03/01/13
Fourth quarter 2012 revenues were $2.326 billion, compared with $2.431 billion in the third quarter 2012;
Operating and maintenance expenses for the fourth quarter were $1.438 billion, compared with $1.321 billion in the third quarter 2012;
Fourth quarter 2012 net income attributable to controlling interest was $456 million, which included $126 million of net favorable items. This compares with the third quarter 2012 net loss attributable to controlling interest of $381 million, which included $887 million of net unfavorable items;
Fourth quarter Annual Effective Tax Rate(1) from continuing operations was 7.8 percent, compared with 15.2 percent in the third quarter 2012;
Fourth quarter net income attributable to controlling interest was $1.26 per diluted share. After adjusting for net favorable items, adjusted earnings from continuing operations were $330 million, or $0.91 per diluted share;
Cash flows from operating activities were $923 million in the fourth quarter, compared with $786 million in the third quarter 2012;
Revenue efficiency(2) from continuing operations was 94.7 percent in the fourth quarter, compared with 94.9 percent, in the third quarter 2012. Ultra-Deepwater revenue efficiency was 95.5 percent, compared with 95.9 percent in the prior quarter. Total rig utilization(3) from continuing operations was 79 percent in the fourth quarter, compared with 80 percent in the third quarter 2012;
New contracts associated with continuing operations totaling $2.0 billion were secured in the Fleet Status Report periods October 17, 2012 through February 14, 2013. Backlog from continuing operations was $28.8 billion at February 14, 2013; and
During the fourth quarter of 2012, the company reclassified its drilling management services operations in the U.S. Gulf of Mexico to discontinued operations, reducing other revenues and operating and maintenance expenses in the period by $51 million and $50 million, respectively.
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported net income attributable to controlling interest of $456 million, or $1.26 per diluted share, for the three months ended December 31, 2012. Fourth quarter 2012 results included net favorable items of $126 million, or $0.35 per diluted share. The results compare with a net loss attributable to controlling interest of $6.2 billion, or $18.76 per diluted share, for the three months ended December 31, 2011. Fourth quarter 2011 results included net unfavorable items of $6.3 billion, or $19.02 per diluted share. The net unfavorable items in 2011 were primarily due to a loss on goodwill impairment of $5.2 billion, or $15.83 per diluted share, related to the contract drilling services reporting unit; and $1.0 billion, or $3.04 per diluted share, for estimated loss contingencies associated with the Macondo well incident.
Fourth quarter 2012 net favorable items, after tax, included the following:
$101 million, or $0.28 per diluted share, associated with favorable discrete tax items, and
$25 million, or $0.07 per diluted share, of income from discontinued operations primarily associated with the sale of the shallow water rigs.
After consideration of these net favorable items, adjusted earnings from continuing operations were $330 million, or $0.91 per diluted share. A reconciliation of the non-GAAP adjusted net income and diluted earnings per share is included in the accompanying schedules.
Revenues from continuing operations for the three months ended December 31, 2012 were $2.326 billion, compared with revenues of $2.431 billion during the preceding three month period. Contract drilling revenues decreased $35 million primarily due to the expected increase in out of service time, partly offset by higher average dayrates. Revenue efficiency from continuing operations was 94.7 percent for the fourth quarter, compared with 94.9 percent in the third quarter 2012. Other revenues decreased $70 million to $51 million for the fourth quarter 2012, compared with $121 million in the prior quarter, primarily due to lower drilling management services activity.
As expected, operating and maintenance expenses from continuing operations increased $117 million to $1.438 billion for the fourth quarter of 2012, compared with $1.321 billion for the prior quarter. Contract drilling expenses increased $173 million primarily due to higher maintenance and shipyard costs associated with rigs undergoing surveys and other projects. Costs associated primarily with the company's drilling management services reporting unit decreased $56 million due to reduced activity.
General and administrative expenses were $65 million for the fourth quarter 2012, compared with $69 million in the previous quarter.
Transocean's fourth quarter Effective Tax Rate(4) from continuing operations was (20.7) percent, compared with 16.5 percent in the third quarter 2012. The decrease in the Effective Tax Rate was due to changes in estimates primarily related to settlements of prior years' tax liabilities. Transocean's Annual Effective Tax Rate from continuing operations for the fourth quarter 2012 was 7.8 percent. This compares with 15.2 percent for the prior quarter. The decrease was primarily due to changes in the blend of income that is taxed based on gross revenues versus pre-tax income, the foreign exchange effect of the strengthened Norwegian krone versus the U.S. dollar, and rig movements between jurisdictions. Fourth quarter 2012 income tax expense included a favorable adjustment of $37 million, or $0.10 per diluted share, required to decrease the 2012 Annual Effective Tax Rate to 17.8 percent from 20.5 percent for the nine months ended September 30, 2012.
