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
|
CaymanIslands
|
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 ¨
|
Non-accelerated
Filer ¨
|
Page
|
|||
PART
I - FINANCIAL INFORMATION
|
|||
Item
1.
|
Financial
Statements (Unaudited)
|
||
1
|
|||
2
|
|||
|
|
||
3
|
|||
4
|
|||
Item
2.
|
19
|
||
Item
3.
|
38
|
||
Item
4.
|
38
|
||
PART
II - OTHER INFORMATION
|
|||
Item
1.
|
39
|
||
Item
1A.
|
40
|
||
Item
2.
|
43
|
||
Item
6.
|
44
|
Three
months ended
September
30,
|
Nine
months ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Operating
revenues
|
||||||||||||||||
Contract
drilling revenues
|
$ |
1,455
|
$ |
991
|
$ |
4,088
|
$ |
2,598
|
||||||||
Other
revenues
|
83
|
34
|
212
|
98
|
||||||||||||
1,538
|
1,025
|
4,300
|
2,696
|
|||||||||||||
Costs
and expenses
|
||||||||||||||||
Operating
and maintenance
|
663
|
561
|
1,858
|
1,585
|
||||||||||||
Depreciation
|
103
|
99
|
304
|
303
|
||||||||||||
General
and administrative
|
27
|
22
|
82
|
67
|
||||||||||||
793
|
682
|
2,244
|
1,955
|
|||||||||||||
Gain
from disposal of assets, net
|
8
|
47
|
30
|
222
|
||||||||||||
Operating
income
|
753
|
390
|
2,086
|
963
|
||||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
7
|
4
|
17
|
14
|
||||||||||||
Interest
expense, net of amounts capitalized
|
(23 | ) | (28 | ) | (93 | ) | (72 | ) | ||||||||
Other,
net
|
287
|
7
|
295
|
9
|
||||||||||||
271
|
(17 | ) |
219
|
(49 | ) | |||||||||||
Income
before income taxes and minority interest
|
1,024
|
373
|
2,305
|
914
|
||||||||||||
Income
tax expense
|
52
|
64
|
230
|
150
|
||||||||||||
Minority
interest
|
(1 | ) |
–
|
–
|
–
|
|||||||||||
Net
income
|
$ |
973
|
$ |
309
|
$ |
2,075
|
$ |
764
|
||||||||
Earnings
per share
|
||||||||||||||||
Basic
|
$ |
3.36
|
$ |
0.99
|
$ |
7.17
|
$ |
2.39
|
||||||||
Diluted
|
$ |
3.24
|
$ |
0.96
|
$ |
6.91
|
$ |
2.31
|
||||||||
Weighted
average shares outstanding
|
||||||||||||||||
Basic
|
290
|
312
|
289
|
320
|
||||||||||||
Diluted
|
300
|
323
|
301
|
332
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
and cash equivalents
|
$ |
618
|
$ |
467
|
||||
Accounts
receivable, net of allowance for doubtful accounts of $41 and
$26 at September 30, 2007 and December 31, 2006,
respectively
|
1,266
|
946
|
||||||
Materials
and supplies, net of allowance for obsolescence of $21 and $19
at
September 30, 2007 and December 31, 2006, respectively
|
179
|
160
|
||||||
Deferred
income taxes, net
|
28
|
16
|
||||||
Other
current assets
|
132
|
67
|
||||||
Total
current assets
|
2,223
|
1,656
|
||||||
Property
and equipment
|
11,460
|
10,539
|
||||||
Less
accumulated depreciation
|
3,489
|
3,213
|
||||||
Property
and equipment, net
|
7,971
|
7,326
|
||||||
Goodwill
|
2,187
|
2,195
|
||||||
Other
assets
|
319
|
299
|
||||||
Total
assets
|
$ |
12,700
|
$ |
11,476
|
Accounts
payable
|
$ |
406
|
$ |
477
|
||||
Accrued
income taxes
|
156
|
98
|
||||||
Debt
due within one year
|
1,018
|
95
|
||||||
Other
current liabilities
|
419
|
369
|
||||||
Total
current liabilities
|
1,999
|
1,039
|
||||||
Long-term
debt
|
1,575
|
3,200
|
||||||
Deferred
income taxes, net
|
57
|
54
|
||||||
Other
long-term liabilities
|
566
|
343
|
||||||
Total
long-term liabilities
|
2,198
|
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, 290,802,699
and 292,454,457 shares issued and outstanding at
September 30, 2007 and December 31, 2006, respectively
