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Transocean Inc. Reports First Quarter 2005 Results

May 3, 2005

HOUSTON, May 03, 2005 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) today reported net income forthe three months ended March 31, 2005 of $91.8 million, or $0.28 perdiluted share, on revenues of $630.5 million. The results compare tonet income of $22.7 million, or $0.07 per diluted share, on revenuesof $652.0 million, for the corresponding three months in 2004. Netincome adjusted(1) for a loss on early debt retirement and a gainassociated with the sale of the semisubmersible rig Sedco 600, was$79.7 million, or $0.24 per diluted share for the three months endedMarch 31, 2005, compared to net income adjusted(1) for a loss on earlydebt retirement and TODCO initial public offering (IPO)-related itemsof $49.5 million, or $0.15 per diluted share, for the correspondingthree months in 2004.

Effective December 17, 2004, Transocean Inc. deconsolidated TODCOfrom its consolidated statements of operations and balance sheets andsubsequently accounted for its investment in TODCO under the equitymethod of accounting. Financial results for the three months endedMarch 31, 2004 reflect the consolidation of TODCO as a businesssegment.

Robert L. Long, President and Chief Executive Officer ofTransocean Inc., stated, \"The company has begun 2005 with solidfinancial performance. Results for the first quarter benefited fromthe recommencement of operations on the jackup rig Trident 20 andsemisubmersible rig Jim Cunningham, as well as the commencement ofoperations on four semisubmersible rigs that were previously idle.Also, we realized meaningful dayrate increases on fourHigh-Specification Floaters while benefiting from lower than plannedoperating and maintenance expenses due to the timing of rigmaintenance and upgrade programs.

\"Of greater importance is the improving outlook for our business.We are seeing a substantial increase in customer rig needs,particularly for floating drilling units. Future quarterly financialperformance should benefit from higher average dayrates on a number ofour semisubmersibles and drillships, and we expect to sign severalterm contracts that should secure improved dayrates for several moreyears. At present, we are in advanced discussions with variouscustomers regarding seven High-Specification Floaters with dayratesranging from $260,000 to $350,000 per day and contract durations froma single well to several years.\"

The company reported that the industry's Fifth-Generation rigsupply remains constrained, the result of deepwater contractopportunities in the U.S. Gulf of Mexico, West Africa, Brazil andemerging regions like India and the Mediterranean Sea. Contractdurations for these units are lengthening, as evidenced by the recentcontract awards for the company's semisubmersible rigs Sedco Energyand Deepwater Horizon for two and five years, respectively. Thisfavorable trend is expected to continue through 2006, resulting inhigher average dayrates for the company's fleet. At present, 89% ofthe company's Fifth-Generation fleet days are committed to firmcontracts in 2005, while 64% of the fleet days are committed in 2006.

The company's Other Deepwater and Other High-SpecificationFloaters (harsh environment semisubmersibles) are experiencing higherutilization worldwide, leading to higher dayrates like the recentone-year contract for the Transocean Marianas in the U.S. Gulf ofMexico at $250,000 per day and the one-year contract for thesemisubmersible rig Transocean Leader offshore Norway at a dayrate of$245,000 per day.

The company expects higher fleet utilization and average dayratesfor its Other Floaters fleet, especially in the U.K. North Sea and theU.S. Gulf of Mexico. Industry dayrates in both regions have improvedfrom approximately $50,000 per day in 2004 to a general range of$100,000 to $160,000 per day at present. Operator needs in theseregions are becoming increasingly evident for 2006. Also, BP has justawarded a contract for work offshore Sahkalin Island for the company'ssemisubmersible rig Transocean Legend. The contract covers the 2005through 2007 spring and summer drilling periods and drillingoperations are expected to commence in July, 2005 following minor rigmodifications in Singapore and mobilization to the drilling location.At present, 58% of the remaining Other Floater Fleet days are underfirm contract in 2005, while 17% of the days are committed in 2006.

