Nice John, only has modern rigs.
Remember Transocean took at beating with writing off their Goodwill with $ 8 Billion, and now this:
Transocean Ltd. Reports Fourth Quarter and Full Year 2011 Results
ZUG, SWITZERLAND, Feb 27, 2012 (MARKETWIRE via COMTEX) --Transocean Ltd. (NYSE: RIG) (SIX: RIGN)
-- Revenues improved eight percent in the fourth quarter to $2.422
billion compared to $2.242 billion in the third quarter 2011,
-- Fourth quarter 2011 net loss attributable to controlling interest was
$6.119 billion, which included $ 6.176 billion of certain net
unfavorable items including an estimated goodwill impairment of $5.2
billion and an estimated loss contingency of $1.0 billion associated
with the Macondo Well incident, compared to a net loss attributable to
controlling interest of $71 million in the third quarter 2011, which
included $81 million of certain net unfavorable items,
-- Revenue efficiency(1) was 91.9 percent in the fourth quarter, up from
89.5 percent in the third quarter 2011,
-- Fleet utilization(2) was 61 percent in the fourth quarter, up from 58
percent in the third quarter 2011,
-- 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, up from $1.540 billion in
the third quarter 2011,
-- Cash flows from operating activities were $563 million in the fourth
quarter, up from $492 million in the third quarter 2011,
-- The Annual Effective Tax Rate(3) for 2011 increased to 41.3 percent
from 34.1 percent in the third quarter 2011, and
-- New contracts totaling $1.4 billion were secured in the Fleet Status
Report period October 17, 2011 through February 14, 2012.
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported a net loss attributable to controlling interest of $6.119 billion, or $18.62 per diluted share, for the three months ended December 31, 2011. The results compare to a net loss attributable to controlling interest of $799 million, or $2.51 per diluted share, for the three months ended December 31, 2010.
Fourth quarter 2011 results included the following items, after tax, which resulted in a net adverse impact of $ 6.176 billion, or $18.80 per diluted share:
-- An estimated, non-cash charge of $5.2 billion, or $15.83 per diluted
share, resulting from a goodwill impairment associated with the
contract drilling services reporting unit. The impairment was
primarily due to a decline in the market valuation of the contract
drilling services business,
-- $1.0 billion, or $3.04 per diluted share, for estimated loss
contingencies associated with the Macondo Well incident that the
company believes is probable and for which a reasonable estimate can
be made at this time. This estimate will be adjusted to reflect new
information and future developments as they become known,
-- $30 million, or $0.09 per diluted share, of charges associated with
the company's acquisition of Aker Drilling,
-- $26 million, or $0.08 per diluted share, of income from discontinued
operations, primarily related to the gain on the sale of Challenger
Minerals (North Sea) Limited,
-- $18 million, or $0.05 per diluted share, of favorable discrete tax
items, and
-- $11 million, or $0.03 per diluted share, from the gain on the sale of
the GSF Adriatic XI.
Fourth quarter 2011 also included pre-tax expenses associated with the Macondo well incident of approximately $11 million, or $0.01 per diluted share. These expenses were primarily related to legal costs and other professional fees that are not expected to be recoverable from insurance.
Transocean's fourth quarter Effective Tax Rate(4) was (2.2) percent compared to 212.8 percent in the third quarter 2011. The decrease in the Effective Tax Rate was due primarily to the impact of the estimated $5.2 billion goodwill impairment and the estimated loss contingency of $1.0 billion associated with the Macondo Well incident. The 2011 Annual Effective Tax Rate(3) of 41.3 percent excludes $18 million of various discrete items which reduced income tax expense in the fourth quarter. The increase to 41.3 percent in the fourth quarter from 34.1 percent in the third quarter 2011 was primarily due to lower full year profitability than expected. Fourth quarter 2011 income tax expense included an adjustment of $46 million, or $0.14 per diluted share, required to reflect an increase in the Annual Effective Tax Rate(3) from 34.1 percent for the first nine months of 2011.
The relationship between our provision for income taxes and pre-tax income can vary materially from period to period. However, significant decreases in profitability generally result in higher effective tax rates and, conversely, significant increases in profitability generally result in lower effective tax rates. A more detailed explanation of the factors impacting our effective tax rate can be found in our 2011 Annual Report on form 10-K but include, among others, changes in the blend of income that is taxed based on gross revenues versus pre-tax income, rig movements between taxing jurisdictions, and our rig operating structures.
