Transocean Ltd. : Transocean Ltd. Reports Fourth Quarter and Full Year 2012 Results

 Transocean Ltd. : Transocean Ltd. Reports Fourth Quarter and Full Year 2012
                                   Results

Transocean Ltd. / Transocean Ltd. Reports Fourth Quarter and Full Year 2012
Results . Processed and transmitted by Thomson Reuters ONE. The issuer is
solely responsible for the content of this announcement.

ZUG, SWITZERLAND--(Marketwire - March 1, 2013) - Transocean Ltd. (NYSE: RIG)
(SIX: RIGN)

  *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
                                       Net loss of $15 million to $20 million
Discontinued Operations                              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.

Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. EST, 4:00 p.m.
CET, on Monday, March 4, 2013.To participate, dial +1 913-312-0407 and refer
to confirmation code 8254413 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."
A file containing four charts that may be discussed during the conference
call, titled "4Q12 Charts," has been posted to Transocean's website and can
also be found by selecting "Investor Relations/Quarterly Toolkit." 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 3:00 p.m.
EST, 9:00 p.m. CET, on March 4, 2013, and can be accessed by dialing +1
719-457-0820 or +1 888-203-1112 and referring to the confirmation code
8254413.Also, a replay will be available through the Internet and can be
accessed by visiting either of the above-referenced internet addresses. Both
replay options will be available for approximately 30 days.

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 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, 82 mobile offshore drilling units consisting of 48 High-Specification
Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment drilling rigs), 25
Midwater Floaters and nine High-Specification Jackups. In addition, we have
six Ultra-Deepwater Drillships and three High-Specification Jackups under
construction.

For more information about Transocean, please visit the website
www.deepwater.com.

Notes
(1) Annual Effective Tax Rate is defined as income tax expense from continuing
operations excluding various discrete items (such as changes in estimates and
tax on items excluded from income before income tax expense) divided by income
from continuing operations before income tax expense excluding gains on sales
and similar items pursuant to the accounting standards for income taxes. See
the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."

(2) Revenue efficiency is defined as actual contract drilling revenues 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 amounts related to incentive
provisions.See the accompanying schedule entitled "Revenue Efficiency."

(3) Rig utilization is defined as the total number of operating days divided
by the total number of available rig calendar days in the measurement period,
expressed as a percentage. See the accompanying schedule entitled
"Utilization."

