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Transocean Inc. Reports Fourth Quarter and Full-Year 2003 Results

February 3, 2004

HOUSTON--(BUSINESS WIRE)--Feb. 3, 2004--Transocean Inc. (NYSE:RIG)today reported net income for the three months ended December 31, 2003of $5.5 million, or $0.02 per diluted share, on revenues of $591.5million. Results for the quarter included an after-tax charge totaling$17.4 million, or $0.05 per diluted share, pertaining to therestructuring of certain benefit plans in Nigeria. Excluding theimpact of the Nigeria benefit plan charge, net income for the threemonths ended December 31, 2003 was $22.9 million, or $0.07 per dilutedshare.

During the corresponding three months in 2002, the companyreported a net loss of $2,780.7 million, or $8.71 per diluted share,on revenues of $664.6 million. The results included a non-cash chargeof $2,876.0 million, or $9.01 per diluted share, relating to thecompany's annual test for impairment of goodwill, and an after-taxcharge of $6.2 million, or $0.02 per diluted share, pertaining to animpairment loss on long-lived assets. Excluding the impact of thegoodwill impairment charge and impairment loss on long-lived assets,net income for the three months ended December 31, 2002 was $101.5million, or $0.32 per diluted share.

For the twelve months ended December 31, 2003, net income was$19.2 million, or $0.06 per diluted share, on revenues of $2,434.3million. Full year 2003 results included the previously discussedcharge relating to the restructuring of benefit plans in Nigeria, aswell as costs totaling $8.8 million, or $0.03 per diluted share,relating to the planned initial public offering (IPO) of the company'sGulf of Mexico Shallow and Inland Water business segment, operatedthrough its wholly-owned subsidiary, TODCO, after-tax charges of $26.4million, or $0.08 per diluted share, resulting from the impairment ofcertain assets, and an after-tax loss of $13.8 million, or $0.04 perdiluted share, relating to the early retirement of debt, partiallyoffset by a favorable resolution of a non-U.S. income tax liability of$14.6 million, or $0.04 per diluted share. Excluding the impact of thecharge relating to the restructuring of benefit plans in Nigeria, IPOcosts, asset impairment charges, debt retirement loss and favorableincome tax resolution, net income for the twelve months ended December31, 2003 was $71.0 million, or $0.22 per diluted share.

During the corresponding twelve months in 2002, the companyreported a net loss of $3,731.9 million, or $11.69 per diluted share,on revenues of $2,673.9 million. Full year 2002 results included anon-cash charge of $4,239.7 million, or $13.29 per diluted share,relating to the impairment of goodwill following the company'sadoption of Statement of Financial Accounting Standards (SFAS) 142,Goodwill and Other Intangible Assets, and the October 2002 annual testfor impairment of goodwill as prescribed by SFAS 142. In addition,full year 2002 results included an after-tax loss of $33.5 million, or$0.10 per diluted share, resulting from the non-cash impairment ofcertain long-lived assets. These charges were partially offset by atax benefit totaling $175.7 million, or $0.55 per diluted share,attributable to the restructuring of certain non-U.S. operations.Excluding the impact of charges relating to goodwill impairment, theimpairment of long-lived assets and the tax benefit, net income forthe twelve months ended December 31, 2002 was $365.6 million, or $1.15per diluted share.

Cash flow from operations totaled $61.2 million and $525.8 millionfor the three and twelve months ended December 31, 2003, respectively.During 2003, the company reduced total debt by $1,019.9 million. Inaddition, the company's capital expenditures for 2003 included $382.8million to terminate two deepwater drillship synthetic operatingleases.

