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Transocean Ltd. Reports Fourth Quarter and Full Year 2011 Results

February 27, 2012

ZUG, SWITZERLAND, Feb 27, 2012 (MARKETWIRE via COMTEX) --Transocean Ltd. (NYSE: RIG) (SIX: RIGN)

--  Revenues improved eight percent in the fourth quarter to $2.422
    billion compared to $2.242 billion in the third quarter 2011,
--  Fourth quarter 2011 net loss attributable to controlling interest was
    $6.119 billion, which included $ 6.176 billion of certain net
    unfavorable items including an estimated goodwill impairment of $5.2
    billion and an estimated loss contingency of $1.0 billion associated
    with the Macondo Well incident, compared to a net loss attributable to
    controlling interest of $71 million in the third quarter 2011, which
    included $81 million of certain net unfavorable items,
--  Revenue efficiency(1) was 91.9 percent in the fourth quarter, up from
    89.5 percent in the third quarter 2011,
--  Fleet utilization(2) was 61 percent in the fourth quarter, up from 58
    percent in the third quarter 2011,
--  Excluding $1.0 billion for estimated loss contingencies associated
    with the Macondo Well incident, fourth quarter 2011 operating and
    maintenance expenses were $1.565 billion, up from $1.540 billion in
    the third quarter 2011,
--  Cash flows from operating activities were $563 million in the fourth
    quarter, up from $492 million in the third quarter 2011,
--  The Annual Effective Tax Rate(3) for 2011 increased to 41.3 percent
    from 34.1 percent in the third quarter 2011, and
--  New contracts totaling $1.4 billion were secured in the Fleet Status
    Report period October 17, 2011 through February 14, 2012.

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported a net loss attributable to controlling interest of $6.119 billion, or $18.62 per diluted share, for the three months ended December 31, 2011. The results compare to a net loss attributable to controlling interest of $799 million, or $2.51 per diluted share, for the three months ended December 31, 2010.

Fourth quarter 2011 results included the following items, after tax, which resulted in a net adverse impact of $ 6.176 billion, or $18.80 per diluted share:

--  An estimated, non-cash charge of $5.2 billion, or $15.83 per diluted
    share, resulting from a goodwill impairment associated with the
    contract drilling services reporting unit. The impairment was
    primarily due to a decline in the market valuation of the contract
    drilling services business,
--  $1.0 billion, or $3.04 per diluted share, for estimated loss
    contingencies associated with the Macondo Well incident that the
    company believes is probable and for which a reasonable estimate can
    be made at this time. This estimate will be adjusted to reflect new
    information and future developments as they become known,
--  $30 million, or $0.09 per diluted share, of charges associated with
    the company's acquisition of Aker Drilling,
--  $26 million, or $0.08 per diluted share, of income from discontinued
    operations, primarily related to the gain on the sale of Challenger
    Minerals (North Sea) Limited,
--  $18 million, or $0.05 per diluted share, of favorable discrete tax
    items, and
--  $11 million, or $0.03 per diluted share, from the gain on the sale of
    the GSF Adriatic XI.

Fourth quarter 2011 also included pre-tax expenses associated with the Macondo well incident of approximately $11 million, or $0.01 per diluted share. These expenses were primarily related to legal costs and other professional fees that are not expected to be recoverable from insurance.

Transocean's fourth quarter Effective Tax Rate(4) was (2.2) percent compared to 212.8 percent in the third quarter 2011. The decrease in the Effective Tax Rate was due primarily to the impact of the estimated $5.2 billion goodwill impairment and the estimated loss contingency of $1.0 billion associated with the Macondo Well incident. The 2011 Annual Effective Tax Rate(3) of 41.3 percent excludes $18 million of various discrete items which reduced income tax expense in the fourth quarter. The increase to 41.3 percent in the fourth quarter from 34.1 percent in the third quarter 2011 was primarily due to lower full year profitability than expected. Fourth quarter 2011 income tax expense included an adjustment of $46 million, or $0.14 per diluted share, required to reflect an increase in the Annual Effective Tax Rate(3) from 34.1 percent for the first nine months of 2011.

