Transocean - Rig-Betreiber

Standard & Poor's upgrades Transocean outlook
Monday December 22, 11:26 am ET
Standard & Poor's upgrades Transocean outlook on better credit, backlog growth, reduced debt

NEW YORK (AP) -- Standard & Poor's raised its outlook for Transocean Inc. to "Stable" from "Negative" citing strengthened credit measures, continued backlog growth and reduced debt in the past year.

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Standard & Poor's also affirmed its investment-grade ratings of the world's largest offshore-drilling contractor due to its "large and technologically sophisticated fleet of mobile offshore-drilling units, industry-leading exposure to the deep- and ultra-deepwater market segments, high contract revenue backlog, improving free cash flow and strengthening credit measures."

Transocean has a "BBB+" corporate credit rating and an "A-2" short-term rating from Standard & Poor's.

S&P's credit analyst Jeffrey Morrison said the company's backlog of contract revenue topped $41 billion as of October, its free cash flow backlog is around $18 billion and its debt leverage and cash flow protection measures have improved and should continue to make gains next year.

Morrison also said the company will maintain ample liquidity in the near term. As of Sept. 30, the company had $4.2 billion liquidity in cash, short-term investments, a five-year revolving credit facility and a 364-day facility, which was renewed in November.

Morrison noted that the company's credit strengths are tempered by the higher debt burden it acquired after it merged with GlobalSantaFe Corp. in 2007, its capital spending with its new build program and its participation in a capital-intensive industry.

The affirmation of these ratings comes days after Transocean completed moving the place of incorporation of its group holding company to Switzerland from the Cayman Islands. Now all Transocean Inc. debt will be guaranteed by Swiss parent company Transocean Ltd. As of Sept. 30, 2008 Transocean had $15 billion of adjusted debt.

Although its principal executive offices are now in Geneva, the company said its largest office will remain in Houston.

Shares of Transocean fell $1.25, or 2.7 percent, to $45.47. The 52-week share price range is between $43.45 and $163.

Transocean Ltd. Provides Fleet Status Report

HOUSTON, Jan. 12, 2009 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE:RIG) today issued an updated fleet status report covering the company's 136-unit offshore drilling fleet.

Drilling rig status and contract information on the company's offshore drilling fleet has been condensed into a report titled "Transocean Fleet Status Report," which is available through the company's Worldwide Web address at www.deepwater.com. The report can be accessed from the home page of the Web address by clicking on the Fleet Update Report link found in the tool bar.

Statements regarding the estimated duration of client contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects, other out of service time, as well as any other statements that are not historical facts in the report, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the future prices of oil and gas and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

Transocean Ltd. is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 136 mobile offshore drilling units plus 10 announced ultra-deepwater newbuild units, the company's fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. The company owns or operates a contract drilling fleet of 39 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 28 Midwater Floaters, 10 High-Specification Jackups, 55 Standard Jackups and other assets utilized in the support of offshore drilling activities worldwide.

Transocean Cancels Rig Deal on Client’s Cash Shortage (Update2)
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By Joe Carroll

Jan. 12 (Bloomberg) -- Transocean Inc., the world’s largest offshore oil driller, canceled a record $550,000-a-day rig lease and said a second vessel has been idled after the client ran out of cash.

Transocean, based in Switzerland and run from offices in Houston, disclosed the termination of its contract with Burgundy Global Exploration Corp. today in the monthly fleet-status report on its Web site. Calgary-based Oilexco Inc. halted operations aboard Transocean’s Sedco 712 rig after its North Sea subsidiary sought protection from creditors, the report said.

Oil exploration companies are having difficulty borrowing money to lease rigs and hire roughnecks after crude tumbled 74 percent in the past six months and global credit markets seized up, said Truls Olsen, an analyst at Fearnley Fonds AS in Oslo. More contract terminations are imminent as energy prices decline and cash-strapped producers reduce or cancel projects.

“We will likely see more of this,” Olsen, who rates Transocean shares a “buy” and doesn’t own any, said today in a telephone interview. “Counterparty risk is on the increase. It’s a matter of whether or not you are able to raise cash.”

Oilexco demobilized the Sedco 712 rig on Jan. 5, two days before a London court appointed administrators to oversee operations of the company’s North Sea unit. The $340,000-a-day contract for the rig that runs through March 2010 “remains in full force and effect,” Transocean said in today’s report.

Tough Times

“Credit’s tight and times are tough,” said Michael Drickamer, an analyst at Morgan Keegan and Co. in Memphis, who rates Transocean shares “outperform.”

