x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Cayman
Islands
|
66-0582307
|
(State
or other jurisdiction of
incorporation or organization)
|
(I.R.S.
Employer Identification
No.)
|
4
Greenway Plaza
|
|
Houston,
Texas
|
77046
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
Accelerated Filer
x
|
Accelerated
Filer o
|
Non-accelerated
Filer o
|
Page
|
|||
PART
I - FINANCIAL INFORMATION
|
|||
Item
1.
|
Financial
Statements (Unaudited)
|
||
|
|||
Condensed
Consolidated Statements of Operations
|
|||
1
|
|||
Condensed
Consolidated Balance Sheets
|
|||
2
|
|||
Condensed
Consolidated Statements of Cash Flows
|
|||
3
|
|||
4
|
|||
Item
2.
|
Management’s
Discussion and Analysis of Financial
|
||
16
|
|||
Item
3.
|
32
|
||
Item
4.
|
32
|
||
PART
II - OTHER INFORMATION
|
|||
Item
1.
|
33
|
||
Item
1A.
|
34
|
||
36
|
|||
Item
4.
|
36
|
||
Item
6.
|
37
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Operating
revenues
|
||||||||||||||||
Contract
drilling revenues
|
$ |
1,360
|
$ |
828
|
$ |
2,633
|
$ |
1,607
|
||||||||
Other
revenues
|
74
|
26
|
129
|
64
|
||||||||||||
1,434
|
854
|
2,762
|
1,671
|
|||||||||||||
Costs
and expenses
|
||||||||||||||||
Operating
and maintenance
|
627
|
549
|
1,195
|
1,024
|
||||||||||||
Depreciation
|
101
|
102
|
201
|
204
|
||||||||||||
General
and administrative
|
29
|
25
|
55
|
45
|
||||||||||||
757
|
676
|
1,451
|
1,273
|
|||||||||||||
Gain
(loss) from disposal of assets, net
|
(1 | ) |
111
|
22
|
175
|
|||||||||||
Operating
income
|
676
|
289
|
1,333
|
573
|
||||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
5
|
5
|
10
|
10
|
||||||||||||
Interest
expense, net of amounts capitalized
|
(33 | ) | (20 | ) | (70 | ) | (44 | ) | ||||||||
Other,
net
|
(5 | ) |
1
|
8
|
2
|
|||||||||||
(33 | ) | (14 | ) | (52 | ) | (32 | ) | |||||||||
Income
before income taxes and minority interest
|
643
|
275
|
1,281
|
541
|
||||||||||||
Income
tax expense
|
93
|
26
|
178
|
86
|
||||||||||||
Minority
interest
|
1
|
−
|
1
|
−
|
||||||||||||
Net
income
|
$ |
549
|
$ |
249
|
$ |
1,102
|
$ |
455
|
||||||||
Earnings
per share
|
||||||||||||||||
Basic
|
$ |
1.91
|
$ |
0.77
|
$ |
3.81
|
$ |
1.40
|
||||||||
Diluted
|
$ |
1.84
|
$ |
0.75
|
$ |
3.67
|
$ |
1.36
|
||||||||
Weighted
average shares outstanding
|
||||||||||||||||
Basic
|
288
|
324
|
289
|
325
|
||||||||||||
Diluted
|
300
|
336
|
301
|
337
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ |
445
|
$ |
467
|
||||
Accounts
receivable, net of allowance for doubtful accounts of $30and $26
at June
30, 2007 and December 31, 2006, respectively
|
1,184
|
946
|
||||||
Materials
and supplies, net of allowance for obsolescence of $21 and $19 at
June 30,
2007 and December 31, 2006, respectively
|
177
|
160
|
||||||
Deferred
income taxes, net
|
20
|
16
|
||||||
Other
current assets
|
67
|
67
|
||||||
Total
current assets
