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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (date of earliest event reported): February 18, 2020

Graphic

TRANSOCEAN LTD.

(Exact name of registrant as specified in its charter)

Switzerland

001-38373

98-0599916

(State or other jurisdiction of incorporation or organization)

(Commission file number)

(I.R.S. Employer Identification No.)

Turmstrasse 30

Steinhausen, Switzerland

6312

(Address of principal executive offices)

(Zip Code)

+41 (41) 749-0500

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Shares, CHF 0.10 par value

RIG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02.

Results of Operations and Financial Condition

Our press release dated February 18, 2020, concerning financial results for the fourth quarter and full year 2019, furnished as Exhibit 99.1 to this report, is incorporated by reference herein.

Item 9.01.

Financial Statements and Exhibits

(d)  Exhibits

The exhibit to this report is furnished pursuant to Item 9.01 as follows:

Number

Description

99.1

Press Release Reporting Fourth Quarter and Full Year 2019 Financial Results

104

Cover Page Interactive Data File (formatted as inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

TRANSOCEAN LTD.

Date: February 18, 2020

By

/s/ Brady Long

Brady Long

Authorized Person

rig_Ex99_1_EarningsRelease

EXHIBIT 99.1

Picture 1

 

TRANSOCEAN LTD. REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS

 

·

Total contract drilling revenues were $792 million (total adjusted contract drilling revenues of $839 million), compared with  $784 million in the third quarter of 2019 (total adjusted contract drilling revenues of $832 million);

·

Revenue efficiency(1) was 96.2%, compared with 97.0% in the prior quarter;

·

Operating and maintenance expense was $575 million, compared with $547 million in the previous quarter;

·

Net loss attributable to controlling interest was $51 million, $0.08 per diluted share, compared with net loss attributable to controlling interest of $825 million, $1.35 per diluted share, in the third quarter of 2019;

·

Adjusted net loss was $263 million, $0.43 per diluted share, excluding $212 million of net favorable items. This compares with adjusted net loss of $234 million, $0.38 per diluted share, in the prior quarter;

·

Adjusted EBITDA was $223 million, compared with adjusted EBITDA of $245 million in the prior quarter; and

·

Contract backlog was $10.2 billion as of the February 2020 Fleet Status Report.

 

STEINHAUSEN, Switzerland—February 17, 2020—Transocean Ltd. (NYSE: RIG) today reported net loss attributable to controlling interest of $51 million, $0.08 per diluted share, for the three months ended December 31, 2019.

 

Fourth quarter 2019 results included net favorable items of $212 million, or $0.35 per diluted share, as follows:

·

$132 million, $0.22 per diluted share, gain on termination of construction contracts,

·

$110 million, $0.18 per diluted share, related to discrete tax items; and

·

$2 million,  gain on disposal of assets.

These favorable items were partially offset by:

·

$25 million, $0.04 per diluted share, loss on impairment of assets,

·

$5 million, $0.01 per diluted share, in acquisition and restructuring costs; and

·

$2 million, loss on retirement of debt.

 

After consideration of these net favorable items, fourth quarter 2019 adjusted net loss was $263 million, or $0.43 per diluted share.

Contract drilling revenues for the three months ended December 31, 2019,  increased sequentially by $8 million, primarily due to rig reactivations, including of the ultra‑deepwater floaters Deepwater Mykonos and Deepwater Corcovado. The quarter was also favorably impacted by higher utilization on the rest of the company’s ultra‑deepwater fleet and a full quarter of revenues from the newbuild harsh environment floater Transocean Norge. These increases were partially offset by lower reimbursable revenue and lower revenue efficiency.

 

Fourth quarter 2019 results reflected a non-cash revenue reduction of $47 million, compared to $48 million in the third quarter, from contract intangible amortization associated with the Songa and Ocean Rig acquisitions.

 

Operating and maintenance expense was $575 million, compared with $547 million in the prior quarter. The sequential increase was the result of a full quarter of operations from the harsh environment floater Transocean Norge and higher concentration of maintenance expenses in the fourth quarter related to our capital spares program and in service fleet. This was partially offset by lower expenses reimbursed by our customers.

