Transocean Ltd. (NYSE: RIG) today reported a net loss attributable
to controlling interest of $165 million, $0.22 per
diluted share, for the three months ended June 30, 2023.
Second quarter results included net unfavorable items of
$55 million, or $0.07 per diluted share as follows:
- $53 million, $0.07 per
diluted share, loss on impairment of assets; and
- $2 million, other discrete
items, net.
After consideration of these net unfavorable items, second
quarter 2023 adjusted net loss was $110 million, or
$0.15 per diluted share.
Contract drilling revenues for the three months ended
June 30, 2023, increased sequentially by $80 million to
$729 million, primarily due to increased activity for rigs
that returned to work after being idle in the first quarter, the
commencement of operations of the newbuild Deepwater Titan and
$19 million of revenues associated with the early termination
of Transocean Endurance and Transocean Barents, partially offset by
reduced activity for two rigs that were idle in the second quarter
of 2023.
Contract intangible amortization represented a non-cash revenue
reduction of $19 million. This compares with $18 million
in the prior quarter.
Operating and maintenance expense was $484 million,
compared with $409 million in the prior quarter. The
sequential increase was primarily due to rigs that returned to work
after being idle, the commencement of operations of the newbuild
Deepwater Titan and higher costs associated with two rigs
undergoing contract preparation.
Interest expense, net of amounts capitalized, was
$168 million, compared with $249 million in the prior
quarter. Interest expense included a non-cash loss of
$46 million, compared with $133 million in the prior
quarter, associated with the fair value adjustment of the
bifurcated exchange feature embedded in our exchangeable bonds
issued in September of 2022. Interest income was $11 million,
compared with $19 million in the previous quarter.
The Effective Tax Rate(2) was 8.8%, up from (12.3)% in the
prior quarter. The increase was primarily due to updates to our
forecast to include losses on revaluation of our exchangeable
bonds. The Effective Tax Rate excluding discrete items
was 11.7% compared to (29.0)% in the previous quarter.
Cash provided by operating activities was $157 million
during the second quarter of 2023, representing an increase of
$204 million compared to the prior quarter. The sequential
increase is primarily due to increased collections from customers,
reduced payments for payroll-related items, and reduced payments
for interest.
Second quarter 2023 capital expenditures of $76 million
decreased primarily due to reduced spending for our newbuild rigs
under construction. This compares with $81 million in the
prior quarter.
“During the second quarter, we continued to benefit from
increased demand for our fleet of high-specification floaters. As
of our latest fleet status report, we secured an additional
$1.2 billion of backlog at a weighted average dayrate of
approximately $456,000,” said Chief Executive Officer, Jeremy
Thigpen. “As evidenced by our customers contracting rigs well
in advance of their programs and committing to long-term contracts,
the outlook for our high-specification assets and services remains
robust.”
Thigpen concluded, “In addition to securing contracts at
market-leading rates, our focus remains on the flawless execution
of our offshore operations to maximize the value of our
$9.2 billion backlog for our shareholders.”
Non-GAAP Financial Measures
We present our operating results in accordance with accounting
principles generally accepted in the U.S. (“U.S. GAAP”). We believe
certain financial measures, such as Adjusted Contract Drilling
Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which
are non-GAAP measures, provide users of our financial statements
with supplemental information that may be useful in evaluating our
operating performance. We believe that such non-GAAP measures, when
read in conjunction with our operating results presented under U.S.
GAAP, can be used to better assess our performance from period to
period and relative to performance of other companies in our
industry, without regard to financing methods, historical cost
basis or capital structure. Such non-GAAP measures should be
considered as a supplement to, and not as a substitute for,
financial measures prepared in accordance with U.S. GAAP.
All non-GAAP measure reconciliations to the most comparative
U.S. GAAP measures are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
About Transocean
Transocean is a leading international provider of offshore
contract drilling services for oil and gas wells. The company
specializes in technically demanding sectors of the global offshore
drilling business with a particular focus on ultra-deepwater and
harsh environment drilling services, and operates the highest
specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and
operates a fleet of 37 mobile offshore drilling units,
consisting of 28 ultra-deepwater floaters and nine harsh
environment floaters. In addition, Transocean holds a
noncontrolling ownership interest in a company that is constructing
one ultra-deepwater drillship.