|
3
|
3
|
||||||
Additional
paid-in capital
|
7,780
|
8,044
|
||||||
Accumulated
other comprehensive loss
|
(31 | ) | (30 | ) | ||||
Retained
earnings (accumulated deficit)
|
750
|
(1,181 | ) | |||||
Total
shareholders’ equity
|
8,502
|
6,836
|
||||||
Total
liabilities and shareholders’ equity
|
$ |
12,700
|
$ |
11,476
|
Three
months ended
September
30,
|
Nine
months ended
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net
income
|
$ |
973
|
$ |
309
|
$ |
2,075
|
$ |
764
|
||||||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||||||||||
Depreciation
|
103
|
99
|
304
|
303
|
||||||||||||
Share-based
compensation expense
|
11
|
5
|
30
|
13
|
||||||||||||
Gain
from disposal of assets, net
|
(8 | ) | (47 | ) | (30 | ) | (222 | ) | ||||||||
Deferred
income taxes
|
9
|
(7 | ) |
2
|
18
|
|||||||||||
Deferred
expenses, net
|
(4 | ) | (40 | ) | (17 | ) | (95 | ) | ||||||||
Deferred
revenues, net
|
(20 | ) |
12
|
18
|
32
|
|||||||||||
Other
long-term liabilities
|
19
|
(4 | ) |
31
|
17
|
|||||||||||
Other,
net
|
(7 | ) | (7 | ) | (3 | ) | (14 | ) | ||||||||
Changes
in operating assets and liabilities
|
||||||||||||||||
Accounts
receivable
|
(82 | ) | (169 | ) | (320 | ) | (273 | ) | ||||||||
Other
current assets
|
3
|
15
|
(29 | ) | (36 | ) | ||||||||||
Accounts
payable and other current liabilities
|
(75 | ) |
76
|
65
|
167
|
|||||||||||
Income
taxes receivable/payable, net
|
(25 | ) |
47
|
32
|
59
|
|||||||||||
Net
cash provided by operating activities
|
897
|
289
|
2,158
|
733
|
||||||||||||
Cash
flows from investing activities
|
||||||||||||||||
Capital
expenditures
|
(305 | ) | (434 | ) | (1,060 | ) | (710 | ) | ||||||||
Proceeds
from disposal of assets, net
|
21
|
95
|
62
|
298
|
||||||||||||
Joint
ventures and other investments, net
|
–
|
–
|
(3 | ) |
–
|
|||||||||||
Net
cash used in investing activities
|
(284 | ) | (339 | ) | (1,001 | ) | (412 | ) | ||||||||
Cash
flows from financing activities
|
||||||||||||||||
Borrowings
under the Revolving Credit Facility, net
|
–
|
900
|
–
|
900
|
||||||||||||
Proceeds
from issuance of debt, net
|
–
|
1,000
|
–
|
1,000
|
||||||||||||
Repayment
of borrowings under Term Credit Facility
|
(470 | ) |
–
|
(700 | ) |
–
|
||||||||||
Release
of escrow funds – Nautilus lease financing
|
–
|
30
|
–
|
30
|
||||||||||||
Repurchase
of ordinary shares
|
–
|
(1,751 | ) | (400 | ) | (2,351 | ) | |||||||||
Proceeds
from issuance of ordinary shares under share-based compensation plans,
net
|
1
|
1
|
56
|
67
|
||||||||||||
Tax
benefit from issuance of ordinary shares under share-based compensation
plans
|
23
|
–
|
33
|
–
|
||||||||||||
Other,
net
|
6
|
(5 | ) |
5
|
(5 | ) | ||||||||||
Net
cash provided by (used in) financing activities
|
(440 | ) |
175
|
(1,006 | ) | (359 | ) | |||||||||
Net
increase (decrease) in cash and cash equivalents
|
173
|
125
|
151
|
(38 | ) | |||||||||||
Cash
and cash equivalents at beginning of period
|
445
|
282
|
467
|
445
|
||||||||||||
Cash
and cash equivalents at end of period
|
$ |
618
|
$ |
407
|
$ |
618
|
$ |
407
|
Total
costs
through
December 31,
2006
|
Nine
months
ended
September 30,
2007
|
Total
costs
through
September 30,
2007
|
||||||||||
Discoverer
Americas
|
$ |
108
|
$ |
193
|
$ |
301
|
||||||
Discoverer
Clear Leader
|
221
|
176
|
397
|
|||||||||
Discoverer
Inspiration
|
130
|
