Transocean Ltd. (NYSE: RIG) today reported a net loss attributable
to controlling interest of $99 million, $0.16 per diluted
share, for the three months ended March 31, 2021.
First quarter 2021 results included net favorable items of
$18 million, or $0.03 per diluted share, as follows:
- $51 million, $0.08 per diluted share, gain on
retirement of debt; and
- $27 million, $0.05 per diluted share, discrete tax
items.
These favorable items were partially offset by:
- $60 million, $0.10 per diluted share, loss on
disposal of assets.
After consideration of these net favorable items,
first quarter 2021 adjusted net loss was $117 million,
$0.19 per diluted share.
Contract drilling revenues for the three months ended
March 31, 2021 decreased sequentially by $37 million to
$653 million, primarily due to the sale in the first quarter
of one harsh environment rig previously operating in the fourth
quarter 2020, two fewer calendar days in the first quarter, and
reduced activities for ultra-deepwater units, which were stacked or
idle, in Asia and North America. These decreases were partially
offset by a lower loss of revenue associated with shipyard during
the quarter.
A non-cash revenue reduction of $56 million was recognized
in the first quarter as a result of contract intangible
amortization associated with the Songa and Ocean Rig acquisitions.
This compares with $57 million in the prior quarter.
Operating and maintenance expense was $435 million,
compared with $465 million in the prior quarter. The
sequential decrease was primarily the result of decreased activity,
lower in‑service maintenance cost, reduced shipyard activities, and
lower allowance for excess materials and supplies.
General and administrative expense was $39 million, down
from $50 million in the fourth quarter of 2020. The
decrease was primarily due to legal, professional and advisory fees
incurred in the fourth quarter that were not repeated in the first
quarter and, to a lesser extent, reduced personnel costs.
Interest expense, net of amounts capitalized, was
$115 million, compared with $117 million, in the prior
quarter. Interest income was $3 million, compared with
$2 million in the previous quarter.
The Effective Tax Rate(2) was 17.8%, up from (147.9)% in
the prior quarter. The increase was primarily due to various
discrete items. The Effective Tax Rate excluding discrete items was
(5.7)% compared to (39.9)% in previous quarter.
Cash flows provided by operating activities were
$96 million, compared to $278 million in the prior
quarter. This was primarily a result of reduced cash received from
customers directly resulting from the reduced activity, combined
with increased cash used due to the timing of interest payments and
payroll-related payments.
First quarter 2021 capital expenditures of $59 million were
primarily related to our newbuild drillships under construction.
This compares with $47 million in the previous quarter.
“During the quarter, our dedicated team of professionals
continued to deliver safe, reliable and efficient operations for
our customers, producing 35% Adjusted EBITDA Margin, and some of
the strongest operating statistics in company history,” said Jeremy
Thigpen, President and Chief Executive Officer. “It is this
consistently strong performance that differentiates us in the eyes
of our customers and enables us to efficiently convert our industry
leading $7.4 billion backlog into cash.”
Thigpen added: “We are encouraged by the increasing number of
customer inquiries for both harsh-environment and ultra-deepwater
projects. And, as the global economy begins to emerge from the
pandemic, we are optimistic that oil prices will remain
constructive, driving an increase in contracting activity as we
move through the year.”
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 4, 2021, to discuss the
results. To participate, dial +1 334-323-0501 and refer to
conference code 4181646 approximately 10 minutes prior to
the scheduled start time.
The teleconference will be simulcast in a listen-only mode at:
www.deepwater.com, by selecting Investors, News, and Webcasts.
Supplemental materials that may be referenced during the
teleconference will be available at: www.deepwater.com, by
selecting Investors, Financial Reports.
A replay of the conference call will be available after
12 p.m. EDT, 6 p.m. CEST, on Tuesday, May 4, 2021.
