- Revenues were $1.34 billion, compared to $1.85
billion in the fourth quarter of 2015;
- Operating and maintenance expense was $665
million, down from $794 million in the prior period;
- Adjusted net income was $254 million, $0.69 per
diluted share, excluding $5 million of net unfavorable items. This
compares with $615 million, $1.68 per diluted share, in the fourth
quarter of 2015, excluding $4 million of net unfavorable
items;
- Net income attributable to controlling interest
was $249 million, $0.68 per diluted share, compared with $611
million, $1.66 per diluted share, in the prior quarter;
- The Annual Effective Tax Rate(1) was
22.8 percent, compared with 13.1 percent in the fourth quarter of
2015;
- Cash flows from operating activities were $631
million, compared with $960 million in the previous quarter;
- Revenue efficiency(2) was 95.0
percent, compared with 95.9 percent in the fourth quarter of
2015;
- Rig utilization(3) was 51
percent, compared with 60 percent in the prior quarter; and
- Contract backlog was $14.6 billion as of the
April 2016 Fleet Status Report.
ZUG, SWITZERLAND-May 4, 2016-Transocean Ltd.
(NYSE: RIG) today reported net income attributable to controlling
interest of $249 million, $0.68 per diluted share, for the three
months ended March 31, 2016. First quarter 2016 results included
net unfavorable items of $5 million, $0.01 per diluted share, as
follows:
- $4 million, $0.01 per diluted share, in
restructuring costs associated with employee severance; and
- $2 million related to the loss on impairment of
the midwater floater Transocean John Shaw,
which the company has identified for recycling.
These net unfavorable items were partially offset
by:
- $1 million in favorable discrete tax benefits and
miscellaneous other items.
After consideration of these net unfavorable
items, first quarter 2016 adjusted net income was $254 million, or
$0.69 per diluted share.
For the three months ended March 31, 2015, the company reported a
net loss attributable to controlling interest of $483 million, or
$1.33 per diluted share. The first quarter of 2015 included net
unfavorable items of $881 million, $2.43 per diluted share,
associated with losses on the impairment of the deepwater floater
asset group and other assets classified as held for sale. After
consideration of these net unfavorable items, adjusted net income
was $398 million, or $1.10 per diluted share.
Contract drilling revenues for the three months ended March 31,
2016, decreased $345 million sequentially to $1.11 billion due
primarily to reduced activity associated with stacked and idle
rigs, and rig disposals.
Other revenues decreased $165 million sequentially to $230 million.
First quarter 2016 included $209 million in early contract
termination fees ($133 million, net of expected quarterly contract
drilling revenues for the cancelled rigs) primarily associated with
the Discoverer Deep Seas and Deepwater Millennium.
Operating and maintenance expense decreased to $665 million,
compared with $794 million in the prior quarter. The decrease was
due largely to lower activity, cost savings related to the
company's operational and restructuring initiatives, and reduced
stacking costs primarily associated with the company's dynamically
positioned floaters offset partially by the reactivation costs of
the Henry Goodrich. The quarter also included
deferred mobilization cost of $18 million on the GSF Development Driller I that was previously expected
in the second quarter of 2016.
General and administrative expense was $43 million, down from $58
million in the prior quarter reflecting the company's ongoing
restructuring efforts.
Depreciation expense was $217 million, compared with $213 million
in the previous quarter.
The Effective Tax Rate(4) was 22.4
percent, up from 9.7 percent in the fourth quarter of 2015. The
Annual Effective Tax Rate was 22.8 percent, up from 13.1 percent in
the previous quarter. The increase was due largely to lower
adjusted pre-tax income and the change in the mix of operating
results from certain jurisdictions.
Interest expense, net of amounts capitalized, increased $2 million
sequentially to $89 million. Capitalized interest was $49 million,
unchanged from the prior quarter. Interest income was $6 million,
compared with $5 million in the prior quarter.
