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Transocean Inc. Reports First Quarter 2005 Results

May 3, 2005

HOUSTON, May 03, 2005 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) today reported net income for the three months ended March 31, 2005 of $91.8 million, or $0.28 per diluted share, on revenues of $630.5 million. The results compare to net income of $22.7 million, or $0.07 per diluted share, on revenues of $652.0 million, for the corresponding three months in 2004. Net income adjusted(1) for a loss on early debt retirement and a gain associated with the sale of the semisubmersible rig Sedco 600, was $79.7 million, or $0.24 per diluted share for the three months ended March 31, 2005, compared to net income adjusted(1) for a loss on early debt retirement and TODCO initial public offering (IPO)-related items of $49.5 million, or $0.15 per diluted share, for the corresponding three months in 2004.

Effective December 17, 2004, Transocean Inc. deconsolidated TODCO from its consolidated statements of operations and balance sheets and subsequently accounted for its investment in TODCO under the equity method of accounting. Financial results for the three months ended March 31, 2004 reflect the consolidation of TODCO as a business segment.

Robert L. Long, President and Chief Executive Officer of Transocean Inc., stated, "The company has begun 2005 with solid financial performance. Results for the first quarter benefited from the recommencement of operations on the jackup rig Trident 20 and semisubmersible rig Jim Cunningham, as well as the commencement of operations on four semisubmersible rigs that were previously idle. Also, we realized meaningful dayrate increases on four High-Specification Floaters while benefiting from lower than planned operating and maintenance expenses due to the timing of rig maintenance and upgrade programs.

"Of greater importance is the improving outlook for our business. We are seeing a substantial increase in customer rig needs, particularly for floating drilling units. Future quarterly financial performance should benefit from higher average dayrates on a number of our semisubmersibles and drillships, and we expect to sign several term contracts that should secure improved dayrates for several more years. At present, we are in advanced discussions with various customers regarding seven High-Specification Floaters with dayrates ranging from $260,000 to $350,000 per day and contract durations from a single well to several years."

The company reported that the industry's Fifth-Generation rig supply remains constrained, the result of deepwater contract opportunities in the U.S. Gulf of Mexico, West Africa, Brazil and emerging regions like India and the Mediterranean Sea. Contract durations for these units are lengthening, as evidenced by the recent contract awards for the company's semisubmersible rigs Sedco Energy and Deepwater Horizon for two and five years, respectively. This favorable trend is expected to continue through 2006, resulting in higher average dayrates for the company's fleet. At present, 89% of the company's Fifth-Generation fleet days are committed to firm contracts in 2005, while 64% of the fleet days are committed in 2006.

The company's Other Deepwater and Other High-Specification Floaters (harsh environment semisubmersibles) are experiencing higher utilization worldwide, leading to higher dayrates like the recent one-year contract for the Transocean Marianas in the U.S. Gulf of Mexico at $250,000 per day and the one-year contract for the semisubmersible rig Transocean Leader offshore Norway at a dayrate of $245,000 per day.

The company expects higher fleet utilization and average dayrates for its Other Floaters fleet, especially in the U.K. North Sea and the U.S. Gulf of Mexico. Industry dayrates in both regions have improved from approximately $50,000 per day in 2004 to a general range of $100,000 to $160,000 per day at present. Operator needs in these regions are becoming increasingly evident for 2006. Also, BP has just awarded a contract for work offshore Sahkalin Island for the company's semisubmersible rig Transocean Legend. The contract covers the 2005 through 2007 spring and summer drilling periods and drilling operations are expected to commence in July, 2005 following minor rig modifications in Singapore and mobilization to the drilling location. At present, 58% of the remaining Other Floater Fleet days are under firm contract in 2005, while 17% of the days are committed in 2006.

Finally, among the company's fleet of Jackup Rigs, utilization remains high and average dayrates continue to experience modest improvement in most regions, with contracting opportunities most prevalent in Asia and the Middle East. Speculative newbuild units, which are due to enter the active fleet in increasing numbers beginning in the second half of 2006, represent a growing concern to the long-term health of the jackup rig business. At present, 77% of the remaining Jackup Rig Fleet days are under firm contract in 2005, while 38% of the days are committed in 2006.

