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Transocean Inc. Reports Fourth Quarter and Full-Year 2005 Results

February 14, 2006

HOUSTON--(BUSINESS WIRE)--Feb. 14, 2006--Transocean Inc.(NYSE:RIG) today reported net income for the three months endedDecember 31, 2005 of $151.6 million, or $0.45 per diluted share, onrevenues of $771.2 million. The results compare to a net loss of $73.4million, or $0.23 per diluted share, on revenues of $676.9 million,for the three months ended December 31, 2004. Results for thecorresponding three months in 2004 included a net loss of $27.1million, or $0.09 per diluted share, related to our previouslyreported disposition of TODCO and losses on the early retirement ofdebt totaling $48.4 million, or $0.15 per diluted share.

For the 12 months ended December 31, 2005, net income totaled$715.6 million, or $2.13 per diluted share, on revenues of $2,891.7million, compared to net income of $152.2 million, or $0.47 perdiluted share, on revenues of $2,613.9 million for the corresponding12 months in 2004. Net income for the 12 months ended December 31,2005 included a net gain from TODCO stock sales of $165.0 million, or$0.49 per diluted share, gains resulting from the sale of threedrilling rigs of $27.9 million, or $0.08 per diluted share, and a losson the early retirement of debt of $6.7 million, or $0.02 per dilutedshare. The results for the comparable 12 months in 2004 included a netgain of $103.6 million, or $0.32 per diluted share, related to ourpreviously reported disposition of TODCO, a gain from the sale of adrilling rig of $21.7 million, or $0.07 per diluted share and losseson the early retirement of debt of $76.5 million, or $0.24 per dilutedshare.

The company continues to experience strong demand for itsHigh-Specification Floaters fleet with 81% of the fleet committedunder firm contracts in 2006, while 78% and 61% of the fleet time isunder contract in 2007 and 2008, respectively. Customers areindicating a continued interest in long-term contracts extendingtoward the end of the decade, especially for the company'sFifth-Generation Floaters fleet. There is also evidence of abroadening base of customers with deepwater drilling rig requirementsfor exploration and production drilling programs in various geographiclocations. Some of these rig needs could potentially be addressed bynew rig construction. The company is presently aware of a number ofoperators that have expressed an interest in awarding drillingcontracts for newly constructed ultra-deepwater floaters. Thecontracted revenue backlog at February 14, 2006 for the company'sHigh-Specification Floaters fleet was approximately $9.7 billion, or68% of the total fleet's contracted revenue backlog of $14.1 billion.

The company's fleet of 23 Other Floaters (mid-water units) islargely committed to contracts that extend into 2007, with threesemisubmersible rigs remaining idle. Robust customer demand remainsevident in most operating regions, including the North Sea, WestAfrica and India. The company was recently awarded contracts for twoof its UK North Sea semisubmersibles, the Sedco 704 and Sedco 711,each for one-year durations and at significantly improved dayrates of$310,000 and $283,000, respectively. Both rigs are now committed tocontracts that extend into 2008. The company has begun thereactivation of two previously idle semisubmersibles, the TransoceanProspect and Transocean Winner, both supported by multi-yearcontracts, which are expected to commence by June 2006 and October2006, respectively. Two additional reactivations remain possibleduring 2006 involving the semisubmersible rigs C. Kirk Rhein, Jr. andTransocean Wildcat. At present, 70% of the Other Floaters fleet isunder contract commitments in 2006, with 38% committed in 2007 and 23%in 2008.

The company's 25 Jackups are experiencing solid demand and risingdayrates in all regions. Contract durations are lengthening, withmulti-year opportunities available in Asia, the Middle East and WestAfrica. The recently announced three-year contracts for drillingprograms in India involving five of the company's jackup rigsincreased the 2006 committed time in this sector of the fleet to 83%,while 2007 and 2008 committed time improved to 64% and 39%,respectively.