Burgundy, based in Makati City, Philippines, agreed last month to lease Transocean’s C. Kirk Rhein Jr. rig to search for oil in Filipino waters. The contract represented a 52 percent increase from the previous rate and the first time that type of rig commanded more than $500,000 a day.

Transocean said it’s pursuing “appropriate remedies” against Burgundy and Oilexco, without elaborating.

A telephone call to Burgundy’s corporate office after normal business hours wasn’t answered. Transocean spokesman Guy Cantwell didn’t return a telephone message left at his Houston office.

South African energy producer Sasol Ltd.’s current $362,000- a-day contract to use the Rhein rig off the coast of Mozambique expires this month.

The Rhein is in a class of rigs known as midwater floaters that can operate in seas 1,000 feet (305 meters) to about 4,000 feet deep. The Rhein, built in 1976 and refurbished in 1997, can bore wells 25,000 feet below the surface of the ocean.

Sedco 712

The Sedco 712 is a 26-year-old vessel that can operate in 1,600-foot waters and drill to 25,000 feet.

Transocean had a $41.1 billion backlog of orders as of Sept. 30. The record lease for any type of rig is the $652,000 daily rate agreed to by Italy’s Eni SpA in July 2008 for Transocean’s Deepwater Pathfinder ship. Exxon Mobil Corp. signed a contract to rent a vessel yet to be built in October at an identical rate.

Transocean fell $3.48, or 6.4 percent, to $51.02 at 12:07 p.m. in New York Stock Exchange composite trading.

The stock has fallen 63 percent in the past year as crude tumbled from an all-time high of $147.27 a barrel in July, prompting concern about faltering demand for equipment and personnel used to find and develop oil fields.

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net.

Transocean Philippines cancellation highlights rig deals turmoil

Houston (Platts)--13Jan2009

Uncertainties in drilling rig contracts continued to rattle the industry
Tuesday, as analysts assessed the impact of a decision by deepwater driller
Transocean to cancel a $550,000/d contract in the Philippines because the
operator could not post an escrow payment.

The world's largest offshore drilling contractor mentioned the
cancellation of a contract with Burgundy Global Exploration in its latest
fleet status update released Monday but declined to elaborate.

That report also confirmed the possibility of a contract confrontation
with troubled North Sea operator Oilexco, which demobilized Transocean's Sedco
712 last week as it appeared headed for reorganization.

Transocean described the Oilexco contract as remaining in "full force and
effect" and said it plans to "pursue all appropriate remedies as may be
necessary."

Analysts at Houston's Tudor Pickering Holt described the Burgundy
cancellation decision as "worth analyzing" with the market still working to
understand the potential contract enforcement pitfalls of the credit crisis
that began unfolding a few months ago.

Noting the smaller size of privately held Burgundy, TPH said Transocean
demanded the premium dayrate of $550,000 and required an escrow payment.

"That implies they knew it was dicey," TPH wrote in a report. The firm
referred to the cancellation as "another anecdote saying customer risk is
bigger than contract risk."

Credit Suisse analyst Arun Jayaram wrote: "While this is not good news,
we view the risk of further cancellations as more limited relative to peers
given the quality of Transocean's backlog, with an estimated 93% of customers
of investment grade ratings or national oil companies."

In its update, Transocean said only that it will review its options for
mediation or legal action on the five-month contract with Burgundy that had
been scheduled to begin in February for the semisubmersible C. Kirk Rhein, Jr.

Questions about contract enforcement have grown more pronounced as the
global credit crisis forces more operators to reconsider projects.

The trend began a month ago in the Gulf of Mexico where US independent
Callon Petroleum decided to suspend what had been considered a
transformational project called Entrada.

No one was immediately available at Burgundy in the Philippines to
explain its plans in this economic environment.

The company announced plans September 29 to commit investment of $715
million in a project to develop oil reserves in the Camago-Malampaya Field
there.

Jayaram noted that the rig is scheduled to complete its current contract
this month off Mozambique for Sasol, giving Transocean time to find a new
customer.

Shares of Transocean rose 3% Tuesday on the New York Stock Exchange to
close at $51.98, just above their 52-week low of $41.95 and well
below the high of $163. But Tuesday's increase followed a decline of 5% on
Monday after the fleet report first appeared.

Similar stories appear in Platts Oilgram News.
See more information at http://oilgramnews.platts.com.

Transocean kaufen
26.01.09 - Die Actien-Börse

Düsseldorf, 26 Jan. (newratings.de) - Die Experten von "Die Actien-Börse" raten zum Kauf der Transocean-Aktie (ISIN CH0048265513 / WKN A0REAY).