The relationship between our provision for income taxes and pre-tax income can vary materially from period to period. However, significant decreases in profitability generally result in higher effective tax rates and, conversely, significant increases in profitability generally result in lower effective tax rates. A more detailed explanation of the factors impacting our effective tax rate can be found in our 2011 Annual Report on form 10-K but include, among others, changes in the blend of income that is taxed based on gross revenues versus pre-tax income, rig movements between taxing jurisdictions, and our rig operating structures.

Please see the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

Revenues for the three months ended December 31, 2011 were $2.422 billion, an eight percent improvement compared to revenues of $2.242 billion during the three months ended September 30, 2011. The $180 million increase in revenues was primarily due to the two Harsh Environment semi-submersible rigs added through the acquisition of Aker Drilling and higher utilization, primarily on Deepwater Floaters, several of which were in the shipyard during the third quarter 2011. Fourth quarter revenue efficiency also improved to 91.9 percent, up from 89.5 percent in the third quarter 2011.

Operating and maintenance expenses totaled $2.565 billion for the fourth quarter 2011, up from $1.540 billion for the prior quarter. The increase of $1.025 billion was due primarily to $1.0 billion of estimated loss contingencies associated with the Macondo Well incident. Additionally, approximately $25 million in costs was related to the addition of the two Aker semi-submersible rigs and unplanned charges associated with the contract termination of the Deepwater Expedition. These costs were partially offset primarily by lower operating and maintenance expenses associated with rigs undergoing shipyard, maintenance, repair and equipment certification projects during the period, and other favorable items.

General and administrative expenses were $88 million for the fourth quarter 2011 compared to $67 million in the previous quarter. The $21 million increase was primarily due to Aker acquisition costs.

For the fourth quarter, Interest expense, net of amounts capitalized, was $178 million, compared to $151 million in the third quarter 2011, reflecting the acquisition of Aker Drilling and the issuance of the $2.5 billion new senior notes during the period. Capitalized interest for the fourth quarter 2011 was $10 million compared to $5 million in the prior quarter. Interest income increased to $17 million in the fourth quarter 2011, compared to $7 million in the third quarter, primarily associated with cash investments restricted for payment of certain debt instruments assumed in the Aker acquisition.

Cash flows from operating activities increased $71 million to $563 million for the fourth quarter 2011 compared to $492 million for the third quarter 2011 due to improved operating results.

Full Year 2011

For the year ended December 31, 2011, net loss attributable to controlling interest totaled $5.725 billion, or $17.79 per diluted share, resulting primarily from the estimated goodwill impairment of $5.2 billion, or $16.15 per diluted share, associated with the contract drilling services reporting unit and the estimated loss contingencies of $1.0 billion, or $3.11 per diluted share, associated with the Macondo Well incident. Additionally, approximately $71 million, or $0.13 per diluted share, of expense was incurred primarily related to legal costs and other professional fees that are not expected to be recoverable from insurance. Partially offsetting these charges were net favorable items for the full year totaling $46 million, or $0.15 per diluted share, and included the following:

--  $197 million, or $0.62 per diluted share, from the gain on the sale of
    discontinued operations of the Trident 20 and Challenger Minerals
    (North Sea) Limited,
--  $113 million, or $0.36 per diluted share, of charges associated with
    the acquisition of Aker Drilling, including $78 million resulting from
    a forward foreign exchange contract executed to address potential
    exchange rate variability, $22 million for acquisition costs, and $13
    million related to losses on a marketable security,
--  $42 million or $0.12 per diluted share, of charges primarily related
    to discrete tax and other items,
--  $33 million, or $0.10 per diluted share, from the gain on the sale of
    the Transocean Mercury and the GSF Adriatic XI, and including the sale
    of the equity interest in Overseas Drilling Limited, which owns the
    research vessel Joides Resolution, and
--  $29 million or $0.09 per diluted share, loss on impairment primarily
    relating to the sale of the George H. Galloway, GSF Labrador, GSF
    Britannia, and the Searex IV.

