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Transocean Inc. Reports Fourth Quarter and Full-Year 2007 Results

February 20, 2008

HOUSTON--(BUSINESS WIRE)--Feb. 20, 2008--Transocean Inc. (NYSE:RIG) today reported net income for the three months ended December 31, 2007 of $1,056 million, or $4.17 per diluted share, on record quarterly revenues of $2,077 million. The results compare to net income of $621 million, or $2.92 per diluted share, on revenues of $1,186 million, for the three months ended December 31, 2006.

On November 27, 2007, Transocean Inc. merged with GlobalSantaFe Corporation (the "Merger") and reclassified our ordinary shares into cash and shares (the "Reclassification"). Reported results for the fourth quarter and full year 2007 included approximately one month from GlobalSantaFe's operations and the impact of recording GlobalSantaFe's assets and liabilities at fair market value as required by generally accepted accounting principles.

Fourth quarter 2007 results include after-tax income of $194 million, or $0.77 per diluted share, comprised of the following:

    --  $233 million gain resulting from the sale of the Peregrine I
        drillship;

    --  $36 million benefit for discrete tax items;

    --  $8 million loss resulting from the retirement of debt; and

    --  $67 million of Merger-related compensation costs.

Diluted earnings per share for the fourth quarter 2007 is based on a weighted average diluted share count of 254 million shares, which included the effect of restating the historical share count for the Reclassification. The weighted average diluted share count for the quarter without restatement would have been 309(1) million shares. Net income for the three months ended December 31, 2006 included after-tax gains of $260 million, or $1.22 per diluted share, resulting primarily from the sale of two rigs, other income recognized from the tax sharing agreement with TODCO and a tax benefit for discrete items. Diluted earnings per share for the fourth quarter 2006 is based on a weighted average diluted share count of 213 million shares, which includes the effect of restating the historical diluted share count for the Reclassification.

For the year ended December 31, 2007, net income totaled $3,131 million, or $14.14 per diluted share, on revenues of $6,377 million. For 2006, net income was $1,385 million, or $6.10 per diluted share, on revenues of $3,882 million. Results for 2007 included after-tax income of $563 million, or $2.54 per diluted share, including $369 million recognized during the first nine months of 2007 relating to payments received under the TODCO tax sharing agreement, rig sales and discrete tax items plus the $194 million recognized during the fourth quarter. Net income for the year ended December 31, 2006 included after-tax income totaling $451 million, or $1.97 per share, resulting from the sale of eight rigs and the TODCO tax sharing agreement and discrete tax items. Diluted earnings per share for the full year 2007 is based on a weighted average diluted share count of 222 million shares which includes the effect of restating the historical share count for the Reclassification. The weighted average diluted share count for 2007 without restatement would have been 303(1) million shares.

Robert L. Long, Chief Executive Officer of Transocean Inc., stated, "This past year was historic for Transocean. It was a record year in terms of financial, operational and safety performance, and we entered 2008 with a record-high revenue backlog. By merging with GlobalSantaFe, we transformed the company and now have a larger global footprint and more extensive technical capabilities. We also recapitalized the company and returned $15.0 billion in cash to Transocean and GlobalSantaFe shareholders."

Operations Quarterly Review

Revenues for the three months ended December 31, 2007 increased 35.1 percent to $2,077 million, compared to revenues of $1,538 million during the three months ended September 30, 2007. Of the $539 million quarter-to-quarter increase, $481 million was related to the inclusion of one month's revenues from GlobalSantaFe including $88 million of non-cash contract intangible revenue. The remaining $58 million of the total increase was primarily due to a higher average dayrate for Transocean, which rose 2.0 percent to $224,000 from $219,700 for the prior quarter. The increase in average dayrate was experienced across all rig categories, primarily as a result of rigs commencing new contracts at the higher prevailing current dayrates.

Operating and maintenance expenses were $923 million compared to $663 million for the prior quarter, an increase of $260 million. GlobalSantaFe's operations represented $151 million of the increase. Of the remaining $109 million increase, $59 million was for merger-related compensation costs and $28 million was for planned shipyards, maintenance and fleet-wide compensation increases and the remainder for discrete unplanned major projects and the impact of the weakening U.S. dollar.

Depreciation, depletion and amortization increased to $195 million versus $103 million in the third quarter of 2007. GlobalSanteFe's operations accounted for all of this increase.