For more information about Transocean, please visit:
www.deepwater.com.
Conference Call Information
Transocean will conduct a teleconference starting at 9 a.m.
EDT, 3 p.m. CEST, on Tuesday, August 1, 2023, to discuss
the results. To participate, dial +1 785-424-1222 and refer to
conference code 623461 approximately 15 minutes prior to
the scheduled start time.
The teleconference will be simulcast in a listen-only mode at:
www.deepwater.com, by selecting Investors, News, and Webcasts.
Supplemental materials that may be referenced during the
teleconference will be available at: www.deepwater.com, by
selecting Investors, Financial Reports.
A replay of the conference call will be available after
12 p.m. EDT, 6 p.m. CEST, on Tuesday, August 1,
2023. The replay, which will be archived for approximately
30 days, can be accessed at +1 402-220-7343,
passcode 623461. The replay will also be available on the
company’s website.
Forward-Looking Statements
The statements described herein that are not historical facts
are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements could contain words such as "possible," "intend,"
"will," "if," "expect," or other similar expressions.
Forward-looking statements are based on management’s current
expectations and assumptions, and are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, actual results could differ
materially from those indicated in these forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, estimated duration of
customer contracts, contract dayrate amounts, future contract
commencement dates and locations, planned shipyard projects and
other out-of-service time, sales of drilling units, timing of the
company’s newbuild deliveries, operating hazards and delays, risks
associated with international operations, actions by customers and
other third parties, the fluctuation of current and future prices
of oil and gas, the global and regional supply and demand for oil
and gas, the intention to scrap certain drilling rigs, the success
of our business following prior acquisitions, the effects of the
spread of and mitigation efforts by governments, businesses and
individuals related to contagious illnesses, such as COVID-19, and
other factors, including those and other risks discussed in the
company's most recent Annual Report on Form 10-K for the year
ended December 31, 2022, and in the company's other filings
with the SEC, which are available free of charge on the SEC's
website at: www.sec.gov. Should one or more of these risks or
uncertainties materialize (or the other consequences of such a
development worsen), or should underlying assumptions prove
incorrect, actual results may vary materially from those indicated
or expressed or implied by such forward-looking statements. All
subsequent written and oral forward-looking statements attributable
to the company or to persons acting on our behalf are expressly
qualified in their entirety by reference to these risks and
uncertainties. You should not place undue reliance on
forward-looking statements. Each forward-looking statement speaks
only as of the date of the particular statement, and we undertake
no obligation to publicly update or revise any forward-looking
statements to reflect events or circumstances that occur, or which
we become aware of, after the date hereof, except as otherwise may
be required by law. All non-GAAP financial measure reconciliations
to the most comparative GAAP measure are displayed in quantitative
schedules on the company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute
an offer to sell, or a solicitation of an offer to buy, any
securities, and do not constitute an offering prospectus within the
meaning of the Swiss Financial Services Act (“FinSA”) or
advertising within the meaning of the FinSA. Investors must rely on
their own evaluation of Transocean and its securities, including
the merits and risks involved. Nothing contained herein is, or
shall be relied on as, a promise or representation as to the future
performance of Transocean.
Notes
(1) |
|
Revenue efficiency is defined as actual operating revenues,
excluding revenues for contract terminations and reimbursements,
for the measurement period divided by the maximum revenue
calculated for the measurement period, expressed as a percentage.
