Transocean Ltd. Reports Third Quarter 2021 Results
Transocean Ltd. (NYSE: RIG) reported a net loss of $130 million, or $0.20 per diluted share, for Q3 2021, reflecting a decline from $103 million, or $0.17 per diluted share, in Q2 2021. Total contract drilling revenues decreased to $626 million, down from $656 million sequentially, while adjusted EBITDA was $245 million compared to $255 million in the prior quarter. Operating and maintenance expenses fell to $398 million from $434 million. The contract backlog stood at $7.1 billion. CEO Jeremy Thigpen noted improved market fundamentals and increasing dayrates, despite the losses.
- Revenue efficiency improved to 98.1% from 98.0% in the previous quarter.
- Operating and maintenance expenses decreased to $398 million from $434 million, reflecting efficient cost management.
- Secured the first contract for Deepwater Atlas, enhancing market position.
- Net loss increased to $130 million from $103 million in Q2 2021.
- Total contract drilling revenues dropped to $626 million, a $30 million decline from the previous quarter.
- Total contract drilling revenues were
$626 million , compared to$656 million in the second quarter of 2021 (total adjusted contract drilling revenues of$683 million , compared to$713 million in the second quarter of 2021); - Revenue efficiency(1) was
98.1% , compared to98.0% in the prior quarter; - Operating and maintenance expense was
$398 million , compared to$434 million in the prior quarter; - Net loss attributable to controlling interest was
$130 million ,$0.20 per diluted share, compared to$103 million ,$0.17 per diluted share, in the second quarter of 2021; - Adjusted EBITDA was
$245 million , compared to$255 million in the prior quarter; and - Contract backlog was
$7.1 billion as of the October 2021 Fleet Status Report.
STEINHAUSEN, Switzerland, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of
Third quarter 2021 results included a net unfavorable item of
Contract drilling revenues for the three months ended September 30, 2021 decreased sequentially by
A non-cash revenue reduction of
Operating and maintenance expense was
General and administrative expense was
Interest expense, net of amounts capitalized, was
The Effective Tax Rate(2) was (26.1)%, down from (4.6)% in the prior quarter. The decrease was primarily due to the discrete tax impact of jurisdictional ownership changes of certain assets, lower earnings before tax and releases of uncertain tax positions related to settlements. The Effective Tax Rate excluding discrete items was (18.1)% compared to (10.2)% in previous quarter.
Cash flows provided by operating activities were
Third quarter 2021 capital expenditures of
“I would like to thank the entire Transocean team for their continued dedication to delivering safe, reliable, and efficient operations for our customers. We once again produced strong financial results,” said President and Chief Executive Officer, Jeremy Thigpen. “Notably, our strong uptime performance during the quarter drove an impressive revenue efficiency of
“Furthermore, during the quarter, we were excited to secure the maiden contract for Deepwater Atlas, solidifying Transocean’s position as the undisputed leader in the 20,000 psi deepwater drilling market. As you know, Transocean has a history of firsts in the most technically demanding environments; and, we look forward to enhancing that legacy upon delivery of Deepwater Atlas and Deepwater Titan in the coming year.”
“Further demonstrating our technical leadership, we recently announced our commitment to reduce our greenhouse gas emissions intensity 40 percent by 2030 as compared to 2019. Our industry plays an important role in the ever-growing global demand for energy; and, we are proud to continue to employ our operational and technical expertise to support our customers in the delivery of efficient energy to the world, while simultaneously reducing our impact on the environment.”
Thigpen concluded, “We grow increasingly encouraged as we observe continuously improving market fundamentals and the resulting strength exhibited in oil prices. With tightening utilization for high-specification ultra-deepwater and harsh environment assets, and longer tender durations across multiple markets, dayrates are steadily increasing, which bodes well for the offshore drilling industry, and Transocean.”