Operating and maintenance expense is expected to increase as improving activity levels lead to higher labor and rig maintenance costs. The company expects operating and maintenance expense for the second quarter of 2005 to be in a range of $415 million to $435 million, reflecting the impact of improvements in activity levels and the timing of planned shipyard and other rig maintenance programs.

Operations Quarterly Review - Revenues for the three months ended March 31, 2005 improved 7% to $630.5 million from revenues of $591.0 million for the Transocean Drilling Segment for the three months ended December 31, 2004. The improvement was primarily due to increased dayrates and activity throughout the company's fleet of drillships, semisubmersibles and jackup rigs, as well as the return to active service of the jackup rig Trident 20 and semisubmersible rig Jim Cunningham following lengthy repairs resulting from operational incidents during 2004. These improvements in revenue were partially offset by lower integrated services revenues, a scheduled shipyard program for the semisubmersible rig Henry Goodrich, idle time on the semisubmersible rig M.G. Hulme, Jr. and the sale of semisubmersible rig Sedco 600.

Operating income before general and administrative expenses(2) was $161.4 million and field operating income(2) (defined as revenues less operating and maintenance expense) was $241.9 million for the three months ended March 31, 2005. These amounts compared to Transocean Drilling Segment operating income before general and administrative expenses and field operating income for the three months ended December 31, 2004 of $73.9 million and $177.7 million, respectively. The improved results were due primarily to increased revenue during the first quarter of 2005, the gain from the sale of semisubmersible rig Sedco 600 and a 6% decline in operating and maintenance expense in the March 2005 quarter, to $388.6 million, down from $413.3 million for the three months ended December 31, 2004. The lower operating and maintenance expense was the result of a delay in some rig maintenance programs, the reduction in extraordinary repair costs incurred during the final three months in 2004 associated with the operational incidents on the jackup rig Trident 20 and semisubmersible rig Jim Cunningham, as well as a major shipyard project related to the semisubmersible rig Polar Pioneer and lower expenses pertaining to the reduced level of integrated services activities, partially offset by additional costs resulting from the increased activity during the period. Fleet utilization during the three months ended March 31, 2005 improved to 75%, up from 69% during the three months ended December 31, 2004 and was due significantly to improvements in the company's Jackup Rig and Other Floaters fleet. Average dayrates for the three months ended March 31, 2005 increased in the company's High-Specification Fleet, Other Floaters Fleet and Jackup Rig Fleet, resulting in an average fleet dayrate of $96,600, up from $93,900 during the final three months in 2004.

Effective Tax Rate - The company's effective tax rate(3) for the three months ended March 31, 2005 was approximately 16%. The decline from an effective tax rate of approximately 50% at December 31, 2004 was primarily related to improved earnings expectations for the year as a result of the continued improvement in the offshore drilling business. The company estimates its effective tax rate for 2005 to be approximately 16%. The final effective tax rate for the year will depend on a number of factors including the actual geographic mix of income, as well as the occurrences of various discrete events. These factors could cause the rate to vary significantly from current expectations.

Liquidity - Cash flow provided by operations was $176.9 million for the three months ended March 31, 2005 while net debt(4) at March 31, 2005 was $1,783.5 million, a 37% decline from $2,848.5 million at March 31, 2004. During the current quarter, the company redeemed $247.8 million of 6.95% Senior Notes due 2008, utilizing existing cash balances. Conference Call Information Transocean will conduct a teleconference call at 10:00 a.m. ET on May 3rd. To participate, dial 303-262-2075 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 May 3 and can be accessed by dialing 303-590-3000 and referring to the passcode 11028333. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced Worldwide Web addresses.

Transocean Fleet Update Information - Drilling rig status and contract information on Transocean Inc.'s offshore drilling fleet has been condensed into a report titled "Transocean Fleet Update," which is available through the company's website at www.deepwater.com. The report is 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 opportunities and outlook for the company and its fleet, including the company's Transocean Drilling business segment, rig demand, contracts under discussion, dayrates, utilization, rig capacity constraints, contract duration, operating and maintenance expenses, the 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, effect of strike and other labor relations issues, effect of fire, future financial results, 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 a fleet of 93 mobile offshore drilling units. The company's mobile offshore drilling fleet, consisting of a large number of high-specification deepwater and harsh environment drilling units, 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's fleet consists of 32 High-Specification Floaters (semisubmersibles and drillships), 24 Other Floaters, 26 Jackup Rigs and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $15 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."

