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Transocean Inc. Reports Second Quarter 2005 Results

August 2, 2005

HOUSTON, Aug 02, 2005 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) today reported net income forthe three months ended June 30, 2005 of $301.8 million, or $0.90 perdiluted share, on revenues of $727.4 million. The results compare tonet income of $48.0 million, or $0.15 per diluted share, on revenuesof $633.2 million for the corresponding three months in 2004. Netincome adjusted(1) for the May 2005 TODCO public offering, June 2005sale of TODCO common stock and gains associated with the sale of thejackup rig Transocean Jupiter and Land Rig 34 was $127.7 million, or$0.38 per diluted share, for the three months ended June 30, 2005.This compares to net income of $26.4 million, or $0.08 per dilutedshare, for the corresponding three months in 2004, after adjustmentfor the sale of the semisubmersible rig Sedco 602.

For the six months ended June 30, 2005, net income totaled $393.6million, or $1.18 per diluted share, on revenues of $1,357.9 million,compared to net income of $70.7 million, or $0.22 per diluted share,on revenues of $1,285.2 million for the six months ended June 30,2004. Net income adjusted for the May 2005 TODCO public offering andJune 2005 sale of TODCO common stock, gains associated with the salesof the semisubmersible rig Sedco 600, the Transocean Jupiter and LandRig 34 and for a loss on the early retirement of debt was $207.4million, or $0.63 per diluted share, for the six months ended June 30,2005. For the six months ended June 30, 2004, net income adjusted forthe sale of the Sedco 602, a loss on the early retirement of debt andTODCO initial public offering (IPO)-related items was $75.9 million,or $0.23 per diluted share.

Robert L. Long, President and Chief Executive Officer ofTransocean Inc., commented, \"The fundamental outlook for our businessis better than at any time in my 30 years in this industry. Our mostsignificant challenge at present is managing our industry-leadingportfolio of deepwater assets to satisfy as many of our customers'needs as possible. Our revenue backlog(2) of approximately $5.8billion is unprecedented for the company, with continued backlogexpansion anticipated. Within our fleet of 32 High-SpecificationFloaters, possible contracts for six rigs are in advanced stages ofdiscussion with expected durations of six months to approximately 48months and expected dayrates ranging from $205,000 to $395,000.\"

\"In addition, we have remained focused on our efforts to divestnon-strategic assets and reduce debt. We completed our divestiture ofTODCO with final transactions in May and June, resulting in netproceeds during the second quarter of approximately $271.9 million.Following the July 2005 completion of a tender offer for our 6.625%Notes due in 2011, our total debt at face value has declined toapproximately $1.6 billion and our cash flow generation continues toaccelerate as contracts with higher dayrates commence. We arecurrently evaluating contract opportunities which would require thereactivation or upgrade of existing rigs in our fleet. Theseopportunities could require a significant amount of capital. However,our cash generation is expected to significantly exceed thesereactivation and upgrade opportunities so we are also consideringalternatives for returning cash to our shareholders.\"

Customer demand for Fifth-Generation Deepwater Floaters, theindustry's largest and most modern rigs and which total 13 ofTransocean's 32 High-Specification Floaters, has been particularlystrong and continues to exceed supply. These rigs have the ability todrill technically complex wells, including wells in ultra-deep waterand increasingly deeper well depths, plus provide significant wellconstruction efficiencies for offshore development programs. Followingthe recent contract signings on the company's drillships DeepwaterMillennium, Deepwater Discovery and Deepwater Frontier, each with acontract duration of two years, the company's percentage ofFifth-Generation Deepwater Floater fleet time presently contracted forthe years 2006 and 2007 stands at 78% and 54%, respectively. Thecomparable figure for the company's entire High-Specification Floaterfleet for 2006 is 63%.

The company's Other Floaters fleet, comprised of 23semisubmersible rigs and one drillship, continues to benefit fromimproving activity levels in all regions. In the U.K. sector of theNorth Sea, five of the company's semisubmersible rigs have beenrecently contracted for durations of six months to 12 months atdayrates ranging from $140,000 to $200,000. Customer activity levelsoutside of the U.K. sector of the North Sea are expected to be stableto higher through 2006. The company continues to evaluate contractopportunities that could result in the reactivation of up to three ofits idle rigs. Should a decision be made to reactivate any of the idleunits, they are not expected to be operational before 2006. Atpresent, approximately 47% of the company's Other Floater fleet daysare contracted in 2006.