Bei Transocean handle es sich um den weltweit führenden Tiefsee-Bohrer, der vom Ölmarkt nicht wegzudenken sei. Für dieses Jahr avisiere das Management einen Umsatz von 13,7 Mrd. USD. Der Cashflow werde von 3,1 Mrd. USD in 2007 auf sichere 7,5 Mrd. USD in diesem Jahr zulegen. Vor dem Hintergrund eines hohen Auftragsbestands von 41 Mrd. USD werde der Gewinn von 1,9 auf 5,1 Mrd. USD klettern. Trotzdem habe der Titel einen Kursverfall von 150 auf 55 USD hinter sich. Aktuell werde das Papier mit einem KGV von 4 bewertet.

Die Experten von "Die Actien-Börse" empfehlen, die Transocean-Aktie zu kaufen. Das Ziel sehe man bei 65 USD und ein Stoppkurs sollte bei 40 USD platziert werden. (Ausgabe 04 vom 24.01.2009) (26.01.2009/ac/a/a)

Antwort auf Beitrag Nr.: 36.459.868 von meinolf67 am 27.01.09 19:55:35Reliance to Take Delivery of Three Deepwater Rigs
http://www.bloomberg.com/apps/news?pid=20601072&sid=alznMvN.…
http://www.finanznachrichten.de/nachrichten-2009-02/13046617…

Transocean Ltd. Reports Fourth Quarter and Full-Year 2008 Results

* Tuesday February 17, 2009, 7:30 am EST

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Related:

* Transocean Ltd.

ZUG, Switzerland--(BUSINESS WIRE)--Transocean Ltd. (NYSE:RIG - News) today reported net income for the three months ended December 31, 2008 of $800 million, or $2.50 per diluted share. Revenues for the fourth quarter 2008 totaled a record $3.270 billion. The results compare to net income of $1.056 billion, or $4.17 per diluted share, for the three months ended December 31, 2007. For the three months ended December 31, 2007, revenues were $2.077 billion.
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Symbol Price Change
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Chart for TRANSOCEAN LTD
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Fourth quarter 2008 results were adversely impacted by certain net charges, after tax, totaling $385 million, or $1.19 per diluted share, as follows:

* $208 million of goodwill and other impairments related to drilling management services,
* $97 million of write-downs to fair market value for the GSF Arctic II and GSF Arctic IV semi-submersible rigs held for sale,
* $46 million for depreciation, depletion and amortization expense resulting from an adjustment to the useful life assigned to certain rigs acquired in the merger with GlobalSantaFe Corporation (the “Merger”),
* $20 million of discrete tax items, write-downs of oil and gas properties and costs related to the Merger,
* $17 million of write-offs for uncollectible accounts receivable associated with the Sedco 712 rig contract after the operator announced it had been placed into administration (a form of bankruptcy protection under U.K. law),
* $18 million for materials and supplies obsolescence, and
* Partially offset by $21 million of income related to the sales contract termination fee on the Transocean Nordic and income from the TODCO tax sharing agreement.

Net income of $1.056 billion for the three months ended December 31, 2007 included after-tax income of $194 million, or $0.77 per diluted share, resulting primarily from the sale of the Peregrine I drillship and benefits from discrete tax items (which were partially offset by Merger-related costs and losses on the early retirement of debt). On November 27, 2007, Transocean Inc. reclassified its ordinary shares into cash and shares (the “Reclassification”) in connection with the Merger. Reported results for the fourth quarter and full year 2007 included approximately one month from GlobalSantaFe's operations and the impact of recording GlobalSantaFe's assets and liabilities at fair market value as required by generally accepted accounting principles.

Diluted earnings per share for the fourth quarter 2007 is based on a weighted average diluted share count of 254 million shares, which included the effect of restating the historical share count for the Reclassification. The weighted average diluted share count for the fourth quarter 2007 without restatement would have been 309(1) million shares.

For the year ended December 31, 2008, net income totaled $4.202 billion, or $13.09 per diluted share, on revenues of $12.674 billion. Net income for the twelve months ended December 31, 2008 included after-tax charges of $401 million, or $1.24 per diluted share, resulting primarily from the fourth quarter items listed above, in addition to a loss on short-term investments and a loss from the early retirement of debt.

For 2007, net income was $3.131 billion, or $14.14 per diluted share, on revenues of $6.377 billion. Net income for the year ended December 31, 2007 included after-tax income of $563 million relating to payments received under the TODCO tax sharing agreement, rig sales and discrete tax items.

On December 18, 2008, Transocean completed the change of place of incorporation of its holding company from the Cayman Islands to Switzerland (the “Redomestication”). As a result of the Redomestication, Transocean Ltd. succeeded Transocean Inc. as the holding company for the Transocean group of companies. The financial results disclosed herein are provided on a consolidated basis for the Transocean group of companies.