(1) Net income adjusted for certain items, a non-GAAP measure, is
    computed by subtracting from or adding to net income, a GAAP
    measure, items that occurred during the periods reported and are
    considered by management to be outside the normal course of
    operations. A reconciliation for the periods reported may be found
    in the accompanying schedule titled Non-GAAP Financial Measures
    and Reconciliations - Adjusted Net Income (Loss) and Diluted
    Earnings (Loss) Per Share.

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

(3) For the analysis of the effective tax rate, see the accompanying
    schedule titled Effective Tax Rate Analysis.

(4) Net Debt is a non-GAAP measure defined as total debt less cash and
    cash equivalents.



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

                                        Three Months Ended March 31,
                                        -----------------------------
                                            2005           2004
                                        -------------- --------------
Operating Revenues
  Contract drilling revenues                   $600.6         $597.5
  Other revenues                                 29.9           54.5
---------------------------------------------------------------------
                                                630.5          652.0
---------------------------------------------------------------------
Costs and Expenses
  Operating and maintenance                     388.6          412.4
  Depreciation                                  100.7          131.5
  General and administrative                     18.1           15.1
  Gain from sale of assets, net                 (20.2)          (3.8)
---------------------------------------------------------------------
                                                487.2          555.2
---------------------------------------------------------------------

Operating Income                                143.3           96.8

Other Income (Expense), net
  Equity in earnings of unconsolidated
   affiliates                                     3.1            2.3
  Interest income                                 4.0            2.1
  Interest expense                              (33.1)         (47.4)
  Gain from TODCO Offerings                         -           39.4
  Loss on retirement of debt                     (6.7)         (28.1)
  Other, net                                     (1.1)           1.4
---------------------------------------------------------------------
                                                (33.8)         (30.3)
---------------------------------------------------------------------

Income Before Income Taxes and Minority
 Interest                                       109.5           66.5
Income Tax Expense                               17.5           48.0
Minority Interest                                 0.2           (4.2)
---------------------------------------------------------------------

Net Income                                      $91.8          $22.7
=====================================================================

Earnings Per Share
   Basic and Diluted                            $0.28          $0.07
=====================================================================

Weighted Average Shares Outstanding
   Basic                                        323.6          320.6
---------------------------------------------------------------------
   Diluted                                      331.0          324.1
---------------------------------------------------------------------

TODCO deconsolidated effective December 17, 2004


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

                                          March 31,     December 31,
                                            2005           2004
                                        -------------- --------------
                                         (Unaudited)
                 ASSETS

Cash and Cash Equivalents                      $420.7         $451.3
Accounts Receivable, net of allowance
 for doubtful accounts of $16.5 and
 $16.8 at March 31, 2005 and December
 31, 2004, respectively                         484.5          442.0
Materials and Supplies, net of allowance
 for obsolescence of $20.2 and $20.3 at
 March 31, 2005 and December 31, 2004,
 respectively                                   148.5          144.7
Deferred Income Taxes, net                       15.3           19.0
Other Current Assets                             33.9           52.1
---------------------------------------------------------------------
   Total Current Assets                       1,102.9        1,109.1
---------------------------------------------------------------------

Property and Equipment                        9,740.7        9,732.9
Less Accumulated Depreciation                 2,817.1        2,727.7
---------------------------------------------------------------------
   Property and Equipment, net                6,923.6        7,005.2
---------------------------------------------------------------------

Goodwill                                      2,251.9        2,251.9
Investments in and Advances to
 Unconsolidated Affiliates                      110.7          109.2
Deferred Income Taxes                            39.4           43.8
Other Assets                                    263.0          239.1
---------------------------------------------------------------------
   Total Assets                             $10,691.5      $10,758.3
=====================================================================

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts Payable                               $165.6         $180.8
Accrued Income Taxes                             10.4           17.1
Debt Due Within One Year                          7.9           19.4
Other Current Liabilities                       248.4          213.0
---------------------------------------------------------------------
   Total Current Liabilities                    432.3          430.3
---------------------------------------------------------------------

Long-Term Debt                                2,196.3        2,462.1
Deferred Income Taxes, net                      147.6          124.1
Other Long-Term Liabilities                     349.6          345.2
---------------------------------------------------------------------
   Total Long-Term Liabilities                2,693.5        2,931.4
---------------------------------------------------------------------