Jackup rig demand remains strong throughout Southeast Asia, Indiaand West Africa, the primary regions of operation for the company's25-rig fleet. Fleet utilization is expected to remain better than 90%for the remainder of 2005 and into the first half of 2006 withcontinued improvements in dayrates likely, although the impact of newsupply in the jackup rig sector beginning in 2006 is currentlyunknown. The company also reported that it completed the sale of theTransocean Jupiter for net proceeds of $20 million in the secondquarter of 2005. The rig had been inactive since 1998. At present, 50%of the company's Jackup rig fleet days are contracted in 2006.

Operations Review - Revenues for the three months ended June 30,2005 improved 15% to $727.4 million, compared to revenues of $630.5million during the three months ended March 31, 2005. The improvementwas attributable to increased dayrates and activity throughout thecompany's fleet in addition to higher revenues from integratedservices during the three months ended June 30, 2005. Theseimprovements in revenues were partially offset by the mobilization ofthe semisubmersible rig Sedco Express from Brazil to West Africa andidle time due to repairs on the semisubmersible rigs Transocean Leaderand Sovereign Explorer.

Operating income before general and administrative expenses(3) was$202.8 million and field operating income(3) (defined as revenues lessoperating and maintenance expense) was $288.5 million for the threemonths ended June 30, 2005. Operating income before general andadministrative expenses was $161.4 million and field operating incomewas $241.9 million for the three months ended March 31, 2005. Improvedresults were primarily due to increased revenues during the secondquarter of 2005, and the gain on sale of the Transocean Jupiter,partially offset by a 13% increase to $438.9 million in operating andmaintenance expense in the quarter ended June 30, 2005, up from $388.6million for the three months ended March 31, 2005. The increase inoperating and maintenance expense was primarily due to increasedactivity during the period, with six rigs idled for all or asignificant portion of the first quarter of 2005 returning to serviceduring the second quarter of 2005, in addition to higher maintenancecosts resulting from increased shipyard activity and the timing ofmaintenance projects. Fleet utilization during the three months endedJune 30, 2005 improved to 79% from 75% during the quarter ended March31, 2005 with improvements due primarily to the Other DeepwaterFloaters and Other Floaters fleets. Average dayrates for the threemonths ended June 30, 2005 increased in the High SpecificationFloaters and Other Floaters fleets resulting in an average totaldrilling fleet dayrate of $103,100, up from $96,600 during the firstthree months of 2005. The improvements were due to new contractstartups and extensions at higher dayrates.

Effective Tax Rate - The company's effective tax rate(4) for thesix months ended June 30, 2005 was approximately 17%. The slightincrease from an effective tax rate of approximately 16% at March 31,2005 was primarily related to a change in expected amount andgeographical concentration of taxable income for the remainder of2005. The company estimates its effective tax rate for the year to beapproximately 17%.

Liquidity - Cash flow provided by operations totaled $383.1million for the six months ended June 30, 2005. Total debt at June 30,2005 and December 31, 2004 was $2,193.5 million and $2,481.5 million,respectively, a 12% reduction. Net debt(5) declined 38% to $1,251.0million at June 30, 2005 compared to $2,030.2 million at December 31,2004.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET onAugust 2, 2005. 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 August 2 and can be accessed by dialing303-590-3000 and referring to the passcode 11034804. Also, a replaywill be available through the Internet and can be accessed by visitingeither of the above-referenced Worldwide Web addresses.

Transocean Fleet Update Information

Drilling rig status and contract information on Transocean Inc.'soffshore drilling fleet has been condensed into a report titled\"Transocean 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 free service.

