Transocean Ltd. Reports First Quarter 2012 Results
ZUG, SWITZERLAND, May 02, 2012 (MARKETWIRE via COMTEX) --Transocean Ltd. (NYSE: RIG) (SIX: RIGN)
-- First quarter 2012 revenues were $2.331 billion compared with $2.422 billion in the fourth quarter 2011,
-- First quarter 2012 net income attributable to controlling interest was $42 million, which included $184 million of net unfavorable items. This compares with the fourth quarter 2011 net loss attributable to controlling interest of $6.119 billion, which included $6.176 billion of net unfavorable items,
-- Revenue efficiency(1) was 90.4 percent in the first quarter, compared with 91.9 percent in the fourth quarter 2011,
-- Fleet utilization(2) was 61 percent in the first quarter, unchanged from the fourth quarter 2011,
-- First quarter 2012 operating and maintenance expenses were $1.410 billion. Excluding $1.0 billion for estimated loss contingencies associated with the Macondo Well incident, fourth quarter 2011 operating and maintenance expenses were $1.565 billion,
-- Cash flows from operating activities were $540 million in the first quarter, which compares with $563 million in the fourth quarter 2011,
-- First quarter 2012 Annual Effective Tax Rate(3) was 25.5 percent compared with 59.6 percent in the fourth quarter 2011, and
-- New contracts totaling $834 million were secured in the Fleet Status Report periods February 14, 2012 through April 18, 2012. Since April 18, 2012, additional contracts totaling $430 million were secured.
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported net income attributable to controlling interest of $42 million, or $0.12 per diluted share, for the three months ended March 31, 2012. First quarter 2012 results include net unfavorable items of $184 million, or $0.52 per diluted share. The results compare with net income attributable to controlling interest of $310 million, or $0.96 per diluted share, for the three months ended March 31, 2011. First quarter 2011 results included net favorable items of $139 million, or $0.43 per diluted share, primarily associated with the gain on sale of the Trident 20, partially offset by charges mainly related to unfavorable discrete tax items.
Net unfavorable items, after tax, impacting the first quarter of 2012 include the following:
-- $118 million, or $0.34 per diluted share, increase in the charge associated with the completion of the measurement of the estimated goodwill impairment recorded in the fourth quarter 2011 for the contract drilling services reporting unit,
-- $62 million, or $0.17 per diluted share, impairment of the intangible assets of ADTI, the drilling management services reporting unit,
-- $29 million, or $0.08 per diluted share, of favorable discrete tax items,
-- $17 million, or $0.05 per diluted share, impairment charge associated with the sale of GSF Rig 136,
-- $15 million, or $0.04 per diluted share, loss associated with the sale of Challenger Minerals (North Sea) Limited and the impairment of the properties of Challenger Minerals Inc., and
-- $1 million associated with the company's acquisition of Aker Drilling.
Operations Quarterly Review
Revenues for the three months ended March 31, 2012 were $2.331 billion, compared with revenues of $2.422 billion during the three months ended December 31, 2011. Contract drilling revenues decreased $35 million due mainly to lower revenue efficiency primarily on Deepwater and Midwater Floaters. Total fleet revenue efficiency was 90.4 percent for the first quarter, compared with 91.9 percent in the fourth quarter 2011. Other revenues decreased $54 million to $117 million for the first quarter 2012, compared with $171 million in the prior quarter, primarily due to decreased levels of low-margin drilling management services activity.