Operations Quarterly Review

Revenues for the three months ended December 31, 2008 increased to $3.270 billion, compared to revenues of $3.192 billion during the three months ended September 30, 2008. The $78 million quarter-to-quarter increase in total revenues included $131 million of higher contract drilling revenues, reflecting an increase in average dayrates and a decrease in out-of-service time for planned shipyards. A $43 million decrease in other revenues partially offset these increases and resulted primarily from decreases in non-drilling activities. The average dayrate for the fleet increased 3.8 percent from $242,200 in the third quarter to $251,500 in the fourth quarter.

Operating and maintenance expenses totaled $1.408 billion for the fourth quarter 2008, down $18 million or 1.3 percent, compared to $1.426 billion for the prior quarter. The quarter-to-quarter reduction in operating and maintenance costs was primarily the result of non-drilling cost reductions of $46 million and a $17 million decline in maintenance and shipyard costs, partially offset by $23 million of bad debt expense related to the Sedco 712 customer receivable and $21 million of charges related to obsolescence of materials and supplies.

Depreciation, depletion and amortization expense increased to $396 million in the fourth quarter 2008 versus $336 million for the third quarter 2008. The $60 million quarter-to-quarter increase includes $46 million for adjustments to the depreciable lives of certain rigs acquired in the Merger, a $6 million write-down of oil and gas properties and $8 million of other miscellaneous items.

General and administrative expenses were $59 million for the fourth quarter 2008 compared to $46 million in the prior quarter. The $13 million increase was due, in part, to $8 million of additional professional fees, including $4 million related to the Redomestication and $4 million of additional Merger-related costs.

For the fourth quarter 2008, field operating income(2) (defined as revenues less operating and maintenance expenses) increased 5.4 percent to $1.862 billion compared to $1.766 billion for the third quarter 2008. The increase was primarily due to the higher revenues and reduced operating and maintenance expenses, as discussed above.

Liquidity and Interest Expense

Interest expense, net of amounts capitalized for the fourth quarter 2008, increased to $121 million compared to $100 million in the third quarter 2008. The increase included $11 million from higher interest rates and $10 million from reduced capitalized interest. As of December 31, 2008, total debt was $14.186 billion, a decrease of $597 million from September 30, 2008.

Cash flow from operating activities decreased to $1.196 billion for the fourth quarter 2008 compared to $1.270 billion for the third quarter 2008. For the full year 2008, cash flow from operating activities totaled $4.959 billion compared to $3.073 billion for the full year 2007.

Effective Tax Rate

Transocean’s Annual Effective Tax Rate(3), which excludes various discrete items, for each of the fourth quarter 2008 and the full year ended December 31, 2008 was 15.8 percent and 14.0 percent, respectively. The Effective Tax Rate(4) for each of the fourth quarter 2008 and the full year ended December 31, 2008 was 20.8 percent and 15.0 percent, respectively. Transocean’s Effective Tax Rate(4) for both periods reflects the impact of various discrete items primarily related to the tax effect of the impairment losses that are non-deductible for tax purposes, largely offset by changes in estimates.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. Eastern time, 4:00 p.m. Swiss time, on February 17, 2009. To participate, dial 913-312-1268 and refer to confirmation code 5215304 approximately five to 10 minutes prior to the scheduled start time of the call.

In addition, the conference call will be simultaneously broadcast over the Internet in a listen-only mode and can be accessed by logging onto Transocean’s website at www.deepwater.com and selecting “Investor Relations/News & Events/Webcasts & Presentations.” A file containing four charts to be discussed during the conference call, titled “4Q08 Charts,” has been posted to Transocean’s website and can also be found by selecting “Investor Relations/News & Events/Webcasts & Presentations.” The conference call may also be accessed via the Internet at www.CompanyBoardroom.com by typing in Transocean’s New York Stock Exchange trading symbol, “RIG.”

A telephonic replay of the conference call should be available after 1:00 p.m. Eastern time, 7:00 p.m. Swiss time, on February 17, 2009 and can be accessed by dialing 719-457-0820 and referring to the passcode 5215304. Also, a replay will be available through the Internet and can be accessed by visiting either of the above-referenced Worldwide Web addresses.

Transocean is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 136 mobile offshore drilling units plus 10 announced ultra-deepwater newbuild units, Transocean's fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. Transocean owns or operates a contract drilling fleet of 39 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 28 Midwater Floaters, 10 High-Specification Jackups, 55 Standard Jackups and other assets utilized in the support of offshore drilling activities worldwide.