The replay, which will be archived for approximately 30 days,
can be accessed at +1 719-457-0820, passcode 4181646. 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, 2020, 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 contract drilling 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, excluding revenues for contract terminations and
reimbursements, the drilling unit could earn for the measurement
period, excluding amounts related to incentive provisions. See the
accompanying schedule entitled “Revenue Efficiency.” |
(2) |
Effective Tax Rate is defined as income tax expense divided by
income before income taxes. See the accompanying schedule entitled
“Supplemental Effective Tax Rate Analysis.” |
|
|
Analyst Contact: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 |
|
March 31, |
|
2021 |
|
2020 |
|
|
|
|
|
|
Contract drilling revenues |
$ |
653 |
|
|
$ |
759 |
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
Operating and maintenance |
|
435 |
|
|
|
540 |
|
Depreciation and amortization |
|
187 |
|
|
|
206 |
|
General and administrative |
|
39 |
|
|
|
43 |
|
|
|
661 |
|
|
|
789 |
|
Loss on impairment |
|
— |
|
|
|
(168 |
) |
Loss on disposal of assets, net |
|
(59 |
) |
|
|
(1 |
) |
Operating loss |
|
(67 |
) |
|
|
(199 |
) |
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
Interest income |
|
3 |
|
|
|
9 |
|
Interest expense, net of amounts capitalized |
|
(115 |
) |
|
|
(160 |
) |
Gain (loss) on retirement of debt |
|
51 |
|
|
|
(57 |
) |
Other, net |
|
9 |
|
|
|
12 |
|
|
|
(52 |
) |
|
|
(196 |
) |
Loss before income tax expense |
|
(119 |
) |
|
|
(395 |
) |
Income
tax benefit |
|
(21 |
) |
|
|
(4 |
) |
|
|
|
|
|
|
Net loss |
|
(98 |
) |
|
|
(391 |
) |
Net income attributable to noncontrolling interest |
|
1 |
|
|
|
1 |
|
Net loss attributable to controlling interest |
$ |
(99 |
) |
|
$ |
(392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted |
$ |
(0.16 |
) |
|
$ |
(0.64 |
) |
Weighted average shares, basic
and diluted |
|
617 |
|
|
|
614 |
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
March 31, |
|
December 31, |
|
2021 |
|
2020 |
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
1,066 |
|
|
$ |
1,154 |
|
Accounts receivable, net of
allowance of $2 at March 31, 2021 and December 31, 2020 |
|
511 |
|
|
|
583 |
|
Materials and supplies, net of
allowance of $144 and $143 at March 31, 2021 and December 31, 2020,
respectively |
|
433 |
|
|
|
434 |
|
Restricted cash and cash equivalents |
|
388 |
|
|
|
406 |
|
Other current assets |
|
161 |
|
|
|
163 |
|
Total current assets |
|
2,559 |
|
|
|
2,740 |
|
|
|
|
|
|
|
Property and equipment |
|
23,020 |
|
|
|
23,040 |
|
Less accumulated depreciation |
|
(5,541 |
) |
|
|
(5,373 |
) |
Property and equipment, net |
|
17,479 |
|
|
|
17,667 |
|
Contract intangible
assets |
|
337 |
|
|
|
393 |
|
Deferred income taxes, net |
|
11 |
|
|
|
9 |
|
Other assets |
|
974 |
|
|
|
995 |
|
Total assets |
$ |
21,360 |
|
|
$ |
21,804 |
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
Accounts payable |
$ |
189 |
|
|
$ |
194 |
|
Accrued income taxes |
|
29 |
|
|
|
28 |
|
Debt due within one year |
|
524 |
|
|
|
505 |
|
Other current liabilities |
|
561 |
|
|
|
659 |
|
Total current liabilities |
|
1,303 |
|
|
|
1,386 |
|
|
|
|
|
|
|
Long-term debt |
|
7,096 |
|
|
|
7,302 |
|
Deferred income taxes, net |
|
319 |
|
|
|
315 |
|
Other
long-term liabilities |
|
1,302 |
|
|
|
1,366 |
|
Total long-term liabilities |
|
8,717 |
|
|
|
8,983 |
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value,
824,650,668 authorized, 142,363,647 conditionally authorized,
639,676,165 issued and 617,288,705 outstanding at March 31,
2021, and 824,650,660 authorized, 142,363,647
conditionally authorized, 639,676,165 issued and 615,140,276
outstanding at December 31, 2020 |
|
60 |
|
|
|
60 |
|
Additional paid-in capital |
|
13,508 |
|
|
|
13,501 |
|
Accumulated deficit |
|
(1,965 |
) |
|
|