Maximum revenue is defined as the greatest amount of contract
drilling revenues the drilling unit could earn for the measurement
period, excluding revenues for incentive provisions, reimbursements
and contract terminations. See the accompanying schedule entitled
“Revenue Efficiency.” |
|
|
|
(2) |
|
Effective Tax Rate is defined as income tax expense or benefit
divided by income or loss before income taxes. See the accompanying
schedule entitled “Supplemental Effective Tax Rate Analysis.” |
|
|
|
Analyst Contact:Alison Johnson+1
713-232-7214
Media Contact:Pam Easton+1 713-232-7647
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In millions, except per share data) |
(Unaudited) |
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
|
$ |
729 |
|
|
$ |
692 |
|
|
$ |
1,378 |
|
|
$ |
1,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating and maintenance |
|
|
484 |
|
|
|
433 |
|
|
|
893 |
|
|
|
845 |
|
|
Depreciation and amortization |
|
|
186 |
|
|
|
184 |
|
|
|
368 |
|
|
|
367 |
|
|
General and administrative |
|
|
48 |
|
|
|
43 |
|
|
|
93 |
|
|
|
85 |
|
|
|
|
|
718 |
|
|
|
660 |
|
|
|
1,354 |
|
|
|
1,297 |
|
|
Loss on impairment of assets |
|
|
(53 |
) |
|
|
— |
|
|
|
(53 |
) |
|
|
— |
|
|
Loss on
disposal of assets, net |
|
|
— |
|
|
|
(4 |
) |
|
|
(170 |
) |
|
|
(3 |
) |
|
Operating income (loss) |
|
|
(42 |
) |
|
|
28 |
|
|
|
(199 |
) |
|
|
(22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
11 |
|
|
|
4 |
|
|
|
30 |
|
|
|
6 |
|
|
Interest expense, net of amounts capitalized |
|
|
(168 |
) |
|
|
(100 |
) |
|
|
(417 |
) |
|
|
(202 |
) |
|
Loss on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
(32 |
) |
|
|
— |
|
|
Other, net |
|
|
18 |
|
|
|
3 |
|
|
|
23 |
|
|
|
4 |
|
|
|
|
|
(139 |
) |
|
|
(93 |
) |
|
|
(396 |
) |
|
|
(192 |
) |
|
Loss before income tax expense (benefit) |
|
|
(181 |
) |
|
|
(65 |
) |
|
|
(595 |
) |
|
|
(214 |
) |
|
Income
tax expense (benefit) |
|
|
(16 |
) |
|
|
3 |
|
|
|
35 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
(165 |
) |
|
|
(68 |
) |
|
|
(630 |
) |
|
|
(243 |
) |
|
Net income attributable to noncontrolling interest |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Net loss attributable to controlling interest |
|
$ |
(165 |
) |
|
$ |
(68 |
) |
|
$ |
(630 |
) |
|
$ |
(243 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share, basic and
diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.36 |
) |
|
Weighted-average shares, basic
and diluted |
|
|
761 |
|
|
|
692 |
|
|
|
745 |
|
|
|
678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In millions, except share data) |
(Unaudited) |
|
|
June 30, |
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
821 |
|
|
$ |
683 |
|
|
Accounts receivable, net of
allowance of $3 and $2 at June 30, 2023 and December 31, 2022,
respectively |
|
|
523 |
|
|
|
485 |
|
|
Materials and supplies, net of
allowance of $202 and $199 at June 30, 2023 and December 31, 2022,
respectively |
|
|
397 |
|
|
|
388 |
|
|
Restricted cash and cash equivalents |
|
|
213 |
|
|
|
308 |
|
|
Other current assets |
|
|
281 |
|
|
|
144 |
|
|
Total current assets |
|
|
2,235 |
|
|
|
2,008 |
|
|
|
|
|
|
|
|
|
|
Property and equipment |
|
|
23,527 |
|
|
|
24,217 |
|
|
Less accumulated depreciation |
|
|
(6,607 |
) |
|
|
(6,748 |
) |
|
Property and equipment, net |
|
|
16,920 |
|
|
|
17,469 |
|
|
Contract intangible
assets |
|
|
19 |
|
|
|
56 |
|
|
Deferred tax assets, net |
|
|
45 |
|
|
|
13 |
|
|
Other assets |
|
|
994 |
|
|
|
890 |
|
|
Total assets |
|
$ |
20,213 |
|
|
$ |
20,436 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
285 |
|
|
$ |
281 |
|
|
Accrued income taxes |
|
|
16 |
|
|
|
19 |
|
|
Debt due within one year |
|
|
293 |
|
|
|
719 |
|
|
Other current liabilities |
|
|
547 |
|
|
|
539 |
|
|
Total current liabilities |
|
|
1,141 |
|
|
|
1,558 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
|
7,154 |
|
|
|
6,628 |
|