(4) Effective Tax Rate is defined as income tax expense from continuing
operations divided by income from continuing operations 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            Year ended
                                  December 31,              December 31,
                              2012           2011         2012        2011
Operating revenues
    Contract drilling
    revenues                $   2,275      $   2,011    $  8,773    $  7,407
    Other revenues                 51            122         423         620
                                2,326          2,133       9,196       8,027
Costs and expenses
    Operating and
    maintenance                 1,438          2,355       6,106       6,179
    Depreciation and
    amortization                  278            290       1,123       1,109
    General and
    administrative                 65             88         282         288
                                1,781          2,733       7,511       7,576
Loss on impairment                 --         (5,201 )      (140 )    (5,201 )
Gain (loss) on disposal of
assets, net                        (4 )          (10 )        36         (12 )
Operating income                  541         (5,811 )     1,581      (4,762 )
Other income (expense),
net
    Interest income                13             17          56          44
    Interest expense, net
    of amounts capitalized       (180 )         (178 )      (723 )      (621 )
    Gain on retirement of
    debt                           --             --           2          --
    Other, net                    (16 )           (3 )       (50 )       (99 )
                                 (183 )         (164 )      (715 )      (676 )
Income (loss) from
continuing operations
before income tax expense         358         (5,975 )       866      (5,438 )
Income tax expense
(benefit)                         (74 )          119          50         324
Income (loss) from
continuing operations             432         (6,094 )       816      (5,762 )
Income (loss) from
discontinued operations,
net of tax                         25            (28 )    (1,027 )        85
Net income (loss)                 457         (6,122 )      (211 )    (5,677 )
Net income attributable to
noncontrolling interest             1             43           8          77
Net income (loss)
attributable to
controlling interest        $     456      $  (6,165 )  $   (219 )  $ (5,754 )
Earnings (loss) per
share-basic
    Earnings (loss) from
    continuing operations   $    1.19      $  (18.67 )  $   2.27    $ (18.14 )
    Earnings (loss) from
    discontinued
    operations                   0.07          (0.09 )     (2.89 )      0.26
    Earnings (loss) per
    share                   $    1.26      $  (18.76 )  $  (0.62 )  $ (17.88 )
Earnings (loss) per
share-diluted
    Earnings (loss) from
    continuing operations    $   1.19      $  (18.67 )  $   2.27    $ (18.14 )
    Earnings (loss) from
    discontinued
    operations                   0.07          (0.09 )     (2.89 )      0.26
    Earnings (loss) per
    share                    $   1.26      $  (18.76 )  $  (0.62 )  $ (17.88 )
Weighted-average shares
outstanding
    Basic                         359            329         356         322
    Diluted                       360            329         356         322
                      TRANSOCEAN LTD. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                      (In millions, except share data)
                                (Unaudited)
                                                         December 31,
                                                     2012           2011
Assets
Cash and cash equivalents                         $    5,134    $      4,017
Accounts receivable, net
            Trade                                      1,940           2,049
            Other                                        260             127
Materials and supplies, net                              610             529
Assets held for sale                                     179              26
Deferred income taxes, net                               142             142
Other current assets                                     382             646
                      Total current assets             8,647           7,536
Property and equipment                                26,967          24,833
Property and equipment of consolidated variable
interest entities                                      1,092           2,252
Less accumulated depreciation                          7,179           6,297
                  Property and equipment, net         20,880          20,788
Goodwill                                               2,987           3,217
Other assets                                           1,741           3,491
                      Total assets                $   34,255    $     35,032
Liabilities and equity
Accounts payable                                  $    1,047    $        880
Accrued income taxes                                     116              86
Debt due within one year                               1,339           1,942
Debt of consolidated variable interest entities
due within one year                                       28             245
Other current liabilities                              2,933           2,375
                      Total current liabilities        5,463           5,528
Long-term debt                                        10,929          10,756
Long-term debt of consolidated variable interest
entities                                                 163             593
Deferred income taxes, net                               366             487
Other long-term liabilities                            1,604           1,925
                      Total long-term
                      liabilities                     13,062          13,761
Commitments and contingencies
Redeemable noncontrolling interest                        --             116
Shares, CHF 15.00 par value, 402,282,355
authorized, 167,617,649 conditionally authorized
at December 31, 2012 and 2011; 373,830,649 and
365,135,298 issued at December 31, 2012 and
2011, respectively; and 359,505,251 and
349,805,793 outstanding at December 31, 2012 and
2011, respectively                                     5,130           4,982
Additional paid-in capital                             7,521           7,211
Treasury shares, at cost, 2,863,267 held at
December 31, 2012 and 2011                              (240 )          (240 )
Retained earnings                                      3,855           4,180
Accumulated other comprehensive loss                    (521 )          (496 )
                  Total controlling interest
                  shareholders' equity                15,745          15,637
                  Noncontrolling interest                (15 )           (10 )
                      Total equity                    15,730          15,627
                      Total liabilities and
                      equity                      $   34,255    $     35,032

