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Transocean Inc. Reports Second Quarter 2005 Results

August 2, 2005

HOUSTON, Aug 02, 2005 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) today reported net income for the three months ended June 30, 2005 of $301.8 million, or $0.90 per diluted share, on revenues of $727.4 million. The results compare to net income of $48.0 million, or $0.15 per diluted share, on revenues of $633.2 million for the corresponding three months in 2004. Net income adjusted(1) for the May 2005 TODCO public offering, June 2005 sale of TODCO common stock and gains associated with the sale of the jackup rig Transocean Jupiter and Land Rig 34 was $127.7 million, or $0.38 per diluted share, for the three months ended June 30, 2005. This compares to net income of $26.4 million, or $0.08 per diluted share, for the corresponding three months in 2004, after adjustment for the sale of the semisubmersible rig Sedco 602.

For the six months ended June 30, 2005, net income totaled $393.6 million, or $1.18 per diluted share, on revenues of $1,357.9 million, compared to net income of $70.7 million, or $0.22 per diluted share, on revenues of $1,285.2 million for the six months ended June 30, 2004. Net income adjusted for the May 2005 TODCO public offering and June 2005 sale of TODCO common stock, gains associated with the sales of the semisubmersible rig Sedco 600, the Transocean Jupiter and Land Rig 34 and for a loss on the early retirement of debt was $207.4 million, or $0.63 per diluted share, for the six months ended June 30, 2005. For the six months ended June 30, 2004, net income adjusted for the sale of the Sedco 602, a loss on the early retirement of debt and TODCO initial public offering (IPO)-related items was $75.9 million, or $0.23 per diluted share.

Robert L. Long, President and Chief Executive Officer of Transocean Inc., commented, "The fundamental outlook for our business is better than at any time in my 30 years in this industry. Our most significant challenge at present is managing our industry-leading portfolio of deepwater assets to satisfy as many of our customers' needs as possible. Our revenue backlog(2) of approximately $5.8 billion is unprecedented for the company, with continued backlog expansion anticipated. Within our fleet of 32 High-Specification Floaters, possible contracts for six rigs are in advanced stages of discussion with expected durations of six months to approximately 48 months and expected dayrates ranging from $205,000 to $395,000."

"In addition, we have remained focused on our efforts to divest non-strategic assets and reduce debt. We completed our divestiture of TODCO with final transactions in May and June, resulting in net proceeds during the second quarter of approximately $271.9 million. Following the July 2005 completion of a tender offer for our 6.625% Notes due in 2011, our total debt at face value has declined to approximately $1.6 billion and our cash flow generation continues to accelerate as contracts with higher dayrates commence. We are currently evaluating contract opportunities which would require the reactivation or upgrade of existing rigs in our fleet. These opportunities could require a significant amount of capital. However, our cash generation is expected to significantly exceed these reactivation and upgrade opportunities so we are also considering alternatives for returning cash to our shareholders."

Customer demand for Fifth-Generation Deepwater Floaters, the industry's largest and most modern rigs and which total 13 of Transocean's 32 High-Specification Floaters, has been particularly strong and continues to exceed supply. These rigs have the ability to drill technically complex wells, including wells in ultra-deep water and increasingly deeper well depths, plus provide significant well construction efficiencies for offshore development programs. Following the recent contract signings on the company's drillships Deepwater Millennium, Deepwater Discovery and Deepwater Frontier, each with a contract duration of two years, the company's percentage of Fifth-Generation Deepwater Floater fleet time presently contracted for the years 2006 and 2007 stands at 78% and 54%, respectively. The comparable figure for the company's entire High-Specification Floater fleet for 2006 is 63%.

The company's Other Floaters fleet, comprised of 23 semisubmersible rigs and one drillship, continues to benefit from improving activity levels in all regions. In the U.K. sector of the North Sea, five of the company's semisubmersible rigs have been recently contracted for durations of six months to 12 months at dayrates ranging from $140,000 to $200,000. Customer activity levels outside of the U.K. sector of the North Sea are expected to be stable to higher through 2006. The company continues to evaluate contract opportunities that could result in the reactivation of up to three of its idle rigs. Should a decision be made to reactivate any of the idle units, they are not expected to be operational before 2006. At present, approximately 47% of the company's Other Floater fleet days are contracted in 2006.

