Transocean Ltd. (NYSE: RIG) today reported a net loss attributable
to controlling interest of $175 million, $0.26 per
diluted share, for the three months ended March 31, 2022.
First quarter 2022 results included net favorable non-cash item
of $8 million, or $0.02 per diluted share, related to
discrete tax items. After consideration of this net favorable item,
first quarter 2022 adjusted net loss was $183 million,
$0.28 per diluted share, compared to $126 million,
$0.19 per diluted share, in the fourth quarter of 2021.
Contract drilling revenues for the three months ended
March 31, 2022 decreased sequentially by $35 million to
$586 million, primarily due to decreased dayrate for two rigs
and two fewer calendar days in the first quarter.
Contract intangible amortization represented a non-cash revenue
reduction of $29 million, compared to $50 million in the
fourth quarter of 2021.
Operating and maintenance expense was $412 million,
compared with $430 million in the prior quarter. The
sequential decrease was primarily the result of lower in-service
maintenance costs and a $28 million increase in our allowance
for certain excess materials and supplies in the fourth quarter
that was not repeated in the first quarter, partially offset by
increased activity.
General and administrative expense was $42 million, down
from $49 million in the fourth quarter of 2021. The decrease
was primarily due to reduced research and development costs and
legal and professional fees.
Interest expense, net of amounts capitalized, was
$102 million, compared with $107 million in the prior
quarter. Interest income was $2 million, compared with
$4 million, in the previous quarter.
The Effective Tax Rate(2) was (17.6)% in the current
quarter and (74.0)% in the prior quarter. The change in the rate
was primarily due to the tax impact of the transition to ordinary
taxation in Switzerland recorded in the prior quarter and
beneficial releases of uncertain tax positions in the current
quarter. The Effective Tax Rate excluding discrete items was
(22.8)% compared to (44.9)% in the previous quarter.
Cash flows used in operating activities were $1 million,
compared to cash provided by operating activities of
$185 million in the prior quarter. The first quarter net cash
used in operating activities increased sequentially primarily due
to reduced cash received from customers combined with increased
payments for payroll-related costs.
First quarter 2022 capital expenditures of $106 million,
compared to $71 million in the prior quarter, were primarily
related to the company’s newbuild drillships under
construction.
“The Transocean team continued to provide safe, reliable and
efficient operations for our customers during the
first quarter, resulting in approximately 98% uptime
performance across our global fleet,” said
Chief Executive Officer, Jeremy Thigpen. “With this
consistently dependable performance, our industry-leading fleet of
high-specification, ultra-deepwater and harsh-environment floaters
and the continued deployment of new technologies, we are
well-positioned to capitalize on the ongoing recovery in the
offshore drilling market.”
Thigpen continued: “As hydrocarbon prices remain highly
supportive, we remain optimistic about Transocean’s future,
especially as governments worldwide recognize that oil and natural
gas will, for the foreseeable future, continue to be important
energy resources for security and economic growth as the world
transitions to a lower carbon future.”
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 37 mobile offshore drilling units
consisting of 27 ultra-deepwater floaters and 10 harsh
environment floaters. In addition, Transocean is constructing
two ultra-deepwater drillships.
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, May 3, 2022, to discuss the
results. To participate, dial +1 313-209-4906 and refer to
conference code 8215802 approximately 15 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 Tuesday, May 3, 2022.
The replay, which will be archived for approximately 30 days,
can be accessed at +1 719-457-0820, passcode 8215802,
pin 8037. The replay will also be available on the company’s
website.