 

General and administrative expense was $54 million, up from $45 million in the third quarter of 2019. The increase was primarily due to legal,  professional and advisory fees.

 

Interest expense, net of amounts capitalized, was $160 million, compared with $166 million in the prior quarter and capitalized interest was $10 million, unchanged from the prior quarter. Interest income was $10 million, compared with $11 million in the previous quarter. 

 

The Effective Tax Rate(2) was 30.3%,  up from (6.9)% in the prior quarter.  The increase was primarily due to releases of unrecognized tax benefits. The Effective Tax Rate excluding discrete items was (47.2)% compared to (37.5)% in previous quarter.

 

Cash flows provided by operating activities were $147 million, compared to $91 million in the prior quarter. The fourth quarter increase was primarily due to increased cash received from our unconsolidated affiliates for delivery and mobilization of Transocean Norge.

 

Fourth quarter 2019 capital expenditures of  $128 million were related to the company’s maintenance capital which includes the reactivation of Deepwater Corcovado and Deepwater Mykonos and our newbuild drillships under construction. This compares with $121 million in the previous quarter.

 

“I would like to recognize, and thank, the entire Transocean team for once again delivering solid operating and financial results in the fourth quarter,” said President and Chief Executive Officer Jeremy Thigpen. “As utilization across our floating fleet improved for the first time in over five years, and dayrates for high‑specification ultra‑deepwater assets increased 75% over the course of the year, we believe that 2019 marked the beginning of the much-anticipated recovery in the offshore drilling industry.”

 

Thigpen added, “As a direct result of our strong performance in 2019, we generated almost $1 billion in adjusted EBITDA, which, when combined with the multiple financing transactions consummated throughout the year, further bolstered our liquidity position. This liquidity, coupled with our industry‑leading $10.2 billion backlog, provides us the financial stability to continue to invest in our people, the maintenance of our assets, and new technologies that will further differentiate us in the eyes of our customers and shareholders.”

 

“Looking forward, we are mindful of the risks COVID-19 presents to near-term oil demand, but believe that improving longer-term market fundamentals, along with an increasing list of opportunities, bodes well for a year-over-year increase in contracting activity, utilization and day-rates.”

 

Full Year 2019

For the year ended December 31, 2019, net loss attributable to controlling interest totaled $1.3 billion, or $2.05 per diluted share. Full year results included $368 million, or $0.60 per diluted share, net of unfavorable items listed as follows:

·

$609 million, $0.99 per diluted share, loss on impairment, primarily for three floaters previously announced for retirement,

·

$41 million, $0.07 per diluted share, loss on retirement of debt,

·

$6 million, $0.01 per diluted share, in acquisition costs and restructuring; and 

·

$5 million, $0.01 per diluted share, loss on disposal of assets.

These unfavorable items were partially offset by:

·

$150 million, $0.24 per diluted share, related to discrete tax items,

·

$132 million, $0.22 per diluted share, gain on termination of construction contracts; and

·

$11 million, $0.02 per diluted share, gain on bargain purchase.

 

After consideration of these net unfavorable items, adjusted net loss for 2019 was $887 million, or $1.45 per diluted share.

 

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 believes that it operates one of the most versatile offshore drilling fleets in the world.

 

Transocean owns or has partial ownership interests in, and operates a fleet of 45 mobile offshore drilling units consisting of 28 ultra-deepwater floaters, 14 harsh environment floaters and three midwater floaters. In addition, Transocean is constructing two ultra-deepwater drillships.

 

For more information about Transocean, please visit: www.deepwater.com.

 

Conference Call Information

Transocean will conduct a teleconference starting at 9 a.m. EST, 3 p.m. CET, on Tuesday,  February 18, 2020, to discuss the results. To participate, dial +1 334-777-6978 and refer to conference code 5581050 approximately 10 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. EST,  6 p.m. CET, on February 18, 2020. The replay, which will be archived for approximately 30 days, can be accessed at +1 719-457-0820, passcode 5581050 and pin 3332. The replay will also be available on the company’s website.