Cash flows from operating activities were $631 million, compared
with $960 million in the prior quarter.
Capital expenditures totaled $368 million, down from $665 million
in the prior quarter. The decline was due primarily to reduced
spending associated with the company's newbuild program.
"Despite the challenging environment, the Transocean team delivered
strong operating performance, and solid financial results, adding
over $200 million to our cash balance in the first quarter of
2016," said President and Chief Executive Officer Jeremy
Thigpen. "As we work through the second quarter, and the
balance of the year, we will continue to prepare ourselves for the
eventual industry recovery by taking the necessary steps to both
maximize internal efficiencies, and further differentiate
Transocean in the eyes of our customers through superior safety and
operational performance."
Non-GAAP Financial Measures
All non-GAAP financial measure
reconciliations to the most comparative GAAP measure are displayed
in quantitative schedules on the company's website at:
www.deepwater.com.
About Transocean
Transocean is a leading international
provider of offshore contract drilling services for oil and gas
wells. The company specializes in technically demanding sectors of
the global offshore drilling business with a particular focus on
deepwater and harsh environment drilling services, and believes
that it operates one of the most versatile offshore drilling fleets
in the world.
Transocean owns or has partial ownership interests in, and operates
a fleet of 60 mobile offshore drilling units consisting of 28
ultra-deepwater floaters, seven harsh-environment semisubmersibles,
five deepwater semisubmersibles, 10 midwater semisubmersibles and
10 high-specification jackups. In addition, the company has six
ultra-deepwater drillships and five high-specification jackups
under construction or under contract to be constructed.
For more information about Transocean, please visit:
www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference
starting at 10 a.m. EDT, 4 p.m. CEST, on Thursday, May 5, 2016, to
discuss the results. To participate, dial +1 913-312-0823 and refer
to confirmation code 7646953 approximately 10 minutes prior to the
scheduled start time.
The teleconference will be simulcast in a listen-only mode over the
Internet and can be accessed on Transocean's website,
www.deepwater.com, by selecting "Investor Relations/Overview."
Supplemental materials that may be referenced during the
teleconference will be posted to Transocean's website and can be
found by selecting "Investor Relations/Financial
Reports."
A replay of the conference call will be available after 1 p.m. EDT,
7 p.m. CEST, on May 5, 2016. The replay, which will be archived for
approximately 30 days, can be accessed by dialing +1 719-457-0820
and referring to the confirmation code 7646953. 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 and other factors,
including those and other risks discussed in the company's most
recent Annual Report on Form 10-K for the year ended December 31,
2015, and in the company's other filings with the SEC, which are
available free of charge on the SEC's website at:
www.sec.gov. Should one or more of these risks or
uncertainties materialize (or the other consequences of such a
development worsen), or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or expressed or implied by such forward-looking statements. All
subsequent written and oral forward-looking statements attributable
to the company or to persons acting on our behalf are expressly
qualified in their entirety by reference to these risks and
uncertainties. You should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks
only as of the date of the particular statement, and we undertake
no obligation to publicly update or revise any forward-looking
statements to reflect events or circumstances that occur, or which
we become aware of, after the date hereof, except as otherwise may
be required by law. All non-GAAP financial measure reconciliations
to the most comparative GAAP measure are displayed in quantitative
schedules on the company's website at: www.deepwater.com.
This press release, or referenced documents, do not constitute an
offer to sell, or a solicitation of an offer to buy, any
securities, and do not constitute an offering prospectus within the
meaning of article 652a or article 1156 of the Swiss Code of
Obligations. Investors must rely on their own evaluation of
Transocean and its securities, including the merits and risks
involved. Nothing contained herein is, or shall be relied on as, a
promise or representation as to the future performance of
Transocean.