|
Deferred tax liabilities, net |
|
|
552 |
|
|
|
493 |
|
|
Other
long-term liabilities |
|
|
961 |
|
|
|
965 |
|
|
Total long-term liabilities |
|
|
8,667 |
|
|
|
8,086 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares, CHF 0.10 par value,
1,021,294,549 authorized, 142,362,093 conditionally authorized,
831,845,482 issued |
|
|
|
|
|
|
|
and 766,655,180 outstanding at June 30, 2023, and 905,093,509
authorized, 142,362,675 conditionally |
|
|
|
|
|
|
|
authorized, 797,244,753 issued and 721,888,427 outstanding at
December 31, 2022 |
|
|
76 |
|
|
|
71 |
|
|
Additional paid-in capital |
|
|
14,233 |
|
|
|
13,984 |
|
|
Accumulated deficit |
|
|
(3,709 |
) |
|
|
(3,079 |
) |
|
Accumulated other comprehensive loss |
|
|
(196 |
) |
|
|
(185 |
) |
|
Total controlling interest shareholders’ equity |
|
|
10,404 |
|
|
|
10,791 |
|
|
Noncontrolling interest |
|
|
1 |
|
|
|
1 |
|
|
Total equity |
|
|
10,405 |
|
|
|
10,792 |
|
|
Total liabilities and equity |
|
$ |
20,213 |
|
|
$ |
20,436 |
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
Six months ended |
|
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
|
Net loss |
|
$ |
(630 |
) |
|
$ |
(243 |
) |
|
Adjustments to reconcile to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Contract intangible asset amortization |
|
|
37 |
|
|
|
59 |
|
|
Depreciation and amortization |
|
|
368 |
|
|
|
367 |
|
|
Share-based compensation expense |
|
|
20 |
|
|
|
15 |
|
|
Loss on impairment of assets |
|
|
53 |
|
|
|
— |
|
|
Loss on disposal of assets, net |
|
|
170 |
|
|
|
3 |
|
|
Fair value adjustment to bifurcated compound exchange feature |
|
|
179 |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
32 |
|
|
|
— |
|
|
Deferred income tax expense |
|
|
27 |
|
|
|
25 |
|
|
Other, net |
|
|
46 |
|
|
|
32 |
|
|
Changes in deferred revenues, net |
|
|
27 |
|
|
|
(31 |
) |
|
Changes in deferred costs, net |
|
|
(37 |
) |
|
|
13 |
|
|
Changes in other operating assets and liabilities, net |
|
|
(182 |
) |
|
|
(200 |
) |
|
Net
cash provided by operating activities |
|
|
110 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
|
|
|
|
|
Capital expenditures |
|
|
(157 |
) |
|
|
(221 |
) |
|
Investments in equity of unconsolidated affiliates |
|
|
(10 |
) |
|
|
(19 |
) |
|
Proceeds from disposal of assets, net |
|
|
4 |
|
|
|
4 |
|
|
Net
cash used in investing activities |
|
|
(163 |
) |
|
|
(236 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
|
|
|
|
|
Repayments of debt |
|
|
(1,568 |
) |
|
|
(257 |
) |
|
Proceeds from issuance of debt, net of issue costs |
|
|
1,665 |
|
|
|
— |
|
|
Proceeds from issuance of shares, net of issue costs |
|
|
— |
|
|
|
206 |
|
|
Other, net |
|
|
(1 |
) |
|
|
(4 |
) |
|
Net
cash provided by (used in) financing activities |
|
|
96 |
|
|
|
(55 |
) |
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in unrestricted and restricted cash and cash
equivalents |
|
|
43 |
|
|
|
(251 |
) |
|
Unrestricted and restricted cash and cash equivalents, beginning of
period |
|
|
991 |
|
|
|
1,412 |
|
|
Unrestricted and restricted cash and cash equivalents, end of
period |
|
$ |
1,034 |
|
|
$ |
1,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
FLEET OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
|
|
June 30, |
|
March 31 |
|
June 30, |
|
|
Contract Drilling
Revenues (in millions) |
|
2023 |
|
2023 |
|
2022 |
|
|
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
Ultra-deepwater floaters |
|
$ |
536 |
|
$ |
484 |
|
$ |
451 |
|
|
Harsh environment floaters |
|
|
193 |
|
|
165 |
|
|
241 |
|
|
Total contract drilling
revenues |
|
$ |
729 |
|
$ |
649 |
|
$ |
692 |
|
|
|
|
Three months ended |
|
|
|
|
June 30, |
|
March 31 |
|
June 30, |
|
|
Average Daily
Revenue (1) |
|
2023 |
|
2023 |
|
2022 |
|
|
Ultra-deepwater floaters |
|
$ |
380,600 |
|
$ |
360,000 |
|
$ |
334,400 |
|
|
Harsh environment
floaters |
|
|
332,000 |
|
|
376,000 |
|
|
406,000 |