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 37 mobile offshore drilling units consisting of 27 ultra-deepwater floaters and 10 harsh environment 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. EDT, 2 p.m. CET, on Tuesday, November 2, 2021, to discuss the results. To participate, dial +1 323-994-2093 and refer to conference code 2585978 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, 5 p.m. CET, on Tuesday, November 2, 2021. The replay, which will be archived for approximately 30 days, can be accessed at +1 719-457-0820, passcode 2585978, pin 4459. 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, 2020, 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 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 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 divided by income 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 | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Contract drilling revenues | $ | 626 | $ | 773 | $ | 1,935 | $ | 2,462 | ||||||||
| Costs and expenses | ||||||||||||||||
| Operating and maintenance | 398 | 470 | 1,267 | 1,535 | ||||||||||||
| Depreciation and amortization | 185 | 190 | 558 | 592 | ||||||||||||
| General and administrative | 40 | 45 | 118 | 133 | ||||||||||||
| 623 | 705 | 1,943 | 2,260 | |||||||||||||
| Loss on impairment | — | — | — | (597 | ) | |||||||||||
| Loss on disposal of assets, net | (3 | ) | (64 | ) | (61 | ) | (64 | ) | ||||||||
| Operating income (loss) | — | 4 | (69 | ) | (459 | ) | ||||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income | 4 | 6 | 11 | 19 | ||||||||||||
| Interest expense, net of amounts capitalized | (110 | ) | (145 | ) | (340 | ) | (458 | ) | ||||||||
| Gain on restructuring and retirement of debt | — | 449 | 51 | 396 | ||||||||||||
| Other, net | 3 | 21 | 26 | (23 | ) | |||||||||||
| (103 | ) | 331 | (252 | ) | (66 | ) | ||||||||||
| Income (loss) before income tax expense (benefit) | (103 | ) | 335 | (321 | ) | (525 | ) | |||||||||
| Income tax expense (benefit) | 27 | (24 | ) | 10 | 4 | |||||||||||
| Net income (loss) | (130 | ) | 359 | (331 | ) | (529 | ) | |||||||||
| Net income attributable to noncontrolling interest | — | — | 1 | 1 | ||||||||||||
| Net income (loss) attributable to controlling interest | $ | (130 | ) | $ | 359 | $ | (332 | ) | $ | (530 | ) | |||||
| Earnings (loss) per share | ||||||||||||||||
| Basic | $ | (0.20 | ) | $ | 0.58 | $ | (0.53 | ) | $ | (0.86 | ) | |||||
| Diluted | $ | (0.20 | ) | $ | 0.51 | $ | (0.53 | ) | $ | (0.86 | ) | |||||
| Weighted-average shares outstanding | ||||||||||||||||
| Basic | 653 | 616 | 630 | 615 | ||||||||||||
| Diluted | 653 | 702 | 630 | 615 | ||||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In millions, except share data) |
| (Unaudited) |
| September 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 900 | $ | 1,154 | ||||
| Accounts receivable, net of allowance of | 507 | 583 | ||||||
| Materials and supplies, net of allowance of | 433 | 434 | ||||||
| Restricted cash and cash equivalents | 576 | 406 | ||||||
| Other current assets | 165 | 163 | ||||||
| Total current assets | 2,581 | 2,740 | ||||||
| Property and equipment | 23,102 | 23,040 | ||||||
| Less accumulated depreciation | (5,886 | ) | (5,373 | ) | ||||
| Property and equipment, net | 17,216 | 17,667 | ||||||
| Contract intangible assets | 223 | 393 | ||||||
| Deferred income taxes, net | 9 | 9 | ||||||
| Other assets | 947 | 995 | ||||||
| Total assets | $ | 20,976 | $ | 21,804 | ||||
| Liabilities and equity | ||||||||
| Accounts payable | $ | 215 | $ | 194 | ||||
| Accrued income taxes | 10 | 28 | ||||||
| Debt due within one year | 575 | 505 | ||||||
| Other current liabilities | 551 | 659 | ||||||