Interest expense, net of amounts capitalized, was $621 million, compared to $567 million for the full year 2010. Capitalized interest for the full year 2011 was $39 million compared to $89 million in 2010. Interest income was $44 million for the full year 2011 compared to $23 million in 2010.

For the full year 2011, cash flow from operating activities totaled $1.785 billion compared to $3.946 billion for 2010 with the decrease primarily due to lower operating results.

For the year ended December 31, 2010, net income attributable to controlling interest totaled $961 million, or $2.99 per diluted share. Net income for the year ended December 31, 2010, included after-tax net charges of $819 million, or $2.54 per diluted share, resulting primarily from the $1 billion impairment of the Standard Jackups. After-tax net charges for the full year 2010 also included amounts associated with litigation matters, discontinued operations, an impairment of oil and gas properties, a loss on the sale of two rigs and losses on the early retirement of debt, and other matters totaling $76 million, partially offset by a $267 million after-tax gain resulting from insurance recoveries associated with the loss of the Deepwater Horizon.

Full year 2010 results also included expenses associated with the Macondo well incident of $137 million, or $116 million after tax, or $0.36 per diluted share. These expenses included legal costs, internal investigation costs, professional fees that are not expected to be recovered by insurance, and increased insurance premiums.

Full Year 2012 Guidance Summary

The following table is a summary of the company's full year 2012 guidance for key income statement and balance sheet items. This information is based on current expectations and certain management assumptions, and is subject to change.


                  Item                               Range
----------------------------------------------------------------------
Other Revenues *                          $625 million - $650 million
----------------------------------------------------------------------
Operating and Maintenance Expenses       $6.15 billion - $6.35 billion
----------------------------------------------------------------------
Depreciation and Amortization             $1.4 billion - $1.5 billion
----------------------------------------------------------------------
General and Administrative Expenses       $270 million - $300 million
----------------------------------------------------------------------
Net Interest Expense **                   $610 million - $630 million
----------------------------------------------------------------------
Capital Expenditures                      $1.2 billion - $1.3 billion
----------------------------------------------------------------------

 *  Other Revenues includes Drilling Management Services, recharge revenues,
    and other miscellaneous revenues
 ** Net Interest Expense is net of capitalized interest of approximately $40
    million and Interest Income of approximately $50 million


Forward-Looking Statements

Statements included in this news release regarding Transocean's full year 2012 guidance, the estimate of Transocean's goodwill impairment for the fiscal year ended December 31, 2011, and the estimated loss contingencies associated with the Macondo Well incident are forward-looking statements that involve certain assumptions. These statements are based on currently available competitive, financial, and economic data along with our current operating plans and involve risks and uncertainties including, but not limited to, market conditions, Transocean's results of operations and other factors detailed in "Risk Factors" and elsewhere in Transocean's filings with the Securities and Exchange Commission. 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 outcomes may vary materially from those forecasted or expected. Transocean disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET, 4:00 p.m. CET, on February 27, 2012. To participate, dial +1 719-325-4781 and refer to confirmation code 6384703 approximately 10 minutes prior to the scheduled start time of the call.

In addition, the conference call will be simultaneously broadcast over the Internet in a listen-only mode and can be accessed by logging onto Transocean's website at www.deepwater.com and selecting "Investor Relations." A file containing three charts that may be discussed during the conference call, titled "4Q11 Charts," has been posted to Transocean's website and can also be found by selecting "Investor Relations/Quarterly Toolkit." The conference call may also be accessed via the Internet at www.CompanyBoardroom.com by typing in Transocean's New York Stock Exchange trading symbol, "RIG."