General and administrative expenses increased to $60 million compared to $27 million in the prior quarter. GlobalSantaFe's operations accounted for $4 million of the increase, and $23 million was for merger-related expenses.

For the fourth quarter of 2007, the pretax gain from the disposal of assets, net, was $254 million compared to $8 million in the third quarter of 2007, primarily related to the sale of the Peregrine I.

For the fourth quarter of 2007, operating income before general and administrative expenses totaled $1,213 million, a 55.5 percent increase from $780 million reported for the third quarter of 2007. The $433 million increase included $237 million from GlobalSantaFe's operations, partially offset by $59 million in merger-related compensation expenses. The remainder of the increase was related to the legacy Transocean operations, primarily due to an increase in revenues and an increase in the gain from the disposal of assets, partially offset by the above-described increase in operating and maintenance expenses.

Field operating income(2) (defined as revenues less operating and maintenance expenses) for the fourth quarter 2007 increased 31.9 percent to $1,154 million compared to $875 million for the third quarter of 2007. The $279 million increase in field operating income included $330 million related to the inclusion of GlobalSantaFe, partially offset by $59 million of merger-related compensation expenses. Higher legacy Transocean revenues from increased dayrates were offset by increased operating and maintenance expense.

Liquidity and Interest Expense

Interest expense, net of amounts capitalized for the fourth quarter of 2007, increased to $79 million compared to $23 million in the third quarter of 2007. The increase was primarily related to increased borrowings incurred on November 27, 2007, which were used to fund the $15.0 billion in cash payments to shareholders of both companies associated with the Reclassification and Merger. The increase in net interest expense was partially offset by an increase in capitalized interest related to the six legacy Transocean and two legacy GlobalSantaFe ultra-deepwater rigs under construction.

Cash flow from operating activities increased to $915 million for fourth quarter of 2007 compared to $897 million for the third quarter 2007. For the full year 2007, cash flow from operating activities totaled $3,073 million compared to $1,237 million for 2006. As of December 31, 2007, total debt was $17.3 billion, an increase of $14.7 billion from September 30, 2007.

Effective Tax Rate

The company's Annual Effective Tax Rate(3) for the year ended December 31, 2007 was 12.5 percent, excluding the impact on income before income tax related to the gains from rig sales and payments received under the TODCO tax sharing agreement as well as excluding from income tax expense various discrete tax items. The Effective Tax Rate(4) of 2.1 percent for the fourth quarter of 2007 reflects the impact of rig sales and a $36 million favorable impact resulting from changes in estimates and resolution of prior years' tax disputes in various jurisdictions.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. Eastern on February 20, 2008. To participate, dial 913-312-1493 and refer to confirmation code 8219413 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 the company's website at www.deepwater.com and selecting "Investor Relations/News & Events/Webcasts & Presentations." A file containing four charts to be discussed during the conference call, titled "4Q07 Charts," has been posted to the company's website and can also be found by selecting "Investor Relations/News & Events/Webcasts & Presentations." The conference call may also be accessed via the Internet at www.CompanyBoardroom.com by typing in the company's New York Stock Exchange trading symbol, "RIG."

A telephonic replay of the conference call should be available after 1:00 p.m. Eastern on February 20, 2008 and can be accessed by dialing 719-457-0820 and referring to the passcode 8219413. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced Worldwide Web addresses.

Forward-Looking Disclaimer

Statements regarding our Annual Effective Tax Rate, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with international operations, future financial results, actions by customers and other third parties, factors affecting the supply and demand of drilling rigs, including newbuilds, reactivations and the reallocation of current rigs, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, hurricanes and other weather conditions, the future price of oil and gas and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

Transocean Inc. 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 eight ultra-deepwater units under construction, the company'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. The company owns or operates a contract drilling fleet of 39 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 29 Midwater Floaters, 10 High-Specification Jackups, 57 Standard Jackups and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization of approximately $41 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."

(1) The weighted average diluted share count for the quarter without restatement is calculated by assuming the Transocean share count without the effect of the Reclassification for October 2007 and November 2007 and with the effect of the Reclassification for December 2007. The weighted average diluted share count for 2007 without restatement is calculated by assuming the Transocean share count without the effect of the Reclassification for January 2007 through November 2007 and with the effect of the Reclassification for December 2007.

