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Transocean Inc. Reports Third Quarter 2003 Results

October 28, 2003

HOUSTON--(BUSINESS WIRE)--Oct. 28, 2003--Transocean Inc. (NYSE:RIG - News) today reported net income for the three months ended September 30, 2003 of $11.0 million, or $0.03 per diluted share, on revenues of $622.9 million. The results included $8.0 million, or $0.03 per diluted share, of costs relating to the planned initial public offering (IPO) of the company's Gulf of Mexico Shallow and Inland Water business segment operated through its wholly-owned subsidiary, TODCO. Excluding the impact of the IPO costs, net income for the three months ended September 30, 2003 was $19.0 million, or $0.06 per diluted share. Results for the quarter compared to net income of $255.2 million, or $0.79 per diluted share, on revenues of $695.2 million for the three months ended September 30, 2002. Results for the three months ended September 30, 2002 included a tax benefit totaling $176.2 million, or $0.54 per diluted share, attributable to the restructuring of certain non-U.S. operations, partially offset by a $26.6 million after-tax loss, or $0.08 per diluted share, resulting from the non-cash impairment of certain long-lived assets. Excluding the impact of the tax benefit and the non-cash loss due to the impairment of assets, net income for the three months ended September 30, 2002 was $105.6 million, or $0.33 per diluted share.

For the nine months ended September 30, 2003, net income totaled $13.7 million, or $0.04 per diluted share, on revenues of $1,842.8 million. Year-to-date 2003 results included the previously discussed costs associated with the planned IPO of TODCO, after-tax asset impairment charges totaling $26.6 million, or $0.08 per diluted share, and an after-tax loss of $13.8 million, or $0.04 per diluted share, relating to the early retirement of debt, partially offset by a favorable resolution of a non-U.S. income tax liability of $14.6 million, or $0.04 per diluted share. Excluding the impact of the IPO costs, impairment charges, debt retirement loss and favorable income tax resolution, net income for the nine months ended September 30, 2003 was $47.5 million, or $0.15 per diluted share. During the corresponding nine months ended September 30, 2002, the company reported a net loss of $951.2 million, or $2.94 per diluted share, on revenues of $2,009.3 million. Results for the first nine months of 2002 included the previously discussed tax benefit and non-cash loss on the impairment of long-lived assets, in addition to a non-cash charge of $1,363.7 million, or $4.22 per diluted share, pertaining to the adoption in January 2002 of Statement of Financial Accounting Standards 142 (FAS 142), Goodwill and Other Intangible Assets. Excluding the impact of the year-to-date tax benefit of $175.7 million, or $0.54 per diluted share, non-cash loss on the impairment of long-lived assets of $27.3 million, or $0.08 per diluted share, and loss from the non-cash charge relating to the adoption of FAS 142, net income for the nine months ended September 30, 2002 was $264.1 million, or $0.82 per diluted share.

Cash flow from operations totaled $159.4 million and $464.6 million for the three and nine months ended September 30, 2003. Net debt (defined as long-term debt plus debt due within one year less cash and cash equivalents) declined to $2,895.1 million at September 30, 2003, from $3,282.5 million at December 31, 2002.

Revenues associated with the company's International and U.S. Floater Contract Drilling Services business segment were $564.4 million for the three months ended September 30, 2003, improving 3% from revenues of $548.5 million during the preceding quarter of 2003. During the third quarter of 2002, segment revenues totaled $641.2 million. Segment operating income, before general and administrative expense, was $118.9 million during the current quarter, while field operating income (defined as revenues less operating and maintenance expenses) during that period was $222.0 million. Segment field operating income for the three months ended September 30, 2003 was negatively impacted by approximately $17 million due to an ongoing disagreement with a customer concerning the applicable dayrate and other costs on the ultra-deepwater drillship Discoverer Enterprise following the riser separation incident on May 21, 2003. The segment results compared to operating income of $84.2 million and field operating income of $192.6 million during the preceding quarter of 2003 and $190.0 million and $315.5 million, respectively, during the corresponding three months in 2002. Segment fleet utilization improved to 71% for the three months ended September 30, 2003, from 68% during the preceding quarter of 2003, resulting primarily from improved utilization in the company's fleet of deepwater rigs. During the corresponding three months of 2002, segment utilization was 79%.