(1,866 |
) |
Accumulated other comprehensive loss |
|
(267 |
) |
|
|
(263 |
) |
Total controlling interest shareholders’ equity |
|
11,336 |
|
|
|
11,432 |
|
Noncontrolling interest |
|
4 |
|
|
|
3 |
|
Total equity |
|
11,340 |
|
|
|
11,435 |
|
Total liabilities and equity |
$ |
21,360 |
|
|
$ |
21,804 |
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
Three months ended |
|
March 31, |
|
2021 |
|
2020 |
Cash flows from
operating activities |
|
|
|
|
|
Net loss |
$ |
(98 |
) |
|
$ |
(391 |
) |
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
Contract intangible asset amortization |
|
56 |
|
|
|
48 |
|
Depreciation and amortization |
|
187 |
|
|
|
206 |
|
Share-based compensation expense |
|
7 |
|
|
|
8 |
|
Loss on impairment |
|
— |
|
|
|
168 |
|
Loss on disposal of assets, net |
|
59 |
|
|
|
1 |
|
(Gain) loss on retirement of debt |
|
(51 |
) |
|
|
57 |
|
Deferred income tax expense |
|
2 |
|
|
|
10 |
|
Other, net |
|
7 |
|
|
|
18 |
|
Changes in deferred revenues, net |
|
(37 |
) |
|
|
5 |
|
Changes in deferred costs, net |
|
3 |
|
|
|
(11 |
) |
Changes in other operating assets and liabilities, net |
|
(39 |
) |
|
|
(167 |
) |
Net
cash provided by (used in) operating activities |
|
96 |
|
|
|
(48 |
) |
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
Capital expenditures |
|
(59 |
) |
|
|
(107 |
) |
Proceeds from disposal of assets, net |
|
6 |
|
|
|
1 |
|
Investments in unconsolidated affiliates |
|
— |
|
|
|
(6 |
) |
Net
cash used in investing activities |
|
(53 |
) |
|
|
(112 |
) |
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
Proceeds from issuance of debt, net of issue costs |
|
— |
|
|
|
743 |
|
Repayments of debt |
|
(139 |
) |
|
|
(909 |
) |
Other, net |
|
(10 |
) |
|
|
(9 |
) |
Net
cash used in financing activities |
|
(149 |
) |
|
|
(175 |
) |
|
|
|
|
|
|
Net
decrease in unrestricted and restricted cash and cash
equivalents |
|
(106 |
) |
|
|
(335 |
) |
Unrestricted and restricted cash and cash equivalents, beginning of
period |
|
1,560 |
|
|
|
2,349 |
|
Unrestricted and restricted cash and cash equivalents, end of
period |
$ |
1,454 |
|
|
$ |
2,014 |
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
FLEET OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Contract Drilling
Revenues (in millions) |
2021 |
|
2020 |
|
2020 |
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
$ |
436 |
|
|
$ |
440 |
|
|
$ |
528 |
|
Harsh environment floaters |
|
217 |
|
|
|
250 |
|
|
|
220 |
|
Midwater floaters |
|
— |
|
|
|
— |
|
|
|
11 |
|
Total contract drilling
revenues |
$ |
653 |
|
|
$ |
690 |
|
|
$ |
759 |
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Average Daily Revenue
(1) |
2021 |
|
2020 |
|
2020 |
Ultra-deepwater floaters |
$ |
371,600 |
|
|
$ |
342,100 |
|
|
$ |
332,600 |
|
Harsh environment
floaters |
|
377,800 |
|
|
|
357,500 |
|
|
|
303,100 |
|
Midwater floaters |
|
— |
|
|
|
— |
|
|
|
112,600 |
|
Total fleet average daily revenue |
$ |
373,700 |
|
|
|
347,500 |
|
|
$ |
314,900 |
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Utilization
(2) |
2021 |
|
2020 |
|
2020 |
Ultra-deepwater floaters |
|
48 |
% |
|
|
52 |
% |
|
|
61 |
% |
Harsh environment
floaters |
|
65 |
% |
|
|
74 |
% |
|
|
63 |
% |
Midwater floaters |
|
— |
% |
|
|
— |
% |
|
|
39 |
% |
Total fleet average rig utilization |
|
53 |
% |
|
|
58 |
% |
|
|
60 |
% |
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
Revenue Efficiency
(3) |
2021 |
|
2020 |
|
2020 |
Ultra-deepwater floaters |
|
97 |
% |
|
|
97 |
% |
|
|
97 |
% |
Harsh environment
floaters |
|
98 |
% |
|
|
98 |
% |
|
|
89 |
% |
Midwater floaters |
|
— |
% |
|
|
— |
% |
|
|
87 |
% |
Total fleet average revenue efficiency |
|
97 |
% |
|
|
97 |
% |
|
|
94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average daily revenue is defined as contract drilling revenues,
excluding revenues for contract terminations, reimbursements and