Finally, among the company's fleet of Jackup Rigs, utilizationremains high and average dayrates continue to experience modestimprovement in most regions, with contracting opportunities mostprevalent in Asia and the Middle East. Speculative newbuild units,which are due to enter the active fleet in increasing numbersbeginning in the second half of 2006, represent a growing concern tothe long-term health of the jackup rig business. At present, 77% ofthe remaining Jackup Rig Fleet days are under firm contract in 2005,while 38% of the days are committed in 2006.

Operating and maintenance expense is expected to increase asimproving activity levels lead to higher labor and rig maintenancecosts. The company expects operating and maintenance expense for thesecond quarter of 2005 to be in a range of $415 million to $435million, reflecting the impact of improvements in activity levels andthe timing of planned shipyard and other rig maintenance programs.

Operations Quarterly Review - Revenues for the three months endedMarch 31, 2005 improved 7% to $630.5 million from revenues of $591.0million for the Transocean Drilling Segment for the three months endedDecember 31, 2004. The improvement was primarily due to increaseddayrates and activity throughout the company's fleet of drillships,semisubmersibles and jackup rigs, as well as the return to activeservice of the jackup rig Trident 20 and semisubmersible rig JimCunningham following lengthy repairs resulting from operationalincidents during 2004. These improvements in revenue were partiallyoffset by lower integrated services revenues, a scheduled shipyardprogram for the semisubmersible rig Henry Goodrich, idle time on thesemisubmersible rig M.G. Hulme, Jr. and the sale of semisubmersiblerig Sedco 600.

Operating income before general and administrative expenses(2) was$161.4 million and field operating income(2) (defined as revenues lessoperating and maintenance expense) was $241.9 million for the threemonths ended March 31, 2005. These amounts compared to TransoceanDrilling Segment operating income before general and administrativeexpenses and field operating income for the three months endedDecember 31, 2004 of $73.9 million and $177.7 million, respectively.The improved results were due primarily to increased revenue duringthe first quarter of 2005, the gain from the sale of semisubmersiblerig Sedco 600 and a 6% decline in operating and maintenance expense inthe March 2005 quarter, to $388.6 million, down from $413.3 millionfor the three months ended December 31, 2004. The lower operating andmaintenance expense was the result of a delay in some rig maintenanceprograms, the reduction in extraordinary repair costs incurred duringthe final three months in 2004 associated with the operationalincidents on the jackup rig Trident 20 and semisubmersible rig JimCunningham, as well as a major shipyard project related to thesemisubmersible rig Polar Pioneer and lower expenses pertaining to thereduced level of integrated services activities, partially offset byadditional costs resulting from the increased activity during theperiod. Fleet utilization during the three months ended March 31, 2005improved to 75%, up from 69% during the three months ended December31, 2004 and was due significantly to improvements in the company'sJackup Rig and Other Floaters fleet. Average dayrates for the threemonths ended March 31, 2005 increased in the company'sHigh-Specification Fleet, Other Floaters Fleet and Jackup Rig Fleet,resulting in an average fleet dayrate of $96,600, up from $93,900during the final three months in 2004.

Effective Tax Rate - The company's effective tax rate(3) for thethree months ended March 31, 2005 was approximately 16%. The declinefrom an effective tax rate of approximately 50% at December 31, 2004was primarily related to improved earnings expectations for the yearas a result of the continued improvement in the offshore drillingbusiness. The company estimates its effective tax rate for 2005 to beapproximately 16%. The final effective tax rate for the year willdepend on a number of factors including the actual geographic mix ofincome, as well as the occurrences of various discrete events. Thesefactors could cause the rate to vary significantly from currentexpectations.

