Transocean Ltd. (NYSE: RIG) today reported a net loss attributable
to controlling interest of $68 million, $0.10 per diluted
share, for the three months ended June 30, 2022.
Contract drilling revenues for the three months
ended June 30, 2022, increased sequentially by
$106 million to $692 million, primarily due to three rigs
that returned to work after being idle in the prior quarter,
increased dayrate for three rigs, higher revenue efficiency and one
additional calendar day in the second quarter, partially offset by
reduced activity for two rigs that were warm stacked in the second
quarter of 2022.
Contract intangible amortization represented a
non-cash revenue reduction of $30 million, compared to
$29 million in the first quarter of 2022.
Operating and maintenance expense was
$433 million, compared with $412 million in the prior
quarter. The sequential increase was primarily due to returning the
three rigs to work, as mentioned above, and higher in-service
maintenance cost across our fleet.
General and administrative expense was
$43 million, which is in line with the $42 million in the
first quarter of 2022.
Interest expense, net of amounts capitalized,
was $100 million, compared with $102 million in the prior
quarter. Interest income was $4 million, compared with
$2 million, in the previous quarter.
The Effective Tax Rate(2) was (4.7)% in the
current quarter and (17.6)% in the prior quarter. The change in the
rate was primarily due to the reduced loss before income tax
expense and reduction of tax expense; however, the loss before
income tax movement was much greater causing a shift in the
effective tax rate. In addition, there were lower releases of
uncertain tax positions as compared to last quarter. The Effective
Tax Rate excluding discrete items was (5.2)% compared to (22.8)% in
the previous quarter.
Cash provided by operating activities was
$41 million during the second quarter of 2022, representing an
increase of $42 million compared to the prior quarter. The
sequential increase is primarily due to the higher level of
operating activity in the second quarter and reduced payments for
payroll-related items and interest.
Second quarter 2022 capital expenditures
increased to $115 million from $106 million in the prior
quarter, primarily due to payments related to the company’s
newbuild drillships under construction, including the cash
component of the final milestone payment for the delivery of
Deepwater Atlas in June 2022.
“The Transocean team continued to operate at an
extremely high level throughout the second quarter, once again
delivering safe, reliable, and efficient operations for our
customers,” said Jeremy Thigpen, Chief Executive Officer. “Our
strong uptime performance and contractual bonus conversion resulted
in revenue efficiency of approximately 98% across our global
floater fleet.”
Thigpen added, “While the past eight years have
been extremely challenging for the entire industry, it is clear
that the recovery in offshore drilling is underway, as contracting
activity, utilization rates for high-specification ultra-deepwater
and harsh-environment assets, and dayrates all continue to rise.
And, with a backdrop of hydrocarbon supply challenges, we are
increasingly encouraged that this momentum could continue for the
foreseeable 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,
August 2, 2022, to discuss the results. To participate, dial
+1 313-209-6672 and refer to conference code 5258095
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,
August 2, 2022. The replay, which will be archived for
approximately 30 days, can be accessed at
+1 719-457-0820, passcode 5258095, pin 3505. 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:Alison
Johnson+1 713-232-7214
Media Contact:Pam Easton+1
713-232-7647