128
|
258
|
|||||||||
Newbuild
IV
|
–
|
104
|
104
|
|||||||||
Sedco
700-series upgrades
|
149
|
152
|
301
|
|||||||||
Total
|
$ |
608
|
$ |
753
|
$ |
1,361
|
Three
months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Value
of shares
|
$ |
–
|
$ |
1,750
|
$ |
400
|
$ |
2,350
|
||||||||
Number
of shares
|
–
|
24.4
|
5.2
|
32.2
|
||||||||||||
Average
purchase price per share
|
$ |
–
|
$ |
71.67
|
$ |
77.39
|
$ |
72.88
|
September 30,
|
December 31,
|
|||||||
2007
|
2006
|
|||||||
Term
Credit Facility due August 2008
|
$ |
–
|
$ |
700
|
||||
Floating
Rate Notes due September 2008 (a)
|
1,000
|
1,000
|
||||||
6.625%
Notes due April 2011
|
178
|
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) (b)
|
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 (c)
|
95
|
95
|
||||||
7.5%
Notes due April 2031
|
598
|
598
|
||||||
Total
debt
|
2,593
|
3,295
|
||||||
Less
debt due within one year (a)(b)(c)
|
1,018
|
95
|
||||||
Total
long-term debt
|
$ |
1,575
|
$ |
3,200
|
(a)
|
The
Floating Rate Notes due September 2008 were classified as debt due
within
one year at September 30, 2007.
|
(b)
|
The
Zero Coupon Convertible Debentures were classified as debt due within
one
year at September 30, 2007 since the bondholders have the right to
require us to repurchase the debentures in May
2008.
|
(c)
|
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 September 30,
|
||||
2008
|
$ |
1,019
|
||
2009
|
–
|
|||
2010
|
–
|
|||
2011
|
565
|
|||
2012
|
–
|
|||
Thereafter
|
1,004
|
|||
Total
|
$ |
2,588
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Numerator
for basic earnings per share
|
||||||||||||||||
Net
income for basic earnings per share
|
$ |
973
|
$ |
309
|
$ |
2,075
|
$ |
764
|
||||||||
Numerator
for diluted earnings per share
|
||||||||||||||||
Net
income
|
$ |
973
|
$ |
309
|
$ |
2,075
|
$ |
764
|
||||||||
Add
back interest expense on the 1.5% convertible debentures
|
1
|
2
|
5
|
5
|
||||||||||||
Net
income for diluted earnings per share
|
$ |
974
|
$ |
311
|
$ |
2,080
|
$ |
769
|
||||||||
Denominator
for diluted earnings per share
|
||||||||||||||||
Weighted-average
shares outstanding for basic earnings per share
|
289
|
312
|
289
|
320
|
||||||||||||
Effect
of dilutive securities:
|
||||||||||||||||
Employee
stock options and unvested stock grants
|
3
|
3
|
3
|
4
|
||||||||||||
Warrants
to purchase ordinary shares
|
2
|
3
|
3
|
3
|
||||||||||||
1.5%
convertible debentures
|
6
|
5
|
6
|
5
|
||||||||||||
Adjusted
weighted-average shares and assumed conversions for diluted earnings
per
share
|
300
|
323
|
301
|
332
|
||||||||||||
Basic
earnings per share
|
||||||||||||||||
Net
income
|
$ |
3.36
|
$ |
0.99
|
$ |
7.17
|
$ |
2.39
|
||||||||
Diluted
earnings per share
|
||||||||||||||||
Net
income
|
$ |
3.24
|
$ |
0.96
|
$ |
6.91
|
$ |
2.31
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Components
of net periodic benefit cost (a)
|
||||||||||||||||
Service
cost
|
$ |
5
|
$ |
5
|
$ |
16
|
$ |
15
|
||||||||
Interest
cost
|
6
|
5
|
16
|
15
|
||||||||||||
Expected
return on plan assets
|
(5 | ) | (5 | ) | (16 | ) | (15 | ) | ||||||||
Amortization
of prior period service cost
|
–
|
–
|
1
|
1
|
||||||||||||
Recognized
net actuarial losses
|
1
|
1
|
3
|
3
|
||||||||||||
Net
periodic benefit cost
|
$ |
7
|
$ |
6
|
$ |
20
|
$ |
19
|
|
(a)
|
Amounts
are before income tax effect.