|
1,893
|
1,656
|
||||||
Property
and equipment
|
11,152
|
10,539
|
||||||
Less
accumulated depreciation
|
3,392
|
3,213
|
||||||
Property
and equipment, net
|
7,760
|
7,326
|
||||||
Goodwill
|
2,195
|
2,195
|
||||||
Other
assets
|
301
|
299
|
||||||
Total
assets
|
$ |
12,149
|
$ |
11,476
|
||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Accounts
payable
|
$ |
369
|
$ |
477
|
||||
Accrued
income taxes
|
132
|
98
|
||||||
Debt
due within one year
|
18
|
95
|
||||||
Other
current liabilities
|
475
|
369
|
||||||
Total
current liabilities
|
994
|
1,039
|
||||||
Long-term
debt
|
3,046
|
3,200
|
||||||
Deferred
income taxes, net
|
51
|
54
|
||||||
Other
long-term liabilities
|
579
|
343
|
||||||
Total
long-term liabilities
|
3,676
|
3,597
|
||||||
Commitments
and contingencies
|
||||||||
Minority
interest
|
1
|
4
|
||||||
Preference
shares, $0.10 par value; 50,000,000 shares authorized, none issued
and
outstanding
|
−
|
−
|
||||||
Ordinary
shares, $0.01 par value; 800,000,000 shares authorized, 289,280,582
and
292,454,457 shares issued and outstanding at June 30, 2007 and December
31, 2006, respectively
|
3
|
3
|
||||||
Additional
paid-in capital
|
7,728
|
8,044
|
||||||
Accumulated
other comprehensive loss
|
(30 | ) | (30 | ) | ||||
Accumulated
deficit
|
(223 | ) | (1,181 | ) | ||||
Total
shareholders’ equity
|
7,478
|
6,836
|
||||||
Total
liabilities and shareholders’ equity
|
$ |
12,149
|
$ |
11,476
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net
income
|
$ |
549
|
$ |
249
|
$ |
1,102
|
$ |
455
|
||||||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||||||||||
Depreciation
|
101
|
102
|
201
|
204
|
||||||||||||
Share-based
compensation expense
|
9
|
5
|
19
|
8
|
||||||||||||
Deferred
income taxes
|
(5 | ) | (9 | ) | (7 | ) |
25
|
|||||||||
Equity
in (earnings) losses of unconsolidated affiliates
|
2
|
(3 | ) |
3
|
(3 | ) | ||||||||||
(Gain)
loss from disposal of assets, net
|
1
|
(111 | ) | (22 | ) | (175 | ) | |||||||||
Deferred
revenues, net
|
4
|
11
|
38
|
20
|
||||||||||||
Deferred
expenses, net
|
(6 | ) | (47 | ) | (13 | ) | (55 | ) | ||||||||
Tax
benefit from exercise of stock options to purchase and vesting of
ordinary
shares under share-based compensation plans
|
–
|
(8 | ) |
–
|
(8 | ) | ||||||||||
Other
long-term liabilities
|
5
|
14
|
12
|
21
|
||||||||||||
Other,
net
|
3
|
3
|
1
|
4
|
||||||||||||
Changes
in operating assets and liabilities
|
||||||||||||||||
Accounts
receivable
|
(99 | ) | (33 | ) | (238 | ) | (104 | ) | ||||||||
Other
current assets
|
(28 | ) | (50 | ) | (32 | ) | (51 | ) | ||||||||
Accounts
payable and other current liabilities
|
57
|
47
|
140
|
91
|
||||||||||||
Income
taxes receivable/payable, net
|
14
|
6
|
57
|
12
|
||||||||||||
Net
cash provided by operating activities
|
607
|
176
|
1,261
|
444
|
||||||||||||
Cash