Lost revenues from out-of-service time resulting from the timingof shipyard and maintenance projects and rig mobilizations, as well aspossible delays in the start of higher dayrate contracts will mostlyoffset anticipated revenue growth in the first two quarters of 2006.Delays in the start of higher dayrate contracts are generally relatedto contract provisions which allow our customers to extend contractsin order to complete a well-in-progress. The company currently expectsoperating and maintenance costs to exceed the level of costs reportedfor the fourth quarter of 2005 by approximately $30 to $50 million inthe first quarter of 2006 and $70 to $90 million in the secondquarter. The expected cost increases are due in part to thereactivation of the semisubmersible rigs Transocean Prospect and theTransocean Winner, the possible reactivation of the semisubmersiblerig C. Kirk Rhein, Jr., shipyard projects, including projects on thedrillship Discoverer Seven Seas, semisubmersible rigs TransoceanMarianas and Sedco 709 and numerous maintenance projects on rigsacross the fleet. Operating and maintenance costs for the second halfof the year are expected to gradually decline toward the levelexperienced in the fourth quarter of 2005, although the possiblereactivation of the semisubmersible rigs C. Kirk Rhein, Jr. andTransocean Wildcat, inflationary cost pressure and other factors couldslow the anticipated decline. The combination of higher operating andmaintenance expenses and lost revenue due to out-of-service time anddelays in the start of higher dayrate contracts are expected to leadto generally flat earnings in each of the first two quarters of 2006relative to the fourth quarter of 2005, excluding the effect of gainsfrom potential rig sales. Our expected results during these quarterswill be sensitive to the actual timing of shipyards, mobilizations andcontract commencements.

Operations Quarterly Review

Revenues for the three months ended December 31, 2005 improvedslightly to $771.2 million, compared to revenues of $762.6 million forthe three months ended September 30, 2005. The improvement was duechiefly to higher average dayrates, particularly among the OtherFloaters fleet, and improved revenues from integrated servicesactivities, substantially offset by increased out-of-service time dueto rig repairs and planned shipyard programs. The semisubmersible rigsTransocean Marianas and Deepwater Nautilus spent all or a significantportion of the quarter undergoing repairs following damage caused byhurricanes, while the jackup rigs Trident IV, Trident VIII and ShelfExplorer were in shipyards for all or a significant portion of thequarter for planned maintenance and repairs ahead of the commencementof new contracts. The Deepwater Nautilus returned to work in December2005; however, the rig is expected to require an additional 60 days ofout-of-service time in 2006 to complete repairs to its mooring system.The Transocean Marianas is expected to return to work by the end ofthe first quarter of 2006, but will require approximately 30 daysadditional out-of-service time in 2006 for repairs. The Shelf Explorerhas commenced its new contract in Indonesia while the Trident IV andTrident VIII are expected to complete shipyard programs and commencenew contracts by the end of February 2006 and March 2006,respectively. The increased level of out-of-service time resulted in adecline in fleet utilization to 78% during the three months endedDecember 31, 2005, from 82% in the previous quarter of 2005, withutilization of the High-Specification Floaters and Jackupsexperiencing the most significant reduction. The average fleet dayrateincreased 6% to $113,300 during the three months ended December 31,2005, from $107,100 in the previous quarter of 2005.

Operating income before general and administrative expenses(1)totaled $207.2 million and field operating income (defined as revenuesless operating and maintenance expense) was $314.2 million, for thethree months ended December 31, 2005, down from $222.9 million and$324.4 million, respectively, for the three months ended September 30,2005. The decline was due chiefly to higher operating and maintenanceexpense which increased 4% from the previous quarter in 2005 to $457.0million, primarily resulting from rig repair costs and higher shipyardand integrated services activities. Repairs to the Deepwater Nautilusand Transocean Marianas totaled approximately $13 million in thefourth quarter of 2005, while costs, net of deferrals, associated withscheduled rig maintenance ahead of new contracts for thesemisubmersible rig Sedco Energy, drillship Peregrine I and jackuprigs Shelf Explorer and Trident VIII were approximately $27 million.

Effective Tax Rate

The company's effective tax rate(2) for the 12 months endedDecember 31, 2005 was 16.8%, excluding the previously mentionedeffects on income before tax related to the gains from the TODCO stocksales, rig sales and losses on retirement of debt, and excludingvarious discrete tax items. The actual effective tax rate ofapproximately 12% for the fourth quarter of 2005 reflects the effectof the lower annual effective tax rate, in addition to the impact ofdiscreet tax items for the settlement of prior year tax disputes,adjustments of deferred tax and valuation allowances and other changesin estimates. The impact of these items in the fourth quarter of 2005was a reduction in the tax provision of approximately $5 million.