Jackup rig demand remains strong throughout Southeast Asia, India and West Africa, the primary regions of operation for the company's 25-rig fleet. Fleet utilization is expected to remain better than 90% for the remainder of 2005 and into the first half of 2006 with continued improvements in dayrates likely, although the impact of new supply in the jackup rig sector beginning in 2006 is currently unknown. The company also reported that it completed the sale of the Transocean Jupiter for net proceeds of $20 million in the second quarter of 2005. The rig had been inactive since 1998. At present, 50% of the company's Jackup rig fleet days are contracted in 2006.

Operations Review - Revenues for the three months ended June 30, 2005 improved 15% to $727.4 million, compared to revenues of $630.5 million during the three months ended March 31, 2005. The improvement was attributable to increased dayrates and activity throughout the company's fleet in addition to higher revenues from integrated services during the three months ended June 30, 2005. These improvements in revenues were partially offset by the mobilization of the semisubmersible rig Sedco Express from Brazil to West Africa and idle time due to repairs on the semisubmersible rigs Transocean Leader and Sovereign Explorer.

Operating income before general and administrative expenses(3) was $202.8 million and field operating income(3) (defined as revenues less operating and maintenance expense) was $288.5 million for the three months ended June 30, 2005. Operating income before general and administrative expenses was $161.4 million and field operating income was $241.9 million for the three months ended March 31, 2005. Improved results were primarily due to increased revenues during the second quarter of 2005, and the gain on sale of the Transocean Jupiter, partially offset by a 13% increase to $438.9 million in operating and maintenance expense in the quarter ended June 30, 2005, up from $388.6 million for the three months ended March 31, 2005. The increase in operating and maintenance expense was primarily due to increased activity during the period, with six rigs idled for all or a significant portion of the first quarter of 2005 returning to service during the second quarter of 2005, in addition to higher maintenance costs resulting from increased shipyard activity and the timing of maintenance projects. Fleet utilization during the three months ended June 30, 2005 improved to 79% from 75% during the quarter ended March 31, 2005 with improvements due primarily to the Other Deepwater Floaters and Other Floaters fleets. Average dayrates for the three months ended June 30, 2005 increased in the High Specification Floaters and Other Floaters fleets resulting in an average total drilling fleet dayrate of $103,100, up from $96,600 during the first three months of 2005. The improvements were due to new contract startups and extensions at higher dayrates.

Effective Tax Rate - The company's effective tax rate(4) for the six months ended June 30, 2005 was approximately 17%. The slight increase from an effective tax rate of approximately 16% at March 31, 2005 was primarily related to a change in expected amount and geographical concentration of taxable income for the remainder of 2005. The company estimates its effective tax rate for the year to be approximately 17%.

Liquidity - Cash flow provided by operations totaled $383.1 million for the six months ended June 30, 2005. Total debt at June 30, 2005 and December 31, 2004 was $2,193.5 million and $2,481.5 million, respectively, a 12% reduction. Net debt(5) declined 38% to $1,251.0 million at June 30, 2005 compared to $2,030.2 million at December 31, 2004.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET on August 2, 2005. 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 August 2 and can be accessed by dialing 303-590-3000 and referring to the passcode 11034804. 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 free service.

Forward-Looking Disclaimer

Statements regarding fundamental business outlook, duration of current demand cycle, contract backlog, rig demand, rig reactivations, impact of new rig supply on the market, asset divestitures, debt reduction, excess cash alternatives and the timing of related decisions, opportunities for the company, dayrates, 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 92 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, 25 Jackup Rigs and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $19 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) Revenue backlog is calculated by multiplying the contracted
    dayrate by the firm contract period from August 2, 2005 forward
    and based on contracts actually signed or in the case of certain
    Petrobras agreements, those whose award have been approved by its
    board of directors. Revenue backlog does not include the impact of
    downtime or contract cancellation and excludes contract extensions
    from option exercises and revenue from mobilization, contract
    preparation, or client reimbursables. Revenue backlog is
    indicative of the full contractual operating dayrate. However, the
    actual average dayrate earned over the course of any given
    contract will likely be lower because of the application of
    varying dayrates and could be substantially lower. The actual
    average dayrate will depend upon a number of factors (rig
    downtime, suspension of operations, etc.) including some beyond
    our control.