Forward-Looking Statements
The statements described herein 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 could 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 fluctuation of current and future prices
of oil and gas, the global and regional supply and demand for oil
and gas, the intention to scrap certain drilling rigs, the success
of our business following prior acquisitions, the effects of the
spread of and mitigation efforts by governments, businesses and
individuals related to contagious illnesses, such as COVID-19, 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, 2021, 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 the Swiss Financial Services Act (“FinSA”) or
advertising within the meaning of the FinSA. 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 operating revenues,
excluding revenues for contract terminations and reimbursements,
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 revenues for incentive provisions, reimbursements
and contract terminations. See the accompanying schedule entitled
“Revenue Efficiency.” |
|
|
(2) |
Effective Tax Rate is defined as income tax expense divided by
income before income taxes. See the accompanying schedule entitled
“Supplemental Effective Tax Rate Analysis.” |
|
|
Analyst Contact:Cale
Dillingham+1 713-232-7041
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 |
|
March 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
Contract drilling revenues |
$ |
586 |
|
|
$ |
653 |
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
Operating and maintenance |
|
412 |
|
|
|
435 |
|
Depreciation and amortization |
|
183 |
|
|
|
187 |
|
General and administrative |
|
42 |
|
|
|
39 |
|
|
|
637 |
|
|
|
661 |
|
|
|
|
|
|
|
Gain (loss) on disposal of assets, net |
|
1 |
|
|
|
(59 |
) |
Operating loss |
|
(50 |
) |
|
|
(67 |
) |
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
Interest income |
|
2 |
|
|
|
3 |
|
Interest expense, net of amounts capitalized |
|
(102 |
) |
|
|
(115 |
) |
Gain on retirement of debt |
|
— |
|
|
|
51 |
|
Other, net |
|
1 |
|
|
|
9 |
|
|
|
(99 |
) |
|
|
(52 |
) |
Loss before income tax expense (benefit) |
|
(149 |
) |
|
|
(119 |
) |
Income
tax expense (benefit) |
|
26 |
|
|
|
(21 |
) |
|
|
|
|
|
|
Net loss |
|
(175 |
) |
|
|
(98 |
) |
Net income attributable to noncontrolling interest |
|
— |
|
|
|
1 |
|
Net loss attributable to controlling interest |
$ |
(175 |
) |
|
$ |
(99 |
) |
|
|
|
|
|
|
Loss per share, basic and
diluted |
$ |
(0.26 |
) |
|
$ |
(0.16 |
) |
Weighted-average shares, basic
and diluted |
|
664 |
|
|
|
617 |
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
March 31, |
|
December 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
911 |
|
|
$ |
976 |
|
Accounts receivable, net of
allowance of $2 at March 31, 2022 and December 31, 2021 |
|
525 |
|
|
|
492 |
|
Materials and supplies, net of
allowance of $188 and $183 at March 31, 2022 and December 31, 2021,
respectively |
|
386 |
|
|
|
392 |
|
Restricted cash and cash equivalents |
|
315 |
|
|
|
436 |
|
Other current assets |
|
142 |
|
|
|
148 |
|
Total current assets |
|
2,279 |
|
|
|
2,444 |
|
|
|
|
|
|
|
Property and equipment |
|
23,245 |
|
|
|
23,152 |
|
Less accumulated depreciation |
|
(6,232 |
) |
|
|
(6,054 |
) |
Property and equipment, net |
|
17,013 |
|
|
|
17,098 |
|
Contract intangible
assets |
|
144 |
|
|
|
173 |
|
Deferred tax assets, net |
|
7 |
|
|
|
7 |
|
Other assets |
|
920 |
|
|
|
959 |
|
Total assets |
$ |
20,363 |
|
|
$ |
20,681 |
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
Accounts payable |
$ |
206 |
|
|
$ |
228 |
|
Accrued income taxes |
|
19 |
|
|
|
17 |
|
Debt due within one year |
|
636 |
|
|
|
513 |
|
Other current liabilities |
|
491 |
|
|
|
545 |
|
Total current liabilities |
|
1,352 |
|
|
|
1,303 |
|
|
|
|
|
|
|
Long-term debt |
|
6,375 |
|
|
|
6,657 |
|
Deferred tax liabilities, net |
|
470 |
|
|
|
447 |
|
Other
long-term liabilities |
|
1,035 |