A telephonic replay of the conference call should be available after 1:00 p.m. ET, 7:00 p.m. CET, on February 27, 2012, and can be accessed by dialing +1 719-457-0820 or +1 888-203-1112 and referring to the confirmation code 6384703. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced internet addresses. Both replay options will be available for approximately 30 days.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean owns or has partial ownership interests in and operates a fleet of 132 mobile offshore drilling units consisting of 50 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 47 Standard Jackups and one swamp barge. In addition, we have two Ultra-Deepwater Drillships and four High-Specification Jackups under construction. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services. We believe we operate one of the most versatile offshore drilling fleets in the world.

(1) Revenue efficiency is defined as actual revenue divided by the highest amount of total revenue which could have been earned during the relevant period(s). See the accompanying schedule entitled "Revenue Efficiency."

(2) 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 the company's fleet. See the accompanying schedule entitled "Utilization."

(3) Annual Effective Tax Rate is defined as income tax expense from continuing operations excluding various discrete items (such as changes in estimates and tax on items excluded from income before income tax expense) divided by income from continuing operations before income tax expense excluding gains on sales and similar items pursuant to the accounting standards for income taxes. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

(4) Effective Tax Rate is defined as income tax expense from continuing operations divided by income from continuing operations before income taxes. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

For more information about Transocean, please visit the website at www.deepwater.com.



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

                                       Three months ended     Year ended
                                          December 31,       December 31,
                                       ------------------  ----------------
                                         2011      2010      2011     2010
                                       -------  ---------  -------  -------

Operating revenues
  Contract drilling revenues           $ 2,238  $   2,008  $ 8,335  $ 8,888
  Contract drilling intangible
   revenues                                 13         13       45       98
  Other revenues                           171        106      762      480
                                       -------  ---------  -------  -------
                                         2,422      2,127    9,142    9,466
                                       -------  ---------  -------  -------
Costs and expenses
  Operating and maintenance              2,565      1,339    6,956    5,074
  Depreciation and amortization            374        381    1,449    1,536
  General and administrative                88         66      288      246
                                       -------  ---------  -------  -------
                                         3,027      1,786    8,693    6,856
                                       -------  ---------  -------  -------
Loss on impairment                      (5,201)    (1,010)  (5,229)  (1,010)
Gain (loss) on disposal of assets, net      (1)         1        4      257
                                       -------  ---------  -------  -------
Operating income (loss)                 (5,807)      (668)  (4,776)   1,857
                                       -------  ---------  -------  -------

Other income (expense), net
  Interest income                           17          6       44       23
  Interest expense, net of amounts
   capitalized                            (178)      (152)    (621)    (567)
  Loss on retirement of debt                --        (13)      --      (33)
  Other, net                                (2)        (9)     (81)      10
                                       -------  ---------  -------  -------
                                          (163)      (168)    (658)    (567)
                                       -------  ---------  -------  -------
Income (loss) from continuing
 operations before income tax expense   (5,970)      (836)  (5,434)   1,290
Income tax expense (benefit)               132        (32)     395      336
                                       -------  ---------  -------  -------
Income (loss) from continuing
 operations                             (6,102)      (804)  (5,829)     954
Income from discontinued operations,
 net of tax                                 26          9      197       34
                                       -------  ---------  -------  -------

Net income (loss)                       (6,076)      (795)  (5,632)     988
Net income attributable to
 noncontrolling interest                    43          4       93       27
                                       -------  ---------  -------  -------
Net income (loss) attributable to
 controlling interest                  $(6,119) $    (799) $(5,725) $   961
                                       -------  ---------  -------  -------

Earnings (loss) per share-basic
  Earnings (loss) from continuing
   operations                          $(18.70) $   (2.53) $(18.40) $  2.88
  Earnings (loss) from discontinued
   operations                             0.08       0.02     0.61     0.11
                                       -------  ---------  -------  -------
  Earnings (loss) per share            $(18.62) $   (2.51) $(17.79) $  2.99
                                       -------  ---------  -------  -------