Liquidity - Cash flow provided by operations was $176.9 millionfor the three months ended March 31, 2005 while net debt(4) at March31, 2005 was $1,783.5 million, a 37% decline from $2,848.5 million atMarch 31, 2004. During the current quarter, the company redeemed$247.8 million of 6.95% Senior Notes due 2008, utilizing existing cashbalances. Conference Call Information Transocean will conduct ateleconference call at 10:00 a.m. ET on May 3rd. To participate, dial303-262-2075 approximately five to 10 minutes prior to the scheduledstart time of the call. In addition, the conference call will besimultaneously broadcast over the Internet in a listen-only mode andcan be accessed by logging onto the company's website atwww.deepwater.com and selecting \"Investor Relations.\" It may also beaccessed via the Internet at www.CompanyBoardroom.com by typing in thecompany's New York Stock Exchange trading symbol, \"RIG.\" A telephonicreplay of the conference call should be available after 1:00 p.m. ETon May 3 and can be accessed by dialing 303-590-3000 and referring tothe passcode 11028333. Also, a replay will be available through theInternet and can be accessed by visiting either of theabove-referenced Worldwide Web addresses.

Transocean Fleet Update Information - Drilling rig status andcontract information on Transocean Inc.'s offshore drilling fleet hasbeen condensed into a report titled \"Transocean Fleet Update,\" whichis available through the company's website at www.deepwater.com. Thereport is located in the \"Investor Relations/Financial Reports\"section of the website. By subscribing to the Transocean FinancialReport Alert, you will be immediately notified when new postings aremade to this page by an automated e-mail that will provide a linkdirectly to the page that has been updated. Shareholders and otherinterested parties are invited to sign up for this service.Forward-Looking Disclaimer Statements regarding opportunities andoutlook for the company and its fleet, including the company'sTransocean Drilling business segment, rig demand, contracts underdiscussion, dayrates, utilization, rig capacity constraints, contractduration, operating and maintenance expenses, the effective tax rate,as well as any other statements that are not historical facts in thisrelease, are forward-looking statements that involve certain risks,uncertainties and assumptions. These include but are not limited tooperating hazards and delays, risks associated with internationaloperations, effect of strike and other labor relations issues, effectof fire, future financial results, actions by customers and otherthird parties, the future price of oil and gas and other factorsdetailed in the company's most recent Form 10-K and other filings withthe Securities and Exchange Commission. Should one or more of theserisks or uncertainties materialize, or should underlying assumptionsprove incorrect, actual results may vary materially from thoseindicated.

Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 93 mobile offshore drilling units. Thecompany's mobile offshore drilling fleet, consisting of a large numberof high-specification deepwater and harsh environment drilling units,is considered one of the most modern and versatile in the world due toits emphasis on technically demanding segments of the offshoredrilling business. The company's fleet consists of 32High-Specification Floaters (semisubmersibles and drillships), 24Other Floaters, 26 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $15 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 periods reported and are    considered by management to be outside the normal course of    operations. A reconciliation for the periods reported may be found    in the accompanying schedule titled Non-GAAP Financial Measures    and Reconciliations - Adjusted Net Income (Loss) and Diluted    Earnings (Loss) Per Share.(2) 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.(3) For the analysis of the effective tax rate, see the accompanying    schedule titled Effective Tax Rate Analysis.(4) Net Debt is a non-GAAP measure defined as total debt less cash and    cash equivalents.                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                              (Unaudited)                                        Three Months Ended March 31,                                        -----------------------------                                            2005           2004                                        -------------- --------------Operating Revenues  Contract drilling revenues                   $600.6         $597.5  Other revenues                                 29.9           54.5---------------------------------------------------------------------                                                630.5          652.0---------------------------------------------------------------------Costs and Expenses  Operating and maintenance                     388.6          412.4  Depreciation                                  100.7          131.5  General and administrative                     18.1           15.1  Gain from sale of assets, net                 (20.2)          (3.8)---------------------------------------------------------------------                                                487.2          555.2---------------------------------------------------------------------Operating Income                                143.3           96.8Other Income (Expense), net  Equity in earnings of unconsolidated   affiliates                                     3.1            2.3  Interest income                                 4.0            2.1  Interest expense                              (33.1)         (47.4)  Gain from TODCO Offerings                         -           39.4  Loss on retirement of debt                     (6.7)         (28.1)  Other, net                                     (1.1)           1.4---------------------------------------------------------------------                                                (33.8)         (30.3)---------------------------------------------------------------------Income Before Income Taxes and Minority Interest                                       109.5           66.5Income Tax Expense                               17.5           48.0Minority Interest                                 0.2           (4.2)---------------------------------------------------------------------Net Income                                      $91.8          $22.7=====================================================================Earnings Per Share   Basic and Diluted                            $0.28          $0.07=====================================================================Weighted Average Shares Outstanding   Basic                                        323.6          320.6---------------------------------------------------------------------   Diluted                                      331.0          324.1---------------------------------------------------------------------TODCO deconsolidated effective December 17, 2004                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONDENSED CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                          March 31,     December 31,                                            2005           2004                                        -------------- --------------                                         (Unaudited)                 ASSETSCash and Cash Equivalents                      $420.7         $451.3Accounts Receivable, net of allowance for doubtful accounts of $16.5 and $16.8 at March 31, 2005 and December 31, 2004, respectively                         484.5          442.0Materials and Supplies, net of allowance for obsolescence of $20.2 and $20.3 at March 31, 2005 and December 31, 2004, respectively                                   148.5          144.7Deferred Income Taxes, net                       15.3           19.0Other Current Assets                             33.9           52.1---------------------------------------------------------------------   Total Current Assets                       1,102.9        1,109.1---------------------------------------------------------------------Property and Equipment                        9,740.7        9,732.9Less Accumulated Depreciation                 2,817.1        2,727.7---------------------------------------------------------------------   Property and Equipment, net                6,923.6        7,005.2---------------------------------------------------------------------Goodwill                                      2,251.9        2,251.9Investments in and Advances to Unconsolidated Affiliates                      110.7          109.2Deferred Income Taxes                            39.4           43.8Other Assets                                    263.0          239.1---------------------------------------------------------------------   Total Assets                             $10,691.5      $10,758.3=====================================================================LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                               $165.6         $180.8Accrued Income Taxes                             10.4           17.1Debt Due Within One Year                          7.9           19.4Other Current