(2) For a reconciliation of operating income before general and administrative expense to field operating income, see the accompanying schedule entitled "Non-GAAP Financial Measures and Reconciliations - Operating Income Before General and Administrative Expense to Field Operating Income."

(3) 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 taxes) divided by income before income taxes excluding gains on sales and similar items pursuant to Financial Accounting Standards Board Interpretation No. 18. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

(4) 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."

                   TRANSOCEAN INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In millions, except per share data)
                             (Unaudited)

                               Three months ended  Twelve months ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------
Operating revenues
  Contract drilling revenues   $  1,860  $  1,147  $  5,948  $  3,745
  Contract intangible revenues       88         -        88         -
  Other revenues                    129        39       341       137
----------------------------------------------------------------------
                                  2,077     1,186     6,377     3,882
----------------------------------------------------------------------
Costs and expenses
  Operating and maintenance         923       570     2,781     2,155
  Depreciation, depletion and
   amortization                     195        98       499       401
  General and administrative         60        23       142        90
----------------------------------------------------------------------
                                  1,178       691     3,422     2,646
----------------------------------------------------------------------
Gain from disposal of assets,
 net                                254       183       284       405
----------------------------------------------------------------------
Operating income                  1,153       678     3,239     1,641
----------------------------------------------------------------------

Other income (expense), net
  Interest income                    13         7        30        21
  Interest expense, net of
   amounts capitalized              (79)      (43)     (172)     (115)
  Loss on retirement of debt         (8)        -        (8)        -
  Other, net                          -        51       295        60
----------------------------------------------------------------------
                                    (74)       15       145       (34)
----------------------------------------------------------------------

Income before income tax
 expense                          1,079       693     3,384     1,607
Income tax expense                   23        72       253       222
----------------------------------------------------------------------

Net income                     $  1,056  $    621  $  3,131  $  1,385
======================================================================

Earnings per share
  Basic                        $   4.27  $   3.04  $  14.65  $   6.32
  Diluted                      $   4.17  $   2.92  $  14.14  $   6.10
======================================================================

Weighted average shares
 outstanding
  Basic                             247       204       214       219
  Diluted                           254       213       222       228
======================================================================

                   TRANSOCEAN INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
                   (In millions, except share data)

                                                      December 31,
                                                   -------------------
                                                     2007      2006
                                                   --------- ---------
                      ASSETS
Cash and cash equivalents                          $  1,241  $    467
Accounts receivable, net
  Trade                                               2,209       929
  Other                                                 161        17
Materials and supplies, net                             333       160
Deferred income taxes, net                              119        16
Other current assets                                    233        67
----------------------------------------------------------------------
Total current assets                                  4,296     1,656
----------------------------------------------------------------------

Property and equipment                               24,545    10,539
Less accumulated depreciation                         3,615     3,213
------------------------------------------------------------ ---------
  Property and equipment, net                        20,930     7,326
----------------------------------------------------------------------
Goodwill                                              8,219     2,195
Other assets                                            919       299
----------------------------------------------------------------------
Total assets                                       $ 34,364  $ 11,476
======================================================================

       LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable                                   $    805  $    477
Accrued income taxes                                     99        98
Debt due within one year                              6,172        95
Other current liabilities                               826       369
----------------------------------------------------------------------
Total current liabilities                             7,902     1,039
----------------------------------------------------------------------

Long-term debt                                       11,085     3,203
Deferred income taxes, net                              681        54
Other long-term liabilities                           2,125       340
----------------------------------------------------------------------
Total long-term liabilities                          13,891     3,597
----------------------------------------------------------------------

Commitments and contingencies

Minority interest                                         5         4

Preference shares, $0.10 par value; 50,000,000
 shares authorized, none issued and outstanding           -         -
Ordinary shares, $0.01 par value; 800,000,000
 shares authorized, 317,222,909 and 204,609,973
 shares issued and outstanding at December 31,
 2007 and 2006, respectively                              3         2
Additional paid-in capital                           10,799     8,045
Accumulated other comprehensive loss                    (42)      (30)
Retained earnings (accumulated deficit)               1,806    (1,181)
----------------------------------------------------------------------
Total shareholders' equity                           12,566     6,836
----------------------------------------------------------------------
Total liabilities and shareholders' equity         $ 34,364  $ 11,476
======================================================================