(3) 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.

(4) References to effective tax rate are based on the Effective Tax
    Rate Adjusted as shown in the accompanying schedule titled
    Effective Tax Rate Analysis.

(5) Net Debt is a non-GAAP measure defined as total debt less cash and
    cash equivalents. For a reconciliation of total debt to net debt,
    see accompanying schedule titled Total Debt to Net Debt
    Reconciliations.


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

                             Three Months Ended    Six Months Ended
                                   June 30,             June 30,
                            --------------------- --------------------
                               2005       2004       2005      2004
                            ---------- ---------- --------- ----------
Operating Revenues
 Contract drilling revenues    $682.1     $584.9  $1,282.7   $1,182.4
 Other revenues                  45.3       48.3      75.2      102.8
----------------------------------------------------------------------
                                727.4      633.2   1,357.9    1,285.2
----------------------------------------------------------------------
Costs and Expenses
 Operating and maintenance      438.9      406.2     827.5      818.6
 Depreciation                   101.2      133.0     201.9      264.5
 General and administrative      18.0       14.0      36.1       29.1
----------------------------------------------------------------------
                                558.1      553.2   1,065.5    1,112.2
----------------------------------------------------------------------
Gain from sale of assets,
 net                             15.5       23.8      35.7       27.6
----------------------------------------------------------------------
Operating Income                184.8      103.8     328.1      200.6
----------------------------------------------------------------------

Other Income (Expense), net
 Equity in earnings of
  unconsolidated affiliates       3.4        3.7       6.5        6.0
 Interest income                  4.8        1.9       8.8        4.0
 Interest expense               (29.8)     (42.6)    (62.9)     (90.0)
 Gain from TODCO Stock Sales    165.0          -     165.0       39.4
 Loss on retirement of debt         -          -      (6.7)     (28.1)
 Other, net                      (3.0)      (1.1)     (4.1)       0.3
----------------------------------------------------------------------
                                140.4      (38.1)    106.6      (68.4)
----------------------------------------------------------------------

Income Before Income Taxes
 and Minority Interest          325.2       65.7     434.7      132.2
Income Tax Expense               23.6       19.9      41.1       67.9
Minority Interest                (0.2)      (2.2)        -       (6.4)
----------------------------------------------------------------------

Net Income                     $301.8      $48.0    $393.6      $70.7
======================================================================

Earnings Per Share
 Basic                          $0.93      $0.15     $1.21      $0.22
 Diluted                        $0.90      $0.15     $1.18      $0.22
======================================================================

Weighted Average Shares
 Outstanding
  Basic                         326.1      320.8     324.8      320.7
----------------------------------------------------------------------
  Diluted                       338.0      324.1     336.9      324.2
----------------------------------------------------------------------

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

                                               June 30,   December 31,
                                                 2005         2004
                                             ------------ ------------
                                             (Unaudited)
                   ASSETS

Cash and Cash Equivalents                         $942.5       $451.3
Accounts Receivable, net of allowance for
 doubtful accounts of $18.3 and $16.8 at
 June 30, 2005 and December 31, 2004,
 respectively                                      564.2        442.0
Materials and Supplies, net of allowance for
 obsolescence of $18.6 and $20.3 at June 30,
 2005 and December 31, 2004, respectively          153.1        144.7
Deferred Income Taxes, net                          20.7         19.0
Other Current Assets                                41.5         52.1
----------------------------------------------------------------------
   Total Current Assets                          1,722.0      1,109.1
----------------------------------------------------------------------