                            TRANSOCEAN LTD. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (In millions)
                                      (Unaudited)
                                  Three months ended             Twelve months ended
                                     December 31,                    December 31,
                                 2012            2011            2012            2011
Cash flows from operating
activities
 Net income (loss)              $     457      $  (6,122  )   $     (211  )   $   (5,677  )
 Adjustments to reconcile
 to net cash provided by
 operating activities
     Amortization of
     drilling contract
     intangibles                      (10  )         (13  )          (42  )          (45  )
     Depreciation and
     amortization                     278            290           1,123           1,109
     Depreciation and
     amortization of
     assets in
     discontinued
     operations                        --             82             183             342
     Share-based
     compensation expense              25             21              97              95
     Loss on impairment                --          5,201             140           5,201
     Loss on impairment of
     assets in
     discontinued
     operations                         3              6             986              38
     (Gain) loss on
     disposal of assets,
     net                                4             11             (36  )           12
     Gain on disposal of
     assets in
     discontinued
     operations, net                  (12  )          (8  )          (82  )         (183  )
     Amortization of debt
     issue costs,
     discounts and
     premiums, net                     16             30              68             125
     Deferred income taxes            (29  )         (92  )         (133  )          (62  )
     Other, net                        25             59              72             144
     Changes in deferred
     revenue, net                      15            (23  )          (54  )          (16  )
     Changes in deferred
     expenses, net                     55              5              85             (61  )
     Changes in operating
     assets and
     liabilities                       96          1,156             512             803
Net cash provided by
operating activities                  923            603           2,708           1,825
Cash flows from investing
activities
 Capital expenditures                (657  )        (341  )       (1,303  )         (974  )
 Capital expenditures for
 discontinued operations              (31  )          (9  )         (106  )          (46  )
 Investment in business
 combination, net of cash
 acquired                              --         (1,047  )           --          (1,246  )
 Proceeds from disposal of
 assets, net                            2              2             191              14
 Proceeds from disposal of
 assets in discontinued
 operations, net                      593             94             789             447
 Payment for settlement of
 forward exchange contract             --             --              --             (78  )
 Other, net                             8             14              40             (13  )
Net cash used in investing
activities                            (85  )      (1,287  )         (389  )       (1,896  )
Cash flows from financing
activities
 Changes in short-term
 borrowings, net                       --           (146  )         (260  )          (88  )
 Proceeds from debt                    --          2,934           1,493           2,939
 Repayments of debt                (1,698  )      (2,137  )       (2,282  )       (2,409  )
 Proceeds from restricted
 cash investments                      13            479             311             479
 Deposits to restricted
 cash investments                      (9  )        (523  )         (167  )         (523  )
 Proceeds from share
 issuance, net                         --          1,211              --           1,211
 Distribution of
 qualifying additional
 paid-in capital                       --           (255  )         (278  )         (763  )
 Other, net                           (11  )        (108  )          (19  )         (112  )
Net cash provided by (used
in) financing activities           (1,705  )       1,455          (1,202  )          734
Net increase (decrease) in
cash and cash equivalents            (867  )         771           1,117             663
Cash and cash equivalents
at beginning of period              6,001          3,246           4,017           3,354
Cash and cash equivalents
at end of period                $   5,134      $   4,017      $    5,134      $    4,017
                             TRANSOCEAN LTD. AND SUBSIDIARIES
                                FLEET OPERATING STATISTICS
                                        Operating Revenues (in millions)
                                                                       Years ended
                                Three months ended                     December 31,
                      December    September       December
                      31, 2012    30, 2012      31, 2011         2012            2011
Contract Drilling
Revenues
  High-Specification
  Floaters:
       Ultra
       Deepwater
       Floaters       $   1,198     $   1,213      $   1,066       $   4,643      $   3,945
       Deepwater
       Floaters             275           306            256           1,152            969
       Harsh
       Environment
       Floaters             220           247            285             985            806
  Total
  High-Specification
  Floaters                1,693         1,766          1,607           6,780          5,720
  Midwater Floaters         464           424            333           1,573          1,462
  High-Specification
  Jackups                   108           110             58             378            176
Total Contract
Drilling Revenues -
continuing
operations                2,265         2,300          1,998           8,731          7,358
Contract Intangible
Revenue                      10            10             13              42             45
Other Revenues
  Client
  Reimbursable
  Revenues                   40            46             36             162            142
  Integrated
  Services and Other          3             -             13              10             53
  Drilling
  Management
  Services                    8            75             73             251            429
Total Other Revenues         51           121            122             423            624
Total Revenue from
continuing
operations            $   2,326     $   2,431      $   2,133       $   9,196      $   8,027
                                           Average Daily Revenue ^(1)
                                                                       Years ended
                                Three months ended                     December 31,
                      December    September       December
                      31, 2012    30,2012       31, 2011         2012            2011
Continuing
operations:
  High-Specification
  Floaters:
       Ultra
       Deepwater
       Floaters       $ 514,300     $ 515,000      $ 490,200       $ 500,300      $ 461,000
       Deepwater
       Floaters         337,100       356,300        315,200         338,200        340,000
       Harsh
       Environment
       Floaters         476,400       421,000        463,000         444,500        428,400
  Total
  High-Specification
  Floaters              469,300       464,600        446,100         455,000        430,400
  Midwater Floaters     280,300       264,500        264,800         262,200        286,400
  High-Specification
  Jackups               162,400       154,600        107,300         141,300        108,500
Total Drilling
Fleet:                $ 382,000     $ 376,200      $ 369,900       $ 370,300      $ 367,600