Forward-Looking Disclaimer

Statements regarding fundamental business outlook, duration ofcurrent demand cycle, contract backlog, rig demand, rig reactivations,impact of new rig supply on the market, asset divestitures, debtreduction, excess cash alternatives and the timing of relateddecisions, opportunities for the company, dayrates, the effective taxrate, as well as any other statements that are not historical facts inthis release, are forward-looking statements that involve certainrisks, uncertainties and assumptions. These include but are notlimited to operating hazards and delays, risks associated withinternational operations, effect of strike and other labor relationsissues, effect of fire, future financial results, actions by customersand other third parties, the future price of oil and gas and otherfactors detailed in the company's most recent Form 10-K and otherfilings with the Securities and Exchange Commission. Should one ormore of these risks or uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially fromthose indicated.

Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 92 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, 25 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $19 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) Revenue backlog is calculated by multiplying the contracted    dayrate by the firm contract period from August 2, 2005 forward    and based on contracts actually signed or in the case of certain    Petrobras agreements, those whose award have been approved by its    board of directors. Revenue backlog does not include the impact of    downtime or contract cancellation and excludes contract extensions    from option exercises and revenue from mobilization, contract    preparation, or client reimbursables. Revenue backlog is    indicative of the full contractual operating dayrate. However, the    actual average dayrate earned over the course of any given    contract will likely be lower because of the application of    varying dayrates and could be substantially lower. The actual    average dayrate will depend upon a number of factors (rig    downtime, suspension of operations, etc.) including some beyond    our control.(3) 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.(4) References to effective tax rate are based on the Effective Tax    Rate Adjusted as shown in the accompanying schedule titled    Effective Tax Rate Analysis.(5) Net Debt is a non-GAAP measure defined as total debt less cash and    cash equivalents. For a reconciliation of total debt to net debt,    see accompanying schedule titled Total Debt to Net Debt    Reconciliations.                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                              (Unaudited)                             Three Months Ended    Six Months Ended                                   June 30,             June 30,                            --------------------- --------------------                               2005       2004       2005      2004                            ---------- ---------- --------- ----------Operating Revenues Contract drilling revenues    $682.1     $584.9  $1,282.7   $1,182.4 Other revenues                  45.3       48.3      75.2      102.8----------------------------------------------------------------------                                727.4      633.2   1,357.9    1,285.2----------------------------------------------------------------------Costs and Expenses Operating and maintenance      438.9      406.2     827.5      818.6 Depreciation                   101.2      133.0     201.9      264.5 General and administrative      18.0       14.0      36.1       29.1----------------------------------------------------------------------                                558.1      553.2   1,065.5    1,112.2----------------------------------------------------------------------Gain from sale of assets, net                             15.5       23.8      35.7       27.6----------------------------------------------------------------------Operating Income                184.8      103.8     328.1      200.6----------------------------------------------------------------------Other Income (Expense), net Equity in earnings of  unconsolidated affiliates       3.4        3.7       6.5        6.0 Interest income                  4.8        1.9       8.8        4.0 Interest expense               (29.8)     (42.6)    (62.9)     (90.0) Gain from TODCO Stock Sales    165.0          -     165.0       39.4 Loss on retirement of debt         -          -      (6.7)     (28.1) Other, net                      (3.0)      (1.1)     (4.1)       0.3----------------------------------------------------------------------                                140.4      (38.1)    106.6      (68.4)----------------------------------------------------------------------Income Before Income Taxes and Minority Interest          325.2       65.7     434.7      132.2Income Tax Expense               23.6       19.9      41.1       67.9Minority Interest                (0.2)      (2.2)        -       (6.4)----------------------------------------------------------------------Net Income                     $301.8      $48.0    $393.6      $70.7======================================================================Earnings Per Share Basic                          $0.93      $0.15     $1.21      $0.22 Diluted                        $0.90      $0.15     $1.18      $0.22======================================================================Weighted Average Shares Outstanding  Basic                         326.1      320.8     324.8      320.7----------------------------------------------------------------------  Diluted                       338.0      324.1     336.9      324.2----------------------------------------------------------------------                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONDENSED CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                               June 30,   December 31,                                                 2005         2004                                             ------------ ------------                                             (Unaudited)                   ASSETSCash and Cash Equivalents                         $942.5       $451.3Accounts Receivable, net of allowance for doubtful accounts of $18.3 and $16.8 at June 30, 2005 and December 31, 2004, respectively                                      564.2        442.0Materials and Supplies, net of allowance for obsolescence of $18.6 and $20.3 at June 30, 2005 and December 31, 2004, respectively          153.1        144.7Deferred Income Taxes, net                          20.7         19.0Other Current Assets                                41.5         52.1----------------------------------------------------------------------   Total Current Assets                          1,722.0      1,109.1----------------------------------------------------------------------Property and Equipment                           9,779.5      9,732.9Less Accumulated Depreciation                    2,896.1      2,727.7----------------------------------------------------------------------   Property and Equipment, net                   6,883.4      7,005.2----------------------------------------------------------------------Goodwill                                         2,251.9      2,251.9Investments in and Advances to Unconsolidated Affiliates                           4.6        109.2Deferred Income Taxes                               48.1         43.8Other Assets                                       249.2        239.1----------------------------------------------------------------------   Total Assets                                $11,159.2    $10,758.3======================================================================    LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                  $208.0       $180.8Accrued Income Taxes                                64.1         17.1Debt Due Within One Year                           400.0         19.4Other Current Liabilities                          248.0        213.0----------------------------------------------------------------------   Total Current Liabilities                       920.1        430.3----------------------------------------------------------------------Long-Term Debt                                   1,793.5      2,462.1Deferred Income Taxes, net                         153.6        124.1Other Long-Term Liabilities                        324.2        345.2----------------------------------------------------------------------   Total Long-Term Liabilities                   2,271.3      2,931.4----------------------------------------------------------------------Commitments and ContingenciesMinority Interest                                    4.1          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, 328,508,472 and 321,533,998 shares issued and outstanding at June 30, 2005 and December 31, 2004, respectively                              3.3          3.2Additional Paid-in Capital                      10,871.7     10,695.8Accumulated Other Comprehensive Loss               (22.9)       (24.4)Retained Deficit                                (2,888.4)    (3,282.0)----------------------------------------------------------------------   Total Shareholders' Equity                    7,963.7      7,392.6----------------------------------------------------------------------   Total Liabilities and Shareholders'    Equity                                     $11,159.2    $10,758.3======================================================================                   TRANSOCEAN INC. AND SUBSIDIARIES            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                              (Unaudited)                                        Three Months     Six Months                                        Ended June 30,  Ended June 30,                                       --------------- ---------------                                        2005    2004    2005    2004                                       ------- ------- ------- -------Cash Flows from Operating Activities Net income                            $301.8   $48.0  $393.6   $70.7 Adjustments to reconcile net income  to net cash provided by operating  activities   Depreciation                         101.2   133.0   201.9   264.5   Stock-based compensation expense       2.8     3.5     5.9    13.5   Deferred income taxes                 (2.4)   (3.3)    2.2    28.0   Equity in earnings of    unconsolidated affiliates            (3.4)   (3.7)   (6.5)   (6.0)   Net gain from disposal of assets     (13.6)  (23.1)  (33.5)  (25.0)   Gain from TODCO Stock Sales         (165.0)      -  (165.0)  (39.4)   Loss on retirement of debt               -       -     6.7    28.1   Amortization of debt-related    discounts/premiums, fair value    adjustments and issue costs, net     (2.3)   (4.9)   (5.5)  (12.5)   Deferred income, net                   2.1    17.4    12.1    14.1   Deferred expenses, net                10.3   (10.8)    9.1   (12.7)   Tax benefit from exercise of stock    options                               5.7       -     4.9       -   Other long-term liabilities            7.3     4.6    12.5     6.9   Other, net                            (2.4)    0.5    (1.3)   (4.3)   Changes in operating assets and    liabilities     Accounts receivable                (79.6)  (61.6) (119.6)  (31.8)     Accounts payable and other      current liabilities                55.7   (23.5)   78.6     0.1     Income taxes receivable/payable,      net                                12.2     4.4     7.1     2.0     Other current assets               (24.2)    8.9   (20.1)  (15.6)----------------------------------------------------------------------Net Cash Provided by Operating Activities                             206.2    89.4   383.1   280.6----------------------------------------------------------------------Cash Flows from Investing Activities Capital expenditures                   (78.4)  (37.3) (109.6)  (54.7) Proceeds from disposal of assets, net   25.0    31.5    60.5    42.0 Proceeds from TODCO Stock Sales, net   271.9       -   271.9   155.7 Joint ventures and other investments,  net                                     1.4     3.2     4.5     4.7----------------------------------------------------------------------Net Cash Provided by (Used in) Investing Activities                   219.9    (2.6)  227.3   147.7----------------------------------------------------------------------Cash Flows from Financing Activities Repayments on revolving credit  agreement                                 -  (150.0)      -  (200.0) Repayments on other debt instruments    (7.9)  (13.6) (295.3) (395.2) Net proceeds from issuance of ordinary  shares under stock-based compensation  plans                                  87.0     1.0   159.4    15.0 Proceeds from issuance of ordinary  shares upon exercise of warrants        4.6       -     4.6       - Decrease in cash dedicated to debt  service                                12.0       -    12.0       - Other, net                                 -       -     0.1       -----------------------------------------------------------------------Net Cash Provided by (Used in) Financing Activities                    95.7  (162.6) (119.2) (580.2)----------------------------------------------------------------------Net Increase (Decrease) in Cash and Cash Equivalents                       521.8   (75.8)  491.2  (151.9)----------------------------------------------------------------------Cash and Cash Equivalents at Beginning of Period                              420.7   397.9   451.3   474.0----------------------------------------------------------------------Cash and Cash Equivalents at End of Period                                $942.5  $322.1  $942.5  $322.1======================================================================                            Transocean Inc.                      Fleet Operating Statistics                            Operating Revenues ($ Millions) (1)                     -------------------------------------------------                                                    Six Months Ended                          Three Months Ended            June 30,                     ----------------------------- -------------------Transocean Drilling  June 30,  March 31, June 30, Segment:              2005      2005      2004       2005      2004                     --------- --------- --------- --------- ---------Contract Drilling Revenues  High-Specification   Floaters:    Fifth-Generation     Deepwater     Floaters          $213.8    $192.3    $189.0    $406.1    $397.5    Other Deepwater     Floaters          $145.7    $125.3    $103.3    $271.0    $211.4    Other High-     Specification     Floaters           $56.0     $50.2     $31.5    $106.2     $62.1  Total High-   Specification   Floaters            $415.5    $367.8    $323.8    $783.3    $671.0  Other Floaters       $114.2     $88.2     $66.3    $202.4    $129.0  Jackups              $128.3    $126.4    $106.6    $254.7    $208.1  Other Rigs            $24.1     $18.2     $19.9     $42.3     $44.0Subtotal               $682.1    $600.6    $516.6  $1,282.7  $1,052.1Other Revenues  Client Reimbursable   Revenues             $25.0     $18.9     $21.4     $43.9     $38.0  Integrated Services   and Other            $20.3     $11.0     $14.5     $31.3     $40.6Subtotal                $45.3     $29.9     $35.9     $75.2     $78.6Segment Total          $727.4    $630.5    $552.5  $1,357.9  $1,130.7TODCO Segment (3)Contract Drilling Revenues                  $-        $-     $68.3        $-    $130.3Other Revenues  Client Reimbursable   Revenues                $-        $-      $5.6        $-     $10.6  Delta Towing             $-        $-      $6.8        $-     $13.6Subtotal                   $-        $-     $12.4        $-     $24.2Segment Total              $-        $-     $80.7        $-    $154.5Total Company          $727.4    $630.5    $633.2  $1,357.9  $1,285.2                                 Average Dayrates  (1) (2)                     -------------------------------------------------                                                    