
Net
increase in unrestricted and restricted cash and cash
equivalents |
|
|
264 |
|
|
|
32 |
|
|
Unrestricted and restricted cash and cash equivalents, beginning of
period |
|
|
2,589 |
|
|
|
2,975 |
|
|
Unrestricted and restricted cash and cash equivalents, end of
period |
|
$ |
2,853 |
|
|
$ |
3,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (in millions) |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
|
$ |
486 |
|
$ |
476 |
|
$ |
470 |
|
$ |
961 |
|
$ |
848 |
|
Harsh environment floaters |
|
|
251 |
|
|
258 |
|
|
252 |
|
|
509 |
|
|
456 |
|
Deepwater floaters |
|
|
1 |
|
|
7 |
|
|
35 |
|
|
8 |
|
|
70 |
|
Midwater floaters |
|
|
20 |
|
|
13 |
|
|
18 |
|
|
34 |
|
|
38 |
|
High-specification jackups |
|
|
— |
|
|
— |
|
|
15 |
|
|
— |
|
|
42 |
|
Total contract drilling
revenues |
|
$ |
758 |
|
$ |
754 |
|
$ |
790 |
|
$ |
1,512 |
|
$ |
1,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
Average Daily Revenue
(1) |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Ultra-deepwater floaters |
|
$ |
335,400 |
|
$ |
339,900 |
|
$ |
377,600 |
|
$ |
337,600 |
|
$ |
379,300 |
|
Harsh environment
floaters |
|
|
301,700 |
|
|
286,300 |
|
|
304,600 |
|
|
293,700 |
|
|
292,700 |
|
Deepwater floaters |
|
|
— |
|
|
— |
|
|
189,800 |
|
|
— |
|
|
191,600 |
|
Midwater floaters |
|
|
163,700 |
|
|
88,600 |
|
|
99,100 |
|
|
122,200 |
|
|
105,300 |
|
High-specification
jackups |
|
|
— |
|
|
— |
|
|
150,600 |
|
|
— |
|
|
150,200 |
|
Total drilling fleet |
|
$ |
314,900 |
|
|
306,500 |
|
$ |
308,300 |
|
$ |
310,700 |
|
$ |
298,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
Utilization
(2) |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Ultra-deepwater floaters |
|
|
50 |
% |
|
47 |
% |
|
47 |
% |
|
48 |
% |
|
41 |
% |
|
Harsh environment
floaters |
|
|
76 |
% |
|
80 |
% |
|
81 |
% |
|
78 |
% |
|
82 |
% |
|
Deepwater floaters |
|
|
— |
% |
|
— |
% |
|
100 |
% |
|
— |
% |
|
100 |
% |
|
Midwater floaters |
|
|
39 |
% |
|
40 |
% |
|
35 |
% |
|
40 |
% |
|
36 |
% |
|
High-specification
jackups |
|
|
— |
% |
|
— |
% |
|
95 |
% |
|
— |
% |
|
96 |
% |
|
Total drilling fleet |
|
|
56 |
% |
|
56 |
% |
|
57 |
% |
|
56 |
% |
|
55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
Revenue Efficiency
(3) |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Ultra-deepwater floaters |
|
|
98 |
% |
|
100 |
% |
|
100 |
% |
|
99 |
% |
|
94 |
% |
Harsh environment
floaters |
|
|
95 |
% |
|
94 |
% |
|
95 |
% |
|
95 |
% |
|
95 |
% |
Deepwater floaters |
|
|
— |
% |
|
— |
% |
|
92 |
% |
|
— |
% |
|
93 |
% |
Midwater floaters |
|
|
130 |
% |
|
92 |
% |
|
99 |
% |
|
111 |
% |
|
98 |
% |
High-specification
jackups |
|
|
— |
% |
|
— |
% |
|
100 |
% |
|
— |
% |
|
100 |
% |
Total drilling fleet |
|
|
98 |
% |
|
98 |
% |
|
97 |
% |
|
98 |
% |
|
95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average daily
revenue is defined as contract drilling revenues earned per
operating day. An operating day is defined as a calendar day during
which a rig |
is contracted to
earn a dayrate during the firm contract period after commencement
of operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Rig
utilization is defined as the total number of operating days
divided by the total number of available rig calendar days in the
measurement period, expressed |
