Transocean Ltd. Reports First Quarter 2010 Results
(Thomson Reuters ONE) -
Transocean Ltd. / Transocean Ltd. Reports First Quarter 2010 Results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
ZUG, SWITZERLAND--(Marketwire - May 5, 2010) - Transocean Ltd. (NYSE: RIG) (SIX:
RIGN) today reported net income attributable to controlling interest of $677
million, or $2.09 per diluted share, on revenues of $2.602 billion for the three
months ended March 31, 2010. The results compare to net income attributable to
controlling interest of $942 million, or $2.93 per diluted share, on revenues of
$3.118 billion for the three months ended March 31, 2009.
First quarter 2010 results were adversely impacted by certain net charges, after
tax, totaling $42 million, or $0.13 per diluted share, as follows:
-- $15 million loss on the sale of GSF Arctic II and GSF Arctic IV,
-- $16 million primarily regarding impairment charges related to
accelerated depletion of certain oil and gas properties, and,
-- $11 million of net charges primarily related to discrete tax items
First quarter 2009 results were adversely impacted by certain net charges, after
tax, totaling $264 million, or $0.82 per diluted share, consisting of $221
million of impairments on rigs held for sale and $43 million of discrete tax
items, merger-related costs and losses on the retirement of debt.
Operations Quarterly Review
Revenues for the three months ended March 31, 2010 decreased to $2.602 billion
compared to $2.733 billion during the three months ended December 31, 2009. The
$131 million decrease was primarily due to a $78 million reduction in contract
drilling revenue resulting from the stacking of rigs in the previous quarter, a
$78 million reduction in revenue from increased rig time in shipyard and
mobilizations partially offset by a $49 million increase in revenue from newly
constructed ultra-deepwater rigs commencing or continuing operations in the
quarter.
Operating and maintenance expenses totaled $1.196 billion for the first quarter
2010, down approximately eight percent compared to $1.296 billion for the prior
quarter. The $100 million quarter-to-quarter reduction in operating and
maintenance costs occurred as a result of a $123 million reduction primarily in
maintenance costs and a $21 million reduction in costs related to stacked rigs.
These items were partially offset by a favorable impact in the prior quarter
from litigation settlements and $17 million of costs in the first quarter
related to the after-sale chartering of the GSF Arctic IV and $15 million of
additional operating costs related to newly constructed ultra-deepwater rigs.
Depreciation, depletion and amortization expense was $401 million in the first
quarter 2010, up five percent compared to $382 million for the fourth quarter
2009. The $19 million increase was primarily due to impairments related to our
oil and gas properties and the commencement of operations of newly constructed
ultra-deepwater rigs.
General and administrative expenses were $63 million for the first quarter
2010, compared to $46 million in the prior quarter. The $17 million increase was
primarily related to an accelerated vesting of share-based compensation awards.
Liquidity and Interest Expense
Interest expense, net of amounts capitalized for the first quarter 2010 totaled
$132 million, compared to $119 million in the prior quarter. The increase was
primarily due to reduced capitalized interest related to the commencement of
operations of newly constructed ultra-deepwater drillships in the fourth and
first quarters. As of March 31, 2010, total debt was $11.439 billion, compared
to $11.717 billion as of December 31, 2009, a decrease of $278 million
reflecting $213 million repayment of joint venture debt, lower outstanding
commercial paper program borrowings and the early retirement of the GSF Explorer
capital lease.
Cash flow from operating activities totaled $1.172 billion for the first quarter
2010, in line with $1.175 billion generated in the fourth quarter 2009.
Effective Tax Rate
Transocean's reported Effective Tax Rate(1), which includes various discrete
items primarily resulting from the impact of oil and gas impairments and changes
in prior years tax estimates, for the first quarter 2010 was 15.8 percent.
Excluding these discrete items the Annual Effective Tax Rate(2) for the first
quarter was 15.0 percent.