|
|
|
1,068 |
|
Total long-term liabilities |
|
7,880 |
|
|
|
8,172 |
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value,
891,379,306 authorized, 142,363,356 conditionally authorized,
754,244,072 issued |
|
|
|
|
|
and 681,055,270 outstanding at March 31, 2022, and 891,379,306
authorized, 142,363,356 conditionally |
|
|
|
|
|
authorized, 728,176,456 issued and 655,505,335 outstanding at
December 31, 2021 |
|
67 |
|
|
|
64 |
|
Additional paid-in capital |
|
13,790 |
|
|
|
13,683 |
|
Accumulated deficit |
|
(2,633 |
) |
|
|
(2,458 |
) |
Accumulated other comprehensive loss |
|
(94 |
) |
|
|
(84 |
) |
Total controlling interest shareholders’ equity |
|
11,130 |
|
|
|
11,205 |
|
Noncontrolling interest |
|
1 |
|
|
|
1 |
|
Total equity |
|
11,131 |
|
|
|
11,206 |
|
Total liabilities and equity |
$ |
20,363 |
|
|
$ |
20,681 |
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
Three months ended |
|
March 31, |
|
2022 |
|
2021 |
Cash flows from
operating activities |
|
|
|
|
|
Net loss |
$ |
(175 |
) |
|
$ |
(98 |
) |
Adjustments to reconcile to net cash provided by (used in)
operating activities: |
|
|
|
|
|
Contract intangible asset amortization |
|
29 |
|
|
|
56 |
|
Depreciation and amortization |
|
183 |
|
|
|
187 |
|
Share-based compensation expense |
|
7 |
|
|
|
7 |
|
(Gain) loss on disposal of assets, net |
|
(1 |
) |
|
|
59 |
|
Gain on retirement of debt |
|
— |
|
|
|
(51 |
) |
Deferred income tax expense |
|
23 |
|
|
|
2 |
|
Other, net |
|
21 |
|
|
|
7 |
|
Changes in deferred revenues, net |
|
(11 |
) |
|
|
(37 |
) |
Changes in deferred costs, net |
|
(4 |
) |
|
|
3 |
|
Changes in other operating assets and liabilities, net |
|
(73 |
) |
|
|
(39 |
) |
Net
cash provided by (used in) operating activities |
|
(1 |
) |
|
|
96 |
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Capital expenditures |
|
(106 |
) |
|
|
(59 |
) |
Investments in unconsolidated affiliates |
|
(15 |
) |
|
|
— |
|
Proceeds from disposal of assets, net |
|
1 |
|
|
|
6 |
|
Net
cash used in investing activities |
|
(120 |
) |
|
|
(53 |
) |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Repayments of debt |
|
(165 |
) |
|
|
(139 |
) |
Proceeds from issuance of shares, net of issue costs |
|
103 |
|
|
|
— |
|
Other, net |
|
(3 |
) |
|
|
(10 |
) |
Net
cash used in financing activities |
|
(65 |
) |
|
|
(149 |
) |
|
|
|
|
|
|
Net
decrease in unrestricted and restricted cash and cash
equivalents |
|
(186 |
) |
|
|
(106 |
) |
Unrestricted and restricted cash and cash equivalents, beginning of
period |
|
1,412 |
|
|
|
1,560 |
|
Unrestricted and restricted cash and cash equivalents, end of
period |
$ |
1,226 |
|
|
$ |
1,454 |
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
FLEET OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Contract Drilling
Revenues (in millions) |
2022 |
|
2021 |
|
2021 |
Contract drilling
revenues |
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
$ |
390 |
|
$ |
432 |
|
$ |
436 |
Harsh environment floaters |
|
196 |
|
|
189 |
|
|
217 |
Total contract drilling
revenues |
$ |
586 |
|
$ |
621 |
|
$ |
653 |
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Average Daily
Revenue (1) |
2022 |
|
2021 |
|
2021 |
Ultra-deepwater floaters |
$ |
305,600 |
|
$ |
337,100 |
|
$ |
371,600 |
Harsh environment
floaters |
|
399,100 |
|
|
387,700 |
|
|
377,800 |
Total fleet average daily revenue |
$ |
334,500 |
|
|
352,500 |
|
$ |
373,700 |
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Utilization
(2) |
2022 |
|
2021 |
|
2021 |
Ultra-deepwater floaters |
49.8 |
% |
|
50.9 |
% |
|
47.9 |
% |
Harsh environment
floaters |
60.3 |
% |
|
60.0 |
% |
|
64.7 |
% |
Total fleet average rig utilization |
52.7 |
% |
|
53.4 |
% |
|
52.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Revenue
Efficiency (3) |
2022 |
|
2021 |
|
2021 |
Ultra-deepwater floaters |
94.9 |
% |
|
93.4 |
% |
|
97.1 |
% |
Harsh environment
floaters |
95.0 |
% |
|
96.7 |
% |
|
98.0 |
% |