as a
percentage. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Revenue
efficiency is defined as actual contract drilling revenues 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 |
|
|
|
|
|
|
|
|
|
|
|
06/30/19 |
|
06/30/19 |
|
03/31/19 |
|
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
controlling interest, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(379 |
) |
|
$ |
(208 |
) |
|
$ |
(171 |
) |
|
Acquisition and restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
Loss on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
|
|
9 |
|
|
|
18 |
|
|
Discrete tax items and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(30 |
) |
|
|
(5 |
) |
|
|
(25 |
) |
|
Net loss, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(390 |
) |
|
$ |
(209 |
) |
|
$ |
(181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.62 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.28 |
) |
|
Acquisition and restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
Loss on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
Discrete tax items and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.05 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
Diluted loss per share, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.64 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/18 |
|
12/31/18 |
|
09/30/18 |
|
09/30/18 |
|
06/30/18 |
|
06/30/18 |
|
03/31/18 |
|
Adjusted Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
controlling interest, as reported |
|
$ |
(1,996 |
) |
|
$ |
(242 |
) |
|
$ |
(1,754 |
) |
|
$ |
(409 |
) |
|
$ |
(1,345 |
) |
|
$ |
(1,135 |
) |
|
$ |
(210 |
) |
|
Acquisition and restructuring costs |
|
|
34 |
|
|
|
12 |
|
|
|
22 |
|
|
|
4 |
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
Gain on bargain purchase |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
1,464 |
|
|
|
18 |
|
|
|
1,446 |
|
|
|
432 |
|
|
|
1,014 |
|
|
|
1,014 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
Loss on retirement of debt |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
143 |
|
|
|
52 |
|
|
|
91 |
|
|
|
1 |
|
|
|
90 |
|
|
|
91 |
|
|
|
(1 |
) |
|
Net income (loss), as
adjusted |
|
$ |
(369 |
) |
|
$ |
(171 |
) |
|
$ |
(198 |
) |
|
$ |
30 |
|
|
$ |
(228 |
) |
|
$ |
(18 |
) |
|
$ |
(210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
Earnings (Loss) Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
$ |
(4.27 |
) |
|
$ |
(0.48 |
) |
|
$ |
(3.86 |
) |
|
$ |
(0.88 |
) |
|
$ |
(2.99 |
) |
|
$ |
(2.46 |
) |
|
$ |
(0.48 |
) |
|
Acquisition and restructuring costs |
|
|
0.07 |
|
|
|
0.02 |
|
|
|
0.05 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
Gain on bargain purchase |
|
|
(0.02 |
) |
|
|
(0.02 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
3.13 |
|
|
|
0.03 |
|
|
|
3.18 |
|
|
|
0.93 |
|
|
|
2.26 |
|
|
|
2.19 |
|
|
|
— |
|
|
Gain on disposal of assets, net |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Loss on retirement of debt |
|
|
0 |
|
|
|
— |
|
|
|
0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Discrete tax items and other, net |
|
|
0.30 |
|
|
|
0.11 |
|
|
|
0.20 |
|
|
|
— |
|
|
|
0.20 |
|
|
|
0.20 |
|
|
|
— |
|
|
Diluted earnings (loss) per
share, as adjusted |
|
$ |
(0.79 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.44 |
) |
|