Share Buyback

During the three months ended December 31, 2005, the companypurchased $400 million of its ordinary shares, or 6,014,751 shares,pursuant to the $2 billion share repurchase authorization granted bythe company's Board of Directors in October 2005. The shares werepurchased at an average price of $66.50 per share.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. ET onFebruary 14, 2006. To participate, dial 303-262-2175 approximatelyfive to 10 minutes prior to the scheduled start time of the call. Inaddition, the conference call will be simultaneously broadcast overthe Internet in a listen-only mode and can be accessed by logging ontothe company's website at www.deepwater.com and selecting \"InvestorRelations.\" 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 conferencecall should be available after 1:00 p.m. ET on February 14 and can beaccessed by dialing 303-590-3000 and referring to the passcode11051193. Also, a replay will be available through the Internet andcan be accessed by visiting either of the above-referenced WorldwideWeb addresses.

Forward-Looking Disclaimer

Statements regarding market and business outlook, client contractterm interest, newbuild demand and opportunities, deepwater demand,contract backlog, committed fleet time, newbuild jackup rig marketingefforts, mooring system upgrades, duration of current demand cycle,rig demand, timing and impact of shipyard and maintenance projects andreactivations, revenues, costs, earnings, rig sales, out-of-servicetime, contract duration, contract opportunities, opportunities for thecompany, dayrates, 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, future financial results, actions bycustomers and other third parties, factors affecting the duration ofcontracts including well-in-progress provisions, the actual amount ofdowntime, factors resulting in reduced applicable dayrates, hurricanesand other weather conditions, the future price of oil and gas andother factors detailed in the company's most recent Form 10-K andother filings with the Securities and Exchange Commission. Should oneor more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may varymaterially from those indicated.

Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 90 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), 23Other Floaters, 25 Jackups and other assets utilized in the support ofoffshore drilling activities worldwide. With a current equity marketcapitalization in excess of $25 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"