                   TRANSOCEAN INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (In millions)
                             (Unaudited)

                               Three months ended  Twelve months ended
                                  December 31,        December 31,
                               ------------------- -------------------
                                 2007      2006      2007         2006
                               --------- --------- --------- ---------
Cash flows from operating
 activities
  Net income                   $  1,056  $    621  $  3,131  $  1,385
  Adjustments to reconcile net
   income to net cash provided
   by operating activities
    Amortization of drilling
     contract intangibles           (88)       --       (88)       --
    Depreciation, depletion
     and amortization               195        98       499       401
    Share-based compensation
     expense                         48         7        78        20
    Gain from disposal of
     assets, net                   (254)     (183)     (284)     (405)
    Deferred income taxes           (42)      (41)      (40)      (23)
    Deferred revenue, net            34        20        52        52
    Deferred expenses, net          (38)      (14)      (55)     (109)
    Other, net                       10        (1)       18       (15)
  Changes in operating assets
   and liabilities                   (6)       (3)     (238)      (69)
----------------------------------------------------------------------
Net cash provided by operating
 activities                         915       504     3,073     1,237
----------------------------------------------------------------------

Cash flows from investing
 activities
  Capital expenditures             (320)     (166)   (1,380)     (876)
  Consideration paid to
   GlobalSantaFe shareholders    (5,129)       --    (5,129)       --
  Cash balances acquired in
   connection with the Merger       695        --       695        --
  Proceeds from disposal of
   assets, net                      317       163       379       461
  Joint ventures and other
   investments, net                (239)       --      (242)       --
----------------------------------------------------------------------
Net cash used in investing
 activities                      (4,676)       (3)   (5,677)     (415)
----------------------------------------------------------------------

Cash flows from financing
 activities
  Borrowings under 364-Day
   Revolving Credit Facility      1,500        --     1,500        --
  Borrowings under other
   credit facilities             15,000       100    15,000     1,000
  Repayments under other
   credit facilities            (11,330)     (300)  (12,030)     (300)
  Proceeds from issuance of
   debt                           9,095        --     9,095     1,000
  Repayments of debt                 (3)       --        (3)       --
  Financing costs                   (96)       --      (106)       (5)
  Repurchase of ordinary
   shares                            --      (250)     (400)   (2,601)
  Proceeds from issuance of
   ordinary shares under
   share-based compensation
   plans, net                        32         2        72        69
  Proceeds from issuance of
   ordinary shares upon
   exercise of warrants              24        --        40        --
  Payment to shareholders for
   Reclassification of
   ordinary shares               (9,859)       --    (9,859)       --
  Tax benefit from issuance of
   ordinary shares under
   share-based compensation
   plans                             37         7        70         7
  Other, net                        (16)       --        (1)       30
----------------------------------------------------------------------
Net cash provided by (used in)
 financing activities             4,384      (441)    3,378      (800)
----------------------------------------------------------------------

Net increase in cash and cash
 equivalents                        623        60       774        22
----------------------------------------------------------------------
Cash and cash equivalents at
 beginning of period                618       407       467       445
----------------------------------------------------------------------
Cash and cash equivalents at
 end of period                 $  1,241  $    467  $  1,241  $    467
======================================================================

                           Transocean Inc.
                      Fleet Operating Statistics

                             Operating Revenues (in millions) (1)
                         ---------------------------------------------
                                                      Twelve months
                                                           ended
                             Three months ended           Dec 31,
                         --------------------------- -----------------
                         December September December
                            31,      30,       31,
                           2007     2007      2006     2007     2006
                         -------- --------- -------- -------- --------
Contract Drilling
 Revenues
  High-Specification
   Floaters:
    Ultra Deepwater
     Floaters            $    453  $    381 $    304 $  1,509 $  1,015
    Deepwater Floaters        290       280      248    1,069      824
    Harsh Environment
     Floaters                 120       122       89      478      321
  Total High-
   Specification
   Floaters                   863       783      641    3,056    2,160
  Midwater Floaters           534       409      289    1,711      819
  High-Specification
   Jackups                     64        12       12      100       45
  Standard Jackups            386       236      187    1,023      637
  Other Rigs                   13        15       18       58       84
Subtotal                    1,860     1,455    1,147    5,948    3,745
Contract Intangible
 Revenues                      88         0        0       88        0
Other Revenues
  Client Reimbursable
   Revenues                    32        32       28      123      108
  Other                        97        51       11      218       29
Subtotal                      129        83       39      341      137
Total Company            $  2,077  $  1,538 $  1,186 $  6,377 $  3,882