Liabilities                       248.4          213.0---------------------------------------------------------------------   Total Current Liabilities                    432.3          430.3---------------------------------------------------------------------Long-Term Debt                                2,196.3        2,462.1Deferred Income Taxes, net                      147.6          124.1Other Long-Term Liabilities                     349.6          345.2---------------------------------------------------------------------   Total Long-Term Liabilities                2,693.5        2,931.4---------------------------------------------------------------------Commitments and ContingenciesMinority Interest                                 4.2            4.0Preference 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, 324,824,322 and 321,533,998 shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively                                     3.2            3.2Additional Paid-in Capital                   10,771.3       10,695.8Accumulated Other Comprehensive Loss            (22.8)         (24.4)Retained Deficit                             (3,190.2)      (3,282.0)---------------------------------------------------------------------   Total Shareholders' Equity                 7,561.5        7,392.6---------------------------------------------------------------------   Total Liabilities and Shareholders'    Equity                                  $10,691.5      $10,758.3=====================================================================                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                              (Unaudited)                                        Three Months Ended March 31,                                        -----------------------------                                            2005           2004                                        -------------- --------------Cash Flows from Operating Activities   Net income                                   $91.8          $22.7   Adjustments to reconcile net income    to net cash provided by operating    activities    Depreciation                                100.7          131.5    Stock-based compensation expense              3.1           10.0    Deferred income taxes                         4.6           31.3    Equity in earnings of unconsolidated     affiliates                                  (3.1)          (2.3)    Net gain from disposal of assets            (19.9)          (1.9)    Gain from TODCO Offerings                       -          (39.4)    Loss on retirement of debt                    6.7           28.1    Amortization of debt-related     discounts/premiums, fair value     adjustments and issue costs, net            (3.2)          (7.6)    Deferred income, net                         10.0           (3.3)    Deferred expenses, net                       (1.2)          (1.9)    Tax benefit from exercise of stock     options                                     (0.8)             -    Other long-term liabilities                   5.2            2.3    Other, net                                    1.1           (4.8)    Changes in operating assets and     liabilities       Accounts receivable                      (40.0)          29.8       Accounts payable and other        current liabilities                      22.9           23.6       Income taxes receivable/payable,        net                                      (5.1)          (2.4)       Other current assets                       4.1          (24.5)---------------------------------------------------------------------Net Cash Provided by Operating Activities                                     176.9          191.2---------------------------------------------------------------------Cash Flows from Investing Activities  Capital expenditures                          (31.2)         (17.4)  Proceeds from disposal of assets, net          35.5           10.5  Proceeds from TODCO Offerings                     -          155.7  Joint ventures and other investments,   net                                            3.1            1.5---------------------------------------------------------------------Net Cash Provided by Investing Activities                                       7.4          150.3---------------------------------------------------------------------Cash Flows from Financing Activities  Repayments on revolving credit   agreement                                        -          (50.0)  Repayments on other debt instruments         (287.4)        (381.6)  Net proceeds from issuance of ordinary   shares under stock-based compensation   plans                                         72.4           14.0  Other, net                                      0.1              ----------------------------------------------------------------------Net Cash Used in Financing Activities          (214.9)        (417.6)---------------------------------------------------------------------Net Decrease in Cash and Cash Equivalents                                    (30.6)         (76.1)---------------------------------------------------------------------Cash and Cash Equivalents at Beginning of Period                                      451.3          474.0---------------------------------------------------------------------Cash and Cash Equivalents at End of Period                                        $420.7         $397.9=====================================================================                            Transocean Inc.                      