Property and Equipment                           9,779.5      9,732.9
Less Accumulated Depreciation                    2,896.1      2,727.7
----------------------------------------------------------------------
   Property and Equipment, net                   6,883.4      7,005.2
----------------------------------------------------------------------

Goodwill                                         2,251.9      2,251.9
Investments in and Advances to
 Unconsolidated Affiliates                           4.6        109.2
Deferred Income Taxes                               48.1         43.8
Other Assets                                       249.2        239.1
----------------------------------------------------------------------
   Total Assets                                $11,159.2    $10,758.3
======================================================================

    LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts Payable                                  $208.0       $180.8
Accrued Income Taxes                                64.1         17.1
Debt Due Within One Year                           400.0         19.4
Other Current Liabilities                          248.0        213.0
----------------------------------------------------------------------
   Total Current Liabilities                       920.1        430.3
----------------------------------------------------------------------

Long-Term Debt                                   1,793.5      2,462.1
Deferred Income Taxes, net                         153.6        124.1
Other Long-Term Liabilities                        324.2        345.2
----------------------------------------------------------------------
   Total Long-Term Liabilities                   2,271.3      2,931.4
----------------------------------------------------------------------

Commitments and Contingencies

Minority Interest                                    4.1          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, 328,508,472
 and 321,533,998 shares issued and
 outstanding at June 30, 2005 and December
 31, 2004, respectively                              3.3          3.2
Additional Paid-in Capital                      10,871.7     10,695.8
Accumulated Other Comprehensive Loss               (22.9)       (24.4)
Retained Deficit                                (2,888.4)    (3,282.0)
----------------------------------------------------------------------
   Total Shareholders' Equity                    7,963.7      7,392.6
----------------------------------------------------------------------
   Total Liabilities and Shareholders'
    Equity                                     $11,159.2    $10,758.3
======================================================================

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

                                        Three Months     Six Months
                                        Ended June 30,  Ended June 30,
                                       --------------- ---------------
                                        2005    2004    2005    2004
                                       ------- ------- ------- -------

Cash Flows from Operating Activities
 Net income                            $301.8   $48.0  $393.6   $70.7
 Adjustments to reconcile net income
  to net cash provided by operating
  activities
   Depreciation                         101.2   133.0   201.9   264.5
   Stock-based compensation expense       2.8     3.5     5.9    13.5
   Deferred income taxes                 (2.4)   (3.3)    2.2    28.0
   Equity in earnings of
    unconsolidated affiliates            (3.4)   (3.7)   (6.5)   (6.0)
   Net gain from disposal of assets     (13.6)  (23.1)  (33.5)  (25.0)
   Gain from TODCO Stock Sales         (165.0)      -  (165.0)  (39.4)
   Loss on retirement of debt               -       -     6.7    28.1
   Amortization of debt-related
    discounts/premiums, fair value
    adjustments and issue costs, net     (2.3)   (4.9)   (5.5)  (12.5)
   Deferred income, net                   2.1    17.4    12.1    14.1
   Deferred expenses, net                10.3   (10.8)    9.1   (12.7)
   Tax benefit from exercise of stock
    options                               5.7       -     4.9       -
   Other long-term liabilities            7.3     4.6    12.5     6.9
   Other, net                            (2.4)    0.5    (1.3)   (4.3)
   Changes in operating assets and
    liabilities
     Accounts receivable                (79.6)  (61.6) (119.6)  (31.8)
     Accounts payable and other
      current liabilities                55.7   (23.5)   78.6     0.1
     Income taxes receivable/payable,
      net                                12.2     4.4     7.1     2.0
     Other current assets               (24.2)    8.9   (20.1)  (15.6)
----------------------------------------------------------------------
Net Cash Provided by Operating
 Activities                             206.2    89.4   383.1   280.6
----------------------------------------------------------------------

Cash Flows from Investing Activities
 Capital expenditures                   (78.4)  (37.3) (109.6)  (54.7)
 Proceeds from disposal of assets, net   25.0    31.5    60.5    42.0
 Proceeds from TODCO Stock Sales, net   271.9       -   271.9   155.7
 Joint ventures and other investments,
  net                                     1.4     3.2     4.5     4.7
----------------------------------------------------------------------
Net Cash Provided by (Used in)
 Investing Activities                   219.9    (2.6)  227.3   147.7
----------------------------------------------------------------------