Update on Deepwater Horizon Incident
Concurrently with this press release, we have filed a Quarterly Report on Form
10-Q with the United States Securities and Exchange Commission. The form 10-Q
includes updated information on the Deepwater Horizon incident. To view the Form
10-Q filing, please use the following
link:http://www.deepwater.com/fw/main/SEC-Filings-57.html
Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. ET, 4:00 p.m. Swiss
time, on May 6, 2010. To participate, dial +1 913-312-0650 and refer to
confirmation code 4091491 approximately five to 10 minutes prior to the
scheduled start time of the call.
In addition, the conference call will be simultaneously broadcast over the
Internet in a listen-only mode and can be accessed by logging onto Transocean's
website atwww.deepwater.com
Relations." A file containing four charts to be discussed during the conference
call, titled "1Q10 Charts," has been posted to Transocean's website and can also
be found by selecting "Investor Relations/Quarterly Toolkit." The conference
call may also be accessed via the Internet at www.CompanyBoardroom.com
Exchange trading symbol, "RIG."
A telephonic replay of the conference call should be available after 1:00 p.m.
ET, 7:00 p.m. Swiss time, on May 6, and can be accessed by dialing +1
719-457-0820 and referring to the passcode 4091491. Also, a replay will be
available through the Internet and can be accessed by visiting either of the
above-referenced Worldwide Web addresses.
Transocean is the world's largest offshore drilling contractor and the leading
provider of drilling management services worldwide. With a fleet of 139 mobile
offshore drilling units plus three ultra-deepwater units under construction,
Transocean's fleet is considered one of the most modern and versatile in the
world due to its emphasis on technically demanding segments of the offshore
drilling business. Transocean owns or operates a contract drilling fleet of 45
High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment
semisubmersibles and drillships), 26 Midwater Floaters, 10 High-Specification
Jackups, 55 Standard Jackups and other assets utilized in the support of
offshore drilling activities worldwide.
(1) 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."
(2) Annual Effective Tax Rate is defined as income tax expense excluding various
discrete items (such as changes in estimates and tax on items excluded from
income before income tax expense) divided by income before income tax expense
excluding gains 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."
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three months ended
March 31,
2010 2009
Operating revenues
Contract drilling revenues $ 2,441 $ 2,834
Contract drilling intangible revenues 33 104
Other revenues 128 180
2,602 3,118
Costs and expenses
Operating and maintenance 1,196 1,171
Depreciation, depletion and amortization 401 355
General and administrative 63 56
1,660 1,582
Loss on impairment (2) (221)
Gain (loss) on disposal of assets, net (14) 4
Operating income 926 1,319
Other income (expense), net
Interest income 5 1
Interest expense, net of amounts capitalized (132) (136)
Other, net 15 6
(112) (129)
Income before income tax expense 814 1,190
Income tax expense 129 251
Net income 685 939
Net income (loss) attributable to noncontrolling
interest 8 (3)
Net income attributable to controlling interest $ 677 $ 942
========== ==========
Earnings per share
Basic $ 2.10 $ 2.94
Diluted $ 2.09 $ 2.93
Weighted-average shares outstanding
Basic 321 319
Diluted 322 320