|
|
Total fleet average daily revenue |
|
$ |
367,000 |
|
$ |
364,100 |
|
$ |
358,100 |
|
|
|
|
|
Three months ended |
|
|
|
|
|
June 30, |
|
March 31 |
|
June 30, |
|
|
Utilization
(2) |
|
|
2023 |
|
2023 |
|
2022 |
|
|
Ultra-deepwater floaters |
|
|
53.7 |
% |
|
52.5 |
% |
|
53.8 |
% |
|
|
Harsh environment
floaters |
|
|
57.7 |
% |
|
50.1 |
% |
|
70.0 |
% |
|
|
Total fleet average rig utilization |
|
|
54.7 |
% |
|
51.9 |
% |
|
58.2 |
% |
|
|
|
|
|
Three months ended |
|
|
|
|
June 30, |
|
March 31 |
|
June 30, |
|
Revenue
Efficiency (3) |
|
|
2023 |
|
2023 |
|
2022 |
|
Ultra-deepwater floaters |
|
|
97.3 |
% |
|
97.4 |
% |
|
96.8 |
% |
|
Harsh environment
floaters |
|
|
96.8 |
% |
|
98.7 |
% |
|
99.5 |
% |
|
Total fleet average revenue efficiency |
|
|
97.2 |
% |
|
97.8 |
% |
|
97.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average daily revenue is defined as operating revenues,
excluding revenues for contract terminations, reimbursements and
contract intangible amortization, earned per operating day. An
operating day is defined as a day for which a rig is contracted to
earn a dayrate during the firm contract period after operations
commence. |
|
|
|
|
|
|
|
|
|
|
|
|
(2) Rig utilization is defined as the total number of operating
days divided by the total number of rig calendar days in the
measurement period, expressed as a percentage. |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Revenue efficiency is defined as actual operating revenues,
excluding revenues for contract terminations and reimbursements,
for the measurement period divided by the maximum revenue
calculated for the measurement period, expressed as a percentage.
Maximum revenue is defined as the greatest amount of contract
drilling revenues the drilling unit could earn for the measurement
period, excluding revenues for incentive provisions, reimbursements
and contract terminations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
|
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS
(LOSS) PER SHARE |
|
(in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
|
|
|
|
|
|
|
|
|
|
06/30/23 |
|
06/30/23 |
|
03/31/23 |
|
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
controlling interest, as reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(630 |
) |
|
$ |
(165 |
) |
|
$ |
(465 |
) |
|
Loss on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53 |
|
|
|
53 |
|
|
|
— |
|
|
Loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169 |
|
|
|
— |
|
|
|
169 |
|
|
Loss on debt conversion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
3 |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
|
|
|
— |
|
|
|
32 |
|
|
Discrete tax items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12 |
) |
|
|
(1 |
) |
|
|
(11 |
) |
|
Net loss, as
adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(385 |
) |
|
$ |
(110 |
) |
|
$ |
(275 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.85 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.64 |
) |
|
Loss on impairment of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.07 |
|
|
|
0.07 |
|
|
|
— |
|
|
Loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.23 |
|
|
|
— |
|
|
|
0.23 |
|
|
Loss on debt conversion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
|
Discrete tax items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
Diluted loss per
share, as adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.52 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.38 |
) |
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/22 |
|
12/31/22 |
|
09/30/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/22 |
|
03/31/22 |
|
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
controlling interest, as reported |
|
$ |
(621 |
) |
|
$ |
(350 |
) |
|
$ |
(271 |
) |
|
$ |
(28 |
) |
|
$ |
(243 |
) |
|
$ |
(68 |
) |
|
$ |
(175 |
) |
|
Gain on retirement of debt |