(1) The weighted average diluted share count for the quarter without restatement is calculated by assuming the Transocean share count without the effect of the Reclassification for October 2007 and November 2007 and with the effect of the Reclassification for December 2007. The weighted average diluted share count for 2007 without restatement is calculated by assuming the Transocean share count without the effect of the Reclassification for January 2007 through November 2007 and with the effect of the Reclassification for December 2007.

(2) For a reconciliation of operating income before general and administrative expense to field operating income, see the accompanying schedule entitled "Non-GAAP Financial Measures and Reconciliations - Operating Income Before General and Administrative Expense to Field Operating Income."

(3) Annual Effective Tax Rate is defined 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 taxes excluding gains on sales and similar items pursuant to Financial Accounting Standards Board Interpretation No. 18. See the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

(4) 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."

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

Three months ended

December 31,


Twelve months ended
December 31,
2008




2007





2008





2007
Operating revenues
Contract drilling revenues $ 2,830 $ 1,860 $ 10,756 $ 5,948
Contract drilling intangible revenues 133 88 690 88
Other revenues 307 129 1,228 341
3,270 2,077 12,674 6,377
Costs and expenses
Operating and maintenance 1,408 923 5,355 2,781
Depreciation, depletion and amortization 396 195 1,436 499
General and administrative 59 60 199 142
1,863 1,178 6,990 3,422
Impairment loss (320 ) — (320 ) —
Gain (loss) from disposal of assets, net (3 ) 254 (7

)



284
Operating income 1,084 1,153 5,357 3,239

Other income (expense), net
Interest income 2 13 32 30
Interest expense, net of amounts capitalized (121 ) (79 ) (469

)



(172 )
Loss on retirement of debt — (8 ) (3 ) (8 )
Other, net 46 — 26 295
(73 ) (74 ) (414

)



145

Income before income taxes and minority interest 1,011 1,079 4,943 3,384
Income tax expense 210 23 743 253
Minority interest 1 — (2

)



—

Net income $ 800 $ 1,056 $ 4,202 $ 3,131

Earnings per share
Basic $ 2.51 $ 4.27 $ 13.20 $ 14.65
Diluted $ 2.50 $ 4.17 $ 13.09 $ 14.14

Weighted average shares outstanding
Basic 319 247 318 214
Diluted 320 254 321 222

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)


December 31,
2008 2007
ASSETS
Cash and cash equivalents $ 963 $ 1,241
Short-term investments 333 —
Accounts receivable, net
Trade 2,798 2,209
Other 66 161
Materials and supplies, net 432 333
Deferred income taxes, net 63 119
Assets held for sale 464 —
Other current assets 230 233
Total current assets 5,349 4,296

Property and equipment 25,802 24,545
Less accumulated depreciation 4,975 3,615
Property and equipment, net 20,827 20,930
Goodwill 8,128 8,219
Other assets 867 919
Total assets $ 35,171 $ 34,364

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable $ 914 $ 805
Accrued income taxes 317 99
Debt due within one year 664 6,172
Other current liabilities 806 826
Total current liabilities 2,701 7,902

Long-term debt 13,522 11,085
Deferred income taxes, net 666 681
Other long-term liabilities 1,755 2,125
Total long-term liabilities 15,943 13,891

Commitments and contingencies
Minority interest 3 5


Preference shares, none authorized, issued and outstanding at December 31, 2008; preference shares, $0.10 par value, 50,000,000 shares authorized, none issued and outstanding at December 31, 2007
— —
Shares, CHF 15.00 par value, 502,852,947 authorized, 167,617,649 contingently authorized, 335,235,298 issued and 319,262,113 outstanding at December 31, 2008; ordinary shares, $0.01 par value, 800,000,000 shares authorized, 317,222,909 shares issued and outstanding at December 31, 2007 4,444 3
Additional paid-in capital 6,492 10,799
Accumulated other comprehensive loss (420 ) (42 )
Retained earnings 6,008 1,806
Total shareholders’ equity 16,524 12,566
Total liabilities and shareholders’ equity $ 35,171 $ 34,364

TRANSOCEAN LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Three months ended

December 31,
Year ended

December 31,


2008 2007 2008 2007
Cash flows from operating activities
Net income $ 800 $ 1,056 $ 4,202 $ 3,131

Adjustments to reconcile net income to net cash provided by operating activities

Amortization of drilling contract intangibles (133 ) (88 ) (690 ) (88 )
Depreciation, depletion and amortization 396 195 1,436 499
Share-based compensation expense 15 48 64 78
Excess tax benefit from share-based compensation plans 1 (37 ) (10 ) (70 )
(Gain) loss from disposal of assets, net 3 (254 ) 7 (284 )
Impairment loss 320 — 320 —
Impairment of short-term investments — — 16 —
Deferred revenues, net (11 ) 34 11 52
Deferred expenses, net 17 (38 ) (115 ) (55 )
Deferred income taxes 4 (42 ) 8 (40 )
Other, net 28 16 31 22
Changes in operating assets and liabilities (244 ) 25 (321 ) (172 )
Net cash provided by operating activities 1,196 915 4,959 3,073

