SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): February 06, 2004
TRANSOCEAN INC.
(Exact name of registrant as specified in its charter)
CAYMAN ISLANDS 333-75899 66-0587307
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
4 GREENWAY PLAZA
HOUSTON, TEXAS 77046
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 232-7500
ITEM 12. Results of Operations and Financial Condition.
In the following table, we set forth our cash operating costs for our
International and U.S. Floater Contract Drilling Services business segment for
the three month periods ended December 31, 2003, September 30, 2003 and December
31, 2002 and the twelve month periods ended December 31, 2003 and December 31,
2002. The most directly comparable GAAP financial measure to cash operating
costs, operating and maintenance expense, and information reconciling the GAAP
and non-GAAP measures are also included in the table. We utilize cash operating
costs as an additional drilling rig performance measure and to identify
variances between periods and comparable rig types. We believe investors will
utilize operating cost information as additional performance measures.
Transocean Inc. International and U.S. Floater Contract Drilling Services Business Segment
Cash Operating Costs and Reconciliation to Operating and Maintenance Expense
(Unaudited)
Twelve Months Ended
Three Months Ended December 31,
----------------------------------------------- --------------------
December 31, September 30, December 31,
2003 2003 2002 2003 2002
-------------- --------------- -------------- --------- ---------
($Millions)
INTERNATIONAL AND U.S. FLOATER
CONTRACT DRILLING SERVICES SEGMENT:
Cash Operating Costs (1)
5th Generation Fleet $ 82.9 $ 85.7 $ 60.7 $ 302.4 $ 239.3
Other Deepwater Fleet 74.7 68.1 62.8 274.3 263.9
Mid-Water Fleet 58.4 67.3 78.5 264.6 337.1
Non-U.S. Jackup Fleet 62.7 54.5 57.3 215.8 213.9
Other Rigs 14.3 0.8 18.3 36.0 56.6
Total Cash Operating Costs $ 293.0 $ 276.4 $ 277.6 $1,093.1 $1,110.8
RECONCILIATION OF CASH OPERATING
COSTS TO OPERATING & MAINTENANCE
EXPENSE
Costs deferred during the period $ (31.8) $ (29.1) $ (25.3) $ (103.3) $ (97.1)
Amortization of deferred costs 22.9 26.5 16.5 104.0 84.3
Client reimbursables 18.1 20.0 - 82.7 -
Local & indirect overhead 51.9 48.6 48.0 191.4 193.3
Total operating & maintenance expense $ 354.1 $ 342.4 $ 316.8 $1,367.9 $1,291.3
(1) Cash operating costs are direct rig operating costs excluding deferred costs
and related amortization, client reimbursable costs and local and indirect
overhead.
The information furnished pursuant to this Item 12 shall not be deemed to be
"filed" for the purposes of Section 18 of the Securities Exchange Act of 1934,
nor will it be incorporated by reference into any registration statement filed
by Transocean Inc. under the Securities Act of 1933, as amended, unless
specifically identified therein as being incorporated therein by reference. The
furnishing of the information in this report is not intended to, and does not,
constitute a determination or admission by Transocean Inc., that the information
in this report is material or complete, or that investors should consider this
information before making an investment decision with respect to any security of
Transocean Inc.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRANSOCEAN INC.
Date: February 6, 2004 By:
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Eric B. Brown
Senior Vice President, General
Counsel and Corporate Secretary
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