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Transocean Inc. Reports First Quarter 2004 Results

April 27, 2004

HOUSTON--(BUSINESS WIRE)--April 27, 2004--Transocean Inc.(NYSE:RIG) today reported net income for the three months ended March31, 2004 of $22.7 million, or $0.07 per diluted share, on revenues of$652.0 million, compared to net income of $47.2 million, or $0.15 perdiluted share, on revenues of $616.0 million for the three monthsended March 31, 2003. Net income adjusted(1) for early debt retirementand TODCO initial public offering (IPO)-related items for the threemonths ended March 31, 2004 totaled $49.5 million, or $0.15 perdiluted share, compared to net income adjusted for an asset impairmentfor the three months ended March 31, 2003 of $48.2 million, or $0.15per diluted share.

Transocean Drilling Segment - Revenues for the three months endedMarch 31, 2004 of $578.2 million were 9% greater than revenuesreported during the three months ended December 31, 2003 due chieflyto integrated services revenue generated from a North Sea drillingprogram, increased activity in Asia and the buyout of the remaininginterest in the Deepwater Drilling L.L.C. joint venture, which ownsthe drillship Deepwater Pathfinder. Segment operating income beforegeneral and administrative expense of $178.2 million and fieldoperating income(2) (defined as revenues less operating andmaintenance expenses) of $245.0 million for the three months endedMarch 31, 2004 improved from levels experienced in the preceding threemonths ended December 31, 2003 due to the higher revenues in thequarter and lower operating and maintenance costs aided by the absenceof Nigeria restructuring charges. Segment fleet utilization during thethree months ended March 31, 2004 improved slightly to 69% from 68%for the three months ended December 31, 2003 due principally to higherutilization of the company's High Specification Floaters, especiallyin Asia and the Gulf of Mexico.

The company has seen improving demand for its High-SpecificationFloaters in the Norwegian North Sea market sector and expects to seeimprovement in other market sectors as the year progresses. Since thecommencement of 2004, five of the company's High-Specification rigshave received new contracts with durations of 12 to 36 months.Development drilling projects in West Africa and explorationopportunities in the Gulf of Mexico continue to support prospects fordeepwater rig demand improvement over the long-term, although the riskof project delays remains, especially in Nigeria and Angola. Thecompany currently has 64% of its remaining High-Specification Floaterfleet days in 2004 committed to firm contracts, up from 55% in late2003, but remains concerned regarding the risk of intermittent idletime on these units. Expected idle time on some High-Specificationrigs in Brazil, Norway and West Africa, following the completion ofprojects and planned shipyard time, together with the mobilization ofa drillship for a drilling program offshore Pakistan will contributeto an expected reduction in revenues from the High-SpecificationFloater fleet during the second quarter of 2004.

Prospects for the company's Jackup Rig fleet are currentlystrengthening with near-term incremental jackup rig demand expected inSoutheast Asia and the Middle East, followed by anticipated improvingdemand in India beginning in the fourth quarter of the year. Theexcess jackup rig capacity present in West Africa since the secondhalf of 2003 is continuing, but some of these idle units could bemobilized to other regions during the year.

The company's Other Floaters remain significantly underutilized,especially in the U.K. sector of the North Sea and the Gulf of Mexicowhere approximately 40% of the industry's capacity resides. Seasonalimprovement in the U.K. sector of the North Sea has begun and shouldsupport higher utilization in the region into the third quarter of2004, while utilization in the Gulf of Mexico continues to be hinderedby competition from higher specification rigs. Other regions aregenerally balanced or modestly oversupplied, offering fewopportunities for mobilizing units to more robust market sectors. Areduction in activity for integrated services programs in the NorthSea should result in lower revenues for this segment of the company'sfleet during the second quarter of 2004.

TODCO Segment - Revenues for the three months ended March 31, 2004were $73.8 million. The segment reported an operating loss beforegeneral and administrative expense of $26.9 million and a fieldoperating loss(2) of $5.4 million during the same three month period.

Liquidity - Cash flow from operations totaled $192.2 million forthe three months ended March 31, 2004, while total debt was reduced by$411.7 million. During the quarter, the company received net proceedsof $155.7 million from the TODCO IPO.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET onApril 27, 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 April 27 and can be accessed by dialing303-590-3000 and referring to the passcode 575769. Also, a replay willbe available through the Internet and can be accessed by visitingeither of the above-referenced Worldwide Web addresses.

TODCO will also conduct a teleconference call at 9:00 a.m. ET onApril 27, 2004. To participate, dial 877-692-2086 approximately fiveto 10 minutes prior to the scheduled start time of the call. TODCO'sconference call will be simultaneously broadcast over the Internet ina listen-only mode and can be accessed by logging onto the TODCOwebsite at www.theoffshoredrillingcompany.com. For more information,see TODCO's website.