Six Months Ended                          Three Months Ended            June 30,                     ----------------------------- -------------------Transocean Drilling  June 30,  March 31, June 30, Segment:              2005      2005      2004        2005      2004                     --------- --------- --------- --------- ---------  High-Specification   Floaters:    Fifth-Generation     Deepwater     Floaters        $197,100  $182,300  $177,800  $189,800  $184,900    Other Deepwater     Floaters        $132,700  $124,500  $107,800  $128,800  $104,400    Other High-     Specification     Floaters        $170,500  $153,000  $115,500  $161,800  $115,300  Total High-   Specification   Floaters          $165,500  $153,900  $141,100  $159,800  $142,300  Other Floaters      $82,400   $71,200   $65,000   $77,100   $63,900  Jackups             $58,200   $57,600   $52,700   $57,900   $52,100  Other Rigs          $47,000   $45,800   $43,300   $46,500   $43,800Segment Total        $103,100   $96,600   $89,100   $99,900   $89,700TODCO Segment (3)          $-        $-   $26,200        $-   $25,900Total Drilling Fleet $103,100   $96,600   $69,600   $99,900   $70,600                                      Utilization (1) (2)                          --------------------------------------------                                                         Six Months                                                            Ended                               Three Months Ended         June 30,                          ---------------------------- ---------------Transocean Drilling       June 30,  March 31, June 30, Segment:                   2005      2005      2004     2005    2004                          --------- --------- -------- ------- -------  High-Specification   Floaters:    Fifth-Generation     Deepwater Floaters         92%       90%      90%     91%     91%    Other Deepwater     Floaters                   80%       75%      70%     78%     74%    Other High-     Specification     Floaters                   90%       91%      75%     91%     74%  Total High-Specification   Floaters                     86%       83%      79%     85%     81%  Other Floaters                63%       57%      45%     60%     44%  Jackups                       94%       94%      85%     94%     84%  Other Rigs                    57%       44%      46%     50%     50%Segment Total                   79%       75%      68%     77%     68%TODCO Segment  (3)               -         -       41%      -      39%Total Drilling Fleet            79%       75%      56%     77%     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.                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations          Adjusted Net Income and Diluted Earnings Per Share                           (in US$ millions)                           Three Months Ended        Six Months Ended                      ----------------------------- ------------------                      June 30,  March 31, June 30,  June 30,  June 30,                        2005      2005      2004      2005      2004                      --------- --------- --------- --------- --------Adjusted Net IncomeNet income as reported  $301.8     $91.8     $48.0    $393.6    $70.7  Add back (subtract):    After-tax gain     from TODCO Stock     Sales              (165.0)        -         -    (165.0)   (39.4)    After-tax loss on     retirement of     debt                    -       6.7         -       6.7     28.1    After-tax gain     from sale of     assets               (9.1)    (18.8)    (21.6)    (27.9)   (21.6)    Tax valuation     allowance related     to TODCO IPO            -         -         -         -     31.0    Stock option     vesting resulting     from the TODCO     IPO                     -         -         -         -      7.1                      --------- --------- --------- --------- --------Net income as adjusted  $127.7     $79.7     $26.4    $207.4    $75.9                      --------- --------- --------- --------- --------Diluted Earnings Per Share:Net income as reported   $0.90     $0.28     $0.15     $1.18    $0.22  Add back (subtract):    After-tax gain     from TODCO Stock     Sales               (0.49)        -         -     (0.49)   (0.12)    After-tax loss on     retirement of     debt                    -      0.02         -      0.02     0.09    After-tax gain     from sale of     assets              (0.03)    (0.06)    (0.07)    (0.08)   (0.07)    Tax valuation     allowance related     to TODCO IPO            -         -         -         -     0.09    Stock option     vesting resulting     from the TODCO     IPO                     -         -         -         -     0.02                      --------- --------- --------- --------- --------Net income as adjusted   $0.38     $0.24     $0.08     $0.63    $0.23                      --------- --------- --------- --------- --------                   Transocean Inc. and Subsidiaries            Non-GAAP Financial Measures and Reconciliations   Operating Income (Loss) Before General and Administrative Expense                 to Field Operating Income by Segment                           (in US$ millions)                             Three Months Ended      Six Months Ended                        ---------------------------- -----------------                        June 30,  March 31, June 30,      