|
·
|
contract
commencements,
|
·
|
income
related to and any payments to
|
|
· | contract option exercises, | be received under the TODCO tax | ||
· | revenues, | sharing agreement, | ||
·
|
expenses,
|
·
|
uses
of excess cash, including ordinary
|
|
· | results of operations, | share repurchases, | ||
·
|
commodity
prices,
|
·
|
the
timing and funding of share
|
|
· | customer drilling programs, | repurchases, | ||
·
|
supply
and demand,
|
·
|
issuance
of new debt,
|
|
·
|
utilization
rates,
|
·
|
debt
reduction,
|
|
·
|
dayrates,
|
·
|
planned
asset sales,
|
|
·
|
contract
backlog,
|
·
|
timing
of asset sales,
|
|
·
|
the
timing and closing of the
|
·
|
proceeds
from asset sales,
|
|
GlobalSantaFe
merger and related
|
·
|
our
effective tax rate,
|
||
transactions,
|
·
|
changes
in tax laws, treaties and
|
||
· | consideration payable in connection | regulations, | ||
with
the GlobalSantaFe merger
and
|
·
|
tax
assessments,
|
||
|
related
transactions,
|
·
|
our
other expectations with regard to
|
|
· | effects and results of the GlobalSantaFe | market outlook, | ||
|
merger
and related transactions,
|
·
|
operations
in international markets,
|
|
·
|
planned
shipyard projects and rig
|
·
|
the
level of expected capital
|
|
mobilizations and their effects, | expenditures, | |||
·
|
newbuild
projects and opportunities,
|
·
|
results
and effects of legal proceedings
|
|
· | the upgrade projects for the Sedco 700– | and governmental audits and | ||
series semisubmersible rigs, | assessments, | |||
·
|
other
major upgrades,
|
·
|
adequacy
of insurance,
|
|
·
|
the
potential purchase of an ownership
|
·
|
liabilities
for tax issues, including those
|
|
interest in a joint venture that will own | associated with our activities in Brazil, | |||
the fourth Enterprise-class drillship, | Norway and the United States, | |||
·
|
contract
awards,
|
·
|
liquidity,
|
|
·
|
drillship
delivery dates,
|
·
|
cash
flow from operations,
|
|
·
|
expected
downtime,
|
·
|
adequacy
of cash flow for our
|
|
· | insurance proceeds, | obligations, | ||
·
|
cash
investments of our wholly-owned
|
·
|
effects
of accounting changes,
|
|
|
captive
insurance company,
|
·
|
adoption
of accounting policies,
|
|
·
|
future
activity in the deepwater, mid-
|
·
|
pension
plan and other postretirement
|
|
water and the jackup market sectors, | benefit plan contributions, | |||
·
|
market
outlook for our various
|
·
|
benefit
payments, and
|
|
|
geographical
operating sectors,
|
·
|
the