flows from investing activities
|
||||||||||||||||
Capital
expenditures
|
(290 | ) | (98 | ) | (755 | ) | (276 | ) | ||||||||
Proceeds
from disposal of assets, net
|
2
|
121
|
41
|
203
|
||||||||||||
Joint
ventures and other investments, net
|
–
|
–
|
(3 | ) |
–
|
|||||||||||
Net
cash provided by (used in) investing activities
|
(288 | ) |
23
|
(717 | ) | (73 | ) | |||||||||
Cash
flows from financing activities
|
||||||||||||||||
Revolving
Credit Facility, net
|
(190 | ) |
–
|
–
|
–
|
|||||||||||
Repayments
on the Term Credit Facility
|
(230 | ) |
–
|
(230 | ) |
–
|
||||||||||
Proceeds
from issuance of ordinary shares under share-based compensation plans,
net
|
40
|
21
|
55
|
66
|
||||||||||||
Repurchase
of ordinary shares
|
–
|
(400 | ) | (400 | ) | (600 | ) | |||||||||
Other,
net
|
4
|
–
|
9
|
–
|
||||||||||||
Net
cash used in financing activities
|
(376 | ) | (379 | ) | (566 | ) | (534 | ) | ||||||||
Net
decrease in cash and cash equivalents
|
(57 | ) | (180 | ) | (22 | ) | (163 | ) | ||||||||
Cash
and cash equivalents at beginning of period
|
502
|
462
|
467
|
445
|
||||||||||||
Cash
and cash equivalents at end of period
|
$ |
445
|
$ |
282
|
$ |
445
|
$ |
282
|
Three
months ended June 30,
|
Six
months ended
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Value
of shares
|
$ |
–
|
$ |
400
|
$ |
400
|
$ |
600
|
||||||||
Number
of shares
|
–
|
5.2
|
5.2
|
7.8
|
||||||||||||
Average
purchase price per share
|
$ |
–
|
$ |
76.23
|
$ |
77.39
|
$ |
76.66
|
June
30,
2007
|
December
31,
2006
|
|||||||
Term
Credit Facility due August 2008
|
$ |
470
|
$ |
700
|
||||
Floating
Rate Notes due September 2008
|
1,000
|
1,000
|
||||||
6.625%
Notes due April 2011
|
179
|
180
|
||||||
7.375%
Senior Notes due April 2018
|
247
|
247
|
||||||
Zero
Coupon Convertible Debentures due May 2020 (put options
exercisable May 2008 and May 2013) (a)
|
18
|
18
|
||||||
1.5%
Convertible Debentures due May 2021 (put options exercisable May
2011 and
May 2016)
|
400
|
400
|
||||||
8%
Debentures due April 2027
|
57
|
57
|
||||||
7.45%
Notes due April 2027 (b)
|
95
|
95
|
||||||
7.5%
Notes due April 2031
|
598
|
598
|
||||||
Total
debt
|
3,064
|
3,295
|
||||||
Less
debt due within one year (a)(b)
|
18
|
95
|
||||||
Total
long-term debt
|
$ |
3,046
|
$ |
3,200
|
(a)
|
The
Zero Coupon Convertible Debentures are classified as debt due within
one
year at June 30, 2007 since the bondholders have the right to require
us
to repurchase the debentures in May
2008.
|
(b)
|
The
7.45% Notes were classified as debt due within one year at December
31,
2006 since holders had the option to require us to repurchase the
notes in
April 2007. As of March 31, 2007, we reclassified these notes as
long-term
debt, as no holders had notified us of their intent to exercise their
option by the required notification date of March 15,
2007.