(1)               Average daily revenue is defined as contract drilling
                  revenues 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.
                      TRANSOCEAN LTD. AND SUBSIDIARIES
                   FLEET OPERATING STATISTICS (continued)
                                          Utilization ^(2)
                                                                Years ended
                                 Three months ended             December 31,
                                                    December
                         December     September       31,
                         31, 2012     30, 2012        2011      2012    2011
Continuing operations:
  High-Specification
  Floaters:
    Ultra Deepwater
    Floaters                   94 %           95 %        88 %    94 %    88 %
    Deepwater Floaters         64 %           63 %        55 %    61 %    49 %
    Harsh Environment
    Floaters                   72 %           91 %        96 %    87 %    94 %
  Total
  High-Specification
  Floaters                     82 %           85 %        78 %    83 %    76 %
  Midwater Floaters            72 %           70 %        57 %    66 %    59 %
  High-Specification
  Jackups                      81 %           86 %        74 %    84 %    57 %
Total Drilling Fleet           79 %           80 %        72 %    78 %    69 %

(2)          Rig utilization is defined as the total number of operating days
             divided by the total number of available rig calendar days in the
             measurement period, expressed as a percentage.
                                   Revenue Efficiency^(3)
                         Trailing Five Quarters and Historical Data
                 4Q      3Q      2Q      1Q      4Q      FY      FY      FY
                2012    2012    2012    2012    2011    2012    2011    2010
Ultra
Deepwater       95.5 %  95.9 %  92.4 %  89.0 %  89.6 %  93.2 %  87.9 %  89.0 %
Deepwater       90.9 %  96.1 %  94.5 %  83.1 %  89.7 %  91.4 %  90.7 %  91.5 %
Harsh
Environment
Floaters        97.3 %  95.4 %  97.9 %  97.8 %  98.0 %  97.1 %  97.4 %  96.0 %
Midwater
Floaters        93.9 %  90.4 %  88.2 %  90.6 %  95.4 %  90.9 %  93.4 %  92.8 %
High
Specification
Jackups         95.2 %  97.2 %  94.3 %  92.1 %  93.4 %  95.0 %  94.8 %  94.7 %
Total Fleet     94.7 %  94.9 %  92.7 %  89.6 %  91.8 %  93.0 %  90.5 %  91.2 %