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,\" which is available through the company'swebsite at 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 Transocean Drilling business segment andfleet categories, dayrates, rig utilization, drilling activity,contract opportunities, idle time, rig mobilizations, integratedservice projects, 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, 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 a fleet of 95 mobile offshore drilling units,excluding the 70-rig fleet of TODCO, a publicly traded drillingcompany in which Transocean Inc. owns a majority interest. Thecompany's mobile offshore drilling fleet is considered one of the mostmodern and versatile in the world due to its emphasis on technicallydemanding segments of the offshore drilling business, includingindustry-leading positions in high-specification deepwater and harshenvironment drilling units. The company's fleet consists of 32High-Specification Floaters (semisubmersibles and drillships), 25Other Floaters, 26 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $8 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe symbol \"RIG.\"

(1) Net income adjusted for certain items, a non-GAAP measure, is    computed by subtracting from or adding to net income, a GAAP    measure, items that occurred during the three months ended March    31, 2004 and are considered by management to be outside the normal    course of operations. A reconciliation for the periods reported    may be found in the accompanying schedule titled Non-GAAP    Financial Measures and Reconciliations - Adjusted Net Income and    Earnings Per Share.(2) For a reconciliation of segment operating income, before general    and administrative expense to field operating income, see the    accompanying schedule titled Non-GAAP Financial Measures and    Reconciliations - Operating Income (Loss) Before General and    Administrative Expense to Field Operating Income (Loss) by    Segment.                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                              (Unaudited)                                                  Three Months Ended                                                        March 31,                                                  --------------------                                                     2004      2003                                                  ---------- ---------Operating Revenues Contract drilling revenues                          $583.9    $587.5 Other revenues                                        68.1      28.5                                                      652.0     616.0Costs and Expenses  Operating and maintenance                           412.4     374.1  Depreciation                                        131.5     126.8  General and administrative                           15.1      13.9  Impairment loss on long-lived assets                    -       1.0  Gain from sale of assets, net                        (3.8)     (1.4)  Gain on sale of TODCO initial public offering       (39.4)        -                                                      515.8     514.4Operating Income                                      136.2     101.6Other Income (Expense), net  Equity in earnings of joint ventures                  2.3       3.6  Interest income                                       2.1       6.9  Interest expense                                    (47.4)    (52.6)  Loss on retirement of debt                          (28.1)        -  Other, net                                            1.4      (0.6)                                                      (69.7)    (42.7)Income Before Income Taxes and Minority Interest                                              66.5      58.9Income Tax Expense                                     48.0      11.8Minority Interest                                      (4.2)     (0.1)Net Income                                            $22.7     $47.2Earnings Per Share  Basic                                               $0.07     $0.15  Diluted                                             $0.07     $0.15Weighted Average Shares Outstanding   Basic                                              320.6     319.7   Diluted                                            324.3     321.6                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONDENSED CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                                 March 31,  Dec. 31,                                                ----------- ----------                                                   2004        2003                                                ----------- ----------                                                (Unaudited)                                ASSETSCash and Cash Equivalents                           $397.9     $474.0Accounts Receivable, net   Trade                                             418.7      435.3   Other                                              31.8       45.0Materials and Supplies, net                          151.8      152.0Deferred Income Taxes                                 25.3       41.0Other Current Assets                                  56.3       31.6   Total Current Assets                            1,081.8    1,178.9Property and Equipment                            10,644.2   10,673.0Less Accumulated Depreciation                      2,765.6    2,663.4   Property and Equipment, net                     7,878.6    8,009.6Goodwill                                           2,230.8    2,230.8Investments in and Advances to Joint Ventures          6.2        5.5Deferred Income Taxes, net                            28.2       28.2Other Assets                                         216.8      209.6   Total Assets                                  $11,442.4  $11,662.6                 LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                    $144.6     $146.1Accrued Income Taxes                                  52.5       57.2Debt Due Within One Year                              47.2       45.8Other Current Liabilities                            280.8      262.0   Total Current Liabilities                         525.1      511.1Long-Term Debt                                     3,199.2    3,612.3Deferred Income Taxes                                 58.3       42.8Other Long-Term Liabilities                          304.2      299.4   Total Long-Term Liabilities                     3,561.7    3,954.5Commitments and ContingenciesMinority Interest                                    121.5        4.4Preference 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, 320,759,263 and 319,926,500 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively              3.2        3.2Additional Paid-in Capital                        10,662.7   