Cash flows from investing activities
Capital expenditures (505 ) (320 ) (2,208 ) (1,380 )
Business combination — (5,129 ) — (5,129 )
Cash balances acquired in business combination — 695 — 695
Proceeds from disposal of assets, net — 317 348 379
Short-term investments — — (408 ) —
Proceeds from maturities of short-term investments 59 — 59 —
Joint ventures and other investments, net (2 ) (239 ) 13 (242 )
Net cash used in investing activities (448 ) (4,676 ) (2,196 ) (5,677 )

Cash flows from financing activities
Change in short-term borrowings, net (684 ) 1,500 (837 ) 1,500
Proceeds from issuance of debt and borrowings under other credit facilities 307 24,095 2,661 24,095
Repayments of debt and payments under other credit facilities (220 ) (11,333 ) (4,893 ) (12,033 )
Financing costs (14 ) (96 ) (24 ) (106 )
Repurchase of shares —

—
— (400 )
Payment to shareholders for Reclassification — (9,859 ) (1 ) (9,859 )
Proceeds from (payments for) exercise of warrants, net (3 ) 24 (7 ) 40
Proceeds from share-based compensation plans, net 2 16 51 72
Excess tax benefit from share-based compensation plans (1 ) 37 10 70
Other, net (1 )

—
(1 ) (1 )
Net cash provided by (used in) financing activities (614 ) 4,384 (3,041 ) 3,378
Net increase (decrease) in cash and cash equivalents 134 623 (278 ) 774
Cash and cash equivalents at beginning of period 829 618 1,241 467
Cash and cash equivalents at end of period $ 963 $ 1,241 $ 963 $ 1,241

Transocean Ltd.

Fleet Operating Statistics

Operating Revenues ($ Millions) (1)
Three months ended Twelve months ended

December 31,
December 31,

2008
September 30,

2008
December 31,

2007
2008 2007
Contract Drilling Revenues
High-Specification Floaters:
Ultra Deepwater Floaters $ 673 $ 617 $ 453 $ 2,456 $ 1,509
Deepwater Floaters 331 323 290 1,355 1,069
Harsh Environment Floaters 164 163 120 646 478
Total High-Specification Floaters 1,168 1,103 863 4,457 3,056
Midwater Floaters 797 690 534 2,812 1,711
High-Specification Jackups 146 144 64 594 100
Standard Jackups 709 749 386 2,842 1,023
Other Rigs 10 13 13 51 58
Subtotal 2,830 2,699 1,860 10,756 5,948
Contract Intangible Revenue 133 143 88 690 88
Other Revenues
Client Reimbursable Revenues 51 55 35 203 126
Integrated Services and Other 49 58 50 186 171
Drilling Management Services 194 211 35 758 35
Oil and Gas Properties 13 26 9 81 9
Subtotal 307 350 129 1,228 341
Total Company $ 3,270 $ 3,192 $ 2,077 $ 12,674 $ 6,377

Average Dayrates (1)
Three months ended Twelve months ended

December 31,
December 31,

2008
September 30,

2008
December 31,

2007
2008 2007
High-Specification Floaters:
Ultra Deepwater Floaters $ 423,600 $ 401,300 $ 346,100 $ 399,200 $ 316,000
Deepwater Floaters $ 299,000 $ 322,700 $ 265,300 $ 305,400 $ 236,600
Harsh Environment Floaters $ 358,900 $ 363,500 $ 326,300 $ 361,500 $ 291,300
Total High-Specification Floaters $ 370,500 $ 369,300 $ 311,600 $ 360,100 $ 279,500
Midwater Floaters $ 329,200 $ 292,900 $ 274,600 $ 303,800 $ 249,900
High-Specification Jackups $ 169,100 $ 178,500 $ 173,400 $ 174,800 $ 155,700
Standard Jackups $ 156,100 $ 158,700 $ 130,800 $ 152,500 $ 119,600
Other Rigs $ 37,800 $ 48,900 $ 48,500 $ 46,200 $ 52,700
Total Drilling Fleet $ 251,500 $ 242,200 $ 224,000 $ 240,300 $ 211,900