(3)           Revenue efficiency is defined as actual contract drilling
              revenues for the measurement period divided by the maximum
              revenue calculation 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 amounts related to incentive
              provisions.
                      TRANSOCEAN LTD. AND SUBSIDIARIES
                  SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
                   (In US$ millions, except percentages)
                          Three months ended                Years ended
                   December                 December    December    December
                   31,        September      31,        31,        31,
                   2012        30, 2012      2011        2012        2011
Income (loss)
from continuing
operations before
income taxes        $   358      $   638    $ (5,975 )   $   866    $ (5,438 )
   Add back
   (subtract):
   Litigation
   matters               --            8       1,000         758       1,000
   Acquisition
   costs                 --           --          17           1          22
   Gain on
   disposal of
   other assets,
   net                   --          (51 )        --         (51 )        --
   Loss on
   impairment of
   goodwill and
   other assets          --           --       5,201         140       5,201
   Loss on
   redeemed
   noncontrolling
   interest              --           --          --          25          --
   Loss on
   forward
   exchange
   contract              --           --          --          --          78
   Loss on
   marketable
   security              --           --          13          --          13
   Gain on
   retirement of
   debt                  --           (2 )        --          (2 )        --
   Other, net            --           --          --          --           6
Adjusted income
from continuing
operations before
income taxes            358          593         256       1,737         882
Income tax
(benefit) expense
from continuing
operations              (74 )        105         119          50         324
     Add back
     (subtract):
     Litigation
     matters             --            2          --           2          --
     Gain on
     disposal of
     other
     assets, net         --           (3 )        --          (3 )        --
     Loss on
     impairment
     of goodwill
     and other
     assets              --           --          --           5          --
     Changes in
     estimates
     (1)                102          (14 )         7         256         (14 )
     Other, net          --           --          --          --           2
Adjusted income
tax expense from
continuing
operations (2)      $    28      $    90    $    126     $   310    $    312
Effective Tax
Rate (3)              -20.7 %       16.5 %      -2.0 %       5.8 %      -6.0 %
Annual Effective
Tax Rate (4)            7.8 %       15.2 %      49.2 %      17.8 %      35.4 %