Notes
- Annual Effective Tax Rate is defined as income
tax expense from continuing operations, excluding various discrete
items (such as changes in estimates and tax on items excluded from
income before income taxes), divided by income from continuing
operations before income tax expense excluding gains and losses on
sales and similar items pursuant to the accounting standards for
income taxes and estimating the annual effective tax rate. See the
accompanying schedule entitled "Supplemental Effective Tax Rate
Analysis."
- 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."
- Rig utilization is defined as the total number of
operating days divided by the total number of rig calendar days in
the measurement period, expressed as a percentage. See the
accompanying schedule entitled "Utilization."
- Effective Tax Rate is defined as income tax
expense for continuing operations divided by income from continuing
operations before income taxes. See the accompanying schedule
entitled "Supplemental Effective Tax Rate Analysis."
Analyst Contacts:
Bradley
Alexander
+1 713-232-7515
Diane Vento
+1 713-232-8015
Media Contact:
Pam
Easton
+1 713-232-7647
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
|
March 31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Operating revenues |
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
1,111 |
|
$ |
2,000 |
|
Other revenues |
|
|
230 |
|
|
43 |
|
|
|
|
1,341 |
|
|
2,043 |
|
Costs and expenses |
|
|
|
|
|
|
|
Operating and maintenance |
|
|
665 |
|
|
1,084 |
|
Depreciation |
|
|
217 |
|
|
291 |
|
General and administrative |
|
|
43 |
|
|
46 |
|
|
|
|
925 |
|
|
1,421 |
|
Loss on impairment |
|
|
(3) |
|
|
(936) |
|
Gain (loss) on disposal of assets, net |
|
|
1 |
|
|
(7) |
|
Operating income (loss) |
|
|
414 |
|
|
(321) |
|
|
|
|
|
|
|
|
|
Other income (expense),
net |
|
|
|
|
|
|
|
Interest income |
|
|
6 |
|
|
6 |
|
Interest expense, net of amounts capitalized |
|
|
(89) |
|
|
(116) |
|
Other, net |
|
|
(1) |
|
|
47 |
|
|
|
|
(84) |
|
|
(63) |
|
Income (loss) from continuing operations before
income tax expense |
|
|
330 |
|
|
(384) |
|
Income tax expense |
|
|
74 |
|
|
83 |
|
Income (loss) from continuing
operations |
|
|
256 |
|
|
(467) |
|
Loss from discontinued operations, net of tax |
|
|
(1) |
|
|
(2) |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
255 |
|
|
(469) |
|
Net income attributable to noncontrolling interest |
|
|
6 |
|
|
14 |
|
Net income (loss) attributable to
controlling interest |
|
$ |
249 |
|
$ |
(483) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-basic |
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
|
$ |
0.68 |
|
$ |
(1.32) |
|
Earnings (loss) from discontinued operations |
|
|
- |
|
|
(0.01) |
|
Earnings (loss) per share |
|
$ |
0.68 |
|
$ |
(1.33) |
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share-diluted |
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
|
$ |
0.68 |
|
$ |
(1.32) |
|
Earnings (loss) from discontinued operations |
|
|
- |
|
|
(0.01) |
|
Earnings (loss) per share |
|
$ |
0.68 |
|
$ |
(1.33) |
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
|
364 |
|
|
363 |
|
Diluted |
|
|
364 |
|
|
363 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,574 |