Fleet Operating Statistics                                Operating Revenues ($ Millions) (1)                              ----------------------------------------                                         Three Months Ended                              ----------------------------------------                                March 31,   December 31,   March 31,Transocean Drilling Segment:      2005          2004         2004                              ------------- ------------- ------------Contract Drilling Revenues    High-Specification     Floaters:        Fifth-Generation         Deepwater Floaters         $192.3        $190.7       $208.5        Other Deepwater         Floaters                   $125.3        $114.2       $108.1        Other High-         Specification         Floaters                    $50.2         $45.7        $30.6    Total High-Specification     Floaters                       $367.8        $350.6       $347.2    Other Floaters                   $88.2         $71.6        $62.7    Jackups                         $126.4        $108.1       $101.5    Other Rigs                       $18.2         $23.7        $24.1Subtotal                            $600.6        $554.0       $535.5Other Revenues           Client Reimbursable            Revenues                 $18.9         $18.2        $16.6           Integrated Services            and Other                $11.0         $18.8        $26.1Subtotal                             $29.9         $37.0        $42.7Segment Total                       $630.5        $591.0       $578.2TODCO Segment (3)Contract Drilling Revenues              $-         $72.9        $62.0Other Revenues            Client             Reimbursables              $-          $5.7         $5.0            Delta Towing and             Other                      $-          $7.3         $6.8Subtotal                                $-         $13.0        $11.8Segment Total                           $-         $85.9        $73.8Total Company                       $630.5        $676.9       $652.0                                      Average Dayrates (1) (2)                                         Three Months Ended                              ----------------------------------------                                March 31,   December 31,   March 31,Transocean Drilling Segment:      2005          2004         2004                              ------------- ------------- ------------    High-Specification     Floaters:        Fifth-Generation         Deepwater Floaters       $182,300      $180,100     $191,800        Other Deepwater         Floaters                 $124,500      $119,400     $101,300        Other High-         Specification         Floaters                 $153,000      $135,700     $115,200    Total High-Specification     Floaters                     $153,900      $149,000     $143,500    Other Floaters                 $71,200       $64,000      $62,800    Jackups                        $57,600       $55,800      $51,400    Other Rigs                     $45,800       $48,100      $44,200Segment Total                      $96,600       $93,900      $90,200TODCO Segment (3)                       $-       $28,600      $25,700Total Drilling Fleet               $96,600       $74,200      $71,600                                        Utilization (1) (2)                              ----------------------------------------                                         Three Months Ended                              ----------------------------------------                                March 31,   December 31,   March 31,Transocean Drilling Segment:      2005          2004         2004                              ------------- ------------- ------------    High-Specification     Floaters:        Fifth-Generation         Deepwater Floaters             90%           89%          92%        Other Deepwater         Floaters                       75%           69%          78%        Other High-         Specification         Floaters                       91%           92%          73%    Total High-Specification     Floaters                           83%           80%          83%    Other Floaters                      57%           50%          42%    Jackups                             94%           81%          83%    Other Rigs                          44%           54%          54%Segment Total                           75%           69%          69%TODCO Segment (3)                        -            47%          38%Total Drilling Fleet                    75%           61%          56%(1) Certain reclassifications have been made to prior periods to    conform to current quarter presentation.(2) Average dayrates are defined as contract drilling revenue earned    per revenue earning day in the period. A revenue earning day is    defined as a day for which a rig earns dayrate after commencement    of operations. Utilization is defined as the total actual number    of revenue earning days in the period as a percentage of the total    number of calendar days in the period.(3) TODCO was deconsolidated effective December 17, 2004. Statistics    for the TODCO segment are through December 16, 2004 for the three    months ended December 31, 2004.                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations   Adjusted Net Income (Loss) and Diluted Earnings (Loss) Per Share                           (in US$ millions)                                         Three Months Ended                              ----------------------------------------                                March 31,    December 31,   March 31,                                  2005          2004          2004                              ------------- -------------- -----------Adjusted Net Income (Loss)Net income (loss) as reported        $91.8         $(73.4)      $22.7  Add back (subtract):    After-tax non-cash TODCO tax     sharing agreement charge            -          167.1           -    After-tax gain from TODCO     offerings                           -         (140.0)      (39.4)    After-tax loss on retirement     of debt                           6.7           48.4        28.1    After-tax gain from sale of     Sedco 600                       (18.8)             -           -    Tax valuation allowance     related to TODCO IPO                -              -        31.0    Stock option vesting     resulting from the TODCO     IPO                                 -              -         7.1                              ------------- -------------- -----------Net income as adjusted               $79.7           $2.1       $49.5                              ------------- -------------- -----------Diluted Earnings (Loss) Per Share:Net income (loss) as reported        $0.28         $(0.23)      $0.07  Add back (subtract):    After-tax non-cash TODCO tax     sharing agreement charge            -           0.52           -    After-tax gain from TODCO     offerings                           -          (0.43)      (0.12)    After-tax loss on retirement     of debt                          0.02           0.15        0.09    After-tax gain from sale of     Sedco 600                       (0.06)             -           -    Tax valuation allowance     related to TODCO IPO                -              -        0.09    Stock option vesting     resulting from the TODCO     IPO                                 -              -        0.02                              ------------- -------------- -----------Net income as adjusted               $0.24          $0.01       $0.15                              ------------- -------------- -----------                   Transocean Inc. and Subsidiaries           Non-GAAP Financial Measures and Reconciliations  Operating Income (Loss) Before General and Administrative Expense             to Field Operating Income (Loss) by Segment                          (in US$ millions)                                         Three Months Ended                              ----------------------------------------                                March 31,   December 31,   March 31,                                  2005          2004         2004                              ------------- ------------- ------------Transocean Drilling Segment  Operating revenue                 $630.5        $591.0       $578.2  Operating and maintenance   expense                           388.6         413.3        333.2  Depreciation                       100.7         106.2        107.3  Gain from sale of assets,   net                               (20.2)         (2.4)        (1.1)                              ------------- ------------- ------------Operating income before general and administrative expense                             161.4          73.9        138.8Add back:  Depreciation              100.7         106.2        107.3           Gain from sale of            assets, net              (20.2)         (2.4)        (1.1)                              ------------- ------------- ------------Field operating income              $241.9        $177.7       $245.0                              ------------- ------------- ------------TODCO Segment (1)  Operating revenue                     $-         $85.9        $73.8  Operating and maintenance   expense (2)                           -          61.5         79.2  Depreciation                           -          20.0         24.2  Gain from sale of assets,   net                                   -          (0.6)        (2.7)                              ------------- ------------- ------------Operating income (loss) before general and administrative expense                                 -           5.0        (26.9)Add back:  Depreciation                  -          20.0         24.2           Gain from sale of            assets, net                  -          (0.6)        (2.7)                              ------------- ------------- ------------Field operating income (loss)           $-         $24.4        $(5.4)                              ------------- ------------- ------------(1) Amounts are representative of TODCO's results through December 16,    2004. TODCO was deconsolidated effective December 17, 2004 in    connection with the December offering and conversion of the    Company's remaining TODCO Class B common stock to Class A common(2) Q4 04 and Q1 04 include $6.0 million and $12.3 million,    respectively, of operating and maintenance expense that TODCO    classified as general and administrative expense.                   Transocean Inc. and Subsidiaries           Non-GAAP Financial Measures and Reconciliations                Total Debt to Net Debt Reconciliations                          (in US$ millions)                                               As of                              ----------------------------------------                                3/31/05       12/31/04      3/31/04                              ------------- -------------- -----------Total Debt to Net Debt ReconciliationTotal Debt                        $2,204.2       $2,481.5    $3,246.4Deduct: Cash and Cash Equivalents                         420.7          451.3       397.9                              ------------- -------------- -----------Net Debt                          $1,783.5       $2,030.2    $2,848.5                              ------------- -------------- -----------                   Transocean Inc. and Subsidiaries                      Effective Tax Rate Analysis                           (in US$ millions)                                         Three Months Ended                              ----------------------------------------                                March 31,   December 31,   March 31,                                  2005          2004         2004                              ------------- ------------- ------------Income before Income Taxes and Minority Interest                  $109.5        $(54.1)       $66.5  Add back (subtract):    Stock option vesting     resulting from the TODCO     IPO                                 -             -          7.1    Loss on retirement of debt         6.7          48.4         28.1    Gain on sale of Sedco 600        (18.8)            -            -    Gain on sale of Sedco 602            -          (0.1)           -    Gain on TODCO offerings              -        (140.0)       (39.4)    Non-cash TODCO tax sharing     agreement charge                    -         167.1            -                              ------------- ------------- ------------Adjusted Income before Income Taxes and Minority Interest         $97.4         $21.3        $62.3Income Tax Expense                   $17.5         $17.1        $48.0  Add back (subtract):    Valuation allowance     related to TODCO     offerings                           -         (15.1)       (31.0)    Other                                -          (0.2)           -    Changes in estimates (1)          (2.2)         16.4            -                              ------------- ------------- ------------Adjusted Income Tax Expense (2)                         $15.3         $18.2        $17.0Effective Tax Rate                    16.0%        -31.6%        72.2%Effective Tax Rate Adjusted           15.7%         85.4%        27.3%(1) Our estimates change as we file tax returns, settle disputes with    tax authorities or become aware of other events.    Also includes changes in our valuation allowance on our UK net    operating loss carryforwards.

SOURCE: Transocean Inc.

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