$ |
0.06 |
|
|
$ |
(0.50 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
|
ADJUSTED CONTRACT DRILLING REVENUES |
|
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION AND RELATED MARGINS |
|
(In millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
|
|
|
|
|
|
|
|
|
|
06/30/19 |
|
06/30/19 |
|
03/31/19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,512 |
|
|
$ |
758 |
|
|
$ |
754 |
|
|
Contract intangible amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92 |
|
|
|
47 |
|
|
|
45 |
|
|
Adjusted Contract
Drilling Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,604 |
|
|
$ |
805 |
|
|
$ |
799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(377 |
) |
|
$ |
(206 |
) |
|
$ |
(171 |
) |
|
Interest expense, net of interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
312 |
|
|
|
156 |
|
|
|
156 |
|
|
Income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29 |
|
|
|
37 |
|
|
|
(8 |
) |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
436 |
|
|
|
219 |
|
|
|
217 |
|
|
Contract intangible amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92 |
|
|
|
47 |
|
|
|
45 |
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
492 |
|
|
|
253 |
|
|
|
239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
Loss on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
2 |
|
|
|
(1 |
) |
|
Gain on bargain purchase |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11 |
) |
|
|
(9 |
) |
|
|
(2 |
) |
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
|
|
9 |
|
|
|
18 |
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
511 |
|
|
$ |
257 |
|
|
$ |
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 |
% |
|
|
31 |
% |
|
|
30 |
% |
|
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
% |
|
|
32 |
% |
|
|
32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/18 |
|
12/31/18 |
|
09/30/18 |
|
09/30/18 |
|
06/30/18 |
|
06/30/18 |
|
03/31/18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
|
$ |
3,018 |
|
|
$ |
748 |
|
|
$ |
2,270 |
|
|
$ |
816 |
|
|
$ |
1,454 |
|
|
$ |
790 |
|
|
$ |
664 |
|
|
Contract intangible amortization |
|
|
112 |
|
|
|
34 |
|
|
|
78 |
|
|
|
29 |
|
|
|
49 |
|
|
|
30 |
|
|
|
19 |
|
|
Contract drilling revenues before amortization |
|
|
3,130 |
|
|
|
782 |
|
|
|
2,348 |
|
|
|
845 |
|
|
|
1,503 |
|
|
|
820 |
|
|
|
683 |
|
|
Drilling contract termination fees |
|
|
(124 |
) |
|
|
(12 |
) |
|
|
(112 |
) |
|
|
(37 |
) |
|
|
(75 |
) |
|
|
(37 |
) |
|
|
(38 |
) |
|
Adjusted Contract
Drilling Revenues |
|
$ |
3,006 |
|
|
$ |
770 |
|
|
$ |
2,236 |
|
|
$ |
808 |
|
|
$ |
1,428 |
|
|
$ |
783 |
|
|
$ |
645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
|
$ |
(2,003 |
) |
|
$ |
(243 |
) |
|
$ |
(1,760 |
) |
|
$ |
(409 |
) |
|
$ |
(1,351 |
) |
|
$ |
(1,139 |
) |
|
$ |
(212 |
) |
|
Interest expense, net of interest income |
|
|
567 |
|
|
|
148 |
|
|
|
419 |
|
|
|
149 |
|
|
|
270 |
|
|
|
135 |
|
|
|
135 |
|
|
Income tax expense (benefit) |
|
|
228 |
|
|
|
110 |
|
|
|
118 |
|
|
|
(30 |
) |
|
|
148 |
|
|
|
85 |
|
|
|
63 |
|
|
Depreciation expense |
|
|
818 |
|
|
|
204 |
|
|
|
614 |
|
|
|
201 |
|
|
|
413 |
|
|
|
211 |
|
|
|
202 |
|
|
Contract intangible amortization |
|
|
112 |
|
|
|
34 |
|
|
|
78 |
|
|
|
29 |
|
|
|
49 |
|
|
|
30 |
|
|
|
19 |
|
|
EBITDA |
|
|
(278 |
) |
|
|
253 |