| Total current liabilities | 1,351 | 1,386 | ||||||
| Long-term debt | 6,773 | 7,302 | ||||||
| Deferred income taxes, net | 358 | 315 | ||||||
| Other long-term liabilities | 1,227 | 1,366 | ||||||
| Total long-term liabilities | 8,358 | 8,983 | ||||||
| Commitments and contingencies | ||||||||
| Shares, CHF 0.10 par value, 891,379,306 authorized, 142,363,356 conditionally authorized, 685,676,456 issued and 651,155,650 outstanding at September 30, 2021, and 824,650,660 authorized, 142,363,647 conditionally authorized, 639,676,165 issued and 615,140,276 outstanding at December 31, 2020 | 63 | 60 | ||||||
| Additional paid-in capital | 13,659 | 13,501 | ||||||
| Accumulated deficit | (2,198 | ) | (1,866 | ) | ||||
| Accumulated other comprehensive loss | (261 | ) | (263 | ) | ||||
| Total controlling interest shareholders’ equity | 11,263 | 11,432 | ||||||
| Noncontrolling interest | 4 | 3 | ||||||
| Total equity | 11,267 | 11,435 | ||||||
| Total liabilities and equity | $ | 20,976 | $ | 21,804 | ||||
| TRANSOCEAN LTD. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In millions) |
| (Unaudited) |
| Nine months ended | ||||||||
| September 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (331 | ) | $ | (529 | ) | ||
| Adjustments to reconcile to net cash provided by operating activities: | ||||||||
| Contract intangible asset amortization | 170 | 158 | ||||||
| Depreciation and amortization | 558 | 592 | ||||||
| Share-based compensation expense | 21 | 24 | ||||||
| Loss on impairment | — | 597 | ||||||
| Loss on impairment of investment in unconsolidated affiliate | — | 59 | ||||||
| Loss on disposal of assets, net | 61 | 64 | ||||||
| Gain on restructuring and retirement of debt | (51 | ) | (396 | ) | ||||
| Deferred income tax expense | 43 | 28 | ||||||
| Other, net | 29 | 42 | ||||||
| Changes in deferred revenues, net | (87 | ) | (45 | ) | ||||
| Changes in deferred costs, net | 8 | 10 | ||||||
| Changes in other operating assets and liabilities, net | (31 | ) | (484 | ) | ||||
| Net cash provided by operating activities | 390 | 120 | ||||||
| Cash flows from investing activities | ||||||||
| Capital expenditures | (137 | ) | (218 | ) | ||||
| Proceeds from disposal of assets, net | 8 | 15 | ||||||
| Investment in loans to unconsolidated affiliate | (33 | ) | — | |||||
| Investments in unconsolidated affiliates | — | (17 | ) | |||||
| Net cash used in investing activities | (162 | ) | (220 | ) | ||||
| Cash flows from financing activities | ||||||||
| Repayments of debt | (423 | ) | (1,135 | ) | ||||
| Proceeds from issuance of shares, net of issue costs | 141 | — | ||||||
| Proceeds from issuance of debt, net of issue costs | — | 743 | ||||||
| Other, net | (30 | ) | (27 | ) | ||||
| Net cash used in financing activities | (312 | ) | (419 | ) | ||||
| Net decrease in unrestricted and restricted cash and cash equivalents | (84 | ) | (519 | ) | ||||
| Unrestricted and restricted cash and cash equivalents, beginning of period | 1,560 | 2,349 | ||||||
| Unrestricted and restricted cash and cash equivalents, end of period | $ | 1,476 | $ | 1,830 | ||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | ||||||||||||||||
| FLEET OPERATING STATISTICS | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| Contract Drilling Revenues (in millions) | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Contract drilling revenues | ||||||||||||||||
| Ultra-deepwater floaters | $ | 428 | $ | 424 | $ | 490 | $ | 1,288 | $ | 1,654 | ||||||
| Harsh environment floaters | 198 | 232 | 283 | 647 | 796 | |||||||||||
| Midwater floaters | — | — | — | — | 12 | |||||||||||