timing and cost of completion of
|
|
·
|
capacity
constraints for ultra-deepwater
|
capital projects. | ||
|
rigs
and other rig classes,
|
|||
·
|
effects
of new rigs on the market,
|
·
|
“anticipates”
|
·
|
“may”
|
|
·
|
“believes”
|
·
|
“might”
|
|
·
|
“budgets”
|
·
|
“plans”
|
|
·
|
“could”
|
·
|
“predicts”
|
|
·
|
“estimates”
|
·
|
“projects”
|
|
·
|
“expects”
|
·
|
“scheduled”
|
|
·
|
“forecasts”
|
·
|
“should”
|
|
·
|
“intends”
|
|
|
·
|
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, our Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31, 2007
and
June 30, 2007, and the definitive joint proxy statement filed by
GlobalSantaFe and us on October 3,
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 a drilling contract for the second drillship
acquired
through our purchase of a 50 percent interest in our joint venture
with
Pacific Drilling
|
|
·
|
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
September
30,
|
Nine
months ended September 30,
|
|||||||||||||||||||||||
2007
|
2006
|
Change
|
2007
|
2006
|
Change
|
|||||||||||||||||||
Average
daily revenue (a)(b)
|
$ |
219,710
|
$ |
146,900
|
$ |
72,810
|
$ |
206,760
|
$ |
132,000
|
$ |
74,760
|
||||||||||||
Utilization
(b)(c)
|
89 | % | 87 | % |
n/a
|
89 | % | 83 | % |
n/a
|
||||||||||||||
Statement
of Operations
|
||||||||||||||||||||||||
Operating
revenues
|
$ |
1,538
|
$ |
1,025
|
$ |
513
|
$ |
4,300
|
$ |
2,696
|
$ |
1,604
|
||||||||||||
Operating
and maintenance expense
|
663
|
561
|
102
|
1,858
|
1,585
|
273
|
||||||||||||||||||
Operating
income
|
753
|
390
|
363
|
2,086
|
963
|
1,123
|
||||||||||||||||||
Net
income
|
973
|
309
|
664
|
2,075
|
764
|
1,311
|
September
30,
2007
|
December 31,
2006
|
Change
|
||||||||||
Balance
Sheet (at end of period)
|
||||||||||||
Cash
and cash equivalents
|
$ |
618
|
$ |
467
|
$ |
151
|
||||||
Total
assets
|
12,700
|
11,476
|
1,224
|
|||||||||
Total
debt
|
2,593
|
3,295
|
(702 | ) |
|
(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.
|
|
·
|
a
continuing improvement of dayrates primarily on our High-Specification
Floaters and Other Floaters; and
|
|
·
|
the
return to operations of certain of our High-Specification Floaters
and
Other Floaters that had been out of service during the third
quarter.
|
|
·
|
ongoing
industry inflation with respect to our shipyard projects, maintenance
programs and labor costs; and
|
|
·
|
the
return to operations of certain of our High-Specification Floaters
and
Other Floaters that had been out of service during the third
quarter.