Prospects for the company's International and U.S. Floater Contract Drilling Services business segment are uncertain over the next six to nine months. Over this period, market dayrates for the industry's most technically advanced rigs will be difficult to predict and intermittent idle time could be experienced as several of these units, including four of the company's 5th Generation deepwater rigs, conclude contracts. The company continues to believe that over the long term, deepwater exploration and development drilling opportunities in Angola, Nigeria, India and other emerging locations represent a potentially significant source of future rig demand. In the company's Mid-Water fleet, no measurable improvement is expected through the first quarter of 2004 when seasonal demand in the North Sea is expected to offer additional drilling opportunities through the spring and summer months. Finally, a stable level of activity is expected to persist in most of the international jackup market sectors. The modest overcapacity present in the West Africa jackup market sector is expected to largely dissipate by mid-2004, although dayrates associated with near-term contract signings in the region are expected to decline from average levels experienced over the past 12 months.

Operating revenues from the company's Gulf of Mexico Shallow and Inland Water business segment continued to show improvement, totaling $58.5 million for the three months ended September 30, 2003 compared to $55.4 million during the preceding three months in 2003 and $54.0 million during the corresponding three months in 2002. The 6% revenue increase from the preceding quarter in 2003 was attributable to improvements in both average fleet utilization and dayrates among the segment's jackup rigs. The business segment recorded a reduced operating loss, before general and administrative expense, of $24.9 million during the current quarter, while the segment's field operating loss (defined as revenues less operating and maintenance expenses) narrowed to $2.1 million, compared to $49.5 million and $15.2 million, respectively, during the preceding quarter of 2003. For the corresponding three months in 2002, the segment's operating loss totaled $38.1 million while the field operating loss was $1.4 million. Segment fleet utilization improved to 44% in the current quarter, compared to 42% during the preceding quarter of 2003 and 38% during the corresponding three months in 2002.

The Gulf of Mexico Shallow and Inland Water business segment continues to benefit from a declining base of jackup rig supply in the Gulf of Mexico, which has helped to lift utilization and dayrates in an otherwise flat rig demand environment. Demand in the Gulf of Mexico inland barge fleet has trended lower, while total supply is unchanged. However, deep gas drilling interest among several exploration and production companies operating in the Gulf of Mexico is expected to increase, offering the prospect for improving demand in 2004.

The company continues to monitor market conditions for its planned IPO of TODCO, which operates its Gulf of Mexico Shallow and Inland Water business segment. The company first announced its divestiture plans in the third quarter of 2002. As the IPO had not been completed by the end of the third quarter of 2003, the company recognized its previously deferred costs relating to the offering. General and administrative expense for the three months ended September 30, 2003 included $8.0 million of IPO-related costs, of which $6.4 million was deferred in previous periods. The company expects to complete the IPO when market conditions warrant, subject to various factors.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET on October 28, 2003. To participate, dial 303-262-2130 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." It 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. ET on October 28 and can be accessed by dialing 303-590-3000 and referring to the passcode 553847. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced Worldwide Web addresses.

Monthly Fleet Update and Cash Operating Cost Information

Drilling rig status and contract information, as well as cash operating cost information on Transocean Inc.'s offshore drilling fleet, has been condensed into three reports titled "Monthly Fleet Update," "Monthly Fleet Update - Jackups and Barges" and "Cash Operating Cost," which are available through the company's website at www.deepwater.com. The reports are located in the "Investor Relations/Financial Reports" section of the website. By subscribing to the Transocean Financial Report Alert, you will be immediately notified when new postings are made to this page by an automated e-mail that will provide a link directly to the page that has been updated. Shareholders and other interested parties are invited to sign up for this service.