|
|
|
(531 |
) |
|
|
(60 |
) |
|
|
(471 |
) |
|
|
(678 |
) |
|
|
207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and restructuring costs |
|
|
34 |
|
|
|
12 |
|
|
|
22 |
|
|
|
4 |
|
|
|
18 |
|
|
|
11 |
|
|
|
7 |
|
|
Loss on impairment of goodwill and other assets |
|
|
1,464 |
|
|
|
18 |
|
|
|
1,446 |
|
|
|
432 |
|
|
|
1,014 |
|
|
|
1,014 |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
|
(1 |
) |
|
|
(6 |
) |
|
Loss on retirement of debt |
|
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
1 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
|
|
1,206 |
|
|
|
272 |
|
|
|
934 |
|
|
|
378 |
|
|
|
556 |
|
|
|
348 |
|
|
|
208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling contract termination fees |
|
|
(124 |
) |
|
|
(12 |
) |
|
|
(112 |
) |
|
|
(37 |
) |
|
|
(75 |
) |
|
|
(37 |
) |
|
|
(38 |
) |
|
Adjusted
EBITDA |
|
$ |
1,082 |
|
|
$ |
260 |
|
|
$ |
822 |
|
|
$ |
341 |
|
|
$ |
481 |
|
|
$ |
311 |
|
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
|
(9 |
)% |
|
|
32 |
% |
|
|
(23 |
)% |
|
|
(7 |
)% |
|
|
(31 |
)% |
|
|
(83 |
)% |
|
|
30 |
% |
|
Adjusted EBITDA margin |
|
|
36 |
% |
|
|
34 |
% |
|
|
37 |
% |
|
|
42 |
% |
|
|
34 |
% |
|
|
40 |
% |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS |
|
(In millions, except tax rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Loss before income taxes |
|
$ |
(169 |
) |
|
$ |
(179 |
) |
|
$ |
(1,054 |
) |
|
$ |
(348 |
) |
|
$ |
(1,203 |
) |
|
Acquisition and restructuring costs |
|
|
1 |
|
|
|
— |
|
|
|
11 |
|
|
|
1 |
|
|
|
18 |
|
|
Gain on bargain purchase |
|
|
(9 |
) |
|
|
(2 |
) |
|
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
1 |
|
|
|
— |
|
|
|
1,014 |
|
|
|
1 |
|
|
|
1,014 |
|
|
(Gain) loss on disposal of assets, net |
|
|
2 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
(7 |
) |
|
Loss on retirement of debt |
|
|
9 |
|
|
|
18 |
|
|
|
2 |
|
|
|
27 |
|
|
|
2 |
|
|
Adjusted loss before income
taxes |
|
$ |
(165 |
) |
|
$ |
(164 |
) |
|
$ |
(28 |
) |
|
$ |
(329 |
) |
|
$ |
(176 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
$ |
37 |
|
|
$ |
(8 |
) |
|
$ |
85 |
|
|
$ |
29 |
|
|
$ |
148 |
|
|
Acquisition and restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on bargain purchase |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on impairment of goodwill and other assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(Gain) loss on disposal of assets, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimates (1) |
|
|
5 |
|
|
|
25 |
|
|
|
(91 |
) |
|
|
30 |
|
|
|
(90 |
) |
|
Adjusted income tax expense
(benefit) (2) |
|
$ |
42 |
|
|
$ |
17 |
|
|
$ |
(6 |
) |
|
$ |
59 |
|
|
$ |
58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate (3) |
|
|
(21.9 |
)% |
|
|
4.5 |
% |
|
|
(8.0 |
)% |
|
|
(8.3 |
)% |
|
|
(12.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate,
excluding discrete items (4) |
|
|
(25.4 |
)% |
|
|
(10.6 |
)% |
|
|
22.0 |
% |
|
|
(18.0 |
)% |
|
|
(32.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2019 included $12 million of additional tax
expense, reflecting the cumulative 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 related to estimating the annual effective tax
rate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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