|
Twelve
months ending June 30,
|
||||
2008
|
$ |
19
|
||
2009
|
1,470
|
|||
2010
|
–
|
|||
2011
|
565
|
|||
2012
|
–
|
|||
Thereafter
|
1,004
|
|||
Total
|
$ |
3,058
|
Three
months ended June 30,
|
Six
months ended June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Numerator
for basic earnings per share
|
||||||||||||||||
Net
income for basic earnings per share
|
$ |
549
|
$ |
249
|
$ |
1,102
|
$ |
455
|
||||||||
Numerator
for diluted earnings per share
|
||||||||||||||||
Net
income
|
$ |
549
|
$ |
249
|
$ |
1,102
|
$ |
455
|
||||||||
Add
back interest expense on the 1.5% convertible debentures
|
2
|
2
|
4
|
3
|
||||||||||||
Net
income for diluted earnings per share
|
$ |
551
|
$ |
251
|
$ |
1,106
|
$ |
458
|
||||||||
Denominator
for diluted earnings per share
|
||||||||||||||||
Weighted-average
shares outstanding for basic earnings per share
|
288
|
324
|
289
|
325
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Employee
stock options and unvested stock grants
|
3
|
4
|
3
|
4
|
||||||||||||
Warrants
to purchase ordinary shares
|
3
|
3
|
3
|
3
|
||||||||||||
1.5%
convertible debentures
|
6
|
5
|
6
|
5
|
||||||||||||
Adjusted
weighted-average shares and assumed conversions for diluted earnings
per
share
|
300
|
336
|
301
|
337
|
||||||||||||
Basic
earnings per share
|
||||||||||||||||
Net
income
|
$ |
1.91
|
$ |
0.77
|
$ |
3.81
|
$ |
1.40
|
||||||||
Diluted
earnings per share
|
||||||||||||||||
Net
income
|
$ |
1.84
|
$ |
0.75
|
$ |
3.67
|
$ |
1.36
|
Three
months ended
June
30,
|
Six months
ended
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Components
of net periodic benefit cost (a)
|
||||||||||||||||
Service
cost
|
$ |
6
|
$ |
5
|
$ |
11
|
$ |
10
|
||||||||
Interest
cost
|
5
|
5
|
10
|
10
|
||||||||||||
Expected
return on plan assets
|
(6 | ) | (5 | ) | (11 | ) | (10 | ) | ||||||||
Amortization
of prior period service cost
|
1
|
1
|
1
|
–
|
||||||||||||
Recognized
net actuarial losses
|
1
|
1
|
2
|
3
|
||||||||||||
Net
periodic benefit cost
|
$ |
7
|
$ |
7
|
$ |
13
|
$ |
13
|
|
(a)
|
Amounts
are before income tax effect.
|
· contract
commencements,
· contract
option
exercises,
· revenues,
· expenses,
· results
of
operations,
· commodity
prices,
· customer
drilling
programs,
· supply
and
demand,
· utilization
rates,
· dayrates,
· contract
backlog,
· the
timing and
closing of the GlobalSantaFe merger and related transactions,
· consideration
payable in connection with the GlobalSantaFe merger and related
transactions,
· effects
and results
of the GlobalSantaFe merger and related transactions,
· planned
shipyard
projects and rig mobilizations and their effects,
· newbuild
projects
and opportunities,
· the
upgrade projects
for the Sedco 700–series semisubmersible rigs,
·
other
major
upgrades,
·
the
potential purchase of
an ownership interest in a joint venture that will own the
fourth Enterprise-class drillship,
· the
potential
purchase of an interest in a joint venture with Pacific Drilling
and joint
venture terms,
· contract
awards,
· drillship
delivery
dates,
· expected
downtime,
· insurance
proceeds,
· cash
investments of
our wholly-owned captive insurance company,
· future
activity in
the deepwater, mid-water and the jackup market sectors,
· market
outlook for
our various geographical operating sectors,
· capacity
constraints
for ultra-deepwater rigs and other rig classes,
|
· effects
of new rigs
on the market,
· income
related to
and any payments to be received under the TODCO tax sharing
agreement,
· uses
of excess cash,
including ordinary share repurchases,
· the
timing and
funding of share repurchases,
· issuance
of new
debt,
· debt
reduction,
· planned
asset
sales,
· timing
of asset
sales,
· proceeds
from asset
sales,
· our
effective tax
rate,
· changes
in tax laws,
treaties and regulations,
· tax
assessments,
· our
other
expectations with regard to market outlook,
· operations
in
international markets,
· the
level of
expected capital expenditures,
· results
and effects
of legal proceedings and governmental audits and assessments,
· adequacy
of
insurance,
· liabilities
for tax
issues, including those associated with our activities in Brazil,
Norway
and the United States,
· liquidity,
· cash
flow from
operations,
· adequacy
of cash
flow for our obligations,
· effects
of
accounting changes,
· adoption
of
accounting policies,
· pension
plan and
other postretirement benefit plan contributions,
· benefit
payments,
and
· the
timing and cost
of completion of capital projects.