Earnings (loss) per share-diluted
  Earnings (loss) from continuing
   operations                          $(18.70) $   (2.53) $(18.40) $  2.88
  Earnings (loss) from discontinued
   operations                             0.08       0.02     0.61     0.11
                                       -------  ---------  -------  -------
  Earnings (loss) per share            $(18.62) $   (2.51) $(17.79) $  2.99
                                       -------  ---------  -------  -------

Weighted-average shares outstanding
  Basic                                    329        319      322      320
  Diluted                                  329        319      322      320





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

                                                             December 31,
                                                         -------------------
                                                            2011      2010
                                                         --------- ---------

Assets
Cash and cash equivalents                                $  4,017  $  3,394
Accounts receivable, net
  Trade                                                     2,049     1,653
  Other                                                       127       190
Materials and supplies, net                                   627       514
Deferred income taxes, net                                    142       115
Assets held for sale                                           26        --
Other current assets                                          621       329
                                                         --------  --------
      Total current assets                                  7,609     6,195
                                                         --------  --------

Property and equipment                                     29,037    26,721
Property and equipment of consolidated variable interest
 entities                                                   2,252     2,214
Less accumulated depreciation                               8,760     7,616
                                                         --------  --------
    Property and equipment, net                            22,529    21,319
                                                         --------  --------
Goodwill                                                    3,205     8,132
Other assets                                                1,745     1,165
                                                         --------  --------
      Total assets                                       $ 35,088  $ 36,811
                                                         --------  --------

Liabilities and equity
Accounts payable                                         $    880  $    832
Accrued income taxes                                           89       109
Debt due within one year                                    1,942     1,917
Debt of consolidated variable interest entities due
 within one year                                               97        95
Other current liabilities                                   2,350       883
                                                         --------  --------
      Total current liabilities                             5,358     3,836
                                                         --------  --------

Long-term debt                                             10,756     8,354
Long-term debt of consolidated variable interest
 entities                                                     741       855
Deferred income taxes, net                                    523       575
Other long-term liabilities                                 1,903     1,791
                                                         --------  --------
      Total long-term liabilities                          13,923    11,575
                                                         --------  --------

Commitments and contingencies
Redeemable noncontrolling interest                            116        25

Shares, CHF 15.00 par value, 365,135,298 authorized,
 167,617,649 conditionally authorized, 365,135,298
 issued and 349,805,793 outstanding at December 31,
 2011; and 335,235,298 authorized, 167,617,649
 conditionally authorized, 335,235,298 issued and
 319,080,678 outstanding at December 31, 2010               4,982     4,482
Additional paid-in capital                                  7,211     7,504
Treasury shares, at cost, 2,863,267 held at December 31,
 2011 and 2010                                               (240)     (240)
Retained earnings                                           4,244     9,969
Accumulated other comprehensive loss                         (496)     (332)
                                                         --------  --------
    Total controlling interest shareholders' equity        15,701    21,383
                                                         --------  --------
    Noncontrolling interest                                   (10)       (8)
                                                         --------  --------
      Total equity                                         15,691    21,375
                                                         --------  --------
      Total liabilities and equity                       $ 35,088  $ 36,811
                                                         --------  --------




