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Transocean Inc. Reports Second Quarter 2003 Results

July 29, 2003

HOUSTON--(BUSINESS WIRE)--July 29, 2003--Transocean Inc. (NYSE:RIG) today reported a net loss for the three months ended June 30,2003 of $44.5 million, or $0.14 per diluted share, on revenues of$603.9 million. The results compared to net income of $80.0 million,or $0.25 per diluted share, on revenues of $646.2 million for thethree months ended June 30, 2002. Results for the second quarter of2003 reflected the effect of an after-tax loss of $13.8 million, or$0.04 per diluted share, relating to the early retirement of debt, inaddition to after-tax charges totaling $25.6 million, or $0.08 perdiluted share, pertaining to the impairment of assets described below.Partially offsetting these losses was a favorable resolution of anon-U.S. income tax liability totaling $14.6 million, or $0.04 perdiluted share. Excluding each of the above-mentioned items, thecompany's net loss for the three months ended June 30, 2003 was $19.7million, or $0.06 per diluted share.

As noted above, during the second quarter of 2003 the companyrecorded after-tax asset impairments of $13.8 million, relating to anote receivable from Delta Towing, LLC, the U.S. inland marine andshallow water support vessel business in which the company has a 25%equity interest, and $11.8 million, which pertained to five jackuprigs belonging to the company's Gulf of Mexico Shallow and InlandWater business segment, one mid-water semisubmersible rig and oneself-erecting tender rig following the decision to remove the unitsfrom drilling service.

For the six months ended June 30, 2003, the company reported netincome of $2.7 million, or $0.01 per diluted share, on revenues of$1,219.9 million. During the corresponding six months in 2002, thecompany reported a net loss of $1,206.4 million, or $3.73 per dilutedshare, on revenues of $1,314.1 million. Excluding the impact of thelosses from the early retirement of debt and asset impairments,partially offset by the favorable tax resolution, net income for thesix months ended June 30, 2003 was $28.5 million, or $0.09 per dilutedshare. Results for the first six months of 2002 included non-cashcharges of $1,364.4 million, or $4.22 per diluted share, pertaining tothe impairment of an asset belonging to the company's Gulf of MexicoShallow and Inland Water business segment and the adoption in January2002 of Statement of Financial Accounting Standards 142, Goodwill andOther Tangible Assets. Excluding these non-cash charges, net incomefor the six months ended June 30, 2002 was $158.0 million, or $0.49per diluted share.

The company's International and U.S. Floater Contract DrillingServices business segment reported revenues of $548.5 million duringthe three months ended June 30, 2003, a 3% decline from revenues of$562.7 million reported over the three months ended March 31, 2003.During the corresponding three months in 2002, segment revenues were$609.1 million. Revenues in the second quarter of 2003 were adverselyimpacted by a $16 million loss of revenue due to both the labor strikein Nigeria and the riser separation incident on the drillshipDiscoverer Enterprise. Segment operating income before general andadministrative expense was $84.2 million for the three months endedJune 30, 2003 compared to income of $144.0 million for the first threemonths of 2003 and $185.9 million for the corresponding three monthsin 2002. Field operating income (defined as revenues less operatingand maintenance expenses) was $192.6 million for the three monthsended June 30, 2003, down 22% from $247.2 million during the firstthree months of 2003. For the corresponding three months in 2002,field operating income was $289.0 million. As expected, operating andmaintenance expense in the second quarter of 2003 was significantlyhigher than first quarter 2003 due primarily to increased activity,including a seasonal increase in the North Sea, higher shipyard andmaintenance expenses, the acquisition of ConocoPhillips' interest inDeepwater Drilling II L.L.C. and the net effect of various deferralsand amortization of costs. In addition, unexpected costs were incurredprimarily related to the Discoverer Enterprise riser incident and thelabor strike in Nigeria. Segment fleet utilization declined during thethree months ended June 30, 2003 to 68%, from 69% and 78% during thethree months ended March 31, 2003 and June 30, 2002, respectively.