|
· “anticipates”
· “believes”
· “budgets”
· “could”
· “estimates”
· “expects”
· “forecasts”
· “intends”
|
· “may”
· “might”
· “plans”
· “predicts”
· “projects”
· “scheduled”
· “should”
|
|
·
|
those
described under “Item 1A. Risk Factors” included herein and in our Annual
Report on Form 10–K for the year ended December 31, 2006 and our Quarterly
Report on Form 10-Q for the quarterly period ended March 31,
2007,
|
|
·
|
the
adequacy of sources of liquidity,
|
|
·
|
costs,
delays and other difficulties related to the proposed merger and
related
transactions with GlobalSantaFe (including the satisfaction of
closing
conditions),
|
·
|
our
inability to obtain regulatory clearances and shareholder approval
and
satisfy closing conditions for the GlobalSantaFe merger and related
transactions,
|
|
·
|
our
inability to obtain contracts for the drillships we are marketing
under
our marketing and purchase option agreement with Pacific Drilling,
negotiate definitive agreements and satisfy closing
conditions,
|
|
·
|
the
effect and results of litigation, tax audits and contingencies,
and
|
|
·
|
other
factors discussed in this quarterly report and in our other filings
with
the SEC, which are available free of charge on the SEC’s website at
www.sec.gov.
|
Three
months ended
June
30,
|
Six months
ended
June
30,
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Average
daily revenue (a)(b)
|
$ |
202,400
|
$ |
129,000
|
$ |
73,400
|
$ |
200,200
|
$ |
124,300
|
$ |
75,900
|
||||||||||||
Utilization
(b)(c)
|
91 | % | 81 | % |
N/A
|
90 | % | 81 | % |
N/A
|
||||||||||||||
Statement
of Operations
|
||||||||||||||||||||||||
Operating
revenues
|
$ |
1,434
|
$ |
854
|
$ |
580
|
$ |
2,762
|
$ |
1,671
|
$ |
1,091
|
||||||||||||
Operating
and maintenance expense
|
627
|
549
|
78
|
1,195
|
1,024
|
171
|
||||||||||||||||||
Operating
income
|
676
|
289
|
387
|
1,333
|
573
|
760
|
||||||||||||||||||
Net
income
|
549
|
249
|
300
|
1,102
|
455
|
647
|
||||||||||||||||||
June
30,
2007
|
December
31,
2006
|
Change
|
||||||||||||||||||||||
Balance
Sheet (at end of period)
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ |
445
|
$ |
467
|
$ | (22 | ) | |||||||||||||||||
Total
assets
|
12,149
|
11,476
|
673
|
|||||||||||||||||||||
Total
debt
|
3,064
|
3,295
|
(231 | ) |
(a)
|
Average
daily revenue is defined as contract drilling revenue earned per
revenue
earning day. A revenue earning day is defined as a day for which
a rig
earns dayrate after commencement of
operations.
|
(b)
|
Excludes
a drillship engaged in scientific geological coring activities, the
Joides Resolution, that is owned by a joint venture in which we
have a 50 percent interest and is accounted for under the equity
method of
accounting.
|
(c)
|
Utilization
is the total actual number of revenue earning days as a percentage
of the
total number of calendar days in the
period.
|
|
·
|
the
commencement of new contracts with higher dayrates, primarily on
our
High-Specification Floaters and Other
Floaters;
|
|
·
|
the
scheduled return to operations of the Sedco 702 in November 2007
after completion of its upgrade that began in April 2006;
and
|
|
·
|
the
completion of two full quarters of operations related to the five
integrated services contracts in India and the Jack Bates in
Australia.
|
|
·
|
normal
industry inflation with respect to our shipyard projects, maintenance
programs and labor costs;
|
|
·
|
an
anticipated increase in activity due to the completion of two full
quarters of operations by the Jack Bates in Australia and
the five integrated services contracts in India and the commencement
of
operations of the upgraded Sedco 702 in Nigeria;
and
|
|
·
|
our
investments in a number of recruitment, retention and personnel
development initiatives related to the manning of the crews of the
two
deepwater upgrades, the four newbuild rigs under construction and
our
efforts to mitigate expected personnel
attrition.