June 30,                          2005      2005      2004     2005     2004                        --------- --------- -------- -------- --------Transocean Drilling Segment  Operating revenue       $727.4    $630.5   $552.5 $1,357.9 $1,130.7  Operating and   maintenance expense     438.9     388.6    338.1    827.5    671.3  Depreciation             101.2     100.7    109.1    201.9    216.4  Gain from sale of   assets, net             (15.5)    (20.2)   (21.9)   (35.7)   (23.0)                        --------- --------- -------- -------- -------- Operating income before  general and  administrative expense   202.8     161.4    127.2    364.2    266.0 Add back: Depreciation    101.2     100.7    109.1    201.9    216.4           Gain from            sale of            assets, net    (15.5)    (20.2)   (21.9)   (35.7)   (23.0)                        --------- --------- -------- -------- -------- Field operating income   $288.5    $241.9   $214.4   $530.4   $459.4                        --------- --------- -------- -------- --------TODCO Segment (1)  Operating revenue           $-        $-    $80.7       $-   $154.5  Operating and   maintenance expense   (2)                         -         -     68.1        -    147.3  Depreciation                 -         -     23.9        -     48.1  Gain from sale of   assets, net                 -         -     (1.9)       -     (4.6)                        --------- --------- -------- -------- -------- Operating income (loss)  before general and  administrative expense       -         -     (9.4)       -    (36.3) Add back: Depreciation        -         -     23.9        -     48.1           Gain from            sale of            assets, net        -         -     (1.9)       -     (4.6)                        --------- --------- -------- -------- -------- Field operating income       $-        $-    $12.6       $-     $7.2                        --------- --------- -------- -------- --------(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) Q2 04 and YTD 04 include $7.1 million and $19.4 million,    respectively, of operating and maintenance expense that TODCO    classified as general and administrative expense.                   Transocean Inc. and Subsidiaries           Non-GAAP Financial Measures and Reconciliations                Total Debt to Net Debt Reconciliations                          (in US$ millions)                                                     As of                                         -----------------------------                                          6/30/05  12/31/04   6/30/04                                         --------- --------- ---------Total Debt to Net Debt ReconciliationTotal Debt                               $2,193.5  $2,481.5  $3,076.9Deduct: Cash and Cash Equivalents           942.5     451.3     322.1                                         --------- --------- ---------Net Debt                                 $1,251.0  $2,030.2  $2,754.8                                         --------- --------- ---------                   Transocean Inc. and Subsidiaries                     Effective Tax Rate Analysis                          (in US$ millions)                         Three Months Ended        Six Months Ended                    ----------------------------- -------------------                    June 30,  March 31, June 30,       June 30,                      2005      2005      2004      2005      2004                    --------- --------- --------- --------- ---------Income before Income Taxes and Minority Interest    $325.2    $109.5     $65.7    $434.7    $132.2  Add back   (subtract):    Stock option     vesting     resulting     from the TODCO     IPO                   -         -         -         -       7.1    Loss on     retirement     of debt               -       6.7         -       6.7      28.1    Gain on sale of     assets            (14.0)    (18.8)    (21.6)    (32.8)    (21.6)    Gain on TODCO     Stock Sales      (165.0)        -         -    (165.0)    (39.4)                    --------- --------- --------- --------- ---------Adjusted Income (Loss) before Income Taxes and Minority Interest    $146.2     $97.4     $44.1    $243.6    $106.4Income Tax Expense (Benefit)             $23.6     $17.5     $19.9     $41.1     $67.9  Add back   (subtract):    Valuation     allowance     related to     TODCO IPO             -         -         -         -     (31.0)    Other                  -         -         -         -         -    Changes in     estimates (1)       7.8      (2.2)        -       5.6         -    Gain on sale of     assets             (4.8)        -         -      (4.8)        -                    --------- --------- --------- --------- ---------Adjusted Income Tax Expense (2)           $26.6     $15.3     $19.9     $41.9     $36.9Effective Tax Rate       7.3%     16.0%     30.3%      9.5%     51.4%Effective Tax Rate Adjusted               18.2%     15.7%     45.1%     17.2%     34.7%(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.(2) The three months ended June 30, 2005 and June 30, 2004 include    $1.4 million and $4.6 million, respectively, of additional tax    expense reflecting the catch-up effect of an increase (decrease)    in the annual effective tax rate.

SOURCE: Transocean Inc.

Transocean Inc., HoustonAnalyst Contact: Jeffrey L. Chastain, 713-232-7551orMedia Contact: Guy A. Cantwell, 713-232-7647