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

                                    Three months ended  Twelve months ended
                                       December 31,         December 31,
                                    ------------------  -------------------
                                      2011      2010      2011      2010
                                    -------  ---------  -------  ----------
Cash flows from operating
 activities
 Net income (loss)                  $(6,076) $    (795) $(5,632) $      988
 Adjustments to reconcile to net
 cash provided by operating
 activities
   Amortization of drilling
   contract intangibles                 (13)       (13)     (45)        (98)
   Depreciation and amortization        374        381    1,449       1,536
   Share-based compensation expense      21         23       95         102
   Loss on impairment                 5,201      1,010    5,229       1,010
   (Gain) loss on disposal of
   assets, net                            1         (1)      (4)       (257)
   Gain on disposal of discontinued
   operations, net                      (12)        --     (181)         --
   Amortization of debt issue
   costs, discounts and premiums,
   net                                   30         41      125         189
   Deferred income taxes                (33)       (40)     (31)       (114)
   Other, net                            19         (7)     112          55
   Changes in deferred revenue, net     (23)        --      (16)        205
   Changes in deferred expenses,
   net                                    5        (24)     (61)        (79)
   Changes in operating assets and
   liabilities                        1,069        221      745         409
                                    -------  ---------  -------  ----------
Net cash provided by operating
 activities                             563        796    1,785       3,946
                                    -------  ---------  -------  ----------

Cash flows from investing
 activities
  Capital expenditures                 (350)      (422)  (1,020)     (1,391)
  Investment in business
   combination, net of cash
   acquired                          (1,047)        --   (1,246)         --
  Payment for settlement of forward
   exchange contract, net                --         --      (78)         --
  Proceeds from disposal of assets,
   net                                   71          9      177          60
  Proceeds from disposal of
   discontinued operations, net          25         --      284          --
  Proceeds from insurance
   recoveries for loss of drilling
   unit                                  --         --       --         560
  Proceeds from sale of marketable
   securities                            --         32       --          37
  Other, net                             14          1      (13)         13
                                    -------  ---------  -------  ----------
Net cash used in investing
 activities                          (1,287)      (380)  (1,896)       (721)
                                    -------  ---------  -------  ----------

Cash flows from financing
 activities
  Change in short-term borrowings,
   net                                 (146)       (62)     (88)       (193)
  Proceeds from debt                  2,934         --    2,939       2,054
  Repayments of debt                 (2,137)    (1,599)  (2,409)     (2,565)
  Proceeds from restricted cash
   investments                          479         --      479          --
  Deposits to restricted cash
   investments                         (523)        --     (523)         --
  Proceeds from share issuance        1,211         --    1,211          --
  Distribution of qualifying
   additional paid-in capital          (255)        --     (763)         --
  Purchases of shares held in
   treasury                              --         --       --        (240)
  Financing costs                       (83)        --      (83)        (15)
  Other, net                            (25)         3      (29)         (2)
                                    -------  ---------  -------  ----------
Net cash provided by (used in)
 financing activities                 1,455     (1,658)     734        (961)
                                    -------  ---------  -------  ----------

Net increase (decrease) in cash and
 cash equivalents                       731     (1,242)     623       2,264
Cash and cash equivalents at
 beginning of period                  3,286      4,636    3,394       1,130
                                    -------  ---------  -------  ----------
Cash and cash equivalents at end of
 period                             $ 4,017  $   3,394  $ 4,017  $    3,394
                                    -------  ---------  -------  ----------