Revenues for the company's International and U.S. Floater ContractDrilling Services business segment totaled $531.1 million for thethree months ended December 31, 2003, down 6% from segment revenues of$564.4 million in the preceding three months of 2003. During thecorresponding three months in 2002, segment revenues were $612.6million. Segment operating income, before general and administrativeexpense, was $75.4 million during the three months ended December 31,2003, while field operating income (defined as revenues less operatingand maintenance expenses) totaled $177.0 million. The segment resultscompared to operating income, before general and administrativeexpense, of $118.9 million and field operating income of $222.0million for the preceding quarter of 2003. During the correspondingthree months in 2002, the segment reported an operating loss, beforegeneral and administrative expense, of $2,309.8 million, whichincluded a non-cash charge of $2,494.1 million resulting from thecompany's annual test for impairment of goodwill. Field operatingincome during the same three months in 2002 was $295.8 million.Segment fleet utilization for the three months ended December 31, 2003declined to 68% from 71% during the preceding three months in 2003,due principally to lower business activity among floating rigs in theU.S. Gulf of Mexico and North Sea. Segment fleet utilization duringthe fourth quarter of 2002 was 74%.

The company expects continued difficulty in its International andU.S. Floater Contract Drilling Services business segment in thenear-term, with encouraging signs of improvement for this segmentduring the second half of the year and into 2005. The company's OtherFloater rigs, consisting largely of second- and third-generationsemisubmersibles with conventional capabilities, will remain in abusiness environment characterized by excess capacity on a globalscale. Seasonal improvement through the spring and summer drillingperiod in the U.K.-sector of the North Sea should offer a modestrecovery. In Norway, improvement in semisubmersible demand hasrecently produced a contract extension on one of the company's rigs aswell as other near-term contract possibilities. With respect to theinternational jackup market sector, excess capacity continues in WestAfrica, although global demand for these jackup rigs remains strongand is expected to improve throughout 2004. Although the companyexpects intermittent idle time on some of its deepwater rigs throughthe first half of 2004, it has seen an increase in bid opportunitiesfor long-term contracts starting in the second half of 2004 and into2005 for these units.

The Gulf of Mexico Shallow and Inland Water business segment(TODCO) experienced a 3% improvement in revenues for the three monthsended December 31, 2003, to $60.4 million, compared to segmentrevenues of $58.5 million during the preceding three months in 2003.During the corresponding three months in 2002, segment revenues were$52.0 million. The business segment's operating loss, before generaland administrative expense, declined during the three months endedDecember 31, 2003, to $14.6 million, from an operating loss, beforegeneral and administrative expense, of $24.9 million during thepreceding three months in 2003. An operating loss, before general andadministrative expense, of $403.5 million during the correspondingthree months in 2002 included a non-cash charge of $381.9 millionpertaining to the company's annual test for impairment of goodwill.Field operating income increased to $7.7 million for the three monthsended December 31, 2003, from a field operating loss of $2.1 millionduring the preceding three months in 2003. Field operating incometotaled $ 2.3 million during the corresponding three months in 2002.Higher average dayrates of $25,800 among the segment's jackup andsubmersible rigs were a primary contributor to the improved revenueand operating measures for the three months ended December 31, 2003.The average dayrate compared to $20,800 for the preceding three monthsin 2003 and $21,700 for the corresponding three months in 2002.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET onFebruary 3, 2004. To participate, dial 303-262-2075 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 February 3 and can be accessed by dialing303-590-3000 and referring to the passcode 566555. Also, a replay willbe available through the Internet and can be accessed by visitingeither of the above-referenced Worldwide Web addresses.

Monthly Fleet Update Information

Drilling rig status and contract information on Transocean Inc.'soffshore drilling fleet has been condensed into a report titled\"Monthly Fleet Update\" and is available through the company's websiteat www.deepwater.com. The report is 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 International and U.S. Floater ContractDrilling Services business segment and fleet categories, dayrates,rig utilization, drilling activity, as well as any other statementsthat are not historical facts in this release, are forward-lookingstatements that involve certain risks, uncertainties and assumptions.These include but are not limited to operating hazards and delays,risks associated with international operations, results ofinvestigations regarding riser, actions by customers and other thirdparties, the future price of oil and gas and other factors detailed inthe company's most recent Form 10-K and other filings with theSecurities and Exchange Commission. Should one or more of these risksor uncertainties materialize, or should underlying assumptions proveincorrect, actual results 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 due to itsconcentration in technically demanding segments of the offshoredrilling business, including industry-leading positions inhigh-specification deepwater and harsh environment drilling units. Thecompany's fleet consists of 32 high-specification semisubmersibles anddrillships (floaters), 27 other floaters and 50 jackup drilling rigs.With a current equity market capitalization in excess of $8 billion,Transocean Inc.'s ordinary shares are traded on the New York StockExchange under the symbol \"RIG.\"