10,643.8Accumulated Other Comprehensive Loss                 (20.3)     (20.2)Retained Deficit                                  (3,411.5)  (3,434.2)   Total Shareholders' Equity                      7,234.1    7,192.6   Total Liabilities and Shareholders' Equity    $11,442.4  $11,662.6                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                              (Unaudited)                                                 Three Months Ended                                                      March 31,                                               -----------------------                                                   2004        2003                                               ----------- -----------Cash Flows from Operating Activities  Net income                                        $22.7       $47.2  Adjustments to reconcile net income to   net cash provided by operating activities    Depreciation                                    131.5       126.8    Deferred income taxes                            31.3        27.6    Equity in earnings of joint ventures             (2.3)       (3.6)    Net gain from disposal of assets                 (1.9)       (0.7)    Gain on sale of TODCO initial public     offering                                       (39.4)          -    Loss on retirement of debt                       28.1           -    Impairment loss on long-lived assets                -         1.0    Amortization of debt-related     discounts/premiums, fair value adjustments     and issue costs, net                            (7.6)       (1.8)    Deferred income, net                             (3.3)        6.4    Deferred expenses, net                           (1.9)       (4.8)    Other long-term liabilities                       2.3         6.9    Other, net                                        6.2         0.7  Changes in operating assets and liabilities      Accounts receivable                            29.8        17.6      Accounts payable and other current       liabilities                                   23.6        42.4      Income taxes receivable/payable, net           (2.4)      (40.7)      Other current assets                          (24.5)      (34.5)Net Cash Provided by Operating Activities           192.2       190.5Cash Flows from Investing Activities  Capital expenditures                              (18.5)      (24.4)  Proceeds from disposal of assets, net              10.5         2.2  Proceeds from TODCO initial public offering       155.7           -  Joint ventures and other investments, net           1.5         1.4Net Cash Provided by (Used in) Investing Activities                                         149.2       (20.8)Cash Flows from Financing Activities  Repayments on revolving credit agreements         (50.0)          -  Net borrowings from issuance of debt                1.1           -  Repayments on other debt instruments             (381.6)      (47.8)  Cash from termination of interest rate swaps          -       173.5  Net proceeds from issuance of ordinary shares   under stock-based compensation plans              14.0        10.9  Other, net                                         (1.0)       (0.1)Net Cash Provided by (Used in) Financing Activities                                        (417.5)      136.5Net Increase (Decrease) in Cash and Cash Equivalents                                        (76.1)      306.2Cash and Cash Equivalents at Beginning of Period                                             474.0     1,214.2Cash and Cash Equivalents at End of Period         $397.9    $1,520.4                            Transocean Inc.                      Fleet Operating Statistics                                              Operating Revenues                                               ($ Millions) (1)                                         -----------------------------                                              Three Months Ended                                         -----------------------------                                                   December                                         March 31,    31,    March 31,Transocean Drilling Segment:               2004      2003      2003                                         --------- --------- ---------Contract Drilling Revenues      High-Specification Floaters:          Fifth-Generation Deepwater           Floaters                        $194.9    $187.5    $175.7          Other Deepwater Floaters         $108.1     $96.9    $116.2          Other High-Specification           Floaters                         $30.6     $31.9     $33.3      Total High-Specification Floaters    $333.6    $316.3    $325.2      Other Floaters                        $62.7     $67.9     $81.8      Jackups                              $101.5    $104.6    $115.3      Other Rigs                            $24.1     $24.4     $16.7Subtotal                                   $521.9    $513.2    $539.0Client Reimbursable Revenues                $16.6     $18.1     $21.6Integrated Services and Other               $39.7     $(0.2)     $2.1Segment Total                              $578.2    $531.1    $562.7TODCO Segment                               $73.8     $60.4     $53.3Total Company                              $652.0    $591.5    $616.0                                           Average Dayrates  (1) (2)                                              Three Months Ended                                         -----------------------------                                                   December                                         March 31,    31,    March 31,Transocean Drilling Segment:               2004      2003      2003                                         --------- --------- ---------      High-Specification Floaters:          Fifth-Generation Deepwater           Floaters                      $179,200  $186,500  $183,800          Other Deepwater Floaters       $101,300  $101,400  $113,600          Other High-Specification           Floaters                      $115,200  $117,900  $123,300      Total High-Specification Floaters  $137,800  $141,800  $144,600      Other Floaters                      $62,800   $60,600   $67,000      Jackups                             $51,400   $53,700   $56,900      Other Rigs                          $44,200   $45,200   $43,200Segment Total                             $87,900   $87,900   $91,600TODCO Segment                             $25,700   $21,500   $18,500Total Drilling Fleet                      $69,900   $67,400   $69,100                                              Utilization (1) (2)                                         -----------------------------                                              Three Months Ended                                         -----------------------------                                                   December                                         March 31,    31,    March 31,Transocean Drilling Segment:               2004      2003      2003                                         --------- --------- ---------      High-Specification Floaters:          Fifth-Generation Deepwater           Floaters                            92%       91%       97%          Other Deepwater Floaters             78%       69%       76%          Other High-Specification           Floaters                            73%       74%       75%      Total High-Specification Floaters        83%       78%       83%      Other Floaters                           42%       47%       50%      Jackups                                  83%       81%       87%      Other Rigs                               54%       53%       36%Segment Total                                  69%       68%       69%TODCO Segment                                  38%       40%       38%Total Drilling Fleet                           56%       56%       55%(1) Certain reclassifications have been made to prior periods to    conform to current quarter presentation.(2) Average dayrates are defined as contract drilling revenue earned    per revenue earning day in the period and utilization is defined    as the total actual number of revenue earning days in the period    as a percentage of the total number of calendar days in the    period.                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations          Adjusted Net Income and Diluted Earnings Per Share                           (in US$ millions)                                           For the Quarter Ended                                      --------------------------------                                      March 31,  December   March 31,                                                     31,                                        2004       2003       2003                                      ---------- ---------- ----------Adjusted Net IncomeNet income as reported                    $22.7       $5.5      $47.2  Add back:    After-tax gain from sale of IPO of     TODCO shares                         (39.4)         -          -    Tax valuation allowance related to     TODCO IPO                             31.0          -          -    After-tax loss on early retirement     of debt                               28.1          -          -    Stock option vesting resulting     from the TODCO IPO                     7.1          -          -    After-tax restructuring of Nigeria     benefit plans                            -       17.4          -    After-tax loss on impairment of     certain long-lived assets                -          -        1.0                                      ---------- ---------- ----------Net income as adjusted                    $49.5      $22.9      $48.2                                      ---------- ---------- ----------Diluted Earnings Per Share:Net income as reported                    $0.07      $0.02      $0.15  Add back:    After-tax gain from sale of IPO of     TODCO shares                         (0.12)         -          -    Tax valuation allowance related to     TODCO IPO                             0.09          -          -    After-tax loss on early retirement     of debt                               0.09          -          -    Stock option vesting resulting     from the TODCO IPO                    0.02          -          -    After-tax restructuring of Nigeria     benefit plans                            -       0.05          -                                      ---------- ---------- ----------Net income as adjusted                    $0.15      $0.07      $0.15                                      ---------- ---------- ----------                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations   Operating Income (Loss) Before General and Administrative Expense              to Field Operating Income (Loss) by Segment                           (in US$ millions)                                               For the Quarter Ended                                              ------------------------                                              March   December March                                                31,      31,     31,                                                2004     2003    2003                                              ------- -------- -------Transocean Drilling Segment   Operating revenue                          $578.2   $531.1  $562.7   Operating and maintenance expense           333.2    354.1   315.5   Depreciation                                107.3    104.1   103.6   Impairment loss on long-lived assets            -        -     1.0   Gain from sale of assets, net               (40.5)    (2.5)   (1.4)                                              ------- -------- ------- Operating income before general and  administrative expense                       178.2     75.4   144.0 Add back: Depreciation                        107.3    104.1   103.6           Impairment loss on long-lived            assets                                 -        -     1.0           Gain from sale of assets, net       (40.5)    (2.5)   (1.4)                                              ------- -------- ------- Field operating income                       $245.0   $177.0  $247.2                                              ------- -------- -------TODCO Segment   Operating revenue                           $73.8    $60.4   $53.3   Operating and maintenance expense (1)        79.2     52.7    58.6   Depreciation                                 24.2     23.0    23.2   Impairment loss on long-lived assets            -     (0.3)      -   Gain from sale of assets, net                (2.7)    (0.4)      -                                              ------- -------- ------- Operating loss before general and  administrative expense                       (26.9)   (14.6)  (28.5) Add back: Depreciation                         24.2     23.0    23.2           Impairment loss on long-lived            assets                                 -     (0.3)      -           Gain from sale of assets, net        (2.7)    (0.4)      -                                              ------- -------- ------- Field operating income (loss)                 $(5.4)    $7.7   $(5.3)                                              ------- -------- -------(1) Q1 04, Q4 03 and Q1 03 include $12.4 million, $3.7 million and    $4.6 million, respectively, of operating and maintenance expense    that TODCO classifies as general and administrative expense.
    CONTACT: Transocean Inc.             Analyst Contact:             Jeffrey L. Chastain, 713-232-7551             or             Media Contact:             Guy A. Cantwell, 713-232-7647    SOURCE: Transocean Inc.