Transocean Inc. Announces Increase of Share Repurchase Authorization from $2.0 Billion to $4.0 Billion
HOUSTON--(BUSINESS WIRE)--May 12, 2006--Transocean Inc. (NYSE:RIG)today announced that the company's Board of Directors has authorizedan increase in the amount of ordinary shares which may be repurchasedpursuant to the company's share repurchase program from $2.0 billion,which was previously authorized and announced on October 17, 2005, to$4.0 billion. As of today, the company has repurchased $600 million,or 8,593,251 of its ordinary shares under the share repurchaseprogram. While the share repurchase program does not have anestablished expiration date and may be suspended or discontinued atany time, the company expects to repurchase approximately $3.6 billionof ordinary shares by the end of 2007, inclusive of the $600 millionrepurchased to date, subject to requirements generated by its successin signing additional newbuild contracts. The ordinary shares may berepurchased from time to time in open market or private transactions.The company's decisions as to when and how many shares to repurchaseand the method and funding of such repurchases are based upon thecompany's ongoing capital requirements, regulatory considerations,cash flow generation and other factors. The company plans to continueto fund the repurchase program from current and future cash balances,but may also access its revolving credit facility to fund sharerepurchases. Transocean Inc. currently has approximately 325 millionordinary shares outstanding.
Also, the company reported that its Board of Directors hasauthorized an expansion of Transocean's revolving credit facility to$1 billion from the previous amount of $500 million.
Robert L. Long, President and Chief Executive Officer ofTransocean Inc., commented, \"Our decision to increase the company'sshare repurchase program to $4.0 billion reflects the substantialincrease in the company's contract backlog, which currently totals anestimated $17 billion compared to approximately $8 billion in October2005 and takes into consideration the improved outlook forreinvestment opportunities. To date, we have signed contracts for theconstruction of an enhanced Enterprise-class deepwater drillship andtwo significant upgrades of our Sedco 700-series semisubmersible rigstotaling in excess of $1.2 billion in capital investment. In addition,we remain encouraged by the prospects for further deepwaterconstruction programs expected to be awarded in the near future andare hopeful that the company may secure at least one additionalnewbuild opportunity in the coming months. We believe the size andtiming of the revised repurchase program allows the company tomaintain the financial flexibility necessary to capture thesepotential growth opportunities.\"
Statements regarding new rig construction opportunities, the sharerepurchase program, including timing, duration and form oftransaction, the factors to be considered, source of funding,termination of the program, as well as any other statements that arenot historical facts, are forward-looking statements that involvecertain risks, uncertainties and assumptions. These include but arenot limited to the factors stated in the preceding paragraph,operating hazards and delays, actions by customers and other thirdparties, the future price of oil and gas, the actual revenues earnedand other factors detailed in the company's most recent Form 10-K andother filings with the Securities and Exchange Commission (SEC), whichare available free of charge on the SEC's website at www.sec.gov.Should one or more of these risks or uncertainties materialize, orshould underlying assumptions prove incorrect, actual results may varymaterially from those indicated. There can be no assurance as to thenumber of shares, if any, that will be repurchased under the program.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 88 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 33High-Specification Floaters (semisubmersibles and drillships), 21Other Floaters, 25 Jackups and other assets utilized in the support ofoffshore drilling activities worldwide. With a current equity marketcapitalization in excess of $28 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"
CONTACT: Transocean Inc., Houston Analyst Contact: Jeffrey L. Chastain, 713-232-7551 or Media Contact: Guy A. Cantwell, 713-232-7647 SOURCE: Transocean Inc.