Cash Flows from Financing Activities
 Repayments on revolving credit
  agreement                                 -  (150.0)      -  (200.0)
 Repayments on other debt instruments    (7.9)  (13.6) (295.3) (395.2)
 Net proceeds from issuance of ordinary
  shares under stock-based compensation
  plans                                  87.0     1.0   159.4    15.0
 Proceeds from issuance of ordinary
  shares upon exercise of warrants        4.6       -     4.6       -
 Decrease in cash dedicated to debt
  service                                12.0       -    12.0       -
 Other, net                                 -       -     0.1       -
----------------------------------------------------------------------
Net Cash Provided by (Used in)
 Financing Activities                    95.7  (162.6) (119.2) (580.2)
----------------------------------------------------------------------

Net Increase (Decrease) in Cash and
 Cash Equivalents                       521.8   (75.8)  491.2  (151.9)
----------------------------------------------------------------------
Cash and Cash Equivalents at Beginning
 of Period                              420.7   397.9   451.3   474.0
----------------------------------------------------------------------
Cash and Cash Equivalents at End of
 Period                                $942.5  $322.1  $942.5  $322.1
======================================================================

                            Transocean Inc.
                      Fleet Operating Statistics

                            Operating Revenues ($ Millions) (1)
                     -------------------------------------------------
                                                    Six Months Ended
                          Three Months Ended            June 30,
                     ----------------------------- -------------------
Transocean Drilling  June 30,  March 31, June 30,
 Segment:              2005      2005      2004       2005      2004
                     --------- --------- --------- --------- ---------
Contract Drilling
 Revenues
  High-Specification
   Floaters:
    Fifth-Generation
     Deepwater
     Floaters          $213.8    $192.3    $189.0    $406.1    $397.5
    Other Deepwater
     Floaters          $145.7    $125.3    $103.3    $271.0    $211.4
    Other High-
     Specification
     Floaters           $56.0     $50.2     $31.5    $106.2     $62.1
  Total High-
   Specification
   Floaters            $415.5    $367.8    $323.8    $783.3    $671.0
  Other Floaters       $114.2     $88.2     $66.3    $202.4    $129.0
  Jackups              $128.3    $126.4    $106.6    $254.7    $208.1
  Other Rigs            $24.1     $18.2     $19.9     $42.3     $44.0
Subtotal               $682.1    $600.6    $516.6  $1,282.7  $1,052.1
Other Revenues
  Client Reimbursable
   Revenues             $25.0     $18.9     $21.4     $43.9     $38.0
  Integrated Services
   and Other            $20.3     $11.0     $14.5     $31.3     $40.6
Subtotal                $45.3     $29.9     $35.9     $75.2     $78.6
Segment Total          $727.4    $630.5    $552.5  $1,357.9  $1,130.7

TODCO Segment (3)
Contract Drilling
 Revenues                  $-        $-     $68.3        $-    $130.3
Other Revenues
  Client Reimbursable
   Revenues                $-        $-      $5.6        $-     $10.6
  Delta Towing             $-        $-      $6.8        $-     $13.6
Subtotal                   $-        $-     $12.4        $-     $24.2
Segment Total              $-        $-     $80.7        $-    $154.5

Total Company          $727.4    $630.5    $633.2  $1,357.9  $1,285.2

                                 Average Dayrates  (1) (2)
                     -------------------------------------------------
                                                    Six Months Ended
                          Three Months Ended            June 30,
                     ----------------------------- -------------------
Transocean Drilling  June 30,  March 31, June 30,
 Segment:              2005      2005      2004        2005      2004
                     --------- --------- --------- --------- ---------
  High-Specification
   Floaters:
    Fifth-Generation
     Deepwater
     Floaters        $197,100  $182,300  $177,800  $189,800  $184,900
    Other Deepwater
     Floaters        $132,700  $124,500  $107,800  $128,800  $104,400
    Other High-
     Specification
     Floaters        $170,500  $153,000  $115,500  $161,800  $115,300
  Total High-
   Specification
   Floaters          $165,500  $153,900  $141,100  $159,800  $142,300
  Other Floaters      $82,400   $71,200   $65,000   $77,100   $63,900
  Jackups             $58,200   $57,600   $52,700   $57,900   $52,100
  Other Rigs          $47,000   $45,800   $43,300   $46,500   $43,800
Segment Total        $103,100   $96,600   $89,100   $99,900   $89,700