    (1) 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        by Segment.    (2) References to effective tax rate are based on the Effective        Tax Rate as shown in the accompanying schedule titled        Effective Tax Rate Analysis.
                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONSOLIDATED STATEMENTS OF OPERATIONS                 (In millions, except per share data)                                Three Months Ended     Years Ended                                   December 31,        December 31,                                 ----------------- -------------------                                    2005     2004     2005      2004                                   ------  -------  --------  --------Operating Revenues   Contract drilling revenues     $738.8  $ 626.9  $2,757.1  $2,416.4   Other revenues                   32.4     50.0     134.6     197.5                                   ------  -------  --------  --------                                   771.2    676.9   2,891.7   2,613.9Costs and Expenses   Operating and maintenance       457.0    467.4   1,720.6   1,713.6   Depreciation                    101.8    126.2     405.8     524.6   General and administrative       19.3     22.7      74.8      67.0                                   ------  -------  --------  --------                                   578.1    616.3   2,201.2   2,305.2 Gain (loss) from disposal of  assets, net                       (5.2)    (4.4)     29.0      19.2                                   ------  -------  --------  --------Operating Income                   187.9     56.2     719.5     327.9                                   ------  -------  --------  --------Other Income (Expense), net   Equity in earnings of    unconsolidated affiliates        1.8      1.5      10.1       9.2   Interest income                   5.6      2.8      19.6       9.3   Interest expense, net of    amounts capitalized            (23.8)   (39.1)   (111.2)   (171.7)   Gain from TODCO Stock Sales         -    140.0     165.0     308.8   Non-cash TODCO tax sharing    agreement charge                   -   (167.1)        -    (167.1)   Loss on retirement of debt          -    (48.4)     (7.3)    (76.5)   Other, net                        1.1        -       6.7       0.4                                   ------  -------  --------  --------                                   (15.3)  (110.3)     82.9     (87.6)                                   ------  -------  --------  --------Income (Loss) Before Income Taxes and Minority Interest       172.6    (54.1)    802.4     240.3   Income Tax Expense               21.0     17.1      86.8      91.3   Minority Interest                   -      2.2         -      (3.2)                                   ------  -------  --------  --------Net Income (Loss)                 $151.6  $ (73.4) $  715.6  $  152.2                                   ======  =======  ========  ========Earnings (Loss) Per Share   Basic                          $ 0.46  $ (0.23) $   2.19  $   0.47                                   ------  -------  --------  --------   Diluted                        $ 0.45  $ (0.23) $   2.13  $   0.47                                   ------  -------  --------  --------Weighted Average Shares Outstanding   Basic                           329.8    321.2     327.1     320.9                                   ------  -------  --------  --------   Diluted                         336.1    321.2     339.4     325.2                                   ------  -------  --------  --------                   TRANSOCEAN INC. AND SUBSIDIARIES                      CONSOLIDATED BALANCE SHEETS                   (In millions, except share data)                                                     December 31,                                                 ---------------------                                                    2005       2004                                                  ---------  ---------                     ASSETSCash and Cash Equivalents                        $   445.4  $   451.3Accounts Receivable, net  Trade                                              582.5      426.5  Other                                               17.2       15.5Materials and Supplies, net                          156.2      144.7Deferred Income Taxes, net                            23.4       19.0Other Current Assets                                  54.4       52.1                                                  ---------  ---------Total Current Assets                               1,279.1    1,109.1                                                  ---------  ---------Property and Equipment                             9,791.0    9,732.9Less Accumulated Depreciation                      3,042.8    2,727.7                                                  ---------  ---------  Property and Equipment, net                      6,748.2    7,005.2                                                  ---------  ---------Goodwill                                           2,208.9    2,251.9Investments in and Advances to Unconsolidated Affiliates                                            8.1      109.2Deferred Income Taxes                                    -       43.8Other Assets                                         212.9      239.1                                                  ---------  ---------Total Assets                                     $10,457.2  $10,758.3                                                  =========  =========      LIABILITIES AND SHAREHOLDERS' EQUITYAccounts Payable                                 $   254.0  $   180.8Accrued Income Taxes                                  27.5       17.1Debt Due Within One Year                             400.0       19.4Other Current Liabilities                            242.1      