The company's International and U.S. Floater Contract DrillingServices business segment is expected to experience diminishingopportunities during the second half of 2003 for mid-watersemisubmersible rigs in the North Sea, Brazil and Southeast Asia.However, customer inquiries for deepwater drilling programs in theGulf of Mexico have improved in recent weeks and we remain optimisticregarding deepwater drilling activity in West Africa. The recenttwo-year contract for the semisubmersible rig Transocean Richardsonfor drilling operations offshore Ivory Coast in West Africa representsone of several development drilling programs possible in the regionover the next 12 to 18 months. Finally, the company's non-U.S. jackuprig fleet is expected to benefit from stable-to-improving activity forthe remainder of 2003 and into 2004, despite some current idle jackuprig capacity in West Africa. However, recently announced contractawards for three of the company's international jackup rigs, each forthree-year terms, will result in reduced revenue for these unitsduring the third quarter of 2003 when these rigs mobilize to India foranticipated late-October-to-early-November 2003 contractcommencements.

Operating revenues from the company's Gulf of Mexico Shallow andInland Water business segment totaled $55.4 million for the threemonths ended June 30, 2003, improving 4% from revenues of $53.3million reported for the first three months of 2003. Segment revenuesduring the corresponding three months in 2002 were $37.1 million. Thesegment's operating loss before general and administrative expense was$49.5 million for the three months ended June 30, 2003 compared to aloss of $28.5 million for the first three months of 2003 and $30.9million for the corresponding three months in 2002. The segmentrecorded a field operating loss of $15.2 million during the threemonths ended June 30, 2003 compared to field operating losses in boththe three months ended March 31, 2003 and June 30, 2002 of $5.3million and $8.4 million, respectively. Segment operating andmaintenance expense during the second quarter of 2003 increased fromfirst quarter 2003 levels due mainly to costs associated with the wellcontrol incident on inland barge Rig 62 and improved activity. Segmentfleet utilization was 42% during the three months ended June 30, 2003,up from 38% and 27% during the three months ended March 31, 2003 andJune 30, 2002, respectively.

The outlook for the company's Gulf of Mexico Shallow and InlandWater business segment remains uncertain for the balance of 2003.Although utilization among the segment's jackup rigs improved to 46%during the second quarter of 2003, up from 32% during the first threemonths of the year, utilization in recent weeks has flattened, whileactivity among the segment's inland barge fleet has declined. Recentdayrates for some of the segment's jackup rigs have increasedslightly, aided by the continued contraction of the Gulf of Mexicojackup rig supply, while barge dayrates have declined. The company wasrecently notified by Petroleos Mexicanos (Pemex) that two of itsjackup rigs in the Gulf of Mexico and a platform rig in Trinidad wereawarded multi-year contracts for work offshore Mexico. The contractsfor jackup rigs RBF 205 and RBF 206 are expected to begin during thefourth quarter of 2003, while the contract for platform rig Cliffs #3is expected to commence during the third quarter of 2004.

The company also reported that cash flow from operations was$114.4 million and $305.2 million for the three and six months endedJune 30, 2003, respectively. Cash and cash equivalents declined to$714.0 million at June 30, 2003 from $1,520.4 million at March 31,2003, following cash paid for debt repayments and retirements totaling$871.4 million during the second quarter of 2003.

The company anticipates a difficult earnings environment over theremainder of 2003. The company has previously noted that a decrease inearnings can substantially increase its effective tax rate due in partto the effect of operations in countries with revenue-based taxes. Thedeterioration in 2003 profitability is now expected to result in aneffective tax rate of approximately 38% on 2003 earnings, excludingthe impact of the above-described asset impairments and debtretirement loss. The application of the higher rate to earnings forthe first six months of 2003 resulted in a charge for income taxes inthe second quarter significantly higher than previously anticipated,offset by the tax benefits relating to the asset impairments, debtretirement loss and favorable resolution of the non-U.S. income taxliability.

Conference Call Information

The company will conduct a teleconference call at 10:00 a.m. EDTon July 29, 2003. To participate, dial 212-329-1455 approximately fiveto 10 minutes prior to the scheduled start time of the call.

In addition, the conference call will be simultaneously broadcastover the Internet in a listen-only mode and can be accessed by loggingonto the company's website at www.deepwater.com and selecting\"Investor Relations.\" It may also be accessed via the internet atwww.CompanyBoardroom.com by typing in the company's New York StockExchange trading symbol, \"RIG.\"

A telephonic replay of the conference call should be availableafter 1:00 p.m. EDT on July 29 and can be accessed by dialing303-590-3000 and referring to the passcode 544298. Also, a replay willbe available through the Internet and can be accessed by visitingeither of the above-referenced Worldwide Web addresses. Both replayoptions will be available for approximately 30 days.