                      TRANSOCEAN LTD. AND SUBSIDIARIES
                         FLEET OPERATING STATISTICS

                                  Operating Revenues (in millions) (1)
                           -------------------------------------------------
                                                         Twelve months ended
                                 Three months ended          December 31,
                           ----------------------------- -------------------
                            December September  December
                              31,       30,       31,
                              2011      2011      2010      2011      2010
                           --------- --------- --------- --------- ---------
Contract Drilling Revenues
  High-Specification
   Floaters:
    Ultra Deepwater
     Floaters              $   1,066 $   1,030 $     740 $   3,945 $   3,171
    Deepwater Floaters           259       187       339       975     1,461
    Harsh Environment
     Floaters                    285       190       155       806       674
                           --------- --------- --------- --------- ---------
  Total High-Specification
   Floaters                    1,610     1,407     1,234     5,726     5,306
  Midwater Floaters              333       352       477     1,461     2,093
  Jackups:
    High-Specification
     Jackups                      68        69        32       216       241
    Standard Jackups             220       226       259       905     1,222
                           --------- --------- --------- --------- ---------
  Total Jackups                  288       295       291     1,121     1,463
  Other Rigs                       7         7         6        27        26
                           --------- --------- --------- --------- ---------
Total Contract Drilling
 Revenues                      2,238     2,061     2,008     8,335     8,888
                           --------- --------- --------- --------- ---------
Contract Intangible
 Revenue                          13        12        13        45        98
Other Revenues
  Client Reimbursable
   Revenues                       41        43        34       162       151
  Integrated Services and
   Other                          13        14        15        56        68
  Drilling Management
   Services                      117       112        57       544       261
                           --------- --------- --------- --------- ---------
Total Other Revenues             171       169       106       762       480
                           --------- --------- --------- --------- ---------
Total Company              $   2,422 $   2,242 $   2,127 $   9,142 $   9,466
                           --------- --------- --------- --------- ---------

                                       Average Daily Revenue (1)
                           -------------------------------------------------
                                                         Twelve months ended
                                 Three months ended          December 31,
                           ----------------------------- -------------------
                            December September  December
                              31,       30,       31,
                              2011      2011      2010      2011      2010
                           --------- --------- --------- --------- ---------
  High-Specification
   Floaters:
    Ultra Deepwater
     Floaters              $ 542,900 $ 524,800 $ 435,900 $ 513,900 $ 457,300
    Deepwater Floaters       351,600   348,400   395,600   373,700   384,900
    Harsh Environment
     Floaters                468,300   433,800   366,800   438,000   401,900
  Total High-Specification
   Floaters                  486,600   478,900   414,500   472,200   427,600
  Midwater Floaters          274,300   287,400   298,500   301,500   319,600
  High-Specification
   Jackups                   111,900   115,600   129,400   111,800   138,900
  Standard Jackups            93,400   100,400   110,600   103,300   118,700
  Other Rigs                  73,800    73,800    73,000    74,300    72,700
                           --------- --------- --------- --------- ---------
Total Drilling Fleet       $ 295,400 $ 290,200 $ 276,900 $ 297,400 $ 283,500
                           --------- --------- --------- --------- ---------

 (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.




                      TRANSOCEAN LTD. AND SUBSIDIARIES
                   FLEET OPERATING STATISTICS (continued)

                                              Utilization (2)
                               ---------------------------------------------
                                                             Twelve months
                                                                 ended
                                    Three months ended        December 31,
                               --------------------------- -----------------
                               December September December
                                  31,      30,       31,
                                 2011      2011     2010     2011     2010
                               -------- --------- -------- -------- --------
  High-Specification Floaters:
    Ultra Deepwater Floaters      79%      79%       76%      79%      79%
    Deepwater Floaters            50%      37%       58%      45%      65%
    Harsh Environment Floaters    95%      95%       92%      92%      92%
  Total High-Specification
   Floaters                       72%      67%       71%      69%      76%
  Midwater Floaters               55%      55%       68%      56%      69%
  High-Specification Jackups      74%      69%       31%      61%      53%
  Standard Jackups                51%      48%       46%      46%      51%
  Other Rigs                      99%      100%      48%      66%      49%
                               -------- --------- -------- -------- --------
Total Drilling Fleet              61%      58%       58%      57%      63%

 (2) 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.