|
$ |
2,339 |
|
Accounts receivable, net of allowance for doubtful
accounts
of less than $1 at March 31, 2016 and December 31, 2015 |
|
|
1,094 |
|
|
1,379 |
|
Materials and supplies, net of allowance for obsolescence
of $154 and $148 at March 31, 2016 and December 31, 2015,
respectively |
|
|
625 |
|
|
635 |
|
Assets held for sale |
|
|
8 |
|
|
8 |
|
Restricted cash |
|
|
338 |
|
|
340 |
|
Other current assets |
|
|
61 |
|
|
84 |
|
Total current assets |
|
|
4,700 |
|
|
4,785 |
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
26,557 |
|
|
26,274 |
|
Less accumulated depreciation |
|
|
(5,668) |
|
|
(5,456) |
|
Property and equipment, net |
|
|
20,889 |
|
|
20,818 |
|
Deferred income taxes, net |
|
|
287 |
|
|
316 |
|
Other assets |
|
|
369 |
|
|
410 |
|
Total assets |
|
$ |
26,245 |
|
$ |
26,329 |
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
370 |
|
$ |
448 |
|
Accrued income taxes |
|
|
89 |
|
|
82 |
|
Debt due within one year |
|
|
1,200 |
|
|
1,093 |
|
Other current liabilities |
|
|
929 |
|
|
1,046 |
|
Total current liabilities |
|
|
2,588 |
|
|
2,669 |
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
7,253 |
|
|
7,397 |
|
Deferred income taxes, net |
|
|
310 |
|
|
339 |
|
Other long-term liabilities |
|
|
1,027 |
|
|
1,108 |
|
Total long-term liabilities |
|
|
8,590 |
|
|
8,844 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
11 |
|
|
8 |
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value, 393,397,220 authorized, 167,617,649
conditionally authorized, 370,967,382 issued and 365,081,912
outstanding at March 31, 2016 and CHF 15.00 par value, 396,260,487
authorized, 167,617,649 conditionally authorized, 373,830,649
issued and 364,035,397 outstanding at December 31, 2015 |
|
|
34 |
|
|
5,193 |
|
Additional paid-in capital |
|
|
10,674 |
|
|
5,739 |
|
Treasury shares, at cost, 2,863,267 held at
December 31, 2015 |
|
|
- |
|
|
(240) |
|
Retained earnings |
|
|
4,389 |
|
|
4,140 |
|
Accumulated other comprehensive loss |
|
|
(339) |
|
|
(334) |
|
Total controlling interest shareholders' equity |
|
|
14,758 |
|
|
14,498 |
|
Noncontrolling interest |
|
|
298 |
|
|
310 |
|
Total equity |
|
|
15,056 |
|
|
14,808 |
|
Total liabilities and equity |
|
$ |
26,245 |
|
$ |
26,329 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
|
|
March 31, |
|
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
255 |
|
$ |
(469) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation |
|
|
217 |
|
|
291 |
|
Share-based compensation expense |
|
|
13 |
|
|
19 |
|
Loss
on impairment |
|
|
3 |
|
|
936 |
|
(Gain)
loss on disposal of assets, net |
|
|
(1) |
|
|
7 |
|
Deferred income tax benefit |
|
|
(1) |
|
|
(98) |
|
Other,
net |
|
|
5 |
|
|
8 |
|
Changes in deferred revenues, net |
|
|
(25) |
|
|
(39) |
|
Changes in deferred costs, net |
|
|
37 |
|
|
57 |
|
Changes in operating assets and liabilities |
|
|
128 |
|
|
(186) |
|
Net cash provided by operating activities |
|
|
631 |
|
|
526 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(368) |
|
|
(201) |
|
Proceeds from disposal of assets, net |
|
|
4 |
|
|
9 |
|
Net cash used in investing activities |
|
|
(364) |
|
|