                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                              Three Months Ended  Twelve Months Ended                                 December 31,         December 31,                              ------------------- --------------------                               2003      2002       2003      2002                              -------- ---------- --------- ----------Operating Revenues  Contract Drilling Revenues   $569.1     $664.6  $2,333.8   $2,673.9  Client Reimbursable Revenues   22.4          -     100.5          -                                591.5      664.6   2,434.3    2,673.9Costs and Expenses  Operating and maintenance     406.8      366.5   1,610.4    1,494.2  Depreciation                  127.1      126.2     508.2      500.3  General and administrative     15.3       14.0      65.3       65.6  Impairment loss on long-   lived assets                  (0.3)   2,885.4      16.5    2,927.4  Gain from sale of assets,   net                           (2.9)      (0.2)     (5.8)      (3.7)                                546.0    3,391.9   2,194.6    4,983.8Operating Income (Loss)          45.5   (2,727.3)    239.7   (2,309.9)Other Income (Expense), net  Equity in earnings (losses)   of joint ventures             (2.2)       3.0       5.1        7.8  Interest income                 3.1        9.6      18.8       25.6  Interest expense              (47.6)     (51.3)   (202.0)    (212.0)  Loss on retirement of debt        -          -     (15.7)         -  Impairment loss on note   receivable from related   party                            -          -     (21.3)         -  Other, net                      0.5       (0.5)     (3.0)      (0.3)                                (46.2)     (39.2)   (218.1)    (178.9)Income (Loss) Before Income Taxes, Minority Interest and Cumulative Effect of a Change in Accounting Principle         (0.7)  (2,766.5)     21.6   (2,488.8)Income Tax Expense (Benefit)     (5.3)      14.1       3.0     (123.0)Minority Interest                (0.1)       0.1       0.2        2.4Income (Loss) Before Cumulative Effect of a Change in Accounting Principle          4.7   (2,780.7)     18.4   (2,368.2)Cumulative Effect of a Change in Accounting Principle          0.8          -       0.8   (1,363.7)Net Income (Loss)                $5.5  $(2,780.7)    $19.2  $(3,731.9)Basic Earnings (Loss) Per Share  Income (Loss) Before   Cumulative Effect of a   Change in Accounting   Principle                   $ 0.02    $ (8.71)    $0.06    $ (7.42)  Loss on Cumulative Effect of   a Change in Accounting   Principle                        -          -         -      (4.27)  Net Income (Loss)             $0.02     $(8.71)    $0.06    $(11.69)Diluted Earnings (Loss) Per Share  Income (Loss) Before   Cumulative Effect of a   Change in Accounting   Principle                   $ 0.02    $ (8.71)    $0.06    $ (7.42)  Loss on Cumulative Effect of   a Change in Accounting   Principle                        -          -         -      (4.27)   Net Income (Loss)            $0.02     $(8.71)    $0.06    $(11.69)Weighted Average Shares Outstanding   Basic                        319.9      319.2     319.8      319.1   Diluted                      321.3      319.2     321.4      319.1                   TRANSOCEAN INC. AND SUBSIDIARIES                      CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                                     December 31,                                                 ---------------------                                                   2003       2002                                                 ---------- ----------                      ASSETSCash and Cash Equivalents                           $474.0   $1,214.2Accounts Receivable  Trade, net                                         435.3      437.6  Other                                               45.0       61.7Materials and Supplies                               152.0      155.8Deferred Income Taxes                                 41.0       21.9Other Current Assets                                  31.6       20.5  Total Current Assets                             1,178.9    1,911.7Property and Equipment                            10,673.0   10,198.0Less Accumulated Depreciation                      2,663.4    2,168.2  Property and Equipment, net                      8,009.6    8,029.8Goodwill, net                                      2,230.8    2,218.2Investments in and Advances to Joint Ventures          5.5      108.5Deferred Income Taxes                                 28.2       26.2Other Assets                                         209.6      370.7  Total Assets                                   $11,662.6  $12,665.1      LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                    $146.1     $134.1Accrued Income Taxes                                  57.2       59.5Debt Due Within One Year                              45.8    1,048.1Other Current Liabilities                            262.0      262.2   Total Current Liabilities                         