                                     Average Dayrates (1)
                         ---------------------------------------------
                                                      Twelve months
                                                           ended
                             Three months ended           Dec 31,
                         --------------------------- -----------------
                         December September December
                            31,      30,       31,
                           2007     2007      2006     2007     2006
                         -------- --------- -------- -------- --------
  High-Specification
   Floaters:
    Ultra Deepwater
     Floaters            $346,100  $323,200 $275,300 $316,000 $237,000
    Deepwater Floaters   $265,300  $251,600 $216,500 $236,600 $188,000
    Harsh Environment
     Floaters            $326,300  $312,300 $199,400 $291,300 $184,600
  Total High-
   Specification
   Floaters              $311,600  $291,900 $237,800 $279,500 $207,600
  Midwater Floaters      $274,600  $254,000 $184,600 $249,900 $140,900
  High-Specification
   Jackups               $173,400  $131,600 $133,300 $155,700 $128,900
  Standard Jackups       $130,800  $120,000 $ 95,300 $119,600 $ 78,900
  Other Rigs             $ 48,600  $ 54,900 $ 48,200 $ 52,700 $ 48,900
Total Drilling Fleet     $224,000  $219,700 $171,700 $211,900 $142,100

                                        Utilization (1)
                         ---------------------------------------------
                                                      Twelve months
                                                           ended
                             Three months ended           Dec 31,
                         --------------------------- -----------------
                         December September December
                            31,      30,       31,
                           2007     2007      2006     2007     2006
                         -------- --------- -------- -------- --------
  High-Specification
   Floaters:
    Ultra Deepwater
     Floaters                 97%       99%      92%      98%      90%
    Deepwater Floaters        75%       76%      78%      78%      76%
    Harsh Environment
     Floaters                 80%       85%      97%      90%      95%
  Total High-
   Specification
   Floaters                   85%       86%      86%      87%      84%
  Midwater Floaters           95%       92%      90%      95%      80%
  High-Specification
   Jackups                   100%      100%     100%     100%      96%
  Standard Jackups            91%       89%      89%      87%      92%
  Other Rigs                  97%       98%      99%      99%      70%
Total Drilling Fleet          90%       89%      89%      90%      85%

(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 Inc. and Subsidiaries
           Non-GAAP Financial Measures and Reconciliations

      Operating Income Before General and Administrative Expense
                      to Field Operating Income
                            (in millions)


                                                      Twelve months
                              Three months ended           ended
                          -------------------------- -----------------
                           Dec 31,  Sept 30, Dec 31, Dec 31,  Dec 31,
                            2007      2007    2006    2007     2006
                          --------- -------- ------- ------- ---------


  Operating revenue       $  2,077  $ 1,538  $1,186  $6,377  $  3,882
  Operating and
   maintenance expense         923      663     570   2,781     2,155
  Depreciation                 195      103      98     499       401
  (Gain) loss from
   disposal of assets,
   net                        (254)      (8)   (183)   (284)     (405)
                          --------- -------- ------- ------- ---------
Operating income before
 general and
 administrative expense      1,213      780     701   3,381     1,731
Add back
 (subtract): Depreciation      195      103      98     499       401
            (Gain) loss
             from
             disposal of
             assets, net      (254)      (8)   (183)   (284)     (405)
                          --------- -------- ------- ------- ---------
Field operating income    $  1,154  $   875  $  616  $3,596  $  1,727
                          --------- -------- ------- ------- ---------

                   Transocean Inc. and Subsidiaries
               Supplemental Effective Tax Rate Analysis
                            (In millions)


                          Three months ended      Years ended Dec. 31,
                     ---------------------------- --------------------
                     Dec. 31,  Sept. 30, Dec. 31,
                       2007      2007      2006     2007       2006
                     --------- --------- -------- --------- ----------
Income (Loss) before
 income taxes and
 minority interest   $  1,079  $  1,024  $   693    $3,384     $1,607
  Add back
   (subtract):
    (Gain) loss on
     disposal of
     assets, net         (233)       (9)    (191)     (264)      (410)
    Income from
     TODCO tax
     sharing
     agreement             (1)     (276)     (51)     (277)       (51)
    (Gain) loss on
     retirement of
     debt                   8         -        -         8          -
    GSF Merger
     related costs         82         -        -        82          -
                     -------------------------------------------------

