Transocean Inc. reported net income for the three months ended December 31, 2007 of $1,056 million, or $4.17 per diluted share, on record quarterly revenues of $2,077 million. The results compare to net income of $621 million, or $2.92 per diluted share, on revenues of $1,186 million, for the three months ended December 31, 2006.
On November 27, 2007, Transocean Inc. merged with GlobalSantaFe Corporation and reclassified its ordinary shares into cash and shares. Reported results for the fourth quarter and full year 2007 included approximately one month from GlobalSantaFe's operations and the impact of recording GlobalSantaFe's assets and liabilities at fair market value as required by generally accepted accounting principles.
Fourth quarter 2007 results include after-tax income of $194 million, or $0.77 per diluted share, comprised of the following: $233 million gain resulting from the sale of the Peregrine I drillship; $36 million benefit for discrete tax items; $8 million loss resulting from the retirement of debt; and $67 million of Merger-related compensation costs.
Diluted earnings per share for the fourth quarter 2007 is based on a weighted average diluted share count of 254 million shares, which included the effect of restating the historical share count for the Reclassification. The weighted average diluted share count for the quarter without restatement would have been 309(1) million shares.
For the year ended December 31, 2007, net income totaled $3,131 million, or $14.14 per diluted share, on revenues of $6,377 million. For 2006, net income was $1,385 million, or $6.10 per diluted share, on revenues of $3,882 million. Results for 2007 included after-tax income of $563 million, or $2.54 per diluted share, including $369 million recognized during the first nine months of 2007 relating to payments received under the TODCO tax sharing agreement, rig sales and discrete tax items plus the $194 million recognized during the fourth quarter. Net income for the year ended December 31, 2006 included after-tax income totaling $451 million, or $1.97 per share, resulting from the sale of eight rigs and the TODCO tax sharing agreement and discrete tax items. Diluted earnings per share for the full year 2007 is based on a weighted average diluted share count of 222 million shares which includes the effect of restating the historical share count for the Reclassification. The weighted average diluted share count for 2007 without restatement would have been 303(1) million shares.
"This past year was historic for Transocean," Transocean CEO Robert L. Long stated. "It was a record year in terms of financial, operational and safety performance, and we entered 2008 with a record-high revenue backlog. By merging with GlobalSantaFe, we transformed the company and now have a larger global footprint and more extensive technical capabilities. We also recapitalized the company and returned $15.0 billion in cash to Transocean and GlobalSantaFe shareholders."
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