Commitments and Contingencies

Minority Interest                                 4.2            4.0

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,
 324,824,322 and 321,533,998 shares
 issued and outstanding at March 31,
 2005 and December 31, 2004,
 respectively                                     3.2            3.2
Additional Paid-in Capital                   10,771.3       10,695.8
Accumulated Other Comprehensive Loss            (22.8)         (24.4)
Retained Deficit                             (3,190.2)      (3,282.0)
---------------------------------------------------------------------
   Total Shareholders' Equity                 7,561.5        7,392.6
---------------------------------------------------------------------
   Total Liabilities and Shareholders'
    Equity                                  $10,691.5      $10,758.3
=====================================================================


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

                                        Three Months Ended March 31,
                                        -----------------------------
                                            2005           2004
                                        -------------- --------------

Cash Flows from Operating Activities
   Net income                                   $91.8          $22.7
   Adjustments to reconcile net income
    to net cash provided by operating
    activities
    Depreciation                                100.7          131.5
    Stock-based compensation expense              3.1           10.0
    Deferred income taxes                         4.6           31.3
    Equity in earnings of unconsolidated
     affiliates                                  (3.1)          (2.3)
    Net gain from disposal of assets            (19.9)          (1.9)
    Gain from TODCO Offerings                       -          (39.4)
    Loss on retirement of debt                    6.7           28.1
    Amortization of debt-related
     discounts/premiums, fair value
     adjustments and issue costs, net            (3.2)          (7.6)
    Deferred income, net                         10.0           (3.3)
    Deferred expenses, net                       (1.2)          (1.9)
    Tax benefit from exercise of stock
     options                                     (0.8)             -
    Other long-term liabilities                   5.2            2.3
    Other, net                                    1.1           (4.8)
    Changes in operating assets and
     liabilities
       Accounts receivable                      (40.0)          29.8
       Accounts payable and other
        current liabilities                      22.9           23.6
       Income taxes receivable/payable,
        net                                      (5.1)          (2.4)
       Other current assets                       4.1          (24.5)
---------------------------------------------------------------------
Net Cash Provided by Operating
 Activities                                     176.9          191.2
---------------------------------------------------------------------

Cash Flows from Investing Activities
  Capital expenditures                          (31.2)         (17.4)
  Proceeds from disposal of assets, net          35.5           10.5
  Proceeds from TODCO Offerings                     -          155.7
  Joint ventures and other investments,
   net                                            3.1            1.5
---------------------------------------------------------------------
Net Cash Provided by Investing
 Activities                                       7.4          150.3
---------------------------------------------------------------------

Cash Flows from Financing Activities
  Repayments on revolving credit
   agreement                                        -          (50.0)
  Repayments on other debt instruments         (287.4)        (381.6)
  Net proceeds from issuance of ordinary
   shares under stock-based compensation
   plans                                         72.4           14.0
  Other, net                                      0.1              -
---------------------------------------------------------------------
Net Cash Used in Financing Activities          (214.9)        (417.6)
---------------------------------------------------------------------

Net Decrease in Cash and Cash
 Equivalents                                    (30.6)         (76.1)
---------------------------------------------------------------------
Cash and Cash Equivalents at Beginning
 of Period                                      451.3          474.0
---------------------------------------------------------------------
Cash and Cash Equivalents at End of
 Period                                        $420.7         $397.9
=====================================================================


                            Transocean Inc.
                      Fleet Operating Statistics

                                Operating Revenues ($ Millions) (1)
                              ----------------------------------------
                                         Three Months Ended
                              ----------------------------------------
                                March 31,   December 31,   March 31,
Transocean Drilling Segment:      2005          2004         2004
                              ------------- ------------- ------------
Contract Drilling Revenues
    High-Specification
     Floaters:
        Fifth-Generation
         Deepwater Floaters         $192.3        $190.7       $208.5
        Other Deepwater
         Floaters                   $125.3        $114.2       $108.1
        Other High-
         Specification
         Floaters                    $50.2         $45.7        $30.6
    Total High-Specification
     Floaters                       $367.8        $350.6       $347.2
    Other Floaters                   $88.2         $71.6        $62.7
    Jackups                         $126.4        $108.1       $101.5
    Other Rigs                       $18.2         $23.7        $24.1
Subtotal                            $600.6        $554.0       $535.5
Other Revenues
           Client Reimbursable
            Revenues                 $18.9         $18.2        $16.6
           Integrated Services
            and Other                $11.0         $18.8        $26.1
Subtotal                             $29.9         $37.0        $42.7
Segment Total                       $630.5        $591.0       $578.2