TODCO Segment (3)          $-        $-   $26,200        $-   $25,900

Total Drilling Fleet $103,100   $96,600   $69,600   $99,900   $70,600

                                      Utilization (1) (2)
                          --------------------------------------------
                                                         Six Months
                                                            Ended
                               Three Months Ended         June 30,
                          ---------------------------- ---------------
Transocean Drilling       June 30,  March 31, June 30,
 Segment:                   2005      2005      2004     2005    2004
                          --------- --------- -------- ------- -------
  High-Specification
   Floaters:
    Fifth-Generation
     Deepwater Floaters         92%       90%      90%     91%     91%
    Other Deepwater
     Floaters                   80%       75%      70%     78%     74%
    Other High-
     Specification
     Floaters                   90%       91%      75%     91%     74%
  Total High-Specification
   Floaters                     86%       83%      79%     85%     81%
  Other Floaters                63%       57%      45%     60%     44%
  Jackups                       94%       94%      85%     94%     84%
  Other Rigs                    57%       44%      46%     50%     50%
Segment Total                   79%       75%      68%     77%     68%

TODCO Segment  (3)               -         -       41%      -      39%

Total Drilling Fleet            79%       75%      56%     77%     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.


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

                           Three Months Ended        Six Months Ended
                      ----------------------------- ------------------
                      June 30,  March 31, June 30,  June 30,  June 30,
                        2005      2005      2004      2005      2004
                      --------- --------- --------- --------- --------

Adjusted Net Income

Net income as reported  $301.8     $91.8     $48.0    $393.6    $70.7
  Add back (subtract):

    After-tax gain
     from TODCO Stock
     Sales              (165.0)        -         -    (165.0)   (39.4)
    After-tax loss on
     retirement of
     debt                    -       6.7         -       6.7     28.1
    After-tax gain
     from sale of
     assets               (9.1)    (18.8)    (21.6)    (27.9)   (21.6)
    Tax valuation
     allowance related
     to TODCO IPO            -         -         -         -     31.0
    Stock option
     vesting resulting
     from the TODCO
     IPO                     -         -         -         -      7.1
                      --------- --------- --------- --------- --------
Net income as adjusted  $127.7     $79.7     $26.4    $207.4    $75.9
                      --------- --------- --------- --------- --------

Diluted Earnings Per
 Share:

Net income as reported   $0.90     $0.28     $0.15     $1.18    $0.22
  Add back (subtract):

    After-tax gain
     from TODCO Stock
     Sales               (0.49)        -         -     (0.49)   (0.12)
    After-tax loss on
     retirement of
     debt                    -      0.02         -      0.02     0.09
    After-tax gain
     from sale of
     assets              (0.03)    (0.06)    (0.07)    (0.08)   (0.07)
    Tax valuation
     allowance related
     to TODCO IPO            -         -         -         -     0.09
    Stock option
     vesting resulting
     from the TODCO
     IPO                     -         -         -         -     0.02
                      --------- --------- --------- --------- --------
Net income as adjusted   $0.38     $0.24     $0.08     $0.63    $0.23
                      --------- --------- --------- --------- --------

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

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

                             Three Months Ended      Six Months Ended
                        ---------------------------- -----------------
                        June 30,  March 31, June 30,      June 30,
                          2005      2005      2004     2005     2004
                        --------- --------- -------- -------- --------