(1)       Our estimates change as we file tax returns, settle disputes with tax authorities or
          become aware of other events and include changes in (a) deferred taxes, (b)
          valuation allowances on deferred taxes and (c) other tax liabilities.
(2)       The three months and year ended December 31, 2012 includes $(37) million of
          additional tax expense (benefit) reflecting the catch-up effect of an increase
          (decrease) in the annual effective tax rate from the previous quarter estimate.
(3)       Effective Tax Rate is income tax expense divided by income before income taxes.
(4)       Annual Effective Tax Rate is income tax expense excluding various discrete items
          (such as changes in estimates and tax on items excluded from income before income
          taxes) divided by income before income taxes excluding gains and losses on sales and
          similar items pursuant to the accounting standards for income taxes and estimating
          the annual effective tax rate.
                              Transocean Ltd. and Subsidiaries
                      Non-GAAP Financial Measures and Reconciliations
                     Adjusted Net Income and Diluted Earnings Per Share
                          (in US$ millions, except per share data)
                   YTD         QTD         YTD        QTD        YTD        QTD        QTD
                  12/31/      12/31/     09/30/     09/30/     06/30/     06/30/     03/31/
                    12          12         12         12         12         12         12
Adjusted Net
Income
Net income
(loss)
attributable to
controlling
interest, as
reported         $   (219 )  $    456    $  (675 )  $  (381 )  $  (294 )  $  (304 )  $    10
 Add back
 (subtract):
  Litigation
  matters             756           -        756          6        750        750          -
  Loss on
  impairment of
  goodwill and
  other assets        135           -        135          -        135          -        135
  Gain on
  disposal of
  assets, net         (48 )         -        (48 )      (48 )        -          -          -
  Gain on
  retirement of
  debt                 (2 )         -         (2 )       (2 )        -          -          -
  Loss on
  redeemed
  noncontrolling
  interest             25           -         25          -         25         14         11
  Loss on
  impairment of
  discontinued
  operations          961           2        959        881         78         12         66
  (Gain) loss on
  sale of
  discontinued
  operations          (69 )        (1 )      (68 )        2        (70 )      (72 )        2
  (Gain) loss
  from
  discontinued
  operations          135         (26 )      161         33        128         59         69
  Discrete tax
  items and
  other, net         (255 )      (101 )     (154 )       15       (169 )     (141 )      (28 )
  Net income, as
  adjusted       $  1,419    $    330    $ 1,089    $   506    $   583    $   318    $   265
Diluted Earnings
Per Share:
Diluted earnings
(loss) per
share, as
reported         $  (0.62 )  $   1.26    $ (1.90 )  $ (1.06 )  $ (0.84 )  $ (0.86 )  $  0.03
 Add back
 (subtract):
  Litigation
  matters            2.11           -       2.12       0.02       2.12       2.11          -
  Loss on
  impairment of
  goodwill and
  other assets       0.38           -       0.38          -       0.38          -       0.38
  Gain on
  disposal of
  assets, net       (0.13 )         -      (0.13 )    (0.13 )        -          -          -
  Gain on
  retirement of
  debt              (0.01 )         -      (0.01 )    (0.01 )        -          -          -
  Loss on
  redeemed
  noncontrolling
  interest           0.07           -       0.07          -       0.07       0.04       0.03
  Loss on
  impairment of
  discontinued
  operations         2.70           -       2.70       2.45       0.23       0.03       0.19
  (Gain) loss on
  sale of
  discontinued
  operations        (0.19 )         -      (0.19 )     0.01      (0.20 )    (0.20 )     0.01
  (Gain) loss
  from
  discontinued
  operations         0.38       (0.07 )     0.45       0.09       0.36       0.17       0.19
  Discrete tax
  items and
  other, net        (0.73 )     (0.28 )    (0.44 )     0.03      (0.48 )    (0.40 )    (0.08 )
Diluted earnings
per share, as
adjusted         $   3.96    $   0.91    $  3.05    $  1.40    $  1.64    $  0.89    $  0.75
                   YTD         QTD         YTD        QTD        YTD        QTD        QTD
                  12/31/      12/31/     09/30/     09/30/     06/30/     06/30/     03/31/
                    11          11         11         11         11         11         11
Adjusted Net
Income
Net income
(loss)
attributable to
controlling
interest, as
reported         $ (5,754 )  $ (6,165 )  $   411    $   (32 )  $   443    $   124    $   319
 Add back
 (subtract):
  Litigation
  matters           1,000       1,000          -          -          -          -          -
  Acquisition
  costs                22          17          5          5          -          -          -
  Loss on
  impairment of
  goodwill and
  other assets      5,201       5,201          -          -          -          -          -
  Loss on
  marketable
  security             13          13          -          -          -          -          -
  Loss on
  forward
  exchange
  contract             78           -         78         78          -          -          -
  Loss on
  impairment of
  discontinued
  operations           34           4         30          5         25         25          -
  (Gain) loss on
  sale of
  discontinued
  operations         (214 )       (24 )     (190 )      (14 )     (176 )        2       (178 )
  Loss from
  discontinued
  operations           95          48         47         11         36         10         26
  Discrete tax
  items and
  other, net           19          (8 )       27         (6 )       33         13         20
  Net income, as
  adjusted       $    494    $     86    $   408    $    47    $   361    $   174    $   187
Diluted Earnings
Per Share:
Diluted earnings
(loss) per
share, as
reported         $ (17.88 )  $ (18.76 )  $  1.28    $ (0.10 )  $  1.38    $  0.38    $  0.99
 Add back
 (subtract):
  Litigation
  matters            3.10        3.04          -          -          -          -          -
  Acquisition
  costs              0.07        0.05       0.02       0.02          -          -          -
  Loss on
  impairment of
  goodwill and
  other assets      16.15       15.83          -          -          -          -          -
  Loss on
  marketable
  security           0.04        0.04          -          -          -          -          -
  Loss on
  forward
  exchange
  contract           0.24           -       0.26       0.25          -          -          -
  Loss on
  impairment of
  discontinued
  operations         0.11        0.01       0.11       0.02       0.09       0.08          -
  (Gain) loss on
  sale of
  discontinued
  operations        (0.66 )     (0.07 )    (0.62 )    (0.04 )    (0.56 )     0.01      (0.56 )
  Loss from
  discontinued
  operations         0.29        0.15       0.16       0.03       0.11       0.03       0.08
  Discrete tax
  items and
  other, net         0.06       (0.03 )     0.06      (0.03 )     0.10       0.04       0.07
Diluted earnings
per share, as
adjusted         $   1.52    $   0.26    $  1.27    $  0.15    $  1.12    $  0.54    $  0.58

Analyst Contacts:
Thad Vayda
+1 713-232-7551

Diane Vento
+1 713-232-8015

Media Contact:
Guy A. Cantwell
+1 713-232-7647

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Transocean Ltd.
Chemin de Blandonnet 10 Vernier Switzerland

ISIN: CH0048265513;
 
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