511.1    1,503.9Long-Term Debt                                     3,612.3    3,629.9Deferred Income Taxes                                 42.8      107.2Other Long-Term Liabilities                          303.8      282.7   Total Long-Term Liabilities                     3,958.9    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, 319,926,500 and 319,219,072 shares issued and outstanding at December 31, 2003 and 2002, respectively                           3.2        3.2Additional Paid-in Capital                        10,643.8   10,623.1Accumulated Other Comprehensive Loss                 (20.2)     (31.5)Retained Deficit                                  (3,434.2)  (3,453.4)   Total Shareholders' Equity                      7,192.6    7,141.4   Total Liabilities and Shareholders' Equity    $11,662.6  $12,665.1                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                               Three Months Ended Twelve Months Ended                                  December 31,        December 31,                               ------------------ --------------------                                2003     2002       2003      2002                               ------- ---------- --------- ----------Cash Flows from Operating Activities  Net income (loss)              $5.5  $(2,780.7)    $19.2  $(3,731.9)  Adjustments to reconcile net   income (loss) to net cash   provided by operating   activities    Depreciation                127.1      126.2     508.2      500.3    Impairment loss on goodwill     -    2,876.0         -    4,239.7    Deferred income taxes       (58.1)     (34.6)    (98.5)    (224.4)    Equity in (earnings) losses     of joint ventures            2.2       (3.0)     (5.1)      (7.8)    Net loss from disposal of     assets                       1.2        2.7      13.4        3.9    Loss on retirement of debt      -          -      15.7          -    Impairment loss on long-     lived assets                (0.3)       9.4      16.5       51.4    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)       1.6     (24.3)       6.2    Deferred income, net         11.3        3.8       4.4       (5.5)    Deferred expenses, net      (30.8)     (12.3)    (33.2)     (20.0)    Other long-term liabilities  (2.9)       6.8      10.8       17.1    Other, net                   (0.6)     (15.0)     15.8      (13.4)    Changes in operating assets     and liabilities       Accounts receivable       12.2       47.4      19.8      179.4       Accounts payable and        other current        liabilities             (40.1)     (36.9)      6.5      (78.8)       Income taxes        receivable/payable, net  26.2       24.8      27.8        8.9       Other current assets      16.5       20.2       7.5       11.5Net Cash Provided by Operating Activities                      61.2      236.4     525.8      936.6Cash Flows from Investing Activities  Capital expenditures         (422.3)     (26.4)   (495.9)    (141.0)  Note issued to related party      -          -     (46.1)         -  Payments received from note   issued to related party       44.2          -      46.1          -  Proceeds from disposal of   assets, net                    4.3       14.7       8.4       88.3  Acquisition of 40 percent   interest in Deepwater   Drilling II L.L.C., net of   cash acquired                    -          -      18.1          -  Deepwater Drilling L.L.C.'s   cash acquired                 18.6          -      18.6          -  Joint ventures and other   investments, net               0.5        2.8       3.3        7.4Net Cash Used in Investing Activities                    (354.7)      (8.9)   (447.5)     (45.3)Cash Flows from Financing Activities  Borrowings under capital   lease obligations              1.1          -       2.1          -  Borrowings under revolving   credit agreement             250.0          -     250.0          -  Repayments under commercial   paper program                    -          -         -     (326.4)  Repayments on other debt   instruments and capital   lease obligations           (285.5)     (35.0) (1,252.7)    (189.3)  Cash from termination of   interest rate swaps              -          -     173.5          -  Net proceeds from issuance of   ordinary shares under stock-   based compensation plans       0.5          -      12.8       10.2  Dividends paid                    -          -         -      (19.1)  Financing costs                (4.9)      (0.4)     (4.9)      (8.5)  Other, net                        -        0.3       0.7        2.6Net Cash Used in Financing Activities                     (38.8)     (35.1)   (818.5)    (530.5)Net Increase (Decrease) in Cash and Cash Equivalents          (332.3)     192.4    (740.2)     360.8Cash and Cash Equivalents at Beginning of Period            806.3    1,021.8   1,214.2      853.4Cash and Cash Equivalents at End of Period                 $474.0   $1,214.2    $474.0   $1,214.2                            Transocean Inc.                      