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
March 31, December 31,
2010 2009
(Unaudited)
Assets
Cash and cash equivalents $ 1,586 $ 1,130
Accounts receivable, net of
allowance for
doubtful accounts of $41 and
$65 at March 31,
2010 and December 31, 2009, 2,285 2,385
respectively
Materials and supplies, net of
allowance for
obsolescence of $64 and $66 at
March 31, 2010
and December 31, 2009, 464 462
respectively
Deferred income taxes, net 113 104
Assets held for sale -- 186
Other current assets 263 209
Total current assets 4,711 4,476
Property and equipment 27,604 27,383
Property and equipment of
consolidated variable
interest entities 2,149 1,968
Less accumulated depreciation 6,728 6,333
Property and equipment, net 23,025 23,018
Goodwill 8,132 8,134
Other assets 970 808
Total assets $ 36,838 $ 36,436
========== ==========
Liabilities and equity
Accounts payable $ 746 $ 780
Accrued income taxes 240 240
Debt due within one year 1,447 1,568
Debt of consolidated variable interest entities due
within one year 82 300
Other current liabilities 787 730
Total current liabilities 3,302 3,618
Long-term debt 8,990 8,966
Long-term debt of consolidated
variable interest
entities 920 883
Deferred income taxes, net 713 726
Other long-term liabilities 1,707 1,684
Total long-term liabilities 12,330 12,259
Commitments and contingencies
Shares, CHF 15.00 par value, 502,852,947 authorized,
167,617,649 conditionally authorized, 335,235,298 issued
at March 31, 2010 and December 31, 2009; 320,950,624 and
321,223,882 outstanding at March 31, 2010 and December
31, 2009,
respectively 4,478 4,472
Additional paid-in capital 7,433 7,407
Retained earnings 9,685 9,008
Accumulated other comprehensive loss (338) (335)
Treasury shares, at cost, 717,000 and none held at
March 31, 2010 and December 31, 2009, respectively (60) --
Total controlling interest shareholders'
equity 21,198 20,552
Noncontrolling interest 8 7
Total equity 21,206 20,559
Total liabilities and equity $ 36,838 $ 36,436
========== ==========
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three months ended
March 31,
2010 2009
Cash flows from operating activities
Net income $ 685 $ 939
Adjustments to reconcile net income to net cash
provided by operating activities
Amortization of drilling contract intangibles (33) (104)
Depreciation, depletion and amortization 401 355
Share-based compensation expense 35 19
(Gain) loss on disposal of assets, net 14 (4)
Loss on impairment 2 221
Amortization of debt issue costs, discounts and
premiums, net 49 52
Deferred income taxes (22) 6
Other, net 3 11
Deferred revenue, net 151 (6)
Deferred expenses, net (14) 2
Changes in operating assets and liabilities (99) (50)
Net cash provided by operating activities 1,172 1,441
Cash flows from investing activities
Capital expenditures (379) (708)
Proceeds from disposal of assets, net 41 8
Proceeds from distributions from short-term
investments 5 221
Joint ventures and other investments, net 10 --
Net cash used in investing activities (323) (479)
Cash flows from financing activities
Change in short-term borrowings, net (131) (24)
Proceeds from debt 54 88
Repayments of debt (253) (600)
Repurchases of convertible senior notes -- (102)
Purchases of treasury shares (60) --
Proceeds from (taxes paid for) share-based
compensation plans, net (4) 17
Other, net 1 (2)
Net cash used in financing activities (393) (623)
Net increase in cash and cash equivalents 456 339
Cash and cash equivalents at beginning of period 1,130 963
Cash and cash equivalents at end of period $ 1,586 $ 1,302
========== ==========
TRANSOCEAN LTD.
