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Transocean Inc. Reports Third Quarter 2003 Results

October 28, 2003

HOUSTON--(BUSINESS WIRE)--Oct. 28, 2003--Transocean Inc.(NYSE:RIG - News) today reported net income for the three months endedSeptember 30, 2003 of $11.0 million, or $0.03 per diluted share, onrevenues of $622.9 million. The results included $8.0 million, or$0.03 per diluted share, of costs relating to the planned initialpublic offering (IPO) of the company's Gulf of Mexico Shallow andInland Water business segment operated through its wholly-ownedsubsidiary, TODCO. Excluding the impact of the IPO costs, net incomefor the three months ended September 30, 2003 was $19.0 million, or$0.06 per diluted share. Results for the quarter compared to netincome of $255.2 million, or $0.79 per diluted share, on revenues of$695.2 million for the three months ended September 30, 2002. Resultsfor the three months ended September 30, 2002 included a tax benefittotaling $176.2 million, or $0.54 per diluted share, attributable tothe restructuring of certain non-U.S. operations, partially offset bya $26.6 million after-tax loss, or $0.08 per diluted share, resultingfrom the non-cash impairment of certain long-lived assets. Excludingthe impact of the tax benefit and the non-cash loss due to theimpairment of assets, net income for the three months ended September30, 2002 was $105.6 million, or $0.33 per diluted share.

For the nine months ended September 30, 2003, net income totaled$13.7 million, or $0.04 per diluted share, on revenues of $1,842.8million. Year-to-date 2003 results included the previously discussedcosts associated with the planned IPO of TODCO, after-tax assetimpairment charges totaling $26.6 million, or $0.08 per diluted share,and an after-tax loss of $13.8 million, or $0.04 per diluted share,relating to the early retirement of debt, partially offset by afavorable resolution of a non-U.S. income tax liability of $14.6million, or $0.04 per diluted share. Excluding the impact of the IPOcosts, impairment charges, debt retirement loss and favorable incometax resolution, net income for the nine months ended September 30,2003 was $47.5 million, or $0.15 per diluted share. During thecorresponding nine months ended September 30, 2002, the companyreported a net loss of $951.2 million, or $2.94 per diluted share, onrevenues of $2,009.3 million. Results for the first nine months of2002 included the previously discussed tax benefit and non-cash losson the impairment of long-lived assets, in addition to a non-cashcharge of $1,363.7 million, or $4.22 per diluted share, pertaining tothe adoption in January 2002 of Statement of Financial AccountingStandards 142 (FAS 142), Goodwill and Other Intangible Assets.Excluding the impact of the year-to-date tax benefit of $175.7million, or $0.54 per diluted share, non-cash loss on the impairmentof long-lived assets of $27.3 million, or $0.08 per diluted share, andloss from the non-cash charge relating to the adoption of FAS 142, netincome for the nine months ended September 30, 2002 was $264.1million, or $0.82 per diluted share.

Cash flow from operations totaled $159.4 million and $464.6million for the three and nine months ended September 30, 2003. Netdebt (defined as long-term debt plus debt due within one year lesscash and cash equivalents) declined to $2,895.1 million at September30, 2003, from $3,282.5 million at December 31, 2002.

Revenues associated with the company's International and U.S.Floater Contract Drilling Services business segment were $564.4million for the three months ended September 30, 2003, improving 3%from revenues of $548.5 million during the preceding quarter of 2003.During the third quarter of 2002, segment revenues totaled $641.2million. Segment operating income, before general and administrativeexpense, was $118.9 million during the current quarter, while fieldoperating income (defined as revenues less operating and maintenanceexpenses) during that period was $222.0 million. Segment fieldoperating income for the three months ended September 30, 2003 wasnegatively impacted by approximately $17 million due to an ongoingdisagreement with a customer concerning the applicable dayrate andother costs on the ultra-deepwater drillship Discoverer Enterprisefollowing the riser separation incident on May 21, 2003. The segmentresults compared to operating income of $84.2 million and fieldoperating income of $192.6 million during the preceding quarter of2003 and $190.0 million and $315.5 million, respectively, during thecorresponding three months in 2002. Segment fleet utilization improvedto 71% for the three months ended September 30, 2003, from 68% duringthe preceding quarter of 2003, resulting primarily from improvedutilization in the company's fleet of deepwater rigs. During thecorresponding three months of 2002, segment utilization was 79%.