| Total contract drilling revenues | $ | 626 | $ | 656 | $ | 773 | $ | 1,935 | $ | 2,462 | ||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| Average Daily Revenue (1) | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Ultra-deepwater floaters | $ | 351,900 | $ | 363,500 | $ | 329,300 | $ | 362,100 | $ | 319,500 | ||||||
| Harsh environment floaters | 401,600 | 379,900 | 372,500 | 385,700 | 334,400 | |||||||||||
| Midwater floaters | — | — | — | — | 111,400 | |||||||||||
| Total fleet average daily revenue | $ | 367,100 | 369,400 | $ | 343,500 | $ | 370,100 | $ | 321,800 | |||||||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| Utilization (2) | 2021 | 2021 | 2020 | 2021 | 2020 | |||||||||||
| Ultra-deepwater floaters | 50 | % | 48 | % | 60 | % | 49 | % | 61 | % | ||||||
| Harsh environment floaters | 60 | % | 73 | % | 75 | % | 66 | % | 72 | % | ||||||
| Midwater floaters | — | % | — | % | — | % | — | % | 37 | % | ||||||
| Total fleet average rig utilization | 53 | % | 55 | % | 65 | % | 53 | % | 64 | % | ||||||
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| Revenue Efficiency (3) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||
| Ultra-deepwater floaters | 96 | % | 98 | % | 97 | % | 97 | % | 97 | % | |||||
| Harsh environment floaters | 103 | % | 98 | % | 96 | % | 100 | % | 94 | % | |||||
| Midwater floaters | — | % | — | % | — | % | — | % | 86 | % | |||||
| Total fleet average revenue efficiency | 98 | % | 98 | % | 97 | % | 98 | % | 96 | % | |||||
| (1) Average daily revenue is defined as contract drilling revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, 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 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 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 | QTD | YTD | ||||||||||||||||
| 09/30/21 | 09/30/21 | 06/30/21 | 06/30/21 | 03/31/21 | ||||||||||||||||
| Adjusted Net Loss | ||||||||||||||||||||
| Net loss attributable to controlling interest, as reported | $ | (332 | ) | $ | (130 | ) | $ | (202 | ) | $ | (103 | ) | $ | (99 | ) | |||||
| Loss on disposal of assets, net | 60 | — | 60 | — | 60 | |||||||||||||||
| Gain on retirement of debt | (51 | ) | — | (51 | ) | — | (51 | ) | ||||||||||||
| Discrete tax items | (25 | ) | 8 | (33 | ) | (6 | ) | (27 | ) | |||||||||||
| Net loss, as adjusted | $ | (348 | ) | $ | (122 | ) | $ | (226 | ) | $ | (109 | ) | $ | (117 | ) | |||||
| Adjusted Diluted Loss Per Share: | ||||||||||||||||||||
| Diluted loss per share, as reported | $ | (0.53 | ) | $ | (0.20 | ) | $ | (0.33 | ) | $ | (0.17 | ) | $ | (0.16 | ) | |||||
| Loss on disposal of assets, net | 0.10 | — | 0.10 | — | 0.10 | |||||||||||||||
| Gain on retirement of debt | (0.08 | ) | — | (0.08 | ) | — | (0.08 | ) | ||||||||||||
| Discrete tax items | (0.04 | ) | 0.01 | (0.06 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
| Diluted loss per share, as adjusted | $ | (0.55 | ) | $ | (0.19 | ) | $ | (0.37 | ) | $ | (0.18 | ) | $ | (0.19 | ) | |||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | ||||||||||||||||||||||
| 12/31/20 | 12/31/20 | 09/30/20 | 09/30/20 | 06/30/20 | 06/30/20 | 03/31/20 | ||||||||||||||||||||||
| Adjusted Net Loss | ||||||||||||||||||||||||||||
| Net income (loss) attributable to controlling interest, as reported | $ | (567 | ) | $ | (37 | ) | $ | (530 | ) | $ | 359 | $ | (889 | ) | $ | (497 | ) | $ | (392 | ) | ||||||||
| Restructuring costs | 5 | (1 | ) | 6 | 5 | 1 | 1 | — | ||||||||||||||||||||
| Loss on impairment of assets | 597 | — | 597 | — | 597 | 430 | 167 | |||||||||||||||||||||
| Loss on disposal of assets, net | 61 | — | 61 | 61 | — | — | — | |||||||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliates | 62 | 3 | 59 | — | 59 | 59 | — | |||||||||||||||||||||
| (Gain) loss on restructuring and retirement of debt | (533 | ) | (137 | ) | (396 | ) | (449 | ) | 53 | (4 | ) | 57 | ||||||||||||||||