FLEET OPERATING STATISTICS
Operating Revenues ($ Millions)
Three months ended
March 31, December 31, March 31,
2010 2009 2009
Contract Drilling Revenues
High-Specification Floaters:
Ultra Deepwater Floaters $ 901 $ 890 $ 702
Deepwater Floaters 390 449 413
Harsh Environment Floaters 176 155 158
Total High-Specification Floaters 1,467 1,494 1,273
Midwater Floaters 522 537 708
High-Specification Jackups 94 86 151
Standard Jackups 352 422 689
Other Rigs 6 7 13
Subtotal 2,441 2,546 2,834
Contract Intangible Revenue 33 44 104
Other Revenues
Client Reimbursable Revenues 40 46 50
Integrated Services and Other 30 48 53
Drilling Management Services 51 41 70
Oil and Gas Properties 7 8 7
Subtotal 128 143 180
Total Company $ 2,602 $ 2,733 $ 3,118
Average Daily Revenue (1)
Three months ended
March 31, December March 31,
31,
2010 2009 2009
High-Specification Floaters:
Ultra Deepwater Floaters $ 486,000 $ 486,200 $ 451,000
Deepwater Floaters $ 383,800 $ 346,600 $ 336,900
Harsh Environment Floaters $ 400,100 $ 405,800 $ 351,100
Total High-Specification $ 437,200 $ 425,900 $ 393,800
Floaters
Midwater Floaters $ 331,600 $ 325,100 $ 314,700
High-Specification Jackups $ 166,000 $ 175,100 $ 169,500
Standard Jackups $ 133,100 $ 147,300 $ 156,400
Other Rigs $ 72,700 $ 72,300 $ 46,700
Total Drilling Fleet $ 298,300 $ 295,700 $ 256,500
Utilization
(1)
Three months ended
March 31, December March 31,
31,
2010 2009 2009
High-Specification Floaters:
Ultra Deepwater Floaters 88% 91% 96%
Deepwater Floaters 71% 88% 85%
Harsh Environment Floaters 98% 83% 100%
Total High-Specification 84% 89% 92%
Floaters
Midwater Floaters 67% 69% 89%
High-Specification Jackups 63% 53% 99%
Standard Jackups 53% 57% 89%
Other Rigs 50% 50% 99%
Total Drilling Fleet 66% 69% 91%
(1) Average daily revenue is defined as contract drilling revenue earned per
revenue earning day in the period. A revenue earning day is defined as a day
for which a rig earns dayrate after commencement of operations. Utilization is
defined as the total actual number of revenue earning days in the period as a
percentage of the total number of calendar days in the period for all drilling
rigs in our fleet.
TRANSOCEAN LTD. AND SUBSIDIARIES
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
(In millions, except percentages)
Three months ended
Mar 31, Dec 31, Mar 31,
2010 2009 2009
Income before income taxes $ 814 $ 898 $ 1,190
Add back (subtract):
Loss on impairment of oil and gas
properties 21 - -
Loss on impairment of goodwill 2 - -
Loss on disposal of assets 14 - -
Loss on impairment on the Reserve 1 - -
funds
(Gain) loss on retirement of debt (2) 12 2
GSF merger related costs and other, 5 5 6
net
Litigation matters - (24) -
Income from TODCO tax sharing - (1) -
agreement
Gain on sale of interests in joint
ventures - (34) -
Loss on impairment of assets held for
sale - - 221
Adjusted income before income taxes 855 856 1,419
Income tax expense 129 181 251
Add back (subtract):
Loss on impairment of oil and gas
properties 7 - -
GSF merger related costs 1 - 1
Tax effect of the Patient Protection
and Affordable Care Act (2) - -
Loss on impairment - 18 -
Changes in estimates (1) (7) (50) (37)
Adjusted income tax expense (2) $ 128 $ 149 $ 215
========== ========== ==========
Effective Tax Rate (3) 15.8% 20.1% 21.1%
Annual Effective Tax Rate (4) 15.0% 17.4% 15.2%
(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 December 31, 2009 include $11 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.
(3) Effective Tax Rate is income tax expense divided by income before income
taxes.
(4) Annual Effective Tax Rate is 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 taxes excluding gains and losses
on sales and similar items pursuant to the accounting standards for income taxes
and estimating the annual effective tax rate.
Analyst Contact:
Gregory S. Panagos
+1 713-232-7551
Media Contact:
Guy A. Cantwell
+1 713-232-7647
[HUG#1412944]
--- End of Message ---
Transocean Ltd.
Chemin de Blandonnet 10 Vernier Switzerland
ISIN: CH0048265513;
Unternehmensinformation / Kurzprofil:
Datum: 07.05.2010 - 03:55 Uhr
Sprache: Deutsch
News-ID 20438
Anzahl Zeichen: 0
contact information:
Town:
Vernier
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 220 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Transocean Ltd. Reports First Quarter 2010 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Transocean Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