Prospects for the company's International and U.S. FloaterContract Drilling Services business segment are uncertain over thenext six to nine months. Over this period, market dayrates for theindustry's most technically advanced rigs will be difficult to predictand intermittent idle time could be experienced as several of theseunits, including four of the company's 5th Generation deepwater rigs,conclude contracts. The company continues to believe that over thelong term, deepwater exploration and development drillingopportunities in Angola, Nigeria, India and other emerging locationsrepresent a potentially significant source of future rig demand. Inthe company's Mid-Water fleet, no measurable improvement is expectedthrough the first quarter of 2004 when seasonal demand in the NorthSea is expected to offer additional drilling opportunities through thespring and summer months. Finally, a stable level of activity isexpected to persist in most of the international jackup marketsectors. The modest overcapacity present in the West Africa jackupmarket sector is expected to largely dissipate by mid-2004, althoughdayrates associated with near-term contract signings in the region areexpected to decline from average levels experienced over the past 12months.

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

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

The company continues to monitor market conditions for its plannedIPO of TODCO, which operates its Gulf of Mexico Shallow and InlandWater business segment. The company first announced its divestitureplans in the third quarter of 2002. As the IPO had not been completedby the end of the third quarter of 2003, the company recognized itspreviously deferred costs relating to the offering. General andadministrative expense for the three months ended September 30, 2003included $8.0 million of IPO-related costs, of which $6.4 million wasdeferred in previous periods. The company expects to complete the IPOwhen market conditions warrant, subject to various factors.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET onOctober 28, 2003. To participate, dial 303-262-2130 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. ET on October 28 and can be accessed by dialing303-590-3000 and referring to the passcode 553847. Also, a replay willbe available through the Internet and can be accessed by visitingeither of the above-referenced Worldwide Web addresses.

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 and fleet categories,dayrates, rig utilization, drilling activity, completion of the TODCOinitial public offering, as well as any other statements that are nothistorical facts in this release, are forward-looking statements thatinvolve certain risks, uncertainties and assumptions. These includebut are not limited to operating hazards and delays, risks associatedwith international operations, results of investigations regardingriser, actions by customers and other third parties, the future priceof oil and gas and other factors detailed in the company's most recentForm 10-K and other filings with the Securities and ExchangeCommission. Should one or more of these risks or uncertaintiesmaterialize, or should underlying assumptions prove incorrect, actualresults may vary materially 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.\"