Forward-Looking Disclaimer

Statements regarding future opportunities and outlook for the company and the company's two business segments and fleet categories, dayrates, rig utilization, drilling activity, completion of the TODCO initial public offering, 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, results of investigations regarding riser, actions by customers and other third parties, 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 with more than 160 full or partially owned and managed mobile offshore drilling units, inland drilling barges and other assets utilized in the support of offshore drilling activities worldwide. The company's mobile offshore drilling fleet is considered one of the most modern and versatile in the world with 13 fifth-generation semisubmersibles and drillships, 15 other deepwater semisubmersibles and drillships, 31 mid-water semisubmersibles and drillships and 50 jackup drilling rigs. Transocean Inc. specializes in technically demanding segments of the offshore drilling business, including industry-leading positions in deepwater and harsh environment drilling services. With a current equity market capitalization in excess of $6 billion, the company's ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."

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

                                   Three Months        Nine Months
                                       Ended              Ended
                                     Sept. 30,          Sept. 30,
                                 ----------------- -------------------
                                   2003     2002      2003      2002
                                 -------- -------- --------- ---------
Operating Revenues
 Contract Drilling Revenues       $598.5   $695.2  $1,764.7  $2,009.3
 Client Reimbursable Revenues       24.4        -      78.1         -
                                   622.9    695.2   1,842.8   2,009.3
Costs and Expenses
  Operating and maintenance        403.0    381.1   1,203.6   1,127.7
  Depreciation                     126.8    124.2     381.1     374.1
  General and administrative        21.2     15.8      50.0      51.6
  Impairment loss on long-lived
   assets                              -     40.9      16.8      42.0
  Gain from sale of assets, net     (0.9)    (2.9)     (2.9)     (3.5)
                                   550.1    559.1   1,648.6   1,591.9

Operating Income                    72.8    136.1     194.2     417.4

Other Income (Expense), net
  Equity in earnings of joint
   ventures                          1.9      0.4       7.3       4.8
  Interest income                    3.0      6.1      15.7      16.0
  Interest expense                 (49.0)   (52.3)   (154.4)   (160.7)
  Loss on retirement of debt           -        -     (15.7)        -
  Impairment loss on note
   receivable from related party       -        -     (21.3)        -
  Other, net                        (0.2)     1.3      (3.5)      0.2
                                   (44.3)   (44.5)   (171.9)   (139.7)

Income Before Income Taxes,
 Minority Interest and
 Cumulative Effect of a Change in
  Accounting Principle              28.5     91.6      22.3     277.7

Income Tax Expense (Benefit)        17.3   (164.8)      8.3    (137.1)
Minority Interest                    0.2      1.2       0.3       2.3
Net Income Before Cumulative
 Effect of a Change in
 Accounting Principle               11.0    255.2      13.7     412.5

Cumulative Effect of a Change in
 Accounting Principle                  -        -         -  (1,363.7)
Net Income (Loss)                  $11.0   $255.2     $13.7   $(951.2)

Basic Earnings (Loss) Per Share
  Income Before Cumulative Effect
   of a Change in Accounting
   Principle                       $0.03    $0.80     $0.04     $1.29
  Loss on Cumulative Effect of a
   Change in Accounting Principle      -        -         -     (4.27)
   Net Income (Loss)               $0.03    $0.80     $0.04    $(2.98)

Diluted Earnings (Loss) Per Share
  Income Before Cumulative Effect
   of a Change in Accounting
   Principle                       $0.03    $0.79     $0.04     $1.28
  Loss on Cumulative Effect of a
   Change in Accounting Principle      -        -         -     (4.22)
   Net Income (Loss)               $0.03    $0.79     $0.04    $(2.94)

Weighted Average Shares
 Outstanding
  Basic                            319.9    319.2     319.8     319.1
  Diluted                          321.1    328.8     321.4     323.0