|
June
30,
2007
|
March
31,
2007
|
June
30,
2006
|
||||||||||
(In
millions)
|
||||||||||||
Contract
Backlog
|
||||||||||||
High-Specification
Floaters
|
$ |
15,296
|
$ |
14,911
|
$ |
13,516
|
||||||
Other
Floaters
|
4,000
|
4,335
|
2,607
|
|||||||||
Jackups
|
1,834
|
2,049
|
2,237
|
|||||||||
Other
Rigs
|
57
|
72
|
101
|
|||||||||
Total
|
$ |
21,187
|
$ |
21,367
|
$ |
18,461
|
Three
months ended
|
||||||||||||
June
30,
2007
|
March
31,
2007
|
June
30,
2006
|
||||||||||
Average
Daily Revenue
|
||||||||||||
High-Specification
Floaters
|
||||||||||||
Ultra-Deepwater
Floaters
|
$ |
288,900
|
$ |
301,400
|
$ |
216,500
|
||||||
Other
Deepwater Floaters
|
$ |
228,400
|
$ |
235,800
|
$ |
190,200
|
||||||
Other
High-Specification Floaters
|
$ |
286,900
|
$ |
238,800
|
$ |
174,700
|
||||||
Total
High-Specification Floaters
|
$ |
262,100
|
$ |
264,800
|
$ |
199,300
|
||||||
Other
Floaters
|
$ |
226,300
|
$ |
223,700
|
$ |
118,200
|
||||||
Jackups
|
$ |
117,900
|
$ |
104,600
|
$ |
73,000
|
||||||
Other
Rigs
|
$ |
57,200
|
$ |
50,300
|
$ |
47,500
|
||||||
Total
Drilling Fleet
|
$ |
202,400
|
$ |
198,000
|
$ |
129,000
|
||||||
Utilization
|
||||||||||||
High-Specification
Floaters
|
||||||||||||
Ultra-Deepwater
Floaters
|
98 | % | 97 | % | 89 | % | ||||||
Other
Deepwater Floaters
|
82 | % | 77 | % | 70 | % | ||||||
Other
High-Specification Floaters
|
99 | % | 99 | % | 98 | % | ||||||
Total
High-Specification Floaters
|
90 | % | 87 | % | 81 | % | ||||||
Other
Floaters
|
98 | % | 94 | % | 74 | % | ||||||
Jackups
|
86 | % | 83 | % | 93 | % | ||||||
Other
Rigs
|
100 | % | 100 | % | 62 | % | ||||||
Total
Drilling Fleet
|
91 | % | 88 | % | 81 | % |
Six
months ended
June
30,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from operating activities
|
||||||||||||
Net
income
|
$ |
1,102
|
$ |
455
|
$ |
647
|
||||||
Depreciation
|
201
|
204
|
(3 | ) | ||||||||
Other
non-cash items
|
31
|
(163 | ) |
194
|
||||||||
Working
capital
|
(73 | ) | (52 | ) | (21 | ) | ||||||
$ |
1,261
|
$ |
444
|
$ |
817
|
Six
months ended
June
30,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from investing activities
|
||||||||||||
Capital
expenditures
|
$ | (755 | ) | $ | (276 | ) | $ | (479 | ) | |||
Proceeds
from disposal of assets, net
|
41
|
203
|
(162 | ) | ||||||||
Joint
ventures and other investments, net
|
(3 | ) |
–
|
(3 | ) | |||||||
$ | (717 | ) | $ | (73 | ) | $ | (644 | ) |
Six
months ended
June
30,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from financing activities
|
||||||||||||
Repayments
on the Term Credit Facility
|
$ | (230 | ) | $ |
–
|
$ | (230 | ) | ||||
Repurchase
of ordinary shares
|
(400 | ) | (600 | ) |
200
|
|||||||
Net
proceeds from issuance of ordinary shares under share-based compensation
plans
|
55
|
66
|
(11 | ) | ||||||||
Other,
net
|
9
|
–
|
9
|
|||||||||
$ | (566 | ) | $ | (534 | ) | $ | (32 | ) |
For
the years ending December 31,