TODCO Segment (3)
Contract Drilling Revenues              $-         $72.9        $62.0
Other Revenues
            Client
             Reimbursables              $-          $5.7         $5.0
            Delta Towing and
             Other                      $-          $7.3         $6.8
Subtotal                                $-         $13.0        $11.8
Segment Total                           $-         $85.9        $73.8

Total Company                       $630.5        $676.9       $652.0

                                      Average Dayrates (1) (2)
                                         Three Months Ended
                              ----------------------------------------
                                March 31,   December 31,   March 31,
Transocean Drilling Segment:      2005          2004         2004
                              ------------- ------------- ------------
    High-Specification
     Floaters:
        Fifth-Generation
         Deepwater Floaters       $182,300      $180,100     $191,800
        Other Deepwater
         Floaters                 $124,500      $119,400     $101,300
        Other High-
         Specification
         Floaters                 $153,000      $135,700     $115,200
    Total High-Specification
     Floaters                     $153,900      $149,000     $143,500
    Other Floaters                 $71,200       $64,000      $62,800
    Jackups                        $57,600       $55,800      $51,400
    Other Rigs                     $45,800       $48,100      $44,200
Segment Total                      $96,600       $93,900      $90,200

TODCO Segment (3)                       $-       $28,600      $25,700

Total Drilling Fleet               $96,600       $74,200      $71,600

                                        Utilization (1) (2)
                              ----------------------------------------
                                         Three Months Ended
                              ----------------------------------------
                                March 31,   December 31,   March 31,
Transocean Drilling Segment:      2005          2004         2004
                              ------------- ------------- ------------
    High-Specification
     Floaters:
        Fifth-Generation
         Deepwater Floaters             90%           89%          92%
        Other Deepwater
         Floaters                       75%           69%          78%
        Other High-
         Specification
         Floaters                       91%           92%          73%
    Total High-Specification
     Floaters                           83%           80%          83%
    Other Floaters                      57%           50%          42%
    Jackups                             94%           81%          83%
    Other Rigs                          44%           54%          54%
Segment Total                           75%           69%          69%

TODCO Segment (3)                        -            47%          38%

Total Drilling Fleet                    75%           61%          56%

(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 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.

(3) TODCO was deconsolidated effective December 17, 2004. Statistics
    for the TODCO segment are through December 16, 2004 for the three
    months ended December 31, 2004.


                   Transocean Inc. and Subsidiaries
            Non-GAAP Financial Measures and Reconciliations
   Adjusted Net Income (Loss) and Diluted Earnings (Loss) Per Share
                           (in US$ millions)

                                         Three Months Ended
                              ----------------------------------------
                                March 31,    December 31,   March 31,
                                  2005          2004          2004
                              ------------- -------------- -----------

Adjusted Net Income (Loss)

Net income (loss) as reported        $91.8         $(73.4)      $22.7
  Add back (subtract):

    After-tax non-cash TODCO tax
     sharing agreement charge            -          167.1           -
    After-tax gain from TODCO
     offerings                           -         (140.0)      (39.4)
    After-tax loss on retirement
     of debt                           6.7           48.4        28.1
    After-tax gain from sale of
     Sedco 600                       (18.8)             -           -
    Tax valuation allowance
     related to TODCO IPO                -              -        31.0
    Stock option vesting
     resulting from the TODCO
     IPO                                 -              -         7.1
                              ------------- -------------- -----------
Net income as adjusted               $79.7           $2.1       $49.5
                              ------------- -------------- -----------

Diluted Earnings (Loss) Per
 Share:

Net income (loss) as reported        $0.28         $(0.23)      $0.07
  Add back (subtract):

    After-tax non-cash TODCO tax
     sharing agreement charge            -           0.52           -
    After-tax gain from TODCO
     offerings                           -          (0.43)      (0.12)
    After-tax loss on retirement
     of debt                          0.02           0.15        0.09
    After-tax gain from sale of
     Sedco 600                       (0.06)             -           -
    Tax valuation allowance
     related to TODCO IPO                -              -        0.09
    Stock option vesting
     resulting from the TODCO
     IPO                                 -              -        0.02
                              ------------- -------------- -----------
Net income as adjusted               $0.24          $0.01       $0.15
                              ------------- -------------- -----------