(192) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Repayments of debt |
|
|
(55) |
|
|
(63) |
|
Deposit to cash account restricted for financing activities |
|
|
(24) |
|
|
- |
|
Proceeds from cash investments restricted for financing
activities |
|
|
49 |
|
|
57 |
|
Distributions of qualifying additional paid-in capital |
|
|
- |
|
|
(272) |
|
Distributions to holders of noncontrolling interest |
|
|
(7) |
|
|
(7) |
|
Other, net |
|
|
5 |
|
|
(2) |
|
Net cash used in financing activities |
|
|
(32) |
|
|
(287) |
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
235 |
|
|
47 |
|
Cash and cash equivalents at beginning of period |
|
|
2,339 |
|
|
2,635 |
|
Cash and cash equivalents at end of period |
|
$ |
2,574 |
|
$ |
2,682 |
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS
|
Operating Revenues (in millions) |
|
Three months ended |
|
March 31,
2016 |
|
|
December 31,
2015 |
|
|
March 31,
2015 |
Contract drilling revenues |
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater Floaters |
$ |
621 |
|
|
|
813 |
|
|
|
932 |
Harsh Environment Floaters |
|
181 |
|
|
|
178 |
|
|
|
261 |
Deepwater Floaters |
|
85 |
|
|
|
128 |
|
|
|
219 |
Midwater Floaters |
|
138 |
|
|
|
222 |
|
|
|
429 |
High-Specification Jackups |
|
82 |
|
|
|
111 |
|
|
|
155 |
Contract intangible revenue |
|
4 |
|
|
|
4 |
|
|
|
4 |
Total
contract drilling revenues |
|
1,111 |
|
|
|
1,456 |
|
|
|
2,000 |
|
|
|
|
|
|
|
|
|
|
|
Other
revenues |
|
|
|
|
|
|
|
|
|
|
Customer early termination fees |
|
209 |
|
|
|
367 |
|
|
|
- |
Customer reimbursement revenues and other |
|
21 |
|
|
|
28 |
|
|
|
43 |
Total
other revenues |
|
230 |
|
|
|
395 |
|
|
|
43 |
Total
revenues |
|
1,341 |
|
|
|
1,851 |
|
|
|
2,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Revenue (1) |
|
Three months ended |
|
March 31,
2016 |
|
|
December 31,
2015 |
|
|
March 31,
2015 |
Ultra-Deepwater Floaters |
$ |
490,300 |
|
|
$ |
512,600 |
|
|
$ |
534,300 |
Harsh Environment Floaters |
|
548,600 |
|
|
|
702,200 |
|
|
|
531,300 |
Deepwater Floaters |
|
310,000 |
|
|
|
349,700 |
|
|
|
342,100 |
Midwater Floaters |
|
361,400 |
|
|
|
380,800 |
|
|
|
343,300 |
High-Specification Jackups |
|
150,200 |
|
|
|
172,100 |
|
|
|
174,400 |
Total |
|
395,400 |
|
|
|
422,800 |
|
|
|
398,100 |
|
|
|
|
|
|
|
|
|
|
|
-
Average daily revenue is defined as contract
drilling revenues earned per operating day. An operating day
is defined as a calendar day during which a rig is contracted to
earn a dayrate during the firm contract period after commencement
of operations.
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
FLEET OPERATING STATISTICS (continued)
|
Utilization (2) |
|
Three months ended |
|
March 31,
2016 |
|
|
December 31,
2015 |
|
|
March 31,
2015 |
Ultra-Deepwater Floaters |
50% |
|
|
64% |
|
|
68% |
Harsh Environment Floaters |
52% |
|
|
39% |
|
|
78% |
Deepwater Floaters |
60% |
|
|
67% |
|
|
85% |
Midwater Floaters |
39% |
|
|
53% |
|
|
85% |
High-Specification Jackups |
60% |
|
|
70% |
|
|
99% |
Total |
51% |
|
|
60% |
|
|
79% |
|
|
|
|
|
|
|
|
|
|
|
-
Rig utilization is defined as the total number
of operating days divided by the total number of available rig
calendar days in the measurement period, expressed as a
percentage.