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

                                                 Sept. 30,   Dec. 31,
                                                ----------------------
                                                   2003       2002
                                                ----------- ----------
                                                (Unaudited)

                                ASSETS

Cash and Cash Equivalents                           $806.3   $1,214.2
Accounts Receivable
   Trade, net                                        431.4      437.6
   Other                                              55.2       61.7
Materials and Supplies                               156.4      155.8
Deferred Income Taxes                                 14.1       21.9
Other Current Assets                                  79.1       20.5
 Total Current Assets                              1,542.5    1,911.7

Property and Equipment                            10,214.9   10,198.0
Less Accumulated Depreciation                      2,535.4    2,168.2
 Property and Equipment, net                       7,679.5    8,029.8

Goodwill, net                                      2,223.4    2,218.2
Investments in and Advances to Joint Ventures         70.0      108.5
Deferred Income Taxes                                 26.2       26.2
Other Assets                                         176.1      370.7
 Total Assets                                    $11,717.7  $12,665.1

                 LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts Payable                                    $147.2     $134.1
Accrued Income Taxes                                  62.0       59.5
Debt Due Within One Year                             282.1    1,048.1
Other Current Liabilities                            293.7      262.2
 Total Current Liabilities                           785.0    1,503.9

Long-Term Debt                                     3,419.3    3,629.9
Deferred Income Taxes                                 55.4      107.2
Other Long-Term Liabilities                          283.1      282.7
 Total Long-Term Liabilities                       3,757.8    4,019.8

Commitments and Contingencies
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, 319,890,650 and
 319,219,072 shares issued and outstanding at
 Sept. 30, 2003 and Dec. 31, 2002, respectively        3.2        3.2
Additional Paid-in Capital                        10,640.4   10,623.1
Accumulated Other Comprehensive Loss                 (29.0)     (31.5)
Retained Earnings (Deficit)                       (3,439.7)  (3,453.4)
 Total Shareholders' Equity                        7,174.9    7,141.4
 Total Liabilities and Shareholders' Equity      $11,717.7  $12,665.1

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

                                    Three Months    Nine Months Ended
                                   Ended Sept. 30,      Sept. 30,
                                  ----------------- ------------------
                                   2003     2002     2003      2002
                                  ------- --------- -------- ---------
Cash Flows from Operating
 Activities
   Net income (loss)               $11.0    $255.2    $13.7   $(951.2)
   Adjustments to reconcile net
    income (loss) to net cash
    provided by operating activities
     Depreciation                  126.8     124.2    381.1     374.1
     Impairment loss on goodwill       -         -        -   1,363.7
     Stock-based compensation
      expense                        1.4       0.2      4.3       0.6
     Deferred income taxes          19.1    (151.5)   (40.4)   (189.8)
     Equity in earnings of joint
      ventures                      (1.9)     (0.4)    (7.3)     (4.8)
     Net (gain) loss from disposal
      of assets                      4.4      (1.1)    12.2       1.2
     Loss on retirement of debt        -         -     15.7         -
     Impairment loss on long-lived
      assets                           -      40.9     16.8      42.0
     Impairment loss on note
      receivable from related
      party                            -         -     21.3         -
     Amortization of debt-related
      discounts/premiums, fair
      value adjustments and issue
      costs, net                    (8.2)      1.7    (16.1)      4.6
     Deferred income, net           (5.3)     (3.3)    (6.9)     (9.3)
     Deferred expenses, net         (5.1)    (14.7)    (2.4)     (7.7)
     Other, net                     12.3       2.0     25.8      11.3
     Changes in operating assets
      and liabilities
         Accounts receivable       (44.0)     47.9      7.6     132.0
         Accounts payable and
          other current
          liabilities               42.6      42.8     46.6     (41.9)
         Income taxes
          receivable/payable, net   (8.0)    (38.2)     1.6     (15.9)
         Other current assets       14.3      14.0     (9.0)     (8.7)
Net Cash Provided by Operating
 Activities                        159.4     319.7    464.6     700.2