Fleet Operating Statistics                            Operating Revenues ($ Millions) (1)                     -------------------------------------------------                                                   Twelve Months Ended                          Three Months Ended           December 31,                     ----------------------------- -------------------International and U.S. Floater        December  September December Contract Drilling      31,       30,       31, Services Segment:     2003      2003      2002      2003      2002                     --------- --------- --------- --------- ---------Contract Drilling Revenues  High-Specification   Floaters:    5th Generation     Deepwater         $187.5    $188.7    $182.6    $720.4    $674.0    Other Deepwater     $96.9    $113.2    $159.0    $432.3    $572.1    Other High-     Specification     Floaters           $31.9     $32.1     $33.5    $128.5    $132.9  Total High-   Specification   Floaters            $316.3    $334.0    $375.1  $1,281.2  $1,379.0  Other Floaters        $67.9     $74.3    $104.0    $306.7    $536.7  Jackups - Non-U.S.   $104.6    $110.4    $114.5    $446.9    $462.9  Other Rigs            $24.2     $25.7     $19.0     $89.2    $107.5Subtotal               $513.0    $544.4    $612.6  $2,124.0  $2,486.1  Client   Reimbursables        $18.1     $20.0         -     $82.7         -Segment Total          $531.1    $564.4    $612.6  $2,206.7  $2,486.1Gulf of Mexico Shallow and Inland Water Segment:Contract Drilling Revenues  Jackups and   Submersibles         $30.4     $25.7     $19.9     $94.8     $66.0  Inland Barges         $18.9     $17.7     $24.8     $77.3     $87.5  Other                  $6.8     $10.7      $7.3     $37.7     $34.3Subtotal                $56.1     $54.1     $52.0    $209.8    $187.8  Client   Reimbursables         $4.3      $4.4         -     $17.8         -Segment Total           $60.4     $58.5     $52.0    $227.6    $187.8Total Company          $591.5    $622.9    $664.6  $2,434.3  $2,673.9                                 Average Dayrates  (1) (2)                     -------------------------------------------------                                                   Twelve Months Ended                          Three Months Ended           December 31,                     ----------------------------- -------------------International and U.S. Floater        December  September December Contract Drilling      31,       30,       31, Services Segment:     2003      2003      2002        2003      2002                     --------- --------- --------- --------- ---------  High-Specification   Floaters:    5th Generation     Deepwater       $186,500  $176,600  $188,700  $182,800  $188,300    Other Deepwater  $101,400  $112,500  $120,400  $109,900  $120,200    Other High-     Specification     Floaters        $117,900  $117,200  $121,600  $118,200  $120,600  Total High-   Specification   Floaters          $141,800  $142,200  $146,300  $143,000  $146,100  Other Floaters      $60,600   $60,600   $76,800   $63,300   $76,400  Jackups - Non-U.S.  $53,700   $54,400   $57,700   $55,600   $58,600  Other Rigs          $45,200   $48,800   $36,200   $44,900   $42,100Segment Total         $87,900   $89,000   $96,100   $89,400   $93,500Gulf of Mexico Shallow and Inland Water Segment:  Jackups and   Submersibles       $25,800   $20,800   $21,700   $21,200   $21,600  Inland Barges       $17,200   $16,900   $19,600   $17,000   $19,900  Other               $20,700   $20,500   $19,400   $19,600   $20,800Segment Total         $21,500   $19,300   $20,300   $19,200   $20,600Total Mobile Offshore Drilling Fleet       $67,400   $67,000   $74,300   $67,200   $74,800                                    Utilization (1) (2)                     -------------------------------------------------                                                   Twelve Months Ended                          Three Months Ended          December 31,                     ----------------------------- -------------------International and U.S. Floater        December  September December Contract Drilling      31,       30,       31, Services Segment:     2003      2003      2002      2003      2002                     --------- --------- --------- --------- ---------  High-Specification   Floaters:    5th Generation     Deepwater             91%       97%       96%       93%       89%    Other Deepwater        69%       73%       96%       72%       87%    Other High-     Specification     Floaters              74%       74%       75%       74%       75%  Total High-   Specification   Floaters                78%       82%       93%       80%       86%  Other Floaters           47%       51%       55%       50%       71%  Jackups - Non-U.S.       81%       85%       83%       85%       85%  Other Rigs               53%       49%       48%       45%       57%Segment Total              68%       71%       74%       69%       78%Gulf of Mexico Shallow and Inland Water Segment:  Jackups and   Submersibles            52%       54%       34%       45%       28%  Inland Barges            40%       38%       44%       41%       39%  Other                    24%       38%       27%       35%       37%Segment Total              40%       44%       37%       41%       34%Total Mobile Offshore Drilling Fleet            56%       59%       58%       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.                