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In millions, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
692 |
|
|
$ |
656 |
|
|
$ |
1,278 |
|
|
$ |
1,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
433 |
|
|
|
434 |
|
|
|
845 |
|
|
|
869 |
|
|
Depreciation and amortization |
|
|
184 |
|
|
|
186 |
|
|
|
367 |
|
|
|
373 |
|
|
General and administrative |
|
|
43 |
|
|
|
39 |
|
|
|
85 |
|
|
|
78 |
|
|
|
|
|
660 |
|
|
|
659 |
|
|
|
1,297 |
|
|
|
1,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on disposal of assets, net |
|
|
(4 |
) |
|
|
1 |
|
|
|
(3 |
) |
|
|
(58 |
) |
|
Operating income (loss) |
|
|
28 |
|
|
|
(2 |
) |
|
|
(22 |
) |
|
|
(69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
4 |
|
|
|
4 |
|
|
|
6 |
|
|
|
7 |
|
|
Interest expense, net of amounts capitalized |
|
|
(100 |
) |
|
|
(115 |
) |
|
|
(202 |
) |
|
|
(230 |
) |
|
Gain on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
|
Other, net |
|
|
3 |
|
|
|
14 |
|
|
|
4 |
|
|
|
23 |
|
|
|
|
|
(93 |
) |
|
|
(97 |
) |
|
|
(192 |
) |
|
|
(149 |
) |
|
Loss before income tax expense (benefit) |
|
|
(65 |
) |
|
|
(99 |
) |
|
|
(214 |
) |
|
|
(218 |
) |
|
Income
tax expense (benefit) |
|
|
3 |
|
|
|
4 |
|
|
|
29 |
|
|
|
(17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(68 |
) |
|
|
(103 |
) |
|
|
(243 |
) |
|
|
(201 |
) |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Net loss attributable to controlling interest |
|
$ |
(68 |
) |
|
$ |
(103 |
) |
|
$ |
(243 |
) |
|
$ |
(202 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.33 |
) |
|
Weighted-average shares, basic
and diluted |
|
|
692 |
|
|
|
621 |
|
|
|
678 |
|
|
|
619 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
729 |
|
|
$ |
976 |
|
|
Accounts receivable, net of
allowance of $2 at June 30, 2022 and December 31, 2021 |
|
|
610 |
|
|
|
492 |
|
|
Materials and supplies, net of
allowance of $191 and $183 at June 30, 2022 and December 31, 2021,
respectively |
|
|
389 |
|
|
|
392 |
|
|
Restricted cash and cash equivalents |
|
|
432 |
|
|
|
436 |
|
|
Other current assets |
|
|
126 |
|
|
|
148 |
|
|
Total current assets |
|
|
2,286 |
|
|
|
2,444 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
23,633 |
|
|
|
23,152 |
|
|
Less accumulated depreciation |
|
|
(6,394 |
) |
|
|
(6,054 |
) |
|
Property and equipment, net |
|
|
17,239 |
|
|
|
17,098 |
|
|
Contract intangible
assets |
|
|
114 |
|
|
|
173 |
|
|
Deferred tax assets, net |
|
|
7 |
|
|
|
7 |
|
|
Other assets |
|
|
904 |
|
|
|
959 |
|
|
Total assets |
|
$ |
20,550 |
|
|
$ |
20,681 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
173 |
|
|
$ |
228 |
|
|
Accrued income taxes |
|
|
6 |
|
|
|
17 |
|
|
Debt due within one year |
|
|
847 |
|
|
|
513 |
|
|
Other current liabilities |
|
|
507 |
|
|
|
545 |
|
|
Total current liabilities |
|
|
1,533 |
|
|
|
1,303 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
6,376 |
|
|
|
6,657 |
|
|
Deferred tax liabilities, net |
|
|
472 |
|
|
|
447 |
|
|
Other
long-term liabilities |
|
|
994 |
|
|
|
1,068 |
|
|
Total long-term liabilities |
|
|
7,842 |
|
|
|
8,172 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value,
905,093,509 authorized, 142,362,675 conditionally authorized,
754,244,753 issued |
|
|
|
|
|
|
|
and 705,711,203 outstanding at June 30, 2022, and 891,379,306
authorized, 142,363,356 conditionally |
|
|
|
|
|
|
|
authorized, 728,176,456 issued and 655,505,335 outstanding at
December 31, 2021 |
|
|
69 |
|
|
|
64 |
|
|
Additional paid-in capital |
|
|
13,899 |
|
|
|
13,683 |
|
|
Accumulated deficit |
|
|
(2,701 |
) |
|
|
(2,458 |
) |
|
Accumulated other comprehensive loss |
|
|
(93 |
) |
|
|
(84 |
) |
|
Total controlling interest shareholders’ equity |
|
|
11,174 |
|
|
|
11,205 |
|
|
Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
|
Total equity |
|
|
11,175 |
|
|
|