|
||||||||||||||||||||
Total
|
2007
|
2008-2009
|
2010-2011
|
Thereafter
|
||||||||||||||||
|
||||||||||||||||||||
Purchase
obligations
|
$ |
2,249
|
$ |
871
|
$ |
1,256
|
$ |
122
|
$ |
–
|
Three
months ended
|
||||||||||||||||
June
30,
|
||||||||||||||||
2007
|
2006
|
Change
|
%
Change
|
|||||||||||||
(In
millions, except day amounts and percentages)
|
||||||||||||||||
Revenue
earning days
|
6,719
|
6,420
|
299
|
5 | % | |||||||||||
Utilization
|
91 | % | 81 | % |
N/A
|
10 | % | |||||||||
Average
daily revenue
|
$ |
202,400
|
$ |
129,000
|
$ |
73,400
|
57 | % | ||||||||
Contract
drilling revenues
|
$ |
1,360
|
$ |
828
|
$ |
532
|
64 | % | ||||||||
Other
revenues
|
74
|
26
|
48
|
N/M
|
||||||||||||
1,434
|
854
|
580
|
68 | % | ||||||||||||
Operating
and maintenance expense
|
(627 | ) | (549 | ) | (78 | ) | (14 | )% | ||||||||
Depreciation
|
(101 | ) | (102 | ) |
1
|
1 | % | |||||||||
General
and administrative expense
|
(29 | ) | (25 | ) | (4 | ) | (16 | )% | ||||||||
Gain
(loss) from disposal of assets, net
|
(1 | ) |
111
|
(112 | ) |
N/M
|
||||||||||
Operating
income
|
676
|
289
|
387
|
N/M
|
||||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
5
|
5
|
−
|
−
|
||||||||||||
Interest
expense, net of amounts capitalized
|
(33 | ) | (20 | ) | (13 | ) | (65 | )% | ||||||||
Other,
net
|
(5 | ) |
1
|
(6 | ) |
N/M
|
||||||||||
Income
tax expense
|
(93 | ) | (26 | ) | (67 | ) |
N/M
|
|||||||||
Minority
interest
|
(1 | ) |
−
|
(1 | ) | (100 | )% | |||||||||
Net
income
|
$ |
549
|
$ |
249
|
$ |
300
|
N/M
|
Six
months ended
|
||||||||||||||||
June
30,
|
||||||||||||||||
2007
|
2006
|
Change
|
%
Change
|
|||||||||||||
(In
millions, except day amounts and percentages)
|
||||||||||||||||
Revenue
earning days
|
13,149
|
12,931
|
218
|
2 | % | |||||||||||
Utilization
|
90 | % | 81 | % |
N/A
|
9 | % | |||||||||
Average
daily revenue
|
$ |
200,200
|
$ |
124,300
|
$ |
75,900
|
61 | % | ||||||||
Contract
drilling revenues
|
$ |
2,633
|
$ |
1,607
|
$ |
1,026
|
64 | % | ||||||||
Other
revenues
|
129
|
64
|
65
|
N/M
|
||||||||||||
2,762
|
1,671
|
1,091
|
65 | % | ||||||||||||
Operating
and maintenance expense
|
(1,195 | ) | (1,024 | ) | (171 | ) | (17 | )% | ||||||||
Depreciation
|
(201 | ) | (204 | ) |
3
|
1 | % | |||||||||
General
and administrative expense
|
(55 | ) | (45 | ) | (10 | ) | (22 | )% | ||||||||
Gain
(loss) from disposal of assets, net
|
22
|
175
|
(153 | ) | (87 | )% | ||||||||||
Operating
income
|
1,333
|
573
|
760
|
N/M
|
||||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
10
|
10
|
−
|
−
|
||||||||||||
Interest
expense, net of amounts capitalized
|
(70 | ) | (44 | ) | (26 | ) | (59 | )% | ||||||||
Other,
net
|
8
|
2
|
6
|
N/M
|
||||||||||||
Income
tax expense
|
(178 | ) | (86 | ) | (92 | ) |
N/M
|
|||||||||
Minority
interest
|
(1 | ) |
−
|
(1 | ) | (100 | )% | |||||||||
Net
income
|
$ |
1,102
|
$ |
455
|
$ |
647
|
N/M
|