Cash Flows from Investing
 Activities
  Capital expenditures             (23.4)    (33.4)   (73.6)   (114.6)
  Note issued to related party,
   net of repayments                 1.1         -    (44.2)        -
  Proceeds from disposal of
   assets, net                       0.9       8.6      4.1      73.6
  Acquisition of 40 percent
   interest in Deepwater Drilling
   II L.L.C., net of cash acquired     -         -     18.1         -
  Joint ventures and other
   investments, net                  0.6       4.6      2.8       4.6
Net Cash Used in Investing
 Activities                        (20.8)    (20.2)   (92.8)    (36.4)

Cash Flows from Financing
 Activities
  Borrowings under capital lease
   obligations                       1.0         -      1.0         -
  Repayments under commercial
   paper program                       -         -        -    (326.4)
  Repayments on other debt
   instruments                     (48.0)    (34.7)  (967.2)   (154.3)
  Cash from termination of
   interest rate swaps                 -         -    173.5         -
  Decrease in cash dedicated to
   debt service                        -         -      1.2         -
  Net proceeds from issuance of
   ordinary shares under
   stock-based compensation plans    0.6      (0.1)    12.3      10.2
  Dividends paid                       -         -        -     (19.1)
  Financing costs                    0.1         -        -      (8.1)
  Other, net                           -       1.2     (0.5)      2.3
Net Cash Used in Financing
 Activities                        (46.3)    (33.6)  (779.7)   (495.4)

Net Increase (Decrease) in Cash
 and Cash Equivalents               92.3     265.9   (407.9)    168.4
Cash and Cash Equivalents at
 Beginning of Period               714.0     755.9  1,214.2     853.4
Cash and Cash Equivalents at End
 of Period                        $806.3  $1,021.8   $806.3  $1,021.8

                            Transocean Inc.
                      Fleet Operating Statistics

                            Operating Revenues ($ Millions) (1)
                     -------------------------------------------------
                                                    Nine Months Ended
                          Three Months Ended          September 30,
                     ----------------------------- -------------------
International and
 U.S. Floater
 Contract Drilling   Sept. 30, June 30,  Sept. 30,
 Services Segment:     2003      2003      2002      2003      2002
                     --------- --------- --------- --------- ---------
    Deepwater:
        5th
         Generation    $188.7    $168.5    $173.8    $532.9    $491.4
        Other
         Deepwater     $113.2    $106.0    $135.1    $335.4    $413.1
    Total Deepwater    $301.9    $274.5    $308.9    $868.3    $904.5
    Mid-Water          $106.4    $113.9    $175.3    $335.4    $532.1
    Jackups -
     Non-U.S.          $110.4    $116.6    $117.0    $342.3    $348.4
    Other Rigs          $25.7     $20.5     $40.0     $65.0     $88.5
Subtotal               $544.4    $525.5    $641.2  $1,611.0  $1,873.5
    Client
     Reimbursables      $20.0     $23.0         -     $64.6         -
Segment Total          $564.4    $548.5    $641.2  $1,675.6  $1,873.5

Gulf of Mexico
 Shallow and Inland
 Water Segment:
Contract Drilling
 Revenues
    Jackups and
     Submersibles       $25.7     $22.1     $19.1     $64.4     $46.1
    Inland Barges       $17.7     $17.7     $27.5     $58.4     $62.8
    Other               $10.7     $11.3      $7.4     $30.9     $26.9
Subtotal                $54.1     $51.1     $54.0    $153.7    $135.8
    Client
     Reimbursables       $4.4      $4.3         -     $13.5         -
Segment Total           $58.5     $55.4     $54.0    $167.2    $135.8