11,206 |
|
|
Total liabilities and equity |
|
$ |
20,550 |
|
|
$ |
20,681 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
June 30, |
|
|
|
2022 |
|
2021 |
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
Net loss |
|
$ |
(243 |
) |
|
$ |
(201 |
) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Contract intangible asset amortization |
|
|
59 |
|
|
|
113 |
|
|
Depreciation and amortization |
|
|
367 |
|
|
|
373 |
|
|
Share-based compensation expense |
|
|
15 |
|
|
|
14 |
|
|
Loss on disposal of assets, net |
|
|
3 |
|
|
|
58 |
|
|
Gain on retirement of debt |
|
|
— |
|
|
|
(51 |
) |
|
Deferred income tax expense |
|
|
25 |
|
|
|
11 |
|
|
Other, net |
|
|
32 |
|
|
|
14 |
|
|
Changes in deferred revenues, net |
|
|
(31 |
) |
|
|
(72 |
) |
|
Changes in deferred costs, net |
|
|
13 |
|
|
|
7 |
|
|
Changes in other operating assets and liabilities, net |
|
|
(200 |
) |
|
|
(17 |
) |
|
Net
cash provided by operating activities |
|
|
40 |
|
|
|
249 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(221 |
) |
|
|
(100 |
) |
|
Investments in unconsolidated affiliates |
|
|
(19 |
) |
|
|
— |
|
|
Investment in loans to unconsolidated affiliates |
|
|
— |
|
|
|
(33 |
) |
|
Proceeds from disposal of assets, net |
|
|
4 |
|
|
|
7 |
|
|
Net
cash used in investing activities |
|
|
(236 |
) |
|
|
(126 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
Repayments of debt |
|
|
(257 |
) |
|
|
(239 |
) |
|
Proceeds from issuance of shares, net of issue costs |
|
|
206 |
|
|
|
66 |
|
|
Other, net |
|
|
(4 |
) |
|
|
(20 |
) |
|
Net
cash used in financing activities |
|
|
(55 |
) |
|
|
(193 |
) |
|
|
|
|
|
|
|
|
|
Net
decrease in unrestricted and restricted cash and cash
equivalents |
|
|
(251 |
) |
|
|
(70 |
) |
|
Unrestricted and restricted cash and cash equivalents, beginning of
period |
|
|
1,412 |
|
|
|
1,560 |
|
|
Unrestricted and restricted cash and cash equivalents, end of
period |
|
$ |
1,161 |
|
|
$ |
1,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
FLEET OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
June 30, |
|
June 30, |
|
Contract Drilling
Revenues (in millions) |
|
2022 |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
|
$ |
451 |
|
$ |
390 |
|
$ |
424 |
|
|
$ |
841 |
|
$ |
860 |
|
Harsh environment floaters |
|
|
241 |
|
|
196 |
|
|
232 |
|
|
|
437 |
|
|
449 |
|
Total contract drilling
revenues |
|
$ |
692 |
|
$ |
586 |
|
$ |
656 |
|
|
$ |
1,278 |
|
$ |
1,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
June 30, |
|
June 30, |
|
Average Daily
Revenue (1) |
|
2022 |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
Ultra-deepwater floaters |
|
$ |
334,400 |
|
$ |
305,600 |
|
$ |
363,500 |
|
|
$ |
320,300 |
|
$ |
367,500 |
|
Harsh environment
floaters |
|
|
406,000 |
|
|
399,100 |
|
|
379,900 |
|
|
|
402,800 |
|
|
378,900 |
|
Total fleet average daily revenue |
|
$ |
358,100 |
|
|
334,500 |
|
$ |
369,400 |
|
|
$ |
346,800 |
|
$ |
371,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
June 30, |
|
June 30, |
|
Utilization
(2) |
|
2022 |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
Ultra-deepwater floaters |
|
53.8 |
% |
|
49.8 |
% |
|
48.1 |
% |
|
|
51.8 |
% |
|
48.0 |
% |
|
Harsh environment
floaters |
|
70.0 |
% |
|
60.3 |
% |
|
73.2 |
% |
|
|
65.2 |
% |
|
68.9 |
% |
|
Total fleet average rig utilization |
|
58.2 |
% |
|
52.7 |
% |
|
54.9 |
% |
|
|
55.4 |
% |
|
53.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
June 30, |
|
June 30, |
Revenue
Efficiency (3) |
|
2022 |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
Ultra-deepwater floaters |
|
96.8 |
% |
|
94.9 |
% |
|
97.9 |
% |
|
|
95.9 |
% |
|
97.5 |
% |
Harsh environment
floaters |
|
99.5 |
% |
|
95.0 |
% |
|
98.2 |
% |
|
|
97.4 |
% |
|
98.1 |
% |
Total fleet average revenue efficiency |
|
97.8 |
% |
|
94.9 |
% |
|
98.0 |