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations  Adjusted Income (Loss) and Earnings (Loss) Per Share Reconciliation                           (in US$ millions)                                QTD       YTD       QTD        YTD                             12/31/03  12/31/03   12/31/02   12/31/02                             --------- --------- ---------- ----------Adjusted IncomeNet income (loss) as reported                        $5.5     $19.2  $(2,780.7) $(3,731.9)  Add back:    After-tax loss on early     retirement of debt             -      13.8          -          -    After-tax loss on     impairment of certain     long-lived assets              -      12.6        6.2       33.5    After-tax impairment of     note receivable from     Delta Towing LLC               -      13.8          -          -    Favorable resolution of     a non-U.S. income tax     liability                      -     (14.6)         -          -    Tax benefit from the     restructuring of non-     U.S operations                 -         -          -     (175.7)    After-tax initial public     offering costs                 -       8.8          -          -    After-tax impairment of     goodwill                       -         -    2,876.0    4,239.7    After-tax restructuring     of Nigeria benefit     plans                       17.4      17.4          -          -                             --------- --------- ---------- ----------Net income as adjusted          $22.9     $71.0     $101.5     $365.6                             --------- --------- ---------- ----------Diluted Earnings Per Share:Net income (loss) as reported                       $0.02     $0.06     $(8.71)   $(11.69)  Add back:    After-tax loss on early     retirement of debt             -      0.04          -          -    After-tax loss on     impairment of certain     long-lived assets              -      0.04       0.02       0.10    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                 -         -          -      (0.55)    After-tax initial public     offering costs                 -      0.03          -    After-tax impairment of     goodwill                       -         -       9.01      13.29    After-tax restructuring     of Nigeria benefit     plans                       0.05      0.05          -          -                             --------- --------- ---------- ----------Net income as adjusted          $0.07     $0.22      $0.32      $1.15                             --------- --------- ---------- ----------                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations                           (in US$ millions)                                     For the Quarter Ended                         ---------------------------------------------                          December 31,    September 30,  December 31,                              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                      $75.4          $118.9     $(2,309.8)    Add     back:  Depreciation          104.1           103.9         103.1            Impairment             loss on             goodwill                 -               -       2,494.1            Impairment             loss on             long-lived             assets                   -               -           8.3            (Gain) loss             from sale             of assets,             net                   (2.5)           (0.8)          0.1                         --------------- --------------- -------------    Field operating     income                      $177.0          $222.0        $295.8                         --------------- --------------- -------------  Gulf of Mexico Shallow   and Inland Water   Segment    Operating loss     before general and     administrative     expense                     $(14.6)         $(24.9)      $(403.5)    Add     back:  Depreciation           23.0            22.9          23.1            Impairment             loss on             goodwill                 -               -         381.9            Impairment             loss on             long-lived             assets                (0.3)              -           1.1            Gain from             sale of             assets, net           (0.4)           (0.1)         (0.3)                         --------------- --------------- -------------    Field operating     income (loss)                 $7.7           $(2.1)         $2.3                         --------------- --------------- -------------
    CONTACT: Transocean Inc., Houston             Analyst Contact:             Jeffrey L. Chastain, 713-232-7551             or             Media Contact:             Guy A. Cantwell, 713-232-7647    SOURCE: Transocean Inc.