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                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                              (Unaudited)                                   Three Months        Nine Months                                       Ended              Ended                                     Sept. 30,          Sept. 30,                                 ----------------- -------------------                                   2003     2002      2003      2002                                 -------- -------- --------- ---------Operating Revenues Contract Drilling Revenues       $598.5   $695.2  $1,764.7  $2,009.3 Client Reimbursable Revenues       24.4        -      78.1         -                                   622.9    695.2   1,842.8   2,009.3Costs and Expenses  Operating and maintenance        403.0    381.1   1,203.6   1,127.7  Depreciation                     126.8    124.2     381.1     374.1  General and administrative        21.2     15.8      50.0      51.6  Impairment loss on long-lived   assets                              -     40.9      16.8      42.0  Gain from sale of assets, net     (0.9)    (2.9)     (2.9)     (3.5)                                   550.1    559.1   1,648.6   1,591.9Operating Income                    72.8    136.1     194.2     417.4Other Income (Expense), net  Equity in earnings of joint   ventures                          1.9      0.4       7.3       4.8  Interest income                    3.0      6.1      15.7      16.0  Interest expense                 (49.0)   (52.3)   (154.4)   (160.7)  Loss on retirement of debt           -        -     (15.7)        -  Impairment loss on note   receivable from related party       -        -     (21.3)        -  Other, net                        (0.2)     1.3      (3.5)      0.2                                   (44.3)   (44.5)   (171.9)   (139.7)Income Before Income Taxes, Minority Interest and Cumulative Effect of a Change in  Accounting Principle              28.5     91.6      22.3     277.7Income Tax Expense (Benefit)        17.3   (164.8)      8.3    (137.1)Minority Interest                    0.2      1.2       0.3       2.3Net Income Before Cumulative Effect of a Change in Accounting Principle               11.0    255.2      13.7     412.5Cumulative Effect of a Change in Accounting Principle                  -        -         -  (1,363.7)Net Income (Loss)                  $11.0   $255.2     $13.7   $(951.2)Basic Earnings (Loss) Per Share  Income Before Cumulative Effect   of a Change in Accounting   Principle                       $0.03    $0.80     $0.04     $1.29  Loss on Cumulative Effect of a   Change in Accounting Principle      -        -         -     (4.27)   Net Income (Loss)               $0.03    $0.80     $0.04    $(2.98)Diluted Earnings (Loss) Per Share  Income Before Cumulative Effect   of a Change in Accounting   Principle                       $0.03    $0.79     $0.04     $1.28  Loss on Cumulative Effect of a   Change in Accounting Principle      -        -         -     (4.22)   Net Income (Loss)               $0.03    $0.79     $0.04    $(2.94)Weighted Average Shares Outstanding  Basic                            319.9    319.2     319.8     319.1  Diluted                          321.1    328.8     321.4     323.0                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONDENSED CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                                 Sept. 30,   Dec. 31,                                                ----------------------                                                   2003       2002                                                ----------- ----------                                                (Unaudited)                                ASSETSCash and Cash Equivalents                           $806.3   $1,214.2Accounts Receivable   Trade, net                                        431.4      437.6   Other                                              55.2       61.7Materials and Supplies                               156.4      155.8Deferred Income Taxes                                 14.1       21.9Other Current Assets                                  79.1       20.5 Total Current Assets                              1,542.5    1,911.7Property and Equipment                            10,214.9   10,198.0Less Accumulated Depreciation                      2,535.4    2,168.2 Property and Equipment, net                       7,679.5    8,029.8Goodwill, net                                      2,223.4    2,218.2Investments in and Advances to Joint Ventures         70.0      108.5Deferred Income Taxes                                 26.2       26.2Other Assets                                         176.1      370.7 Total Assets                                    $11,717.7  $12,665.1                 LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                    $147.2     $134.1Accrued Income Taxes                                  62.0       59.5Debt Due Within One Year                             282.1    1,048.1Other Current Liabilities                            293.7      262.2 Total Current Liabilities                           785.0    1,503.9Long-Term Debt                                     3,419.3    3,629.9Deferred Income Taxes                                 55.4      107.2Other Long-Term Liabilities                          