| Discrete tax items | (91 | ) | (37 | ) | (54 | ) | (45 | ) | (9 | ) | 10 | (19 | ) | |||||||||||||||
| Net loss, as adjusted | $ | (466 | ) | $ | (209 | ) | $ | (257 | ) | $ | (69 | ) | $ | (188 | ) | $ | (1 | ) | $ | (187 | ) | |||||||
| Adjusted Diluted Loss Per Share: | ||||||||||||||||||||||||||||
| Diluted earnings (loss) per share, as reported | $ | (0.92 | ) | $ | (0.06 | ) | $ | (0.86 | ) | $ | 0.51 | $ | (1.45 | ) | $ | (0.81 | ) | $ | (0.64 | ) | ||||||||
| Restructuring costs | 0.01 | — | 0.01 | 0.01 | — | — | — | |||||||||||||||||||||
| Loss on impairment of assets | 0.97 | — | 0.97 | — | 0.97 | 0.70 | 0.28 | |||||||||||||||||||||
| Loss on disposal of assets, net | 0.10 | — | 0.10 | 0.09 | — | — | — | |||||||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliates | 0.10 | — | 0.10 | — | 0.10 | 0.10 | — | |||||||||||||||||||||
| (Gain) loss on restructuring and retirement of debt | (0.87 | ) | (0.22 | ) | (0.65 | ) | (0.65 | ) | 0.09 | (0.01 | ) | 0.09 | ||||||||||||||||
| Discrete tax items | (0.15 | ) | (0.06 | ) | (0.09 | ) | (0.07 | ) | (0.02 | ) | 0.02 | (0.03 | ) | |||||||||||||||
| Diluted loss per share, as adjusted | $ | (0.76 | ) | $ | (0.34 | ) | $ | (0.42 | ) | $ | (0.11 | ) | $ | (0.31 | ) | $ | — | $ | (0.30 | ) | ||||||||
| 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 | QTD | YTD | ||||||||||||||||
| 09/30/21 | 09/30/21 | 06/30/21 | 06/30/21 | 03/31/21 | ||||||||||||||||
| Contract drilling revenues | $ | 1,935 | $ | 626 | $ | 1,309 | $ | 656 | $ | 653 | ||||||||||
| Contract intangible asset amortization | 170 | 57 | 113 | 57 | 56 | |||||||||||||||
| Adjusted Contract Drilling Revenues | $ | 2,105 | $ | 683 | $ | 1,422 | $ | 713 | $ | 709 | ||||||||||
| Net loss | $ | (331 | ) | $ | (130 | ) | $ | (201 | ) | $ | (103 | ) | $ | (98 | ) | |||||
| Interest expense, net of interest income | 329 | 106 | 223 | 111 | 112 | |||||||||||||||
| Income tax expense (benefit) | 10 | 27 | (17 | ) | 4 | (21 | ) | |||||||||||||
| Depreciation and amortization | 558 | 185 | 373 | 186 | 187 | |||||||||||||||
| Contract intangible asset amortization | 170 | 57 | 113 | 57 | 56 | |||||||||||||||
| EBITDA | 736 | 245 | 491 | 255 | 236 | |||||||||||||||
| Loss on disposal of assets, net | 60 | — | 60 | — | 60 | |||||||||||||||
| Gain on retirement of debt | (51 | ) | — | (51 | ) | — | (51 | ) | ||||||||||||
| Adjusted EBITDA | $ | 745 | $ | 245 | $ | 500 | $ | 255 | $ | 245 | ||||||||||
| EBITDA margin | 35 | % | 36 | % | 35 | % | 36 | % | 33 | % | ||||||||||
| Adjusted EBITDA margin | 35 | % | 36 | % | 35 | % | 36 | % | 35 | % | ||||||||||
| YTD | QTD | YTD | QTD | YTD | QTD | YTD | ||||||||||||||||||||||
| 12/31/20 | 12/31/20 | 09/30/20 | 09/30/20 | 06/30/20 | 06/30/20 | 03/31/20 | ||||||||||||||||||||||
| Contract drilling revenues | $ | 3,152 | $ | 690 | $ | 2,462 | $ | 773 | $ | 1,689 | $ | 930 | $ | 759 | ||||||||||||||
| Contract intangible asset amortization | 215 | 57 | 158 | 57 | 101 | 53 | 48 | |||||||||||||||||||||
| Adjusted Contract Drilling Revenues | $ | 3,367 | $ | 747 | $ | 2,620 | $ | 830 | $ | 1,790 | $ | 983 | $ | 807 | ||||||||||||||
| Net income (loss) | $ | (568 | ) | $ | (39 | ) | $ | (529 | ) | $ | 359 | $ | (888 | ) | $ | (497 | ) | $ | (391 | ) | ||||||||
| Interest expense, net of interest income | 554 | 115 | 439 | 139 | 300 | 149 | 151 | |||||||||||||||||||||
| Income tax expense (benefit) | 27 | 23 | 4 | (24 | ) | 28 | 32 | (4 | ) | |||||||||||||||||||
| Depreciation and amortization | 781 | 189 | 592 | 190 | 402 | 196 | 206 | |||||||||||||||||||||
| Contract intangible asset amortization | 215 | 57 | 158 | 57 | 101 | 53 | 48 | |||||||||||||||||||||