Transocean Drilling
 Segment
  Operating revenue       $727.4    $630.5   $552.5 $1,357.9 $1,130.7
  Operating and
   maintenance expense     438.9     388.6    338.1    827.5    671.3
  Depreciation             101.2     100.7    109.1    201.9    216.4
  Gain from sale of
   assets, net             (15.5)    (20.2)   (21.9)   (35.7)   (23.0)
                        --------- --------- -------- -------- --------
 Operating income before
  general and
  administrative expense   202.8     161.4    127.2    364.2    266.0
 Add back: Depreciation    101.2     100.7    109.1    201.9    216.4
           Gain from
            sale of
            assets, net    (15.5)    (20.2)   (21.9)   (35.7)   (23.0)
                        --------- --------- -------- -------- --------
 Field operating income   $288.5    $241.9   $214.4   $530.4   $459.4
                        --------- --------- -------- -------- --------

TODCO Segment (1)
  Operating revenue           $-        $-    $80.7       $-   $154.5
  Operating and
   maintenance expense
   (2)                         -         -     68.1        -    147.3
  Depreciation                 -         -     23.9        -     48.1
  Gain from sale of
   assets, net                 -         -     (1.9)       -     (4.6)
                        --------- --------- -------- -------- --------
 Operating income (loss)
  before general and
  administrative expense       -         -     (9.4)       -    (36.3)
 Add back: Depreciation        -         -     23.9        -     48.1
           Gain from
            sale of
            assets, net        -         -     (1.9)       -     (4.6)
                        --------- --------- -------- -------- --------
 Field operating income       $-        $-    $12.6       $-     $7.2
                        --------- --------- -------- -------- --------

(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) Q2 04 and YTD 04 include $7.1 million and $19.4 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
                                         -----------------------------
                                          6/30/05  12/31/04   6/30/04
                                         --------- --------- ---------
Total Debt to Net Debt Reconciliation
Total Debt                               $2,193.5  $2,481.5  $3,076.9
Deduct: Cash and Cash Equivalents           942.5     451.3     322.1
                                         --------- --------- ---------
Net Debt                                 $1,251.0  $2,030.2  $2,754.8
                                         --------- --------- ---------


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

                         Three Months Ended        Six Months Ended
                    ----------------------------- -------------------
                    June 30,  March 31, June 30,       June 30,
                      2005      2005      2004      2005      2004
                    --------- --------- --------- --------- ---------
Income before
 Income Taxes and
 Minority Interest    $325.2    $109.5     $65.7    $434.7    $132.2
  Add back
   (subtract):
    Stock option
     vesting
     resulting
     from the TODCO
     IPO                   -         -         -         -       7.1
    Loss on
     retirement
     of debt               -       6.7         -       6.7      28.1
    Gain on sale of
     assets            (14.0)    (18.8)    (21.6)    (32.8)    (21.6)
    Gain on TODCO
     Stock Sales      (165.0)        -         -    (165.0)    (39.4)
                    --------- --------- --------- --------- ---------
Adjusted Income
 (Loss) before
 Income Taxes and
 Minority Interest    $146.2     $97.4     $44.1    $243.6    $106.4

Income Tax Expense
 (Benefit)             $23.6     $17.5     $19.9     $41.1     $67.9
  Add back
   (subtract):
    Valuation
     allowance
     related to
     TODCO IPO             -         -         -         -     (31.0)
    Other                  -         -         -         -         -
    Changes in
     estimates (1)       7.8      (2.2)        -       5.6         -
    Gain on sale of
     assets             (4.8)        -         -      (4.8)        -
                    --------- --------- --------- --------- ---------
Adjusted Income Tax
 Expense (2)           $26.6     $15.3     $19.9     $41.9     $36.9

Effective Tax Rate       7.3%     16.0%     30.3%      9.5%     51.4%

Effective Tax Rate
 Adjusted               18.2%     15.7%     45.1%     17.2%     34.7%

(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.

(2) The three months ended June 30, 2005 and June 30, 2004 include
    $1.4 million and $4.6 million, respectively, of additional tax
    expense reflecting the catch-up effect of an increase (decrease)
    in the annual effective tax rate.

SOURCE: Transocean Inc.

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