Utilization (1)
Three months ended Twelve months ended

December 31,
December 31,

2008
September 30,

2008
December 31,

2007
2008 2007
High-Specification Floaters:
Ultra Deepwater Floaters 96 % 93 % 97 % 93 % 98 %
Deepwater Floaters 75 % 68 % 75 % 76 % 78 %
Harsh Environment Floaters 100 % 98 % 80 % 98 % 90 %
Total High-Specification Floaters 88 % 83 % 85 % 87 % 87 %
Midwater Floaters 92 % 88 % 95 % 87 % 95 %
High-Specification Jackups 94 % 87 % 100 % 93 % 100 %
Standard Jackups 90 % 93 % 91 % 91 % 87 %
Other Rigs 99 % 100 % 97 % 100 % 99 %
Total Drilling Fleet 90 % 89 % 90 % 89 % 90 %
(1) Average daily revenue is defined as contract drilling revenue earned per revenue earning day in the period. A revenue earning day is defined as a day for which a rig earns dayrate after commencement of operations. Utilization is defined as the total actual number of revenue earning days in the period as a percentage of the total number of calendar days in the period for all drilling rigs in our fleet.
Transocean Ltd. and Subsidiaries
Non-GAAP Financial Measures and Reconciliations

Operating Income Before General and Administrative Expense
to Field Operating Income
(In millions)

Three months ended Twelve months ended
Dec. 31, Sep. 30, Dec. 31, Dec. 31, Dec. 31,
2008 2008 2007 2008 2007

Operating revenue $ 3,270 $ 3,192 $ 2,077 $ 12,674 $ 6,377
Operating and maintenance expense 1,408 1,426 923 5,355 2,781
Depreciation, depletion and amortization 396 336 195 1,436 499
Impairment loss 320 - - 320 0
(Gain) loss from disposal of assets, net 3 1 (254 ) 7 (284 )
Operating income before general and administrative expense 1,143 1,429 1,213 5,556 3,381
Add back (subtract):
Depreciation, depletion and amortization 396 336 195 1,436 499
Impairment loss 320 - - 320 -
(Gain) loss from disposal of assets, net 3 1 (254 ) 7 (284 )
Field operating income $ 1,862


$ 1,766 $ 1,154 $ 7,319


$ 3,596
Transocean Ltd. and Subsidiaries
Supplemental Effective Tax Rate Analysis
(In millions)


Three months ended Twelve months ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31,
2008 2008 2007 2008 2007
Income (Loss) before income taxes and minority interest $ 1,011 $ 1,278 $ 1,079 $ 4,943 $ 3,384
Add back (subtract):
Impairment loss 326 - - 326 -
Change to estimated useful lives of certain LGSF rigs 46 - - 46 -
Sedco 712 bad debt provision 23 - - 23 -
Materials and supplies obsolescence provision 21 - - 21 -
GSF Merger related costs 2 1 82 6 82
Contract termination fee - Transocean Nordic (17 ) - - (17 ) -
Income from TODCO tax sharing agreement (4 ) (14 ) (1 ) (18 ) (277 )
Gain on disposal of assets, net - - (233 ) - (264 )
Loss on The Reserve Funds - 16 - 16 -
Loss on retirement of debt - - 8 3 8
Adjusted income before income taxes 1,408 1,281 935 5,349 2,933

Income tax expense 210 175 23 743 253
Add back (subtract): -
Impairment loss 17 - - 17 -
Sedco 712 bad debt provision 6 - - 6 -
Materials and supplies obsolescence provision 3 - - 3 -
GSF Merger related costs - 1 15 1 15
Loss on The Reserve Funds - 2 - 2 -
Gain on disposal of assets, net - - - - (3 )
Changes in estimates (1) (14 ) 15 36 (24 ) 101
Adjusted income tax expense (2) $ 222 $ 193 $ 74 $ 748 $ 366

Effective Tax Rate (3) 20.8 % 13.7 % 2.1 % 15.0 % 7.5 %

Annual Effective Tax Rate (4) 15.8 % 15.1 % 7.9 % 14.0 % 12.5 %


(1)



Our estimates change as we file tax returns, settle disputes with tax authorities or become aware of other events and include changes in deferred taxes valuation allowances on deferred taxes and other tax liabilities.

(2)



The three months ended Dec. 31, 2008 include $28 million of additional tax expense (benefit) reflecting the catch-up effect of an increase (decrease) in the annual effective tax rate from the previous quarter estimate.

(3)



Effective Tax Rate is income tax expense divided by income before income taxes and minority interest.

(4)



Annual Effective Tax Rate is income tax expense excluding various discrete items described above (such as changes in estimates and tax on items excluded from income before income taxes) divided by income before income taxes and minority interest excluding the items described above including gains on sales and similar items pursuant to Financial Accounting Standards Board Interpretation No. 18.