Forward-Looking Statements

The statements described in this press release 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 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 future prices of oil and gas, the intention to scrap certain drilling rigs, the results of our final accounting for the periods presented in this press release,  the ability to successfully integrate the Transocean and Ocean Rig businesses, the success of our business following the acquisition of Ocean Rig UDW Inc. (“Ocean Rig”) and Songa Offshore SE (“Songa”),  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, 2018, 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 article 652a or article 1156 of the Swiss Code of Obligations. 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 contract drilling 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, excluding revenues for contract terminations and reimbursements, the drilling unit could earn for the measurement period, excluding amounts related to incentive provisions. See the accompanying schedule entitled “Revenue Efficiency.”

 

(2)

Effective Tax Rate is defined as income tax expense divided by income before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”

 

Analyst Contacts:

Bradley Alexander

+1 713-232-7515

 

Lexington May

+1 832-587-6515

 

Media Contact:

Pam Easton

+1 713-232-7647

 

TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

 

 

2019

    

2018

    

2017

  

 

 

 

 

 

 

 

 

 

 

 

Contract drilling revenues

 

$

3,088

 

$

3,018

 

$

2,731

 

Other revenues

 

 

 —

 

 

 —

 

 

242

 

 

 

 

3,088

 

 

3,018

 

 

2,973

 

Costs and expenses

 

 

 

 

 

 

 

 

 

 

Operating and maintenance

 

 

2,140

 

 

1,799

 

 

1,389

 

Depreciation and amortization

 

 

855

 

 

818

 

 

832

 

General and administrative

 

 

193

 

 

188

 

 

156

 

 

 

 

3,188

 

 

2,805

 

 

2,377

 

Loss on impairment

 

 

(609)

 

 

(1,464)

 

 

(1,498)

 

Loss on disposal of assets, net

 

 

(12)

 

 

 —

 

 

(1,603)

 

Operating loss

 

 

(721)

 

 

(1,251)

 

 

(2,505)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

43

 

 

53

 

 

43

 

Interest expense, net of amounts capitalized

 

 

(660)

 

 

(620)

 

 

(491)

 

Loss on retirement of debt

 

 

(41)

 

 

(3)

 

 

(55)

 

Other, net

 

 

181

 

 

46

 

 

 5

 

 

 

 

(477)

 

 

(524)

 

 

(498)

 

Loss before income tax expense

 

 

(1,198)

 

 

(1,775)

 

 

(3,003)

 

Income tax expense

 

 

59

 

 

228

 

 

94

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(1,257)

 

 

(2,003)

 

 

(3,097)

 

Net income (loss) attributable to noncontrolling interest

 

 

(2)

 

 

(7)

 

 

30

 

Net loss attributable to controlling interest

 

$

(1,255)

 

$

(1,996)

 

$

(3,127)

 

 

 

 

 

 

 

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(2.05)

 

$

(4.27)

 

$

(8.00)

 

Diluted

 

$

(2.05)

 

$

(4.27)

 

$

(8.00)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

 

 

 

Basic

 

 

612

 

 

468

 

 

391

 

Diluted

 

 

612

 

 

468

 

 

391

 

 

 

TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

December 31, 

 

 

 

2019

    

2018

  

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,790

 

$

2,160

 

Accounts receivable, net

 

 

654

 

 

604

 

Materials and supplies, net

 

 

479

 

 

474

 

Restricted cash accounts and investments

 

 

558

 

 

551

 

Other current assets

 

 

159

 

 

159

 

Total current assets

 

 

3,640

 

 

3,948

 

 

 

 

 

 

 

 

 

Property and equipment

 

 

24,281

 

 

25,811

 

Less accumulated depreciation

 

 

(5,434)

 

 

(5,403)

 

Property and equipment, net

 

 

18,847

 

 

20,408

 

Contract intangible assets

 

 

608

 

 

795

 

Deferred income taxes, net

 

 

20

 

 

66

 

Other assets

 

 

990

 

 

448

 

Total assets

 

$

24,105

 

$

25,665

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

Accounts payable

 

$

311

 

$

269

 

Accrued income taxes

 

 

64

 

 

70

 

Debt due within one year

 