|
|
|
|
|
Revenue Efficiency (3) |
|
|
Three months ended |
|
|
Years ended |
|
|
|
March 31,
2016 |
|
|
December 31,
2015 |
|
|
March 31,
2015 |
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
Ultra-Deepwater Floaters |
94.3% |
|
|
94.1% |
|
|
97.2% |
|
|
95.1% |
|
|
94.3% |
|
|
Harsh Environment Floaters |
98.6% |
|
|
99.0% |
|
|
96.8% |
|
|
98.1% |
|
|
95.7% |
|
|
Deepwater Floaters |
97.4% |
|
|
95.1% |
|
|
95.9% |
|
|
97.4% |
|
|
96.2% |
|
|
Midwater Floaters |
97.6% |
|
|
98.7% |
|
|
91.4% |
|
|
95.2% |
|
|
93.3% |
|
|
High-Specification Jackups |
86.7% |
|
|
99.8% |
|
|
99.3% |
|
|
99.2% |
|
|
97.0% |
|
|
Total Drilling Fleet |
95.0% |
|
|
95.9% |
|
|
95.9% |
|
|
96.0% |
|
|
94.7% |
|
-
Revenue efficiency is defined as actual contract
drilling revenues for the measurement period divided by the maximum
revenue calculation for the measurement period, expressed as a
percentage. Maximum revenue is defined as the greatest amount
of contract drilling revenues the drilling unit could earn for the
measurement period, excluding amounts related to incentive
provisions.
Transocean
Ltd. and Subsidiaries |
Supplemental
Effective Tax Rate Analysis |
(In US$ millions, except tax
rates) |
|
|
|
|
Three months
ended |
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
2016 |
|
|
2015 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income
taxes |
$ |
330 |
|
|
$ |
683 |
|
|
$ |
(384 |
) |
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
5 |
|
|
|
27 |
|
|
|
5 |
|
Loss on impairment of goodwill and other
assets |
|
3 |
|
|
|
28 |
|
|
|
936 |
|
Gain on disposal of other assets, net |
|
(1) |
|
|
|
(7 |
) |
|
|
(2 |
) |
Gain on retirement of debt |
|
- |
|
|
|
(16 |
) |
|
|
- |
|
Adjusted income from continuing operations before
income taxes |
|
337 |
|
|
|
715 |
|
|
|
555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense from continuing operations |
|
74 |
|
|
|
66 |
|
|
|
83 |
|
Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges |
|
1 |
|
|
|
5 |
|
|
|
- |
|
Loss (gain) on impairment of goodwill and
other assets |
|
1 |
|
|
|
(1 |
) |
|
|
62 |
|
Gain on disposal of other assets, net |
|
- |
|
|
|
(2 |
) |
|
|
(1 |
) |
Changes in estimates (1) |
|
1 |
|
|
|
26 |
|
|
|
(1 |
) |
Adjusted income tax expense from
continuing operations (2) |
$ |
77 |
|
|
$ |
94 |
|
|
$ |
143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate (3) |
|
22.4 |
% |
|
|
9.7 |
% |
|
|
(21.6) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Annual Effective Tax Rate
(4) |
|
22.8 |
% |
|
|
13.1 |
% |
|
|
25.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
-
Our estimates change as we file tax returns,
settle disputes with tax authorities or become aware of other
events and include changes in (a) deferred taxes, (b) valuation of
allowances on deferred taxes and (c) other tax liabilities.
|
-
The three months December 31, 2015 includes $(6)
million of additional tax expense (benefit) reflecting the catch-up
effect of an increase (decrease) in the annual effective tax rate
from the previous quarter estimate.
|
-
Effective Tax Rate is income tax expense for
continuing operations, divided by income from continuing operations
before income taxes.
|
-
Annual Effective Tax Rate is income tax expense
for continuing operations, excluding various discrete items (such
as changes in estimates and tax on items excluded from income
before income taxes), divided by income from continuing operations
before income tax expense excluding gains and losses on sales and
similar items pursuant to the accounting standards for income taxes
and estimating the annual effective tax rate.
|
TRANSOCEAN LTD.