283.1      282.7 Total Long-Term Liabilities                       3,757.8    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, 319,890,650 and 319,219,072 shares issued and outstanding at Sept. 30, 2003 and Dec. 31, 2002, respectively        3.2        3.2Additional Paid-in Capital                        10,640.4   10,623.1Accumulated Other Comprehensive Loss                 (29.0)     (31.5)Retained Earnings (Deficit)                       (3,439.7)  (3,453.4) Total Shareholders' Equity                        7,174.9    7,141.4 Total Liabilities and Shareholders' Equity      $11,717.7  $12,665.1                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                              (Unaudited)                                    Three Months    Nine Months Ended                                   Ended Sept. 30,      Sept. 30,                                  ----------------- ------------------                                   2003     2002     2003      2002                                  ------- --------- -------- ---------Cash Flows from Operating Activities   Net income (loss)               $11.0    $255.2    $13.7   $(951.2)   Adjustments to reconcile net    income (loss) to net cash    provided by operating activities     Depreciation                  126.8     124.2    381.1     374.1     Impairment loss on goodwill       -         -        -   1,363.7     Stock-based compensation      expense                        1.4       0.2      4.3       0.6     Deferred income taxes          19.1    (151.5)   (40.4)   (189.8)     Equity in earnings of joint      ventures                      (1.9)     (0.4)    (7.3)     (4.8)     Net (gain) loss from disposal      of assets                      4.4      (1.1)    12.2       1.2     Loss on retirement of debt        -         -     15.7         -     Impairment loss on long-lived      assets                           -      40.9     16.8      42.0     Impairment loss on note      receivable from related      party                            -         -     21.3         -     Amortization of debt-related      discounts/premiums, fair      value adjustments and issue      costs, net                    (8.2)      1.7    (16.1)      4.6     Deferred income, net           (5.3)     (3.3)    (6.9)     (9.3)     Deferred expenses, net         (5.1)    (14.7)    (2.4)     (7.7)     Other, net                     12.3       2.0     25.8      11.3     Changes in operating assets      and liabilities         Accounts receivable       (44.0)     47.9      7.6     132.0         Accounts payable and          other current          liabilities               42.6      42.8     46.6     (41.9)         Income taxes          receivable/payable, net   (8.0)    (38.2)     1.6     (15.9)         Other current assets       14.3      14.0     (9.0)     (8.7)Net Cash Provided by Operating Activities                        159.4     319.7    464.6     700.2Cash Flows from Investing Activities  Capital expenditures             (23.4)    (33.4)   (73.6)   (114.6)  Note issued to related party,   net of repayments                 1.1         -    (44.2)        -  Proceeds from disposal of   assets, net                       0.9       8.6      4.1      73.6  Acquisition of 40 percent   interest in Deepwater Drilling   II L.L.C., net of cash acquired     -         -     18.1         -  Joint ventures and other   investments, net                  0.6       4.6      2.8       4.6Net Cash Used in Investing Activities                        (20.8)    (20.2)   (92.8)    (36.4)Cash Flows from Financing Activities  Borrowings under capital lease   obligations                       1.0         -      1.0         -  Repayments under commercial   paper program                       -         -        -    (326.4)  Repayments on other debt   instruments                     (48.0)    (34.7)  (967.2)   (154.3)  Cash from termination of   interest rate swaps                 -         -    173.5         -  Decrease in cash dedicated to   debt service                        -         -      1.2         -  Net proceeds from issuance of   ordinary shares under   stock-based compensation plans    0.6      (0.1)    12.3      10.2  Dividends paid                       -         -        -     (19.1)  Financing costs                    0.1         -        -      (8.1)  Other, net                           -       1.2     (0.5)      2.3Net Cash Used in Financing Activities                        (46.3)    (33.6)  (779.7)   (495.4)Net Increase (Decrease) in Cash and Cash Equivalents               92.3     265.9   (407.9)    168.4Cash and Cash Equivalents at Beginning of Period               714.0     755.9  1,214.2     853.4Cash and Cash Equivalents at End of Period                        $806.3  $1,021.8   $806.3  $1,021.8                            Transocean Inc.                      Fleet Operating Statistics                            Operating Revenues ($ Millions) (1)                     -------------------------------------------------                                                    Nine Months Ended                          Three Months Ended          September 30,                     ----------------------------- -------------------International and U.S. Floater Contract Drilling   Sept. 30, June 30,  Sept. 30, Services Segment:     2003      2003      2002      2003      2002                     --------- --------- --------- --------- ---------    Deepwater:        5th         Generation    $188.7    $168.5    $173.8    $532.9    $491.4        Other         Deepwater     $113.2    $106.0    $135.1    $335.4    $413.1    Total Deepwater    $301.9    $274.5    $308.9    $868.3    $904.5    Mid-Water          $106.4    $113.9    $175.3    $335.4    $532.1    Jackups -     Non-U.S.          $110.4    $116.6    $117.0    $342.3    $348.4    Other Rigs          $25.7     $20.5     $40.0     $65.0     $88.5Subtotal               $544.4    $525.5    $641.2  $1,611.0  $1,873.5    Client     Reimbursables      $20.0     $23.0         -     $64.6         -Segment Total          $564.4    $548.5    $641.2  $1,675.6  $1,873.5Gulf of Mexico Shallow and Inland Water Segment:Contract Drilling Revenues    Jackups and     Submersibles       $25.7     $22.1     $19.1     $64.4     $46.1    Inland Barges       $17.7     $17.7     $27.5     $58.4     $62.8    Other               $10.7     $11.3      $7.4     $30.9     $26.9Subtotal                $54.1     $51.1     $54.0    $153.7    $135.8    Client     Reimbursables       $4.4      $4.3         -     $13.5         -Segment Total           $58.5     $55.4     $54.0    $167.2    $135.8Total Company          $622.9    $603.9    $695.2  $1,842.8  $2,009.3                                 Average Dayrates  (1) (2)                     -------------------------------------------------                                                    Nine Months Ended                          Three Months Ended          September 30,                     ----------------------------- -------------------International and U.S. Floater Contract Drilling   Sept. 30, June 30,  Sept. 30, Services Segment:     2003      2003      2002      2003      2002                     --------- --------- --------- --------- ---------    Deepwater:        5th         Generation  $176,600  $185,100  $190,100  $181,600  $188,200        Other         Deepwater   $112,500  $111,500  $115,200  $112,600  $120,100    Total Deepwater  $145,500  $147,500  $148,000  $146,800  $149,500    Mid-Water         $70,900   $73,600   $83,000   $73,900   $81,900    Jackups -     Non-U.S.         $54,400   $57,400   $60,400   $56,200   $58,900    Other Rigs        $48,800   $41,500   $49,300   $44,700   $43,900Segment Total         $89,000   $88,900   $94,600   $89,800   $92,700Gulf of Mexico Shallow and Inland Water Segment:    Jackups and     Submersibles     $20,800   $18,200   $22,400   $19,600   $21,500    Inland Barges     $16,900   $16,100   $20,700   $16,900   $20,100    Other             $20,500   $18,600   $23,400   $19,400   $21,200Segment Total         $19,300   $17,500   $21,600   $18,400   $20,800Total Mobile Offshore Drilling Fleet       $67,000   $65,300   $74,500   $67,100   $74,900                                    Utilization (1) (2)                     -------------------------------------------------                                                    Nine Months Ended                          Three Months Ended          September 30,                     ----------------------------- -------------------International and U.S. Floater Contract Drilling   Sept. 30, June 30,  Sept. 30, Services Segment:     2003      2003      2002      2003      2002                     --------- --------- --------- --------- ---------    Deepwater:        5th         Generation        97%       88%       90%       94%       87%        Other         Deepwater         73%       70%       85%       73%       84%    Total Deepwater        84%       78%       87%       82%       85%    Mid-Water              54%       55%       74%       54%       76%    Jackups -     Non-U.S.              85%       86%       84%       86%       86%    Other Rigs             49%       41%       56%       42%       60%Segment Total              71%       68%       79%       69%       80%Gulf of Mexico Shallow and Inland Water Segment:    Jackups and     Submersibles          54%       44%       32%       43%       27%    Inland Barges          38%       39%       47%       42%       37%    Other                  38%       44%       31%       39%       41%Segment Total              44%       42%       38%       41%       33%Total Mobile Offshore Drilling Fleet            59%       57%       61%       57%       59%(1) Certain reclassifications have been made to prior periods to    conform to current quarter presentation.(2) Average dayrates are defined as contract drilling revenue earned    per revenue earning day and utilization is defined as the total    actual number of revenue earning days as a percentage of the total    number of calendar days in the period. Effective January 1, 2003,    the calculation of average dayrates and utilization was changed to    include all rigs based on contract drilling revenues. Prior    periods have been restated to reflect the change.            