213.0                                                  ---------  ---------Total Current Liabilities                            923.6      430.3                                                  ---------  ---------Long-Term Debt                                     1,197.1    2,462.1Deferred Income Taxes, net                            65.0      124.1Other Long-Term Liabilities                          286.2      345.2                                                  ---------  ---------Total Long-Term Liabilities                        1,548.3    2,931.4                                                  ---------  ---------Commitments and ContingenciesMinority Interest                                      3.6        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, 324,750,166 and 321,533,998 shares issued and outstanding at December 31, 2005 and 2004, respectively                           3.2        3.2Additional Paid-in Capital                        10,565.3   10,695.8Accumulated Other Comprehensive Loss                 (20.4)     (24.4)Retained Deficit                                  (2,566.4)  (3,282.0)                                                  ---------  ---------Total Shareholders' Equity                         7,981.7    7,392.6                                                  ---------  ---------Total Liabilities and Shareholders' Equity       $10,457.2  $10,758.3                                                  =========  =========                   TRANSOCEAN INC. AND SUBSIDIARIES                 CONSOLIDATED STATEMENTS OF CASH FLOWS                             (In millions)                                 Three Months                                     Ended            Years Ended                                 December 31,        December 31,                               ----------------- ---------------------                                  2005     2004       2005       2004                                -------  -------  ---------  ---------Cash Flows from Operating Activities   Net income                  $ 151.6  $ (73.4) $   715.6  $   152.2   Adjustments to reconcile net    income to net cash provided    by operating activities    Depreciation                 101.8    126.2      405.8      524.6    Stock-based compensation     expense                       4.3      7.6       16.4       25.3    Deferred income taxes         33.7     (2.3)      27.1       18.1    Equity in earnings of     unconsolidated affiliates    (1.8)    (1.5)     (10.1)      (9.2)    Net (gain)/loss from     disposal of assets            5.2      4.4      (29.0)     (19.2)    Gain from TODCO Stock Sales      -   (140.0)    (165.0)    (308.8)    Non-cash TODCO tax sharing     agreement charge                -    167.1          -      167.1    Loss on retirement of debt       -     48.4        7.3       76.5    Amortization of debt- related     discounts/premiums, fair     value adjustments and     issue costs, net             (0.3)    (3.6)      (6.6)     (21.2)    Deferred income, net           2.5     20.2       (7.4)      35.3    Deferred expenses, net        (9.5)    (3.5)      17.6      (22.0)    Tax benefit from exercise     of options to purchase and     vesting of ordinary shares     under stock-based     compensation plans            2.0      5.9       22.1        5.9    Other long-term liabilities    4.8      4.8       22.8       10.2    Other, net                    (2.9)    (5.5)     (17.3)      (6.1)    Changes in operating assets     and liabilities       Accounts receivable        (3.1)    (6.1)    (149.8)     (29.3)       Accounts payable and        other current        liabilities                1.6    (56.5)      87.2        4.6       Income taxes        receivable/payable, net  (37.6)    (4.2)     (50.6)       1.2       Other current assets       (3.8)     5.3      (21.9)      (5.3)------------------------------- -------- -------- ---------- ---------Net Cash Provided by Operating Activities                      248.5     93.3      864.2      599.9------------------------------- -------- -------- ---------- ---------Cash Flows from Investing Activities  Capital expenditures           (37.0)   (27.2)    (181.9)    (127.0)  Proceeds from disposal of   assets, net                    13.8      6.6       74.1       52.9  Proceeds from TODCO Stock   Sales, net                        -    258.0      271.9      683.6  Reduction of cash from the   deconsolidation of TODCO          -    (68.6)         -      (68.6)  Joint ventures and other   investments, net                  -      1.4        4.5       10.4------------------------------- -------- -------- ---------- ---------Net Cash Provided by (Used In) Investing Activities            (23.2)   170.2      168.6      551.3------------------------------- -------- -------- ---------- ---------Cash Flows from Financing Activities  Repayments on revolving   credit agreement                  -    (50.0)         -     (250.0)  Repayments on other debt   instruments                       -   (548.3)    (880.2)    (955.3)  Net proceeds from issuance of   ordinary shares under stock-   based compensation plans       23.4     10.4      219.5       30.4  Proceeds from issuance of   ordinary shares upon   exercise of warrants              -        -       10.6          -  Repurchase of ordinary shares (400.0)       -     (400.0)         -  Decrease in cash dedicated to   debt service                      -        -       12.0          -  Other, net                      (0.1)    (0.1)      (0.6)       1.0------------------------------- -------- -------- ---------- ---------Net Cash Used in Financing Activities                     (376.7)  (588.0)  (1,038.7)  (1,173.9)------------------------------- -------- -------- ---------- ---------Net Decrease in Cash and Cash Equivalents                    (151.4)  (324.5)      (5.9)     (22.7)------------------------------- -------- -------- ---------- ---------Cash and Cash Equivalents at Beginning of Period             596.8    775.8      451.3      474.0------------------------------- -------- -------- ---------- ---------Cash and Cash Equivalents at End of Period                 $ 445.4  $ 451.3  $   445.4  $   451.3=============================== ======== ======== ========== =========                            Transocean Inc.                      