Total fleet average revenue efficiency |
94.9 |
% |
|
94.5 |
% |
|
97.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average daily revenue is defined as operating revenues,
excluding revenues for contract terminations, reimbursements and
contract intangible amortization, earned per operating day. An
operating day is defined as a day for which a rig is contracted to
earn a dayrate during the firm contract period after operations
commence. |
|
|
|
|
|
|
|
|
|
(2) 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. |
|
|
|
|
|
|
|
|
|
(3) Revenue efficiency is defined as actual operating revenues,
excluding revenues for contract terminations and reimbursements,
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 revenues for incentive provisions, reimbursements
and contract terminations. |
|
|
|
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 |
|
03/31/22 |
Adjusted Net
Loss |
|
|
Net loss attributable to controlling interest, as reported |
$ |
(175 |
) |
Discrete tax items |
|
(8 |
) |
Net loss, as adjusted |
$ |
(183 |
) |
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
Diluted loss per share, as
reported |
$ |
(0.26 |
) |
Discrete tax items |
|
(0.02 |
) |
Diluted loss per share, as
adjusted |
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
12/31/21 |
|
12/31/21 |
|
09/30/21 |
|
09/30/21 |
|
06/30/21 |
|
06/30/21 |
|
03/31/21 |
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to controlling interest, as reported |
$ |
(592 |
) |
|
$ |
(260 |
) |
|
$ |
(332 |
) |
|
$ |
(130 |
) |
|
$ |
(202 |
) |
|
$ |
(103 |
) |
|
$ |
(99 |
) |
Allowance for excess materials and supplies, certain items |
|
28 |
|
|
|
28 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on disposal of assets, net |
|
57 |
|
|
|
(3 |
) |
|
|
60 |
|
|
|
— |
|
|
|
60 |
|
|
|
— |
|
|
|
60 |
|
Loss on impairment of investment in unconsolidated affiliate |
|
37 |
|
|
|
37 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on retirement of debt |
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
Discrete tax items |
|
47 |
|
|
|
72 |
|
|
|
(25 |
) |
|
|
8 |
|
|
|
(33 |
) |
|
|
(6 |
) |
|
|
(27 |
) |
Net loss, as adjusted |
$ |
(474 |
) |
|
$ |
(126 |
) |
|
$ |
(348 |
) |
|
$ |
(122 |
) |
|
$ |
(226 |
) |
|
$ |
(109 |
) |
|
$ |
(117 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
$ |
(0.93 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.53 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.16 |
) |
Allowance for excess materials and supplies, certain items |
|
0.04 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on disposal of assets, net |
|
0.09 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
Loss on impairment of investment in unconsolidated affiliate |
|
0.06 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on retirement of debt |
|
(0.08 |
) |
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
|
|
(0.08 |
) |
|
|
— |
|
|
|
(0.08 |
) |
Discrete tax items |
|
0.08 |
|
|
|
0.11 |
|
|
|
(0.04 |
) |
|
|
0.01 |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.05 |
) |
Diluted loss per share, as
adjusted |
$ |
(0.74 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.55 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.19 |
) |
|
|
|
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 |
|
03/31/22 |
|
|
|
Contract drilling revenues |
$ |
586 |
|
Contract intangible asset amortization |
|
29 |
|
Adjusted Contract
Drilling Revenues |
$ |
615 |
|
|
|
|
Net loss |
$ |
(175 |
) |
Interest expense, net of interest income |
|
100 |
|
Income tax expense |
|
26 |
|
Depreciation and amortization |
|
183 |
|
Contract intangible asset amortization |
|
29 |
|
EBITDA |
|
163 |
|
|
|
|
Adjustments |
|
— |
|
Adjusted
EBITDA |
$ |
163 |
|
|
|
|
|
|
|
EBITDA margin |
|
26.5 |
% |
Adjusted EBITDA margin |
|
26.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
12/31/21 |
|
12/31/21 |
|
09/30/21 |
|
09/30/21 |
|
06/30/21 |
|
06/30/21 |
|