Total Company          $622.9    $603.9    $695.2  $1,842.8  $2,009.3

                                 Average Dayrates  (1) (2)
                     -------------------------------------------------
                                                    Nine Months Ended
                          Three Months Ended          September 30,
                     ----------------------------- -------------------
International and
 U.S. Floater
 Contract Drilling   Sept. 30, June 30,  Sept. 30,
 Services Segment:     2003      2003      2002      2003      2002
                     --------- --------- --------- --------- ---------
    Deepwater:
        5th
         Generation  $176,600  $185,100  $190,100  $181,600  $188,200
        Other
         Deepwater   $112,500  $111,500  $115,200  $112,600  $120,100
    Total Deepwater  $145,500  $147,500  $148,000  $146,800  $149,500
    Mid-Water         $70,900   $73,600   $83,000   $73,900   $81,900
    Jackups -
     Non-U.S.         $54,400   $57,400   $60,400   $56,200   $58,900
    Other Rigs        $48,800   $41,500   $49,300   $44,700   $43,900
Segment Total         $89,000   $88,900   $94,600   $89,800   $92,700

Gulf of Mexico
 Shallow and Inland
 Water Segment:
    Jackups and
     Submersibles     $20,800   $18,200   $22,400   $19,600   $21,500
    Inland Barges     $16,900   $16,100   $20,700   $16,900   $20,100
    Other             $20,500   $18,600   $23,400   $19,400   $21,200
Segment Total         $19,300   $17,500   $21,600   $18,400   $20,800

Total Mobile Offshore
 Drilling Fleet       $67,000   $65,300   $74,500   $67,100   $74,900

                                    Utilization (1) (2)
                     -------------------------------------------------
                                                    Nine Months Ended
                          Three Months Ended          September 30,
                     ----------------------------- -------------------
International and
 U.S. Floater
 Contract Drilling   Sept. 30, June 30,  Sept. 30,
 Services Segment:     2003      2003      2002      2003      2002
                     --------- --------- --------- --------- ---------
    Deepwater:
        5th
         Generation        97%       88%       90%       94%       87%
        Other
         Deepwater         73%       70%       85%       73%       84%
    Total Deepwater        84%       78%       87%       82%       85%
    Mid-Water              54%       55%       74%       54%       76%
    Jackups -
     Non-U.S.              85%       86%       84%       86%       86%
    Other Rigs             49%       41%       56%       42%       60%
Segment Total              71%       68%       79%       69%       80%

Gulf of Mexico
 Shallow and Inland
 Water Segment:
    Jackups and
     Submersibles          54%       44%       32%       43%       27%
    Inland Barges          38%       39%       47%       42%       37%
    Other                  38%       44%       31%       39%       41%
Segment Total              44%       42%       38%       41%       33%

Total Mobile Offshore
 Drilling Fleet            59%       57%       61%       57%       59%

(1) Certain reclassifications have been made to prior periods to
    conform to current quarter presentation.

(2) Average dayrates are defined as contract drilling revenue earned
    per revenue earning day and utilization is defined as the total
    actual number of revenue earning days as a percentage of the total
    number of calendar days in the period. Effective January 1, 2003,
    the calculation of average dayrates and utilization was changed to
    include all rigs based on contract drilling revenues. Prior
    periods have been restated to reflect the change.

            Non-GAAP Financial Measures and Reconciliations
  Adjusted Income (Loss) and Earnings (Loss) Per Share Reconciliation
                           (in US$ millions)

                                  QTD       YTD       QTD       YTD
                               09/30/03  09/30/03  09/30/02  09/30/02
                               --------- --------- --------- ---------
Adjusted Income

Net income (loss) as reported     $11.0     $13.7    $255.2   $(951.2)
 Add back:
  After-tax loss on early
   retirement of debt               0.0      13.8         -         -
  After-tax loss on impairment
   of certain long-lived assets     0.0      12.8      26.6      27.3
  After-tax impairment of note
   receivable from Delta Towing
   LLC                              0.0      13.8         -         -
  Favorable resolution of a non-
   U.S. income tax liability        0.0     (14.6)        -         -
  Tax benefit from the
   restructuring of non-U.S
   operations                       0.0       0.0    (176.2)   (175.7)
  After-tax initial public
   offering costs                   8.0       8.0         -         -
  After-tax impairment of
   goodwill                           -         -         -   1,363.7
                               --------- --------- --------- ---------
Net income (loss) as adjusted     $19.0     $47.5    $105.6    $264.1
                               --------- --------- --------- ---------