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

  Operating Income (Loss) Before General and Administrative Expense
             to Field Operating Income (Loss) by Segment
                          (in US$ millions)

                                         Three Months Ended
                              ----------------------------------------
                                March 31,   December 31,   March 31,
                                  2005          2004         2004
                              ------------- ------------- ------------

Transocean Drilling Segment
  Operating revenue                 $630.5        $591.0       $578.2
  Operating and maintenance
   expense                           388.6         413.3        333.2
  Depreciation                       100.7         106.2        107.3
  Gain from sale of assets,
   net                               (20.2)         (2.4)        (1.1)
                              ------------- ------------- ------------
Operating income before
 general and administrative
 expense                             161.4          73.9        138.8
Add back:  Depreciation              100.7         106.2        107.3
           Gain from sale of
            assets, net              (20.2)         (2.4)        (1.1)
                              ------------- ------------- ------------
Field operating income              $241.9        $177.7       $245.0
                              ------------- ------------- ------------

TODCO Segment (1)
  Operating revenue                     $-         $85.9        $73.8
  Operating and maintenance
   expense (2)                           -          61.5         79.2
  Depreciation                           -          20.0         24.2
  Gain from sale of assets,
   net                                   -          (0.6)        (2.7)
                              ------------- ------------- ------------
Operating income (loss) before
 general and administrative
 expense                                 -           5.0        (26.9)
Add back:  Depreciation                  -          20.0         24.2
           Gain from sale of
            assets, net                  -          (0.6)        (2.7)
                              ------------- ------------- ------------
Field operating income (loss)           $-         $24.4        $(5.4)
                              ------------- ------------- ------------

(1) Amounts are representative of TODCO's results through December 16,
    2004. TODCO was deconsolidated effective December 17, 2004 in
    connection with the December offering and conversion of the
    Company's remaining TODCO Class B common stock to Class A common

(2) Q4 04 and Q1 04 include $6.0 million and $12.3 million,
    respectively, of operating and maintenance expense that TODCO
    classified as general and administrative expense.


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

                                               As of
                              ----------------------------------------
                                3/31/05       12/31/04      3/31/04
                              ------------- -------------- -----------
Total Debt to Net Debt
 Reconciliation
Total Debt                        $2,204.2       $2,481.5    $3,246.4
Deduct: Cash and Cash
 Equivalents                         420.7          451.3       397.9
                              ------------- -------------- -----------
Net Debt                          $1,783.5       $2,030.2    $2,848.5
                              ------------- -------------- -----------


                   Transocean Inc. and Subsidiaries
                      Effective Tax Rate Analysis
                           (in US$ millions)

                                         Three Months Ended
                              ----------------------------------------
                                March 31,   December 31,   March 31,
                                  2005          2004         2004
                              ------------- ------------- ------------
Income before Income Taxes and
 Minority Interest                  $109.5        $(54.1)       $66.5
  Add back (subtract):
    Stock option vesting
     resulting from the TODCO
     IPO                                 -             -          7.1
    Loss on retirement of debt         6.7          48.4         28.1
    Gain on sale of Sedco 600        (18.8)            -            -
    Gain on sale of Sedco 602            -          (0.1)           -
    Gain on TODCO offerings              -        (140.0)       (39.4)
    Non-cash TODCO tax sharing
     agreement charge                    -         167.1            -
                              ------------- ------------- ------------
Adjusted Income before Income
 Taxes and Minority Interest         $97.4         $21.3        $62.3

Income Tax Expense                   $17.5         $17.1        $48.0
  Add back (subtract):
    Valuation allowance
     related to TODCO
     offerings                           -         (15.1)       (31.0)
    Other                                -          (0.2)           -
    Changes in estimates (1)          (2.2)         16.4            -
                              ------------- ------------- ------------
Adjusted Income Tax
 Expense (2)                         $15.3         $18.2        $17.0

Effective Tax Rate                    16.0%        -31.6%        72.2%

Effective Tax Rate Adjusted           15.7%         85.4%        27.3%


(1) Our estimates change as we file tax returns, settle disputes with
    tax authorities or become aware of other events.

    Also includes changes in our valuation allowance on our UK net
    operating loss carryforwards.

SOURCE: Transocean Inc.

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