contract intangible amortization, 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 rig calendar days in the
measurement period, expressed as a percentage. |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Revenue efficiency is defined as actual contract drilling
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, excluding revenues for contract
terminations and reimbursements, 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 |
|
03/31/21 |
Adjusted Net
Loss |
|
|
Net loss attributable to
controlling interest, as reported |
$ |
(99 |
) |
Loss on disposal of assets, net |
|
60 |
|
Gain on retirement of debt |
|
(51 |
) |
Discrete tax items |
|
(27 |
) |
Net loss, as adjusted |
$ |
(117 |
) |
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
Diluted loss per share, as
reported |
$ |
(0.16 |
) |
Loss on disposal of assets, net |
|
0.10 |
|
Gain on retirement of debt |
|
(0.08 |
) |
Discrete tax items |
|
(0.05 |
) |
Diluted loss per share, as adjusted |
$ |
(0.19 |
) |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
12/31/20 |
|
12/31/20 |
|
09/30/20 |
|
09/30/20 |
|
06/30/20 |
|
06/30/20 |
|
03/31/20 |
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to controlling interest, as
reported |
$ |
(567 |
) |
|
$ |
(37 |
) |
|
$ |
(530 |
) |
|
$ |
359 |
|
|
$ |
(889 |
) |
|
$ |
(497 |
) |
|
$ |
(392 |
) |
Restructuring costs |
|
5 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
5 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
Loss on impairment of assets |
|
597 |
|
|
|
— |
|
|
|
597 |
|
|
|
— |
|
|
|
597 |
|
|
|
430 |
|
|
|
167 |
|
Loss on disposal of assets, net |
|
61 |
|
|
|
— |
|
|
|
61 |
|
|
|
61 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of investment in unconsolidated affiliates |
|
62 |
|
|
|
3 |
|
|
|
59 |
|
|
|
— |
|
|
|
59 |
|
|
|
59 |
|
|
|
— |
|
(Gain) loss on restructuring and retirement of debt |
|
(533 |
) |
|
|
(137 |
) |
|
|
(396 |
) |
|
|
(449 |
) |
|
|
53 |
|
|
|
(4 |
) |
|
|
57 |
|
Discrete tax items |
|
(91 |
) |
|
|
(37 |
) |
|
|
(54 |
) |
|
|
(45 |
) |
|
|
(9 |
) |
|
|
10 |
|
|
|
(19 |
) |
Net loss, as adjusted |
$ |
(466 |
) |
|
$ |
(209 |
) |
|
$ |
(257 |
) |
|
$ |
(69 |
) |
|
$ |
(188 |
) |
|
$ |
(1 |
) |
|
$ |
(187 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share, as reported |
$ |
(0.92 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.86 |
) |
|
$ |
0.51 |
|
|
$ |
(1.45 |
) |
|
$ |
(0.81 |
) |
|
$ |
(0.64 |
) |
Restructuring costs |
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of assets |
|
0.97 |
|
|
|
— |
|
|
|
0.97 |
|
|
|
— |
|
|
|
0.97 |
|
|
|
0.70 |
|
|
|
0.28 |
|
Loss on disposal of assets, net |
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.09 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of investment in unconsolidated affiliates |
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
0.10 |
|
|
|
— |
|
(Gain) loss on restructuring and retirement of debt |
|
(0.87 |
) |
|
|
(0.22 |
) |
|
|
(0.65 |
) |
|
|
(0.65 |
) |
|
|
0.09 |
|
|
|
(0.01 |
) |
|
|
0.09 |
|
Discrete tax items |
|
(0.15 |
) |
|
|
(0.06 |
) |
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
(0.03 |
) |
Diluted loss per share, as adjusted |
$ |
(0.76 |
) |
|
$ |
(0.34 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.31 |
) |
|
$ |
— |
|
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
03/31/21 |
|
|
|
|
|
Contract drilling revenues |
$ |
653 |
|
Contract intangible asset amortization |
|
56 |
|
Adjusted Contract Drilling Revenues |
$ |
709 |
|
|
|
|
|
Net loss |
$ |
(98 |
) |
Interest expense, net of interest income |
|
112 |
|
Income tax benefit |
|
(21 |
) |
Depreciation and amortization |
|
187 |
|
Contract intangible asset amortization |
|
56 |
|
EBITDA |
|
236 |
|
|
|
|
|
Loss on disposal of assets, net |
|
60 |
|
Gain on retirement of debt |
|
(51 |
) |
Adjusted EBITDA |
$ |
245 |
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
33 |
% |
Adjusted EBITDA margin |
|
35 |