|
|
(8 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Discrete tax items |
|
|
(19 |
) |
|
|
(5 |
) |
|
|
(14 |
) |
|
|
(6 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
Net loss, as
adjusted |
|
$ |
(648 |
) |
|
$ |
(356 |
) |
|
$ |
(292 |
) |
|
$ |
(41 |
) |
|
$ |
(251 |
) |
|
$ |
(68 |
) |
|
$ |
(183 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Loss
Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share, as
reported |
|
$ |
(0.89 |
) |
|
$ |
(0.48 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.26 |
) |
|
Gain on retirement of debt |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Discrete tax items |
|
|
(0.03 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.02 |
) |
|
Diluted loss per
share, as adjusted |
|
$ |
(0.93 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS |
|
ADJUSTED CONTRACT DRILLING REVENUES |
|
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
AMORTIZATION AND RELATED MARGINS |
|
(in millions, except percentages) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
|
|
|
|
|
|
|
|
|
|
06/30/23 |
|
06/30/23 |
|
03/31/23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,378 |
|
|
$ |
729 |
|
|
$ |
649 |
|
|
Contract intangible asset amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37 |
|
|
|
19 |
|
|
|
18 |
|
|
Adjusted Contract
Drilling Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,415 |
|
|
$ |
748 |
|
|
$ |
667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(630 |
) |
|
$ |
(165 |
) |
|
$ |
(465 |
) |
|
Interest expense, net of interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
387 |
|
|
|
157 |
|
|
|
230 |
|
|
Income tax expense (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
(16 |
) |
|
|
51 |
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
368 |
|
|
|
186 |
|
|
|
182 |
|
|
Contract intangible asset amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37 |
|
|
|
19 |
|
|
|
18 |
|
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
197 |
|
|
|
181 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on disposal of assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
169 |
|
|
|
— |
|
|
|
169 |
|
|
Loss on impairment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53 |
|
|
|
53 |
|
|
|
— |
|
|
Loss on debt conversion |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
3 |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32 |
|
|
|
— |
|
|
|
32 |
|
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
454 |
|
|
$ |
237 |
|
|
$ |
217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(45.7 |
) |
% |
|
(22.6 |
) |
% |
|
(71.6 |
) |
% |
EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.9 |
|
% |
|
24.2 |
|
% |
|
2.4 |
|
% |
Adjusted EBITDA margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1 |
|
% |
|
31.7 |
|
% |
|
32.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
QTD |
|
YTD |
|
|
|
12/31/22 |
|
12/31/22 |
|
09/30/22 |
|
09/30/22 |
|
06/30/22 |
|
06/30/22 |
|
03/31/22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
revenues |
|
$ |
2,575 |
|
|
$ |
606 |
|
|
$ |
1,969 |
|
|
$ |
691 |
|
|
$ |
1,278 |
|
|
$ |
692 |
|
|
$ |
586 |
|
|
Contract intangible asset amortization |
|
|
117 |
|
|
|
19 |
|
|
|
98 |
|
|
|
39 |
|
|
|
59 |
|
|
|
30 |
|
|
|
29 |
|
|
Adjusted Contract
Drilling Revenues |
|
$ |
2,692 |
|
|
$ |
625 |
|
|
$ |
2,067 |
|
|
$ |
730 |
|
|
$ |
1,337 |
|
|
$ |
722 |
|
|
$ |
615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(621 |
) |
|
$ |
(350 |
) |
|
$ |
(271 |
) |
|
$ |
(28 |
) |
|
$ |
(243 |
) |
|
$ |
(68 |
) |
|
$ |
(175 |
) |
|
Interest expense, net of interest income |
|
|
534 |
|
|
|
251 |
|
|
|
283 |
|
|
|
87 |
|
|
|
196 |
|
|
|
96 |
|
|
|
100 |
|
|
Income tax expense (benefit) |
|
|
59 |
|
|
|
35 |
|
|
|
24 |
|
|
|
(5 |
) |
|
|
29 |
|
|
|
3 |
|
|
|
26 |
|
|
Depreciation and amortization |
|
|
735 |
|
|
|
186 |
|
|
|
549 |
|
|
|
182 |
|
|
|
367 |
|
|