Adjusted income
 before income taxes      935       739      451     2,933      1,146

Income tax expense         23        52       72       253        222
  Add back
   (subtract):
    (Gain) loss on
     disposal of
     assets, net            -         -        1        (3)       (24)
    GSF Merger
     related costs         15         -        -        15          -
    Changes in
     estimates (1)         36        52       17       101         14
                     --------- --------- -------- --------- ----------
Adjusted income tax
 expense (2)         $     74  $    104  $    90    $  366     $  212
                     ========= ========= ======== ========= ==========

Effective Tax Rate
 (3)                      2.1%      5.1%    10.4%      7.5%      13.8%

Annual Effective Tax
 Rate (4)                 7.9%     14.0%    20.0%     12.5%      18.5%

(1) Our estimates change as we file tax returns, settle disputes with
     tax authorities or become aware of other events and include
     changes in deferred taxes valuation allowances on deferred taxes
     and other tax liabilities.
(2) The three months ended December 31, 2007 include $(43) million of
     additional tax expense (benefit) reflecting the catch-up effect
     of an increase (decrease) in the annual effective tax rate and
     included $17 million related to customer indemnification that is
     also reflected as a reduction of revenue.
(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 on sales and similar items
     pursuant to Financial Accounting Standards Board Interpretation
     No. 18.

                   TRANSOCEAN INC. AND SUBSIDIARIES
              SUPPLEMENTAL ANALYSIS OF OPERATING INCOME
                 (In millions, except per share data)
                             (Unaudited)

                    Three months                         Three months
                       ended                                 ended
                    December 31,             Merger and  December 31,
                        2007     Transocean  purchase        2007
                       Legacy    Worldwide      price     Transocean
                     Transocean   Inc. (a)  adjustments  consolidated
                    ------------ ---------- ------------ -------------
Operating revenues
  Contract drilling
   revenues               $1,516       $344        $  -         $1,860
  Contract
   intangible
   revenues                    -          -          88             88
  Other revenues              80         49           -            129
----------------------------------------------------------------------
                           1,596        393          88          2,077
----------------------------------------------------------------------
Costs and expenses
  Operating and
   maintenance               713        151          59            923
  Depreciation,
   depletion and
   amortization              102         33          60            195
  General and
   administrative             33          4          23             60
----------------------------------------------------------------------
                             848        188         142          1,178
----------------------------------------------------------------------
Gain from disposal
 of assets, net              254          -           -            254
----------------------------------------------------------------------
Operating income
 (loss)                   $1,002       $205        $(54)        $1,153
----------------------------------------------------------------------

                         Twelve                              Twelve
                      months ended                        months ended
                      December 31,            Merger and  December 31,
                          2007     Transocean  purchase       2007
                         Legacy    Worldwide     price     Transocean
                       Transocean   Inc. (a)  adjustments consolidated
                      ------------ ---------- ----------- ------------
Operating revenues
  Contract drilling
   revenues                 $5,604       $344       $  -        $5,948
  Contract intangible
   revenues                      -          -         88            88
  Other revenues               292         49          -           341
----------------------------------------------------------------------
                             5,896        393         88         6,377
----------------------------------------------------------------------
Costs and expenses
  Operating and
   maintenance               2,571        151         59         2,781
  Depreciation,
   depletion and
   amortization                406         33         60           499
  General and
   administrative              115          4         23           142
----------------------------------------------------------------------
                             3,092        188        142         3,422
----------------------------------------------------------------------
Gain from disposal of
 assets, net                   284          -          -           284
----------------------------------------------------------------------
Operating income
 (loss)                     $3,088       $205       $(54)       $3,239
----------------------------------------------------------------------

(a) In connection with the Merger, GlobalSantaFe merged with
     Transocean Worldwide Inc., a wholly owned subsidiary of
     Transocean. The amounts presented reflect one month of operating
     results since the time of the Merger.

CONTACT: Transocean Inc., Houston
Analyst Contact:
Greg Panagos, 713-232-7551
or
Media Contact:
Guy A. Cantwell, 713-232-7647

SOURCE: Transocean Inc.