Diluted Earnings Per Share:

Net income (loss) as reported     $0.03     $0.04     $0.79    $(2.94)
 Add back:
  After-tax loss on early
   retirement of debt                 -      0.04         -         -
  After-tax loss on impairment
   of certain long-lived assets       -      0.04      0.08      0.08
  After-tax impairment of note
   receivable from Delta Towing
   LLC                                -      0.04         -         -
  Favorable resolution of a non-
   U.S. income tax liability          -     (0.04)        -         -
  Tax benefit from the
   restructuring of non-U.S
   operations                         -      0.00     (0.54)    (0.54)
  After-tax initial public
   offering costs                  0.03      0.03
  After-tax impairment of
   goodwill                           -         -         -      4.22
                               --------- --------- --------- ---------
Net income (loss) as adjusted     $0.06     $0.15     $0.33     $0.82
                               --------- --------- --------- ---------

                  Transocean Inc. and Subsidiaries
            Non-GAAP Financial Measures and Reconciliations
                           (in US$ millions)

                                            For the Quarter Ended
                                        -----------------------------
                                        Sept. 30,  June 30, Sept. 30,
                                          2003      2003       2002
                                        ---------- -------  ---------

Operating Income (Loss) Before General and
 Administrative Expenses to Field
 Operating Income (Loss) by
 Segment Reconciliation

 International and U.S. Floater
  Contract Drilling Services Segment
  Operating income before general and
   administrative expense                 $118.9     $84.2    $190.0
  Add back: Depreciation                   103.9     104.4     101.6
            Impairment loss on long-lived
             assets                            -       4.2      25.7
            Gain from sale of assets, net   (0.8)     (0.2)     (1.8)
                                        ---------- -------  ---------
  Field operating income                  $222.0    $192.6    $315.5
                                        ---------- -------  ---------

 Gulf of Mexico Shallow and Inland
  Water Segment
   Operating loss before general and
    administrative expense                $(24.9)   $(49.5)   $(38.1)
   Add back: Depreciation                   22.9      23.1      22.6
             Impairment loss on long-lived
              assets                           -      11.6      15.2
             Gain from sale of assets,
              net                           (0.1)     (0.4)     (1.1)
                                        ---------- -------  ---------
   Field operating loss                    $(2.1)   $(15.2)    $(1.4)
                                        ---------- -------  ---------

                                               Sept. 30,   Dec. 31,
                                                 2003       2002
                                               ---------- ----------
Total Debt to Net Debt Reconciliation

Total Debt                                      $3,701.4   $4,678.0
 Less: Cash and cash equivalents                   806.3    1,214.2
       Swap Receivables                                -      181.3
                                               ---------- ----------
Net Debt                                        $2,895.1   $3,282.5
                                               ---------- ----------
Total Capital
 Total Shareholders' Equity                     $7,174.9   $7,141.4
 Add Back:  Total Debt                           3,701.4    4,678.0
                                               ---------- ----------
Total Capital                                  $10,876.3  $11,819.4
                                               ---------- ----------
Total Capital to Tangible Capital
 Reconciliation
 Total Shareholders' Equity                     $7,174.9   $7,141.4
 Add Back: Net Debt (see calculation above)      2,895.1    3,282.5
 Less:  Goodwill, net                           (2,223.4)  (2,218.2)
                                               ---------- ----------
Tangible Capital                                $7,846.6   $8,205.7
                                               ---------- ----------
Debt/Total Capital                                  34.0%      39.6%
Net Debt/Tangible Capital                           36.9%      40.0%


Contact:
     Transocean Inc., Houston
     Analyst Contact:
     Jeffrey L. Chastain, 713-232-7551
     or
     Media Contact:
     Guy A. Cantwell, 713-232-7647