                                          Revenue Efficiency(3)
                                Trailing Five Quarters and Historical Data
                             -----------------------------------------------

                               4Q    3Q    2Q    1Q    4Q    FY    FY    FY
                              2011  2011  2011  2011  2010  2011  2010  2009
                             ----- ----- ----- ----- ----- ----- ----- -----

Ultra Deepwater              89.5% 86.4% 89.3% 85.3% 86.1% 87.7% 88.6% 94.3%
Deepwater                    88.1% 87.7% 93.9% 88.2% 88.6% 89.4% 90.3% 89.6%
Harsh Environment Floaters   98.0% 94.4% 98.4% 99.2% 96.1% 97.4% 96.0% 97.7%
Midwater Floaters            94.2% 90.8% 91.9% 93.6% 85.0% 92.6% 92.5% 93.7%
High Specification Jackups   94.3% 97.3% 95.6% 95.1% 97.7% 95.6% 95.3% 96.2%
Standard Jackups             96.4% 98.2% 98.4% 97.7% 98.9% 97.7% 97.3% 96.2%
Others                       98.6% 99.5% 97.6% 99.0% 96.1% 98.7% 98.4% 93.9%

                             ----- ----- ----- ----- ----- ----- ----- -----
Total Fleet                  91.9% 89.5% 92.1% 90.0% 88.7% 90.9% 91.7% 94.0%
                             ----- ----- ----- ----- ----- ----- ----- -----

 (3) Revenue efficiency is defined as actual revenue divided by the highest
     amount of total revenue which could have been earned during the
     relevant period(s).




                      TRANSOCEAN LTD. AND SUBSIDIARIES
                  SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
                    (In US$ millions, except percentages)



                                Three months ended           Year ended
                          -----------------------------  ------------------
                          December  September  December  December  December
                             31,       30,        31,       31,       31,
                            2011       2011      2010      2011      2010
                          --------  ---------  --------  --------  --------

Income from continuing
 operations before income
 taxes                    $ (5,970) $      47  $   (836) $ (5,434) $  1,290
  Add back (subtract):
  Litigation matters         1,000         --         1     1,008        27
  Acquisition costs             17          5        --        22        --
  Gain on loss of
   drilling unit                --         --        --        --      (267)
  (Gain) loss on disposal
   of other assets, net        (11)        --        --       (19)       14
  Loss on impairment of
   goodwill and other
   assets                    5,201          3     1,010     5,229     1,010
  Gain on sale of equity
   method investment            --        (13)       --       (13)       --
  Loss on exchange rates
   for forward contract         --         78        --        78        --
  Loss on marketable
   security                     13         --        --        13        --
  Loss on retirement of
   debt                         --         --        13        --        33
  Other, net                    --          1        (8)        6        (3)
                          --------  ---------  --------  --------  --------
Adjusted income from
 continuing operations
 before income taxes           250        121       180       890     2,104
                          --------  ---------  --------  --------  --------

Income tax expense from
 continuing operations         132        100       (32)      395       336
  Add back (subtract):
  Changes in estimates
   (1)                          18         --        (8)      (30)      (37)
  Other, net                    --         --        --         2        (1)
                          --------  ---------  --------  --------  --------
Adjusted income tax
 expense from continuing
 operations (2)           $    150  $     100  $    (40) $    367  $    298
                          --------  ---------  --------  --------  --------

Effective Tax Rate (3)        -2.2%     212.8%      3.8%     -7.3%     26.1%

Annual Effective Tax Rate
 (4)                          59.6%      82.6%    -22.1%     41.3%     14.2%

(1)  Our estimates change as we file tax returns, settle disputes with tax
     authorities or become aware of other events and include changes in (a)
     deferred taxes, (b) valuation allowances on deferred taxes and (c)
     other tax liabilities.
(2)  The three months and year ended December 31, 2011 include $46 million
     of additional tax expense (benefit) reflecting the catch-up effect of
     an increase (decrease) in the annual effective tax rate from the
     previous quarter estimate.
(3)  Effective Tax Rate is income tax expense divided by income before
     income taxes.
(4)  Annual Effective Tax Rate is income tax expense excluding various
     discrete items (such as changes in estimates and tax on items excluded
     from income before income taxes) divided by income before income taxes
     excluding gains and losses on sales and similar items pursuant to the
     accounting standards for income taxes and estimating the annual
     effective tax rate.



SOURCE: Transocean Ltd.