% |
|
|
96.4 |
% |
|
97.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
QTD |
|
YTD |
|
|
|
06/30/22 |
|
06/30/22 |
|
03/31/22 |
|
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to controlling interest, as reported |
|
$ |
(243 |
) |
|
$ |
(68 |
) |
|
$ |
(175 |
) |
|
Discrete tax items |
|
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
Net loss, as adjusted |
|
$ |
(251 |
) |
|
$ |
(68 |
) |
|
$ |
(183 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
$ |
(0.36 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.26 |
) |
|
Discrete tax items |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Diluted loss per share, as
adjusted |
|
$ |
(0.37 |
) |
|
$ |
(0.10 |
) |
|
$ |
(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 |
|
QTD |
|
YTD |
|
|
|
06/30/22 |
|
06/30/22 |
|
03/31/22 |
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling revenues |
|
$ |
1,278 |
|
|
$ |
692 |
|
|
$ |
586 |
|
|
Contract intangible asset amortization |
|
|
59 |
|
|
|
30 |
|
|
|
29 |
|
|
Adjusted Contract
Drilling Revenues |
|
$ |
1,337 |
|
|
$ |
722 |
|
|
$ |
615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(243 |
) |
|
$ |
(68 |
) |
|
$ |
(175 |
) |
|
Interest expense, net of interest income |
|
|
196 |
|
|
|
96 |
|
|
|
100 |
|
|
Income tax expense |
|
|
29 |
|
|
|
3 |
|
|
|
26 |
|
|
Depreciation and amortization |
|
|
367 |
|
|
|
184 |
|
|
|
183 |
|
|
Contract intangible asset amortization |
|
|
59 |
|
|
|
30 |
|
|
|
29 |
|
|
EBITDA |
|
|
408 |
|
|
|
245 |
|
|
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted
EBITDA |
|
$ |
408 |
|
|
$ |
245 |
|
|
$ |
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA margin |
|
|
30.5 |
% |
|
|
33.9 |
% |
|
|
26.5 |
% |
|
Adjusted EBITDA margin |
|
|
30.5 |
% |
|
|
33.9 |
% |
|
|
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 |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
$ |
(65 |
) |
|
$ |
(149 |
) |
|
$ |
(99 |
) |
|
$ |
(214 |
) |
|
$ |
(218 |
) |
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
|
Gain on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(51 |
) |
|
Adjusted loss before income
taxes |
|
$ |
(65 |
) |
|
$ |
(149 |
) |
|
$ |
(99 |
) |
|
$ |
(214 |
) |
|
$ |
(209 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
$ |
3 |
|
|
$ |
26 |
|
|
$ |
4 |
|
|
$ |
29 |
|
|
$ |
(17 |
) |
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Gain on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimates (1) |
|
|
— |
|
|
|
8 |
|
|
|
6 |
|
|
|
8 |
|
|
|
33 |
|
|
Adjusted income tax expense
(2) |
|
$ |
3 |
|
|
$ |
34 |
|
|
$ |
10 |
|
|
$ |
37 |
|
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate (3) |
|
|
(4.7 |
)% |
|
|
(17.6 |
)% |
|
|
(4.6 |
)% |
|
|
(13.7 |
)% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate,
excluding discrete items (4) |
|
|
(5.2 |
)% |
|
|
(22.8 |
)% |
|
|
(10.2 |
)% |
|
|
(17.5 |
)% |
|
|
(7.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) The three
months ended June 30, 2022 included $8 million of additional tax
benefit, reflecting the cumulative effect of a decrease in the
annual effective tax rate from the previous quarter estimate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Our effective
tax rate is calculated as income tax expense divided by income
before income taxes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Our effective tax rate, excluding discrete items, is calculated
as income tax expense, excluding various discrete items (such as
changes in estimates and tax on items excluded from income before
income taxes), divided by income before income tax expense,
excluding gains and losses on sales and similar items pursuant to
the accounting standards for income taxes related to estimating the
annual effective tax rate. |
|
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