|
184 |
|
|
|
183 |
|
|
Contract intangible asset amortization |
|
|
117 |
|
|
|
19 |
|
|
|
98 |
|
|
|
39 |
|
|
|
59 |
|
|
|
30 |
|
|
|
29 |
|
|
EBITDA |
|
|
824 |
|
|
|
141 |
|
|
|
683 |
|
|
|
275 |
|
|
|
408 |
|
|
|
245 |
|
|
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on retirement of debt |
|
|
(8 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted
EBITDA |
|
$ |
816 |
|
|
$ |
140 |
|
|
$ |
676 |
|
|
$ |
268 |
|
|
$ |
408 |
|
|
$ |
245 |
|
|
$ |
163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss margin |
|
|
(24.1 |
) |
% |
|
(57.8 |
) |
% |
|
(13.8 |
) |
% |
|
(4.1 |
) |
% |
|
(19.0 |
) |
% |
|
(9.8 |
) |
% |
|
(29.9 |
) |
% |
EBITDA margin |
|
|
30.6 |
|
% |
|
22.7 |
|
% |
|
33.0 |
|
% |
|
37.6 |
|
% |
|
30.5 |
|
% |
|
33.9 |
|
% |
|
26.5 |
|
% |
Adjusted EBITDA margin |
|
|
30.3 |
|
% |
|
22.4 |
|
% |
|
32.7 |
|
% |
|
36.7 |
|
% |
|
30.5 |
|
% |
|
33.9 |
|
% |
|
26.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TRANSOCEAN LTD. AND SUBSIDIARIES |
|
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS |
|
(in millions, except tax rates) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
$ |
(181 |
) |
|
$ |
(414 |
) |
|
$ |
(65 |
) |
|
$ |
(595 |
) |
|
$ |
(214 |
) |
|
Loss on impairment of assets |
|
|
53 |
|
|
|
— |
|
|
|
— |
|
|
|
53 |
|
|
|
— |
|
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
169 |
|
|
|
— |
|
|
|
169 |
|
|
|
— |
|
|
Loss on debt conversion |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
|
32 |
|
|
|
— |
|
|
Adjusted loss before income
taxes |
|
$ |
(125 |
) |
|
$ |
(213 |
) |
|
$ |
(65 |
) |
|
$ |
(338 |
) |
|
$ |
(214 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit) |
|
$ |
(16 |
) |
|
$ |
51 |
|
|
$ |
3 |
|
|
$ |
35 |
|
|
$ |
29 |
|
|
Loss on impairment of assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on disposal of assets, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on debt conversion |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Loss on retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Changes in estimates (1) |
|
|
1 |
|
|
|
11 |
|
|
|
— |
|
|
|
12 |
|
|
|
8 |
|
|
Adjusted income tax expense
(benefit) (2) |
|
$ |
(15 |
) |
|
$ |
62 |
|
|
$ |
3 |
|
|
$ |
47 |
|
|
$ |
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate (3) |
|
|
8.8 |
|
% |
|
(12.3 |
) |
% |
|
(4.7 |
) |
% |
|
(5.9 |
) |
% |
|
(13.7 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax Rate,
excluding discrete items (4) |
|
|
11.7 |
|
% |
|
(29.0 |
) |
% |
|
(5.2 |
) |
% |
|
(14.0 |
) |
% |
|
(17.5 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our estimates change as we file tax returns, settle disputes
with tax authorities, or become aware of changes in laws and other
events that have an effect on our (a) deferred taxes, (b) valuation
allowances on deferred taxes and (c) other tax liabilities. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) The three
months ended June 30, 2023 included $32 million of additional tax
benefit, reflecting the cumulative effect of a decrease in the
annual effective tax rate from the previous quarter estimate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Our effective
tax rate is calculated as income tax expense or benefit divided by
income or loss before income taxes. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) Our effective tax rate, excluding discrete items, is calculated
as income tax expense or benefit, excluding various discrete items
(such as changes in estimates and tax on items excluded from income
before income taxes), divided by income or loss before income
taxes, excluding gains and losses on sales and similar items
pursuant to the accounting standards for income taxes related to
estimating the annual effective tax rate. |
|
Transocean (NYSE:RIG)
Historical Stock Chart
From Apr 2024 to May 2024
Transocean (NYSE:RIG)
Historical Stock Chart
From May 2023 to May 2024