| EBITDA | 1,009 | 345 | 664 | 721 | (57 | ) | (67 | ) | 10 | |||||||||||||||||||
| Restructuring costs | 5 | (1 | ) | 6 | 5 | 1 | 1 | — | ||||||||||||||||||||
| Loss on impairment of assets | 597 | — | 597 | — | 597 | 429 | 168 | |||||||||||||||||||||
| Loss on disposal of assets, net | 61 | — | 61 | 61 | — | — | — | |||||||||||||||||||||
| (Gain) loss on restructuring and retirement of debt | (533 | ) | (137 | ) | (396 | ) | (449 | ) | 53 | (4 | ) | 57 | ||||||||||||||||
| Loss on impairment of investment in unconsolidated affiliates | 62 | 3 | 59 | — | 59 | 59 | — | |||||||||||||||||||||
| Adjusted EBITDA | $ | 1,201 | $ | 210 | $ | 991 | $ | 338 | $ | 653 | $ | 418 | $ | 235 | ||||||||||||||
| EBITDA margin | 30 | % | 46 | % | 25 | % | 87 | % | (3 | )% | (7 | )% | 1 | % | ||||||||||||||
| Adjusted EBITDA margin | 36 | % | 28 | % | 38 | % | 41 | % | 36 | % | 43 | % | 29 | % | ||||||||||||||
| TRANSOCEAN LTD. AND SUBSIDIARIES | ||||||||||||||||||||
| SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS | ||||||||||||||||||||
| (In millions, except tax rates) | ||||||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Income (loss) before income taxes | $ | (103 | ) | $ | (99 | ) | $ | 335 | $ | (321 | ) | $ | (525 | ) | ||||||
| Restructuring costs | — | — | 5 | — | 6 | |||||||||||||||
| Loss on impairment of assets | — | — | — | — | 597 | |||||||||||||||
| Loss on disposal of assets, net | — | — | 61 | 60 | 61 | |||||||||||||||
| Loss on impairment of investment in unconsolidated affiliate | — | — | — | — | 59 | |||||||||||||||
| Gain on restructuring and retirement of debt | — | — | (449 | ) | (51 | ) | (396 | ) | ||||||||||||
| Adjusted loss before income taxes | $ | (103 | ) | $ | (99 | ) | (48 | ) | $ | (312 | ) | (198 | ) | |||||||
| Revenues recognized for the settlement of disputes | — | (157 | ) | |||||||||||||||||
| Adjusted loss before income taxes for determining effective tax rate | $ | (48 | ) | $ | (355 | ) | ||||||||||||||
| Income tax expense (benefit) | $ | 27 | $ | 4 | $ | (24 | ) | $ | 10 | $ | 4 | |||||||||
| Restructuring costs | — | — | — | — | — | |||||||||||||||
| Loss on impairment of assets | — | — | — | — | — | |||||||||||||||
| Loss on disposal of assets, net | — | — | — | — | — | |||||||||||||||
| Loss on impairment of investment in unconsolidated affiliate | — | — | — | — | — | |||||||||||||||
| Gain on restructuring and retirement of debt | — | — | — | — | — | |||||||||||||||
| Changes in estimates (1) | (8 | ) | 6 | 43 | 25 | 54 | ||||||||||||||
| Revenues recognized for the settlement of disputes | — | — | 2 | — | — | |||||||||||||||
| Adjusted income tax expense (2) | $ | 19 | $ | 10 | $ | 21 | $ | 35 | $ | 58 | ||||||||||
| Effective Tax Rate (3) | (26.1 | )% | (4.6 | )% | (7.0 | )% | (3.2 | )% | (0.8 | )% | ||||||||||
| Effective Tax Rate, excluding discrete items (4) | (18.1 | )% | (10.2 | )% | (45.6 | )% | (11.2 | )% | (16.4 | )% | ||||||||||
| (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 September 30, 2021 included | ||||||||||||||||||||
| (3) Our effective tax rate is calculated as income tax expense divided by income before income taxes. | ||||||||||||||||||||
| (4) Our effective tax rate, excluding discrete items, is calculated as income tax expense, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income before income tax expense, 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. | ||||||||||||||||||||
FAQ
What were Transocean's Q3 2021 revenues for RIG?
How did Transocean's net loss change in Q3 2021 compared to Q2 2021 for RIG?
What is Transocean's adjusted EBITDA for Q3 2021?
What is the current contract backlog for Transocean as of Q3 2021?
How did operating expenses change in Q3 2021 for RIG?