03/31/21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
$ |
2,556 |
|
|
$ |
621 |
|
|
$ |
1,935 |
|
|
$ |
626 |
|
|
$ |
1,309 |
|
|
$ |
656 |
|
|
$ |
653 |
|
Contract intangible asset amortization |
|
220 |
|
|
|
50 |
|
|
|
170 |
|
|
|
57 |
|
|
|
113 |
|
|
|
57 |
|
|
|
56 |
|
Adjusted Contract
Drilling Revenues |
$ |
2,776 |
|
|
$ |
671 |
|
|
$ |
2,105 |
|
|
$ |
683 |
|
|
$ |
1,422 |
|
|
$ |
713 |
|
|
$ |
709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(591 |
) |
|
$ |
(260 |
) |
|
$ |
(331 |
) |
|
$ |
(130 |
) |
|
$ |
(201 |
) |
|
$ |
(103 |
) |
|
$ |
(98 |
) |
Interest expense, net of interest income |
|
432 |
|
|
|
103 |
|
|
|
329 |
|
|
|
106 |
|
|
|
223 |
|
|
|
111 |
|
|
|
112 |
|
Income tax expense (benefit) |
|
121 |
|
|
|
111 |
|
|
|
10 |
|
|
|
27 |
|
|
|
(17 |
) |
|
|
4 |
|
|
|
(21 |
) |
Depreciation and amortization |
|
742 |
|
|
|
184 |
|
|
|
558 |
|
|
|
185 |
|
|
|
373 |
|
|
|
186 |
|
|
|
187 |
|
Contract intangible asset amortization |
|
220 |
|
|
|
50 |
|
|
|
170 |
|
|
|
57 |
|
|
|
113 |
|
|
|
57 |
|
|
|
56 |
|
EBITDA |
|
924 |
|
|
|
188 |
|
|
|
736 |
|
|
|
245 |
|
|
|
491 |
|
|
|
255 |
|
|
|
236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for excess materials and supplies, certain items |
|
28 |
|
|
|
28 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on disposal of assets, net |
|
57 |
|
|
|
(3 |
) |
|
|
60 |
|
|
|
— |
|
|
|
60 |
|
|
|
— |
|
|
|
60 |
|
Loss on impairment of investment in unconsolidated affiliate |
|
37 |
|
|
|
37 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on retirement of debt |
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
|
|
— |
|
|
|
(51 |
) |
Adjusted
EBITDA |
$ |
995 |
|
|
$ |
250 |
|
|
$ |
745 |
|
|
$ |
245 |
|
|
$ |
500 |
|
|
$ |
255 |
|
|
$ |
245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
33.3 |
% |
|
|
28.0 |
% |
|
|
35.0 |
% |
|
|
35.9 |
% |
|
|
34.5 |
% |
|
|
35.8 |
% |
|
|
33.3 |
% |
Adjusted EBITDA margin |
|
35.8 |
% |
|
|
37.3 |
% |
|
|
35.4 |
% |
|
|
35.9 |
% |
|
|
35.2 |
% |
|
|
35.8 |
% |
|
|
34.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS |
(In millions, except tax rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
$ |
(149 |
) |
|
$ |
(149 |
) |
|
$ |
(119 |
) |
Allowance for excess materials and supplies, certain items |
|
— |
|
|
|
28 |
|
|
|
— |
|
(Gain) loss on disposal of assets, net |
|
— |
|
|
|
(3 |
) |
|
|
60 |
|
Loss on impairment of investment in unconsolidated affiliate |
|
— |
|
|
|
37 |
|
|
|
— |
|
Gain on retirement of debt |
|
— |
|
|
|
— |
|
|
|
(51 |
) |
Adjusted loss before income
taxes |
$ |
(149 |
) |
|
$ |
(87 |
) |
|
|
(110 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
$ |
26 |
|
|
$ |
111 |
|
|
$ |
(21 |
) |
Allowance for excess materials and supplies, certain items |
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on disposal of assets, net |
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of investment in unconsolidated affiliate |
|
— |
|
|
|
— |
|
|
|
— |
|
Gain on retirement of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
Changes in estimates (1) |
|
8 |
|
|
|
(72 |
) |
|
|
27 |
|
Adjusted income tax
expense |
$ |
34 |
|
|
$ |
39 |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate (2) |
|
(17.6 |
)% |
|
|
(74.0 |
)% |
|
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate,
excluding discrete items (3) |
|
(22.8 |
)% |
|
|
(44.9 |
)% |
|
|
(5.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our estimates change as we file tax returns, settle disputes
with tax authorities, or become aware of changes in laws and other
events that have an effect on our (a) deferred taxes, (b) valuation
allowances on deferred taxes and (c) other tax liabilities. |
|
|
|
|
|
|
|
|
|
(2) Our effective
tax rate is calculated as income tax expense divided by income
before income taxes. |
|
|
|
|
|
|
|
|
|
(3) 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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