Non-GAAP Financial Measures and Reconciliations  Adjusted Income (Loss) and Earnings (Loss) Per Share Reconciliation                           (in US$ millions)                                  QTD       YTD       QTD       YTD                               09/30/03  09/30/03  09/30/02  09/30/02                               --------- --------- --------- ---------Adjusted IncomeNet income (loss) as reported     $11.0     $13.7    $255.2   $(951.2) Add back:  After-tax loss on early   retirement of debt               0.0      13.8         -         -  After-tax loss on impairment   of certain long-lived assets     0.0      12.8      26.6      27.3  After-tax impairment of note   receivable from Delta Towing   LLC                              0.0      13.8         -         -  Favorable resolution of a non-   U.S. income tax liability        0.0     (14.6)        -         -  Tax benefit from the   restructuring of non-U.S   operations                       0.0       0.0    (176.2)   (175.7)  After-tax initial public   offering costs                   8.0       8.0         -         -  After-tax impairment of   goodwill                           -         -         -   1,363.7                               --------- --------- --------- ---------Net income (loss) as adjusted     $19.0     $47.5    $105.6    $264.1                               --------- --------- --------- ---------Diluted Earnings Per Share:Net income (loss) as reported     $0.03     $0.04     $0.79    $(2.94) Add back:  After-tax loss on early   retirement of debt                 -      0.04         -         -  After-tax loss on impairment   of certain long-lived assets       -      0.04      0.08      0.08  After-tax impairment of note   receivable from Delta Towing   LLC                                -      0.04         -         -  Favorable resolution of a non-   U.S. income tax liability          -     (0.04)        -         -  Tax benefit from the   restructuring of non-U.S   operations                         -      0.00     (0.54)    (0.54)  After-tax initial public   offering costs                  0.03      0.03  After-tax impairment of   goodwill                           -         -         -      4.22                               --------- --------- --------- ---------Net income (loss) as adjusted     $0.06     $0.15     $0.33     $0.82                               --------- --------- --------- ---------                  Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations                           (in US$ millions)                                            For the Quarter Ended                                        -----------------------------                                        Sept. 30,  June 30, Sept. 30,                                          2003      2003       2002                                        ---------- -------  ---------Operating Income (Loss) Before General and Administrative Expenses to Field Operating Income (Loss) by Segment Reconciliation International and U.S. Floater  Contract Drilling Services Segment  Operating income before general and   administrative expense                 $118.9     $84.2    $190.0  Add back: Depreciation                   103.9     104.4     101.6            Impairment loss on long-lived             assets                            -       4.2      25.7            Gain from sale of assets, net   (0.8)     (0.2)     (1.8)                                        ---------- -------  ---------  Field operating income                  $222.0    $192.6    $315.5                                        ---------- -------  --------- Gulf of Mexico Shallow and Inland  Water Segment   Operating loss before general and    administrative expense                $(24.9)   $(49.5)   $(38.1)   Add back: Depreciation                   22.9      23.1      22.6             Impairment loss on long-lived              assets                           -      11.6      15.2             Gain from sale of assets,              net                           (0.1)     (0.4)     (1.1)                                        ---------- -------  ---------   Field operating loss                    $(2.1)   $(15.2)    $(1.4)                                        ---------- -------  ---------                                               Sept. 30,   Dec. 31,                                                 2003       2002                                               ---------- ----------Total Debt to Net Debt ReconciliationTotal Debt                                      $3,701.4   $4,678.0 Less: Cash and cash equivalents                   806.3    1,214.2       Swap Receivables                                -      181.3                                               ---------- ----------Net Debt                                        $2,895.1   $3,282.5                                               ---------- ----------Total Capital Total Shareholders' Equity                     $7,174.9   $7,141.4 Add Back:  Total Debt                           3,701.4    4,678.0                                               ---------- ----------Total Capital                                  $10,876.3  $11,819.4                                               ---------- ----------Total Capital to Tangible Capital Reconciliation Total Shareholders' Equity                     $7,174.9   $7,141.4 Add Back: Net Debt (see calculation above)      2,895.1    3,282.5 Less:  Goodwill, net                           (2,223.4)  (2,218.2)                                               ---------- ----------Tangible Capital                                $7,846.6   $8,205.7                                               ---------- ----------Debt/Total Capital                                  34.0%      39.6%Net Debt/Tangible Capital                           36.9%      40.0%


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