 

568

 

 

373

 

Other current liabilities

 

 

781

 

 

746

 

Total current liabilities

 

 

1,724

 

 

1,458

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

8,693

 

 

9,605

 

Deferred income taxes, net

 

 

266

 

 

64

 

Other long-term liabilities

 

 

1,555

 

 

1,424

 

Total long-term liabilities

 

 

10,514

 

 

11,093

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares, CHF 0.10 par value, 639,674,422 authorized, 142,365,398 conditionally authorized, 617,970,525 issued

 

 

 

 

 

 

 

and 611,871,374  outstanding at December 31, 2019, and 638,285,574 authorized, 143,754,246 conditionally

 

 

 

 

 

 

 

authorized, 610,581,677 issued and 609,649,291 outstanding at December 31, 2018

 

 

59

 

 

59

 

Additional paid-in capital

 

 

13,424

 

 

13,394

 

Accumulated deficit

 

 

(1,297)

 

 

(67)

 

Accumulated other comprehensive loss

 

 

(324)

 

 

(279)

 

Total controlling interest shareholders’ equity

 

 

11,862

 

 

13,107

 

Noncontrolling interest

 

 

 5

 

 

 7

 

Total equity

 

 

11,867

 

 

13,114

 

Total liabilities and equity

 

$

24,105

 

$

25,665

 

 

 

 

TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

 

 

2019

    

2018

    

2017

  

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,257)

 

$

(2,003)

 

$

(3,097)

 

Adjustments to reconcile to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

Contract intangible asset amortization

 

 

187

 

 

112

 

 

 —

 

Depreciation and amortization

 

 

855

 

 

818

 

 

832

 

Share-based compensation expense

 

 

37

 

 

45

 

 

41

 

Loss on impairment

 

 

609

 

 

1,464

 

 

1,498

 

Loss on disposal of assets, net

 

 

12

 

 

 —

 

 

1,603

 

Loss on retirement of debt

 

 

41

 

 

 3

 

 

55

 

Gain on termination of construction contracts

 

 

(132)

 

 

 —

 

 

 —

 

Deferred income tax expense (benefit)

 

 

248

 

 

(16)

 

 

89

 

Other, net

 

 

41

 

 

 6

 

 

55

 

Changes in deferred revenues, net

 

 

43

 

 

(139)

 

 

33

 

Changes in deferred costs, net

 

 

(33)

 

 

34

 

 

54

 

Changes in other operating assets and liabilities, net

 

 

(311)

 

 

234

 

 

 7

 

Net cash provided by operating activities

 

 

340

 

 

558

 

 

1,170

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(387)

 

 

(184)

 

 

(497)

 

Proceeds from disposal of assets, net

 

 

70

 

 

43

 

 

350

 

Investments in unconsolidated affiliates

 

 

(77)

 

 

(107)

 

 

 —

 

Cash paid in business combinations, net of cash acquired

 

 

 —

 

 

(883)

 

 

 —

 

Proceeds from maturities of unrestricted and restricted investments

 

 

123

 

 

507

 

 

 —

 

Deposits to unrestricted investments

 

 

 —

 

 

(173)

 

 

(450)

 

Other, net

 

 

 3

 

 

 —

 

 

10

 

Net cash used in investing activities

 

 

(268)

 

 

(797)

 

 

(587)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of debt, net of discounts and issue costs

 

 

1,056

 

 

2,054

 

 

1,144

 

Repayments of debt

 

 

(1,325)

 

 

(2,105)

 

 

(2,284)

 

Proceeds from investments restricted for financing activities

 

 

 —

 

 

26

 

 

102

 

Payments to terminate derivative instruments

 

 

 —

 

 

(92)

 

 

 —

 

Other, net

 

 

(43)

 

 

(30)

 

 

(3)

 

Net cash used in financing activities

 

 

(312)

 

 

(147)

 

 

(1,041)

 

 

 

 

 

 

 

 

 

 

 

 

Net decrease in unrestricted and restricted cash and cash equivalents

 

 

(240)

 

 

(386)

 

 

(458)

 

Unrestricted and restricted cash and cash equivalents, beginning of period

 