Transocean Net Falls After Oil Slump Cuts Rig Values (Update3)
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By Joe Carroll

Feb. 17 (Bloomberg) -- Transocean Ltd., the world’s largest offshore oil driller, said quarterly profit fell for the first time in more than two years after tumbling energy prices cut the value of some rigs and well-management services.

Fourth-quarter net income declined to $800 million, or $2.50 a share, from $1.06 billion, or $4.17, a year earlier, Geneva- based Transocean said today in a statement. Excluding losses and gains from asset writedowns and other one-time items, per-share profit was $3.69, 1 cent higher than the average estimate of 34 analysts in a Bloomberg survey.

Oil futures traded on the New York Mercantile Exchange tumbled 56 percent during the final three months of 2008, the biggest quarterly slump since the contracts began trading in 1983. In response, Transocean had one-time charges of $385 million, or $1.19 a share, to reflect lower values for its drilling-management business, two rigs and one drilling contract.

“It’s not that big at all, especially since we’ve seen companies taking $1 billion writedowns that are much smaller than Transocean,” Angeline Sedita, a managing director and senior research analyst at Macquarie Capital USA Inc., said in a telephone interview from New York. “The ultra-deepwater, which is what they’re most leveraged to, continues to put in a solid performance.”

Sales rose 57 percent to $3.27 billion. Transocean fell 6.1 percent, or $3.65, to $56.50 as of 9:32 a.m. in composite trading on the New York Stock Exchange.

Truls Olsen, an analyst at Fearnley Fonds ASA in Oslo, had expected a $1.7 billion writedown from Transocean, more than four times larger than the company actually reported, according to Olsen’s note to clients earlier today.

Deepwater Finds

Transocean’s rigs commanded an average rate of $251,500 a day during the final three months of 2008, up 12 percent from a year earlier. Rates for Transocean’s most-sophisticated deepwater vessels jumped 22 percent to an average of $423,600 a day.

Demand for offshore drilling vessels that can operate in seas 10,000 feet (3,048 meters) deep hasn’t diminished as crude plummeted more than $100 a barrel from a record seven months ago, Transocean Chief Financial Officer Gregory Cauthen said on Feb. 4. Eleven of the world’s 31 biggest finds in the past half decade were in deep water, according to energy consulting firm IHS Inc.

Chevron Corp., Royal Dutch Shell Plc and other energy producers require rigs that can operate year-round in rough seas and shelter more than 100 employees for weeks at a time to find crude in places such as the Atlantic Ocean off the coast of Ghana and the Gulf of Mexico.

Record Oil

As oil surged to a record $147.27 a barrel in 2008, Exxon Mobil Corp., Shell, Chevron and BP Plc earned a combined annual total of $116.6 billion, or about $17 for every man, woman and child on the planet.

Oil probably will average $57 a barrel this year, said Gianna Bern, president of Flossmoor, Illinois-based Brookshire Advisory and Research Inc. If Bern’s prediction is accurate, 2009 would represent the end of a seven-year rally for crude.

“If oil prices stay low for a while longer, we’re going to see an even more significant impact” on exploration spending, said Candida Scott, a senior director at IHS’s Cambridge Energy Research Associates.

Share Buybacks

The decline in net income was Transocean’s first since the second quarter of 2006. Yesterday, the company announced plans to ask shareholders in May to permit share buybacks of up to 3.5 billion Swiss francs ($3 billion).

The number of rigs drilling in the Gulf of Mexico rose 5.6 percent in the past year, according to a count by Baker Hughes Inc. Demand for the most-sophisticated, rugged offshore vessels has remained high even as U.S. land-based rigs are being idled in response to low natural-gas prices. Transocean owns almost one- fourth of the world’s deepwater rigs.

Oil companies are betting that in the five to 10 years it takes to turn a subsea oil discovery into a producing field crude prices will be high enough to make such ventures profitable, Bern said.

Deepwater exploration is expanding in the Gulf of Mexico, the east and west coasts of Africa, Southeast Asia and offshore Brazil, home to the Western Hemisphere’s largest find in a generation, said Robert Fryklund, vice president of global exploration and production analysis at Englewood, Colorado-based IHS.

Transocean began construction last month in a South Korean shipyard on a vessel that will be able to operate in waters 10,000 feet deep and drill 40,000 feet beneath the seabed.

Exxon Mobil Corp., the world’s largest energy company, has already agreed to lease the rig for five years at a record $652,000 a day. The dayrate matches the fees Italy’s Eni SpA agreed to pay for Transocean’s Deepwater Pathfinder drillship in a July accord.

To contact the reporter on this story: Joe Carroll in Chicago at jcarroll8@bloomberg.net.