Monthly Fleet Update and Cash Operating Cost Information

Drilling rig status and contract information as well as cashoperating cost information on Transocean Inc.'s offshore drillingfleet has been condensed into three reports titled \"Monthly FleetUpdate,\" \"Monthly Fleet Update - Jackups and Barges\" and \"CashOperating Cost,\" which are available through the company's website atwww.deepwater.com. The reports are located in the \"InvestorRelations/Financial Reports\" section of the website. By subscribing tothe Transocean Financial Report Alert, you will be immediatelynotified when new postings are made to this page by an automatede-mail that will provide a link directly to the page that has beenupdated. Shareholders and other interested parties are invited to signup for this service.

Forward-Looking Disclaimer

Statements regarding future opportunities and outlook for thecompany and the company's two business segments, rig utilization,timing of commencement of drilling contracts, drilling contractduration, drilling activity, dayrates, deterioration in profitabilityfor the remainder of 2003, diminishing opportunities for mid-watersemisubmersible rigs in the North Sea, Brazil and Southeast Asiaduring the second half of 2003, deepwater drilling activity in WestAfrica, activity in the non-U.S. jackup rig fleet, effective tax rate,as well as any other statements that are not historical facts in thisrelease, are forward-looking statements that involve certain risks,uncertainties and assumptions. These include but are not limited tooperating hazards and delays, risks associated with internationaloperations, results of investigations regarding riser, actions bycustomers and other third parties, the future price of oil and gas andother factors detailed in the company's most recent Form 10-K andother filings with the Securities and Exchange Commission. Should oneor more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may varymaterially from those indicated.

Transocean Inc. is the world's largest offshore drillingcontractor with more than 160 full or partially owned and managedmobile offshore drilling units, inland drilling barges and otherassets utilized in the support of offshore drilling activitiesworldwide. The company's mobile offshore drilling fleet is consideredone of the most modern and versatile in the world with 13fifth-generation semisubmersibles and drillships, 15 other deepwatersemisubmersibles and drillships, 31 mid-water semisubmersibles anddrillships and 50 jackup drilling rigs. Transocean Inc. specializes intechnically demanding segments of the offshore drilling business,including industry-leading positions in deepwater and harshenvironment drilling services. With a current equity marketcapitalization in excess of $6 billion, the company's ordinary sharesare traded on the New York Stock Exchange under the symbol \"RIG.\"