Please see the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."
Revenues for the three months ended December 31, 2011 were $2.422 billion, an eight percent improvement compared to revenues of $2.242 billion during the three months ended September 30, 2011. The $180 million increase in revenues was primarily due to the two Harsh Environment semi-submersible rigs added through the acquisition of Aker Drilling and higher utilization, primarily on Deepwater Floaters, several of which were in the shipyard during the third quarter 2011. Fourth quarter revenue efficiency also improved to 91.9 percent, up from 89.5 percent in the third quarter 2011.
Operating and maintenance expenses totaled $2.565 billion for the fourth quarter 2011, up from $1.540 billion for the prior quarter. The increase of $1.025 billion was due primarily to $1.0 billion of estimated loss contingencies associated with the Macondo Well incident. Additionally, approximately $25 million in costs was related to the addition of the two Aker semi-submersible rigs and unplanned charges associated with the contract termination of the Deepwater Expedition. These costs were partially offset primarily by lower operating and maintenance expenses associated with rigs undergoing shipyard, maintenance, repair and equipment certification projects during the period, and other favorable items.
General and administrative expenses were $88 million for the fourth quarter 2011 compared to $67 million in the previous quarter. The $21 million increase was primarily due to Aker acquisition costs.
For the fourth quarter, Interest expense, net of amounts capitalized, was $178 million, compared to $151 million in the third quarter 2011, reflecting the acquisition of Aker Drilling and the issuance of the $2.5 billion new senior notes during the period. Capitalized interest for the fourth quarter 2011 was $10 million compared to $5 million in the prior quarter. Interest income increased to $17 million in the fourth quarter 2011, compared to $7 million in the third quarter, primarily associated with cash investments restricted for payment of certain debt instruments assumed in the Aker acquisition.
Cash flows from operating activities increased $71 million to $563 million for the fourth quarter 2011 compared to $492 million for the third quarter 2011 due to improved operating results.
Full Year 2011
For the year ended December 31, 2011, net loss attributable to controlling interest totaled $5.725 billion, or $17.79 per diluted share, resulting primarily from the estimated goodwill impairment of $5.2 billion, or $16.15 per diluted share, associated with the contract drilling services reporting unit and the estimated loss contingencies of $1.0 billion, or $3.11 per diluted share, associated with the Macondo Well incident. Additionally, approximately $71 million, or $0.13 per diluted share, of expense was incurred primarily related to legal costs and other professional fees that are not expected to be recoverable from insurance. Partially offsetting these charges were net favorable items for the full year totaling $46 million, or $0.15 per diluted share, and included the following:
-- $197 million, or $0.62 per diluted share, from the gain on the sale of
discontinued operations of the Trident 20 and Challenger Minerals
(North Sea) Limited,
-- $113 million, or $0.36 per diluted share, of charges associated with
the acquisition of Aker Drilling, including $78 million resulting from
a forward foreign exchange contract executed to address potential
exchange rate variability, $22 million for acquisition costs, and $13
million related to losses on a marketable security,
-- $42 million or $0.12 per diluted share, of charges primarily related
to discrete tax and other items,
-- $33 million, or $0.10 per diluted share, from the gain on the sale of
the Transocean Mercury and the GSF Adriatic XI, and including the sale
of the equity interest in Overseas Drilling Limited, which owns the
research vessel Joides Resolution, and
-- $29 million or $0.09 per diluted share, loss on impairment primarily
relating to the sale of the George H. Galloway, GSF Labrador, GSF
Britannia, and the Searex IV.
Interest expense, net of amounts capitalized, was $621 million, compared to $567 million for the full year 2010. Capitalized interest for the full year 2011 was $39 million compared to $89 million in 2010. Interest income was $44 million for the full year 2011 compared to $23 million in 2010.
For the full year 2011, cash flow from operating activities totaled $1.785 billion compared to $3.946 billion for 2010 with the decrease primarily due to lower operating results.
For the year ended December 31, 2010, net income attributable to controlling interest totaled $961 million, or $2.99 per diluted share. Net income for the year ended December 31, 2010, included after-tax net charges of $819 million, or $2.54 per diluted share, resulting primarily from the $1 billion impairment of the Standard Jackups. After-tax net charges for the full year 2010 also included amounts associated with litigation matters, discontinued operations, an impairment of oil and gas properties, a loss on the sale of two rigs and losses on the early retirement of debt, and other matters totaling $76 million, partially offset by a $267 million after-tax gain re
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