AND SUBSIDIARIES
Non-GAAP Financial Measures and
Reconciliations
Adjusted Net Income and Adjusted Diluted Earnings
Per Share
(In US$ millions, except per share data)
|
QTD |
|
|
03/31/16 |
|
Adjusted Net Income |
|
|
Net
income (loss) attributable to controlling interest, as
reported |
$249 |
|
Add
back (subtract): |
|
|
Restructuring charges |
4 |
|
Loss
on impairment of assets |
2 |
|
Gain
on disposal of assets, net |
(1) |
|
Loss
from discontinued operations |
1 |
|
Discrete tax items and other, net |
(1) |
|
Net
income, as adjusted |
$254 |
|
|
|
|
Adjusted Diluted Earnings Per Share: |
|
|
Diluted earnings (loss) per share, as reported |
$0.68 |
|
Add
back (subtract): |
|
|
Restructuring charges |
0.01 |
|
Loss
on impairment of assets |
- |
|
Gain
on disposal of assets, net |
- |
|
Loss
from discontinued operations |
- |
|
Discrete tax items and other, net |
- |
|
Diluted earnings per share, as adjusted |
$0.69 |
|
|
YTD |
QTD |
YTD |
QTD |
YTD |
QTD |
QTD |
|
12/31/15 |
12/31/15 |
09/30/15 |
09/30/15 |
06/30/15 |
06/30/15 |
03/31/15 |
Adjusted Net Income |
|
|
|
|
|
|
|
Net
income (loss) attributable to controlling interest, as
reported |
$791 |
$611 |
$180 |
$321 |
$(141) |
$342 |
$(483) |
Add
back (subtract): |
|
|
|
|
|
|
|
Litigation matters |
(735) |
- |
(735) |
- |
(735) |
(735) |
- |
Restructuring charges |
40 |
22 |
18 |
2 |
16 |
11 |
5 |
Loss
on impairment of assets |
1,713 |
29 |
1,684 |
13 |
1,671 |
797 |
874 |
Gain
on disposal of assets, net |
(12) |
(5) |
(7) |
(1) |
(6) |
(5) |
(1) |
Gain
on retirement of debt |
(23) |
(16) |
(7) |
(7) |
- |
- |
- |
Gain
on disposal of assets in discontinued operations |
(1) |
- |
(1) |
(1) |
- |
- |
- |
(Income) loss from discontinued operations |
(1) |
1 |
(2) |
(3) |
1 |
(1) |
2 |
Discrete tax items and other, net |
(35) |
(27) |
(8) |
(8) |
- |
(1) |
1 |
Net
income, as adjusted |
$1,737 |
$615 |
$1,122 |
$316 |
$806 |
$408 |
$398 |
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share: |
|
|
|
|
|
|
|
Diluted earnings (loss) per share, as reported |
$2.16 |
$1.66 |
$0.49 |
$0.88 |
$(0.39) |
$0.93 |
$(1.33) |
Add
back (subtract): |
|
|
|
|
|
|
|
Litigation matters |
(2.02) |
- |
(2.02) |
- |
(2.02) |
(2.02) |
- |
Restructuring charges |
0.11 |
0.06 |
0.04 |
- |
0.04 |
0.03 |
0.01 |
Loss
on impairment of assets |
4.67 |
0.08 |
4.61 |
0.03 |
4.60 |
2.18 |
2.41 |
Gain
on disposal of assets, net |
(0.02) |
(0.01) |
(0.02) |
- |
(0.02) |
(0.01) |
- |
Gain
on retirement of debt |
(0.06) |
(0.04) |
(0.02) |
(0.02) |
- |
- |
- |
Gain
on disposal of assets in discontinued operations |
- |
- |
- |
- |
- |
- |
- |
(Income) loss from discontinued operations |
- |
- |
- |
- |
- |
- |
0.01 |
Discrete tax items and other, net |
(0.10) |
(0.07) |
(0.02) |
(0.02) |
- |
- |
- |
Diluted earnings per share, as adjusted |
$4.74 |
$1.68 |
$3.06 |
$0.87 |
$2.21 |
$1.11 |
$1.10 |
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Transocean Ltd via Globenewswire
HUG#2010142
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