 

2,589

 

 

2,975

 

 

3,433

 

Unrestricted and restricted cash and cash equivalents, end of period

 

$

2,349

 

$

2,589

 

$

2,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TRANSOCEAN LTD. AND SUBSIDIARIES

 

FLEET OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31, 

 

September 30,

 

December 31, 

 

December 31, 

 

December 31, 

 

Contract Drilling Revenues (in millions)

    

2019

  

2019

  

2018

  

2019

  

2018

  

Contract drilling revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ultra-deepwater floaters

 

$

502

 

$

494

 

$

457

 

$

1,957

 

$

1,787

 

Harsh environment floaters

 

 

278

 

 

281

 

 

253

 

 

1,068

 

 

974

 

Deepwater floaters

 

 

 —

 

 

 —

 

 

18

 

 

 8

 

 

124

 

Midwater floaters

 

 

12

 

 

 9

 

 

17

 

 

55

 

 

75

 

High-specification jackups

 

 

 —

 

 

 —

 

 

 3

 

 

 —

 

 

58

 

Total contract drilling revenues

 

$

792

 

$

784

 

$

748

 

$

3,088

 

$

3,018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31, 

 

September 30,

 

December 31, 

 

December 31, 

 

December 31, 

 

Average Daily Revenue (1)

    

2019

  

2019

  

2018

  

2019

  

2018

  

Ultra-deepwater floaters

 

$

336,800

 

$

339,400

 

$

337,100

 

$

337,900

 

$

356,700

 

Harsh environment floaters

 

 

307,700

 

 

298,300

 

 

290,500

 

 

298,500

 

 

296,400

 

Deepwater floaters

 

 

 —

 

 

 —

 

 

154,500

 

 

 —

 

 

186,700

 

Midwater floaters

 

 

119,400

 

 

106,200

 

 

90,800

 

 

118,400

 

 

99,900

 

High-specification jackups

 

 

 —

 

 

 —

 

 

314,300

 

 

 —

 

 

152,900

 

Total drilling fleet

 

$

317,700

 

 

314,500

 

$

293,100

 

$

313,400

 

$

296,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

  

  

December 31, 

  

September 30,

  

December 31, 

  

December 31, 

  

December 31, 

 

Utilization (2)

 

 

2019

 

2019

 

2018

 

2019

 

2018

 

Ultra-deepwater floaters

 

 

56

 

51

 

54

 

51

 

48

%

 

Harsh environment floaters

 

 

76

 

79

 

82

 

78

 

82

%

 

Deepwater floaters

 

 

 —

 

 —

 

67

 

 —

 

93

%

 

Midwater floaters

 

 

33

 

33

 

50

 

37

 

41

%

 

High-specification jackups

 

 

 —

 

 —

 

100

 

 —

 

97

%

 

Total drilling fleet

 

 

61

 

58

 

62

 

58

 

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Years ended

 

 

 

December 31, 

 

September 30,

 

December 31, 

 

December 31, 

 

December 31, 

Revenue Efficiency (3)

  

  

2019

  

2019

  

2018

  

2019

  

2018

Ultra-deepwater floaters

 

 

98

 

98

 

99

 

99

 

96

%

Harsh environment floaters

 

 

94

 

96

 

91

 

95

 

94

%

Deepwater floaters

 

 

 —

 

 —

 

91

 

 —

 

94

%

Midwater floaters

 

 

91

 

79

 

96

 

99

 

98

%

High-specification jackups

 

 

 —

 

 —

 

100

 

 —

 

100

%

Total drilling fleet

 

 

96

 

97

 

96

 

97

 

95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average daily revenue is defined as contract drilling revenues earned per operating day. An operating day is defined as a calendar day during which a rig

is contracted to earn a dayrate during the firm contract period after commencement of operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Rig utilization is defined as the total number of operating days divided by the total number of available rig calendar days in the measurement period, expressed

as a percentage.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Revenue efficiency is defined as actual contract drilling 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, excluding revenues for contract terminations and reimbursements,

the drilling unit could earn for the measurement period, excluding amounts related to incentive provisions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)