Fleet Operating Statistics                               Operating Revenues ($ Millions)                      ------------------------------------------------                           Three Months Ended           Years Ended                      ----------------------------- ------------------                      December  September December     December 31,Transocean Drilling      31,       30,       31, Segment:               2005      2005      2004        2005      2004                      --------- --------- ---------  --------  -------Contract Drilling Revenues    High-Specification     Floaters:        Fifth-         Generation         Deepwater         Floaters     $  221.4  $  220.9  $  190.7  $  848.4  $  781.0        Other         Deepwater         Floaters     $  150.4  $  161.8  $  114.2  $  583.2  $  438.1        Other High-         Specification         Floaters     $   59.5  $   60.8  $   45.7  $  226.5  $  142.0    Total High-     Specification     Floaters         $  431.3  $  443.5  $  350.6  $1,658.1  $1,361.1    Other Floaters    $  153.4  $  136.1  $   71.6  $  491.9  $  267.6    Jackups           $  132.9  $  133.2  $  108.1  $  520.8  $  417.6    Other Rigs        $   21.2  $   22.8  $   23.7  $   86.3  $   87.8Subtotal              $  738.8  $  735.6  $  554.0  $2,757.1  $2,134.1Other Revenues    Client     Reimbursable     Revenues         $   21.1  $   19.8  $   18.2  $   84.8  $   73.8    Integrated     Services and     Other            $   11.3  $    7.2  $   18.8  $   49.8  $   72.5Subtotal              $   32.4  $   27.0  $   37.0  $  134.6  $  146.3Segment Total         $  771.2  $  762.6  $  591.0  $2,891.7  $2,280.4TODCO Segment (2)Contract Drilling Revenues             $      -  $      -  $   72.9  $      -  $  282.3Other Revenues    Client     Reimbursable     Revenues         $      -  $      -  $    5.7  $      -  $   21.9    Delta Towing and     Other            $      -  $      -  $    7.3  $      -  $   29.3Subtotal              $      -  $      -  $   13.0  $      -  $   51.2Segment Total         $      -  $      -  $   85.9  $      -  $  333.5Total Company         $  771.2  $  762.6  $  676.9  $2,891.7  $2,613.9                               Average Daily Revenue  (1) (3)                      ------------------------------------------------                           Three Months Ended           Years Ended                      ----------------------------- ------------------                      December  September December     December 31,Transocean Drilling      31,       30,       31, Segment:               2005      2005      2004        2005      2004                      --------- --------- ---------  --------  -------    High-Specification     Floaters:        Fifth-         Generation         Deepwater         Floaters     $215,800  $197,100  $180,100  $198,000  $185,700     Other Deepwater      Floaters        $138,800  $141,700  $119,400  $134,700  $107,800        Other High-         Specification         Floaters     $161,700  $166,300  $135,700  $162,900  $120,000    Total High-     Specification     Floaters         $174,100  $168,800  $149,000  $165,700  $144,000    Other Floaters    $ 98,500  $ 90,400  $ 64,000  $ 86,500  $ 64,300    Jackups           $ 64,900  $ 58,900  $ 55,800  $ 59,800  $ 53,100    Other Rigs        $ 48,500  $ 48,000  $ 48,100  $ 47,300  $ 45,100Segment Total         $113,300  $107,100  $ 93,900  $105,100  $ 91,100TODCO Segment (2)     $      -  $      -  $ 28,600  $      -  $ 26,900Total Drilling Fleet  $113,300  $107,100  $ 74,200  $105,100  $ 71,300                                         Utilization (1) (3)                               ---------------------------------------                                   Three Months Ended      Years Ended                               --------------------------- -----------                               December September December  December                                  31,      30,       31,       31,Transocean Drilling Segment:     2005     2005      2004   2005  2004                               -------- --------- -------- ----- -----    High-Specification     Floaters:        Fifth-Generation         Deepwater Floaters         86%       94%      89%   90%   88%        Other Deepwater         Floaters                   79%       83%      69%   79%   74%        Other High-         Specification Floaters    100%       99%      92%   95%   81%    Total High-Specification     Floaters                       84%       89%      80%   86%   81%    Other Floaters                  71%       68%      50%   65%   45%    Jackups                         89%       98%      81%   94%   83%    Other Rigs                      49%       51%      54%   50%   50%Segment Total                       78%       82%      69%   79%   68%TODCO Segment  (2)                   -         -       47%    -    43%Total Drilling Fleet                78%       82%      61%   79%   58%(1) Average daily revenue is 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.(2) TODCO was deconsolidated effective December 17, 2004.(3) Excludes a drillship engaged in scientific geological coring    activities, the Joides Resolution, that is owned by a joint    venture in which we have a 50 percent interest and is accounted    for under the equity method of accounting.                   