Interest expense, net of amounts capitalized, was $180 million, unchanged from the prior quarter. Capitalized interest for the fourth quarter was $18 million, compared with $12 million in the third quarter 2012. Interest income decreased to $13 million in the fourth quarter, compared with $15 million in the third quarter 2012.
Cash flows from operating activities were $923 million for the fourth quarter, compared with $786 million for the third quarter 2012. Capital expenditures from continuing operations were $657 million for the fourth quarter, compared with $201 million in the third quarter of 2012.
Full Year 2012
For the year ended December 31, 2012, net loss attributable to controlling interest totaled $219 million, or $0.62 per diluted share. Full year results included $1.638 billion, or $4.58 per diluted share, of net unfavorable items as follows:
$961 million, or $2.70 per diluted share, loss on impairment of assets included in discontinued operations;
$756 million, or $2.11 per diluted share, primarily for estimated loss contingencies associated with the Macondo well incident;
$135 million, or $0.38 per diluted share, additional charges associated with the estimated 2011 goodwill impairment of the contract drilling services reporting unit and the 2012 impairment of the intangible assets of ADTI;
$66 million, or $0.19 per diluted share, net loss from discontinued operations, offset by;
$232 million or $0.67 per diluted share, related to favorable discrete taxes and other items; and
$48 million, or $0.13 per diluted share, gain on the sale of two deepwater floaters.
After consideration of these net unfavorable items, adjusted earnings from continuing operations for the full year 2012 were $1.419 billion, or $3.96 per diluted share. A reconciliation of the non-GAAP adjusted net income and diluted earnings per share is included in the accompanying schedules.
During the fourth quarter of 2012, the company reclassified its drilling management services operations in the U.S. Gulf of Mexico to discontinued operations, reducing other revenues and operating and maintenance expenses by $103 million and $112 million, respectively, for the year ended December 31, 2012.
Interest expense, net of amounts capitalized, was $723 million for the full year 2012, compared with $621 million for the full year 2011. Capitalized interest for the full year 2012 was $54 million, compared with $39 million in 2011. Interest income was $56 million for the full year 2012, compared with $44 million in 2011.
For the full year 2012, cash flow from operating activities totaled $2.708 billion, compared with $1.825 billion for 2011.
For the year ended December 31, 2011, net loss attributable to controlling interest totaled $5.754 billion, or $17.88 per diluted share, resulting primarily from the loss on the goodwill impairment associated with the contract drilling services reporting unit of $5.2 billion, or $16.15 per diluted share; and the estimated loss contingencies associated with the Macondo well incident of $1.0 billion, or $3.10 per diluted share.
Full Year 2013 Guidance Summary
The following table is a summary of the company's full year 2013 guidance for key income statement and balance sheet items. This information is based on current expectations and certain management assumptions, and is subject to change.
Item / Range
Other Revenues */ $400 million - $420 million
Fleet Average Revenue Efficiency Approximately / 93 percent
Operating and Maintenance Expenses / $5.7 billion - $5.9 billion
Depreciation and Amortization / $1.1 billion - $1.2 billion
General and Administrative Expenses / $280 million - $300 million
Net Interest Expense ** / $540 million - $550 million
Annual Effective Tax Rate Between / 18% and 22%
Capital Expenditures Approximately / $3.0 billion
Discontinued Operations Net loss of / $15 million to $20 million per quarter
* Other Revenues includes Drilling Management Services, recharge revenues, and other miscellaneous revenues.
** Net Interest Expense is net of capitalized interest of approximately $90 million and Interest Income of approximately $50 million.
Forward-Looking Statements
Statements included in this news release including, but not limited to, those regarding estimates of Transocean's full year 2013 guidance, goodwill or long-lived asset impairments, estimated loss contingencies associated with the Macondo well incident, are forward-looking statements that involve certain assumptions. These statements are based on currently available competitive, financial, and economic data along with our current operating plans and involve risks and uncertainties including, but not limited to, market conditions, Transocean's results of operations, the effect and results of litigation, assessments and contingencies, and other factors detailed in "Risk Factors" and elsewhere in Transocean's filings with the Securities and Exchange Commission. 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 outcomes may vary materially from those forecasted or expected. Transocean disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
No comments:
Post a Comment