                   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,                               ------------------ --------------------                                   2003     2002      2003       2002                               --------- -------- --------- ----------Operating Revenues Contract Drilling Revenues      $576.6   $646.2  $1,166.2   $1,314.1 Client Reimbursable Revenues      27.3        -      53.7          -                                  603.9    646.2   1,219.9    1,314.1Costs and Expenses  Operating and maintenance       426.5    365.6     800.6      746.6  Depreciation                    127.5    124.3     254.3      249.9  General and administrative       14.9     16.0      28.8       35.8  Impairment loss on long-lived   assets                          15.8        -      16.8        1.1  (Gain) loss from sale of   assets, net                     (0.6)     1.3      (2.0)      (0.6)                                  584.1    507.2   1,098.5    1,032.8Operating Income                   19.8    139.0     121.4      281.3Other Income (Expense), net  Equity in earnings of joint   ventures                         1.8      2.5       5.4        4.4  Interest income                   5.8      5.7      12.7        9.9  Interest expense                (52.8)   (52.5)   (105.4)    (108.4)  Loss on retirement of debt      (15.7)       -     (15.7)         -  Loss on impairment of note   receivable from related   party                          (21.3)       -     (21.3)         -  Other, net                       (2.7)    (0.4)     (3.3)      (1.1)                                  (84.9)   (44.7)   (127.6)     (95.2)Income (Loss) Before Income Taxes, Minority Interest and Cumulative Effect of a Change  in Accounting Principle         (65.1)    94.3      (6.2)     186.1Income Tax Expense (Benefit)      (20.8)    13.9      (9.0)      27.7Minority Interest                   0.2      0.4       0.1        1.1Net Income (Loss) Before Cumulative Effect of a Change in Accounting Principle             (44.5)    80.0       2.7      157.3Cumulative Effect of  a Change in Accounting Principle              -        -         -   (1,363.7)Net Income (Loss)                $(44.5)   $80.0      $2.7  $(1,206.4)Basic Earnings (Loss) Per Share  Income (Loss) Before   Cumulative Effect of a   Change in Accounting   Principle                    $ (0.14)  $ 0.25 $ 0.01 $ 0.49  Loss on Cumulative Effect of   a Change in Accounting   Principle                          -        -         -      (4.27)   Net Income (Loss)             $(0.14)   $0.25 $0.01     $(3.78)Diluted Earnings (Loss) Per Share  Income (Loss) Before   Cumulative Effect of a   Change in Accounting   Principle                    $ (0.14)  $ 0.25 $ 0.01 $ 0.49  Loss on Cumulative Effect of   a Change in Accounting   Principle                          -        -         -      (4.22)   Net Income (Loss)             $(0.14)   $0.25 $0.01     $(3.73)Weighted Average Shares Outstanding  Basic                           319.8    319.1     319.7      319.1  Diluted                         319.8    323.9     321.5      323.6                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONDENSED CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                                June 30,  December 31,                                           ---------------------------                                                    2003         2002                                           -------------- ------------                                             (Unaudited)                                ASSETSCash and Cash Equivalents                         $714.0     $1,214.2Accounts Receivable   Trade                                           380.4        437.6   Other                                            61.9         61.7Materials and Supplies                             160.0        155.8Deferred Income Taxes                               19.7         21.9Other Current Assets                                91.0         20.5Total Current Assets                             1,427.0      1,911.7Property and Equipment                          10,196.5     10,198.0Less Accumulated Depreciation                    2,413.8      2,168.2Property and Equipment, net                      7,782.7      8,029.8Goodwill, net                                    2,222.9      2,218.2Investments in and Advances to Joint Ventures                                           68.3        108.5Deferred Income Taxes                               26.2         26.2Other Assets                                       178.7        370.7   Total Assets                                $11,705.8    $12,665.1                 LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                  $140.0       $134.1Accrued Income Taxes                                64.4         59.5Debt Due Within One Year                           282.3      1,048.1Other Current Liabilities                          239.2        262.2   Total Current Liabilities                       725.9      1,503.9Long-Term Debt                                   3,476.0      3,629.9Deferred Income Taxes                               50.7        107.2Other Long-Term Liabilities                        291.7        282.7   Total Long-Term Liabilities                   3,818.4      4,019.8Commitments and ContingenciesPreference 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,319,853,774 and 319,219,072 shares issued and outstanding atJune 30, 2003 and December 31, 2002, respectively                                        3.2          3.2Additional Paid-in Capital                      10,638.5     10,623.1Accumulated Other Comprehensive Loss               (29.5)       (31.5)Retained Earnings (Deficit)                     (3,450.7)    (3,453.4)   Total Shareholders' Equity                    7,161.5      7,141.4   Total Liabilities and Shareholders'    Equity                                     $11,705.8    $12,665.1                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                              (Unaudited)                                                     Six Months Ended                                                         June 30,                                                      2003       2002Cash Flows from Operating Activities   Net income (loss)                                  $2.7  $(1,206.4)   Adjustments to reconcile net income (loss) to      net cash provided by operating activities    Depreciation                                     254.3      249.9    Impairment loss on goodwill                          -    1,363.7    Stock-based compensation expense                   2.9        0.4    Deferred income taxes                            (59.5)     (38.3)    Equity in earnings of joint ventures              (5.4)      (4.4)    Net loss from disposal of assets                   7.8        2.3    Loss on retirement of debt                        15.7          -    Impairment loss on long-lived assets              16.8        1.1    Impairment of note receivable from related     party                                            21.3          -    Amortization of debt-related     discounts/premiums, fair value adjustments   and issue costs, net                               (7.9)       2.9    Deferred income, net                              (1.6)      (6.0)    Deferred expenses, net                             2.7        7.0    Other, net                                        13.5        9.3    Changes in operating assets and liabilities       Accounts receivable                            51.6       84.1       Accounts payable and other current        liabilities                                    4.0      (84.7)       Income taxes receivable/payable, net            9.6       22.3       Other current assets                          (23.3)     (22.7)Net Cash Provided by Operating Activities            305.2      380.5Cash Flows from Investing Activities Capital expenditures                                (50.2)     (81.2) Note issued to related party, net of repayments     (45.3)         - Proceeds from disposal of assets, net                 3.2       65.0 Acquisition of 40% interest in Deepwater Drilling  II L.L.C., net of cash acquired                     18.1          - Joint ventures and other investments, net             2.2          -Net Cash Used in Investing Activities                (72.0)     (16.2)Cash Flows from Financing Activities Repayments under commercial paper program               -     (326.4) Repayments on other debt instruments               (919.2)    (119.6) 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                   11.7       10.3 Dividends paid                                          -      (19.1) Financing costs                                      (0.1)      (8.1) Other, net                                           (0.5)       1.1Net Cash Used in Financing Activities               (733.4)    (461.8)Net Decrease in Cash and Cash Equivalents           (500.2)     (97.5)Cash and Cash Equivalents at Beginning of Period   1,214.2      853.4Cash and Cash Equivalents at End of Period          $714.0     $755.9                            Transocean Inc.                      Fleet Operating Statistics                           Operating Revenues ($ Millions) (1)                    --------------------------------------------------                                                    Six Months Ended                        Three Months Ended              June 30,                    ---------------------------    -------------------International and U.S. Floater Contract Drilling                    June 30, March 31,  June 30, Services Segment:     2003      2003      2002      2003   2002(1)(2)                    -------  --------   -------    ------   ----------    Deepwater:        5th         Generation  $168.5    $175.7    $168.1    $344.2      $317.6        Other         Deepwater   $106.0    $116.2    $144.1    $222.2      $278.0    Total Deepwater  $274.5    $291.9    $312.2    $566.4      $595.6    Mid-Water        $113.9    $115.1    $166.2    $229.0      $356.9    Jackups - Non-     U.S.            $116.6    $115.3    $107.3    $231.9      $231.4    Other Rigs        $20.5     $18.8     $23.4     $39.3       $48.4Subtotal             $525.5    $541.1    $609.1  $1,066.6    $1,232.3    Client     Reimbursables    $23.0     $21.6         -     $44.6           -Segment Total        $548.5    $562.7    $609.1  $1,111.2    $1,232.3Gulf of Mexico Shallow and Inland Water Segment:Contract Drilling Revenues    Jackups and     Submersibles     $22.1     $16.6     $14.7     $38.7       $27.1    Inland Barges     $17.7     $23.0     $13.5     $40.7       $35.2    Other             $11.3      $8.9      $8.9     $20.2       $19.5Subtotal              $51.1     $48.5     $37.1     $99.6       $81.8    Client     Reimbursables     $4.3      $4.8         -      $9.1           -Segment Total         $55.4     $53.3     $37.1    $108.7       $81.8Total Company        $603.9    $616.0    $646.2  $1,219.9    $1,314.1                                Average Dayrates  (1) (2)                    --------------------------------------------------                                                   Six Months Ended                     Three Months Ended                 June 30,                    --------------------------     ----------------International and U.S. Floater Contract Drilling                    June 30, March 31,  June 30, Services Segment:     2003      2003      2002      2003     2002 (1)                    -------  --------   -------     -----     --------    Deepwater:        5th         Generation$185,100  $183,800 $188,400 $184,400 $187,200        Other         Deepwater $111,500 $113,600 $124,300 $112,600 $122,600    Total Deepwater$147,500  $147,500 $152,200 $147,500 $150,200    Mid-Water       $73,600 $77,200 $81,300 $75,400 $81,400    Jackups - Non-     U.S.           $57,400 $56,900 $57,400 $57,100 $58,100    Other Rigs      $41,500 $43,200 $40,400 $42,300 $41,400Segment Total       $88,900 $91,600 $93,500 $90,300 $91,800Gulf of Mexico Shallow and Inland Water Segment:    Jackups and     Submersibles   $18,200 $19,700 $20,200 $18,800 $20,900    Inland Barges   $16,100 $17,600 $20,200 $16,900 $19,600    Other           $18,600 $19,000 $24,100 $18,800 $20,400Segment Total       $17,500 $18,500 $21,000 $18,000 $20,200Total Mobile Offshore Drilling Fleet              $65,300 $69,100 $78,000 $67,100 $75,100                                   Utilization (1)(2)                    --------------------------------------------------                                                           Six Months                                                                Ended                                  Three Months Ended          June 30,                    -----------------------------------  -------------International and U.S. Floater Contract DrillingServices Segment:              June 30, March 31, June 30,                                   2003      2003  2002   2003 2002(1)                                -------  --------  ----  ----- -------    Deepwater:        5th Generation              88%       97%   89%    92%     85%        Other Deepwater             70%       76%   85%    73%     84%    Total Deepwater                 78%       85%   87%    81%     84%    Mid-Water                       55%       53%   72%    54%     77%    Jackups - Non-U.S.              86%       87%   82%    86%     86%    Other Rigs                      41%       36%   64%    38%     63%Segment Total                       68%       69%   78%    68%     80%Gulf of Mexico Shallow and Inland Water Segment:    Jackups and Submersibles        44%       31%   27%    38%     24%    Inland Barges                   39%       47%   24%    43%     32%    Other                           44%       35%   37%    39%     46%Segment Total                       42%       38%   27%    40%     31%Total Mobile Offshore Drilling Fleet                              56%       55%   56%    56%     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 has changed to    include all rigs based on contract drilling revenues. Prior    periods have been restated to reflect the change.                   Transocean Inc. and Subsidiaries                    Non-GAAP Financial Measures and                            Reconciliations                           (in US$ millions)                                             For the Quarter Ended                                        ------------------------------                                         June 30,   March 31, June 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 (loss) before       general and administrative       expense                              $84.2     $144.0   $185.9      Add back:  Depreciation               104.4      103.6    101.4                 Impairment loss on                  long-lived assets           4.2        1.0        -                 (Gain) loss from sale                  of assets, net             (0.2)      (1.4)     1.7                                        ---------- ---------- --------      Field operating income               $192.6     $247.2   $289.0                                        ---------- ---------- --------    Gulf of Mexico Shallow and Inland     Water Segment      Operating loss before general and       administrative expense              $(49.5)    $(28.5)  $(30.9)      Add back:  Depreciation                23.1       23.2     22.9                 Impairment loss on                  long-lived assets          11.6          -        -                 (Gain) loss from sale                  of assets, net             (0.4)         -     (0.4)                                        ---------- ---------- --------      Field operating income (loss)        $(15.2)     $(5.3)   $(8.4)                                        ---------- ---------- --------                   Transocean Inc. and Subsidiaries                    Non-GAAP Financial Measures and                            Reconciliations         Adjusted Income (Loss) and Earnings (Loss) Per Share                            Reconciliation                           (in US$ millions)                                           QTD       YTD       YTD                                        06/30/03 06/30/03 06/30/02                                        --------- --------- ----------Adjusted IncomeNet income (loss) as reported             $(44.5)     $2.7  $(1,206.4)Add back:After-tax loss on early retirement of debt                                       13.8      13.8          -After-tax loss on impairment of certain long-lived assets                          11.8      12.8        0.7After-tax impairment of note receivable from Delta Towing LLC                      13.8      13.8          -Favorable resolution of a non-U.S. income tax liability                      (14.6)    (14.6)         -After-tax impairment of goodwill               -         -    1,363.7                                        --------- --------- ----------Net income (loss) as adjusted             $(19.7)    $28.5     $158.0                                        --------- --------- ----------Diluted Earnings Per Share:Net income (loss) as reported             $(0.14)    $0.01     $(3.73)Add back:After-tax loss on early retirement of debt                                       0.04      0.04          -After-tax loss on impairment of certain long-lived assets                          0.04      0.04          -After-tax impairment of note receivable from Delta Towing LLC                      0.04      0.04          -Favorable resolution of a non-U.S. income tax liability                      (0.04)    (0.04)         -After-tax impairment of goodwill               -         -       4.22                                        --------- --------- ----------Net income (loss) as adjusted             $(0.06)    $0.09 $0.49                                        --------- --------- ----------

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

SOURCE: Transocean Inc.