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          Years Ended                       --------------------------- -------------------                       December September December    December 31,                          31,       30,      31,                         2005      2005     2004      2005      2004                        -------  --------  -------  --------  --------Transocean Drilling Segment  Operating revenue    $ 771.2  $  762.6  $ 591.0  $2,891.7  $2,280.4  Operating and   maintenance expense   (1)                   457.0     438.2    405.9   1,720.6   1,432.6  Depreciation           101.8     102.1    106.2     405.8     432.6  (Gain) loss from   disposal of assets,   net                     5.2      (0.6)     5.0     (29.0)    (13.4)                        -------  --------  -------  --------  -------- Operating income  before general and  administrative  expense                207.2     222.9     73.9     794.3     428.6 Add back: Depreciation  101.8     102.1    106.2     405.8     432.6           (Gain) loss            from            disposal of            assets, net            (1)            5.2      (0.6)     5.0     (29.0)    (13.4)                        -------  --------  -------  --------  -------- Field  operating  income               $ 314.2  $  324.4  $ 185.1  $1,171.1  $  847.8                        -------  --------  -------  --------  --------TODCO Segment (2)  Operating   revenue             $     -  $      -  $  85.9  $      -  $  333.5  Operating and   maintenance expense   (1) (3)                   -         -     61.5         -     281.0  Depreciation               -         -     20.0         -      92.0  (Gain) loss from   disposal of assets,   net                       -         -     (0.6)        -      (5.8)                        -------  --------  -------  --------  -------- Operating income  (loss) before general  and administrative  expense                    -         -      5.0         -     (33.7) Add back: Depreciation      -         -     20.0         -      92.0           (Gain) loss            from            disposal of            assets, net            (1)              -         -     (0.6)        -      (5.8)                        -------  --------  -------  --------  -------- Field  operating  income               $     -  $      -  $  24.4  $      -  $   52.5                        -------  --------  -------  --------  --------(1) Loss on retirement for Q4 05, Q3 05, Q4 04, YTD Q4 05 and YTD Q4    04 of $6.7 million, $1.6 million, $7.4 million, $10.4 million and    $12.7 million, respectively, was reclassed out of Operating and    maintenance expense and into Gain (loss) from disposal of asset,    net for each period presented.(2) 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    stock.(3) Q4 04 and YTD 04 include $6.0 million and $32.3 million,    respectively, of operating and maintenance expense that TODCO    classified as general and administrative expense.                   Transocean Inc. and Subsidiaries                      Effective Tax Rate Analysis                           (in US$ millions)                            Three Months Ended         Years Ended                         --------------------------- -----------------                        December September December   December 31,                            31,      30,       31,                          2005      2005     2004    2005 (3) 2004 (3)                         ------    ------  -------   -------  -------Income (Loss) before Income Taxes and Minority Interest                $172.6    $195.1  $ (54.1) $ 802.4  $ 240.3 Add back  (subtract):  Stock option   vesting   resulting from   the TODCO IPO              -         -        -        -      7.1  Loss on   retirement of   debt                       -       0.6     48.4      7.3     76.5  Gain on sale of   assets                     -         -     (0.1)   (32.8)   (21.7)  Gain on TODCO   Stock Sales                -         -   (140.0)  (165.0)  (308.8)  Income from   TODCO tax   sharing   agreement               (1.3)    (10.1)       -    (11.4)       -  Write-off of   receivable   from related   party                      -         -    167.1        -    167.1                         ------    ------  -------   -------  -------Adjusted Income before Income Taxes and Minority Interest                $171.3    $185.6  $  21.3  $ 600.5  $ 160.5Income Tax Expense                 $ 21.0    $ 24.7  $  17.1  $  86.8  $  91.3 Add back  (subtract):  Valuation   allowance   related to   TODCO Stock   Sales                      -         -    (15.1)       -    (32.4)  Other                       -         -        -        -     (1.1)  Changes in   estimates (1)            4.8       8.5     16.2     18.9     21.9  Gain on sale of   assets                     -         -        -     (4.8)       -                         ------    ------  -------   -------  -------Adjusted Income Tax Expense (2)                     $ 25.8    $ 33.2  $  18.2  $ 100.9  $  79.7Tax Rate                   12.2%     12.7%   -31.6%    10.8%    38.0%Effective Tax Rate                      15.1%     17.9%    85.4%    16.8%    49.7%(1) Our estimates change as we file tax returns, settle disputes with    tax authorities or become aware of other events and include    changes in deferred taxes, valuation allowances on deferred taxes    and other tax liabilities.(2) The three months ended December 31, 2005, September 30, 2005 and    December 31, 2004 include $(3.0) million, $0.8 million and $(3.3)    million, respectively, of additional tax expense (benefit)    reflecting the catch-up effect of an increase in the annual    effective tax rate.(3) Cumulative year-to-date amounts may include amounts which were    not included in a particular quarter presented for that year.

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

SOURCE: Transocean Inc.