% |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
12/31/20 |
|
12/31/20 |
|
09/30/20 |
|
09/30/20 |
|
06/30/20 |
|
06/30/20 |
|
03/31/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
$ |
3,152 |
|
|
$ |
690 |
|
|
$ |
2,462 |
|
|
$ |
773 |
|
|
$ |
1,689 |
|
|
$ |
930 |
|
|
$ |
759 |
|
Contract intangible asset amortization |
|
215 |
|
|
|
57 |
|
|
|
158 |
|
|
|
57 |
|
|
|
101 |
|
|
|
53 |
|
|
|
48 |
|
Adjusted Contract Drilling Revenues |
$ |
3,367 |
|
|
$ |
747 |
|
|
$ |
2,620 |
|
|
$ |
830 |
|
|
$ |
1,790 |
|
|
$ |
983 |
|
|
$ |
807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(568 |
) |
|
$ |
(39 |
) |
|
$ |
(529 |
) |
|
$ |
359 |
|
|
$ |
(888 |
) |
|
$ |
(497 |
) |
|
$ |
(391 |
) |
Interest expense, net of interest income |
|
554 |
|
|
|
115 |
|
|
|
439 |
|
|
|
139 |
|
|
|
300 |
|
|
|
149 |
|
|
|
151 |
|
Income tax expense (benefit) |
|
27 |
|
|
|
23 |
|
|
|
4 |
|
|
|
(24 |
) |
|
|
28 |
|
|
|
32 |
|
|
|
(4 |
) |
Depreciation and amortization |
|
781 |
|
|
|
189 |
|
|
|
592 |
|
|
|
190 |
|
|
|
402 |
|
|
|
196 |
|
|
|
206 |
|
Contract intangible asset amortization |
|
215 |
|
|
|
57 |
|
|
|
158 |
|
|
|
57 |
|
|
|
101 |
|
|
|
53 |
|
|
|
48 |
|
EBITDA |
|
1,009 |
|
|
|
345 |
|
|
|
664 |
|
|
|
721 |
|
|
|
(57 |
) |
|
|
(67 |
) |
|
|
10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring costs |
|
5 |
|
|
|
(1 |
) |
|
|
6 |
|
|
|
5 |
|
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
Loss on impairment of assets |
|
597 |
|
|
|
— |
|
|
|
597 |
|
|
|
— |
|
|
|
597 |
|
|
|
429 |
|
|
|
168 |
|
Loss on disposal of assets, net |
|
61 |
|
|
|
— |
|
|
|
61 |
|
|
|
61 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on restructuring and retirement of debt |
|
(533 |
) |
|
|
(137 |
) |
|
|
(396 |
) |
|
|
(449 |
) |
|
|
53 |
|
|
|
(4 |
) |
|
|
57 |
|
Loss on impairment of investment in unconsolidated affiliates |
|
62 |
|
|
|
3 |
|
|
|
59 |
|
|
|
— |
|
|
|
59 |
|
|
|
59 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
1,201 |
|
|
$ |
210 |
|
|
$ |
991 |
|
|
$ |
338 |
|
|
$ |
653 |
|
|
$ |
418 |
|
|
$ |
235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
30 |
% |
|
|
46 |
% |
|
|
25 |
% |
|
|
87 |
% |
|
|
(3 |
)% |
|
|
(7 |
)% |
|
|
1 |
% |
Adjusted EBITDA margin |
|
36 |
% |
|
|
28 |
% |
|
|
38 |
% |
|
|
41 |
% |
|
|
36 |
% |
|
|
43 |
% |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS |
(In millions, except tax rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2021 |
|
2020 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
$ |
(119 |
) |
|
$ |
(16 |
) |
|
$ |
(395 |
) |
Restructuring costs |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Loss on impairment of assets |
|
— |
|
|
|
— |
|
|
|
168 |
|
Loss on disposal of assets, net |
|
60 |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of investment in unconsolidated affiliates |
|
— |
|
|
|
3 |
|
|
|
— |
|
(Gain) loss on retirement of debt |
|
(51 |
) |
|
|
(137 |
) |
|
|
57 |
|
Adjusted loss before income
taxes |
$ |
(110 |
) |
|
$ |
(151 |
) |
|
$ |
(170 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
$ |
(21 |
) |
|
$ |
23 |
|
|
$ |
(4 |
) |
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of assets |
|
— |
|
|
|
— |
|
|
|
1 |
|
Loss on disposal of assets, net |
|
— |
|
|
|
— |
|
|
|
— |
|
Loss on impairment of investment in unconsolidated affiliates |
|
— |
|
|
|
— |
|
|
|
— |
|
(Gain) loss on retirement of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
Changes in estimates (1) |
|
27 |
|
|
|
37 |
|
|
|
19 |
|
Adjusted income tax
expense |
$ |
6 |
|
|
$ |
60 |
|
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate (2) |
|
17.8 |
% |
|
|
(147.9 |
)% |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate,
excluding discrete items (3) |
|
(5.7 |
)% |
|
|
(39.9 |
)% |
|
|
(9.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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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