|
September
30,
2007
|
June
30,
2007
|
September
30,
2006
|
||||||||||
(In
millions)
|
||||||||||||
Contract
Backlog
|
||||||||||||
High-Specification
Floaters
|
$ |
15,174
|
$ |
15,296
|
$ |
14,869
|
||||||
Other
Floaters
|
4,108
|
4,000
|
2,938
|
|||||||||
Jackups
|
2,272
|
1,834
|
2,067
|
|||||||||
Other
Rigs
|
171
|
57
|
79
|
|||||||||
Total
|
$ |
21,725
|
$ |
21,187
|
$ |
19,953
|
Three
months ended
|
||||||||||||
September
30,
2007
|
June
30,
2007
|
September
30,
2006
|
||||||||||
Average
Daily Revenue
|
||||||||||||
High-Specification
Floaters
|
||||||||||||
Ultra-Deepwater
Floaters
|
$ |
323,200
|
$ |
288,900
|
$ |
246,000
|
||||||
Other
Deepwater Floaters
|
$ |
257,700
|
$ |
228,400
|
$ |
222,300
|
||||||
Other
High-Specification Floaters
|
$ |
316,400
|
$ |
286,900
|
$ |
181,500
|
||||||
Total
High-Specification Floaters
|
$ |
293,900
|
$ |
262,100
|
$ |
226,700
|
||||||
Other
Floaters
|
$ |
251,400
|
$ |
226,300
|
$ |
136,800
|
||||||
Jackups
|
$ |
120,500
|
$ |
117,900
|
$ |
83,400
|
||||||
Other
Rigs
|
$ |
54,900
|
$ |
57,200
|
$ |
52,400
|
||||||
Weighted
Average - Drilling Fleet
|
$ |
219,700
|
$ |
202,400
|
$ |
146,900
|
||||||
Utilization
|
||||||||||||
High-Specification
Floaters
|
||||||||||||
Ultra-Deepwater
Floaters
|
99 | % | 98 | % | 88 | % | ||||||
Other
Deepwater Floaters
|
79 | % | 82 | % | 75 | % | ||||||
Other
High-Specification Floaters
|
87 | % | 99 | % | 93 | % | ||||||
Total
High-Specification Floaters
|
87 | % | 90 | % | 82 | % | ||||||
Other
Floaters
|
89 | % | 98 | % | 86 | % | ||||||
Jackups
|
90 | % | 86 | % | 96 | % | ||||||
Other
Rigs
|
98 | % | 100 | % | 76 | % | ||||||
Weighted
Average - Drilling Fleet
|
89 | % | 91 | % | 87 | % |
Nine
months ended
September
30,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from operating activities
|
||||||||||||
Net
income
|
$ |
2,075
|
$ |
764
|
$ |
1,311
|
||||||
Depreciation
|
304
|
303
|
1
|
|||||||||
Other
non-cash items
|
31
|
(251 | ) |
282
|
||||||||
Working
capital
|
(252 | ) | (83 | ) | (169 | ) | ||||||
$ |
2,158
|
$ |
733
|
$ |
1,425
|
Nine
months ended
September
30,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from investing activities
|
||||||||||||
Capital
expenditures
|
$ | (1,060 | ) | $ | (710 | ) | $ | (350 | ) | |||
Proceeds
from disposal of assets, net
|
62
|
298
|
(236 | ) | ||||||||
Joint
ventures and other investments, net
|
(3 | ) |
–
|
(3 | ) | |||||||
$ | (1,001 | ) | $ | (412 | ) | $ | (589 | ) |
Nine
months ended
September
30,
|
||||||||||||
2007
|
2006
|
Change
|
||||||||||
(In
millions)
|
||||||||||||
Net
cash from financing activities
|
||||||||||||
Net
proceeds from issuance of debt and borrowings under credit
facilities
|
$ |
–
|
$ |
1,900
|
$ | (1,900 | ) | |||||
Repayment
of borrowings under Term Credit Facility
|
(700 | ) |
–
|
(700 | ) | |||||||
Release
of escrow funds – Nautilus lease financing
|
–
|
30
|
(30 | ) | ||||||||
Repurchase
of ordinary shares
|
(400 | ) | (2,351 | ) |
1,951
|
|||||||
Net
proceeds from issuance of ordinary shares under share-based compensation
plans
|
56
|
67
|
(11 | ) | ||||||||
Tax
benefit from issuance of ordinary shares under share-based compensation
plans
|
33
|
–
|
33
|
|||||||||
Other,
net
|
5
|
(5 | ) |
10
|
||||||||
$ | (1,006 | ) | $ | (359 | ) | $ | (647 | ) |
For
the years ending December 31,
|
||||||||||||||||||||
Total
|
2007
|
2008-2009
|
2010-2011
|
Thereafter
|
||||||||||||||||
Purchase
obligations
|
$ |
2,255
|
$ |
839
|
$ |
1,294
|
$ |
122
|
$ |
–
|
Three months ended
|
||||||||||||||||
September 30,
|
||||||||||||||||
2007
|
2006
|
Change
|
%
Change
|
|||||||||||||
(In
millions, except day amounts and percentages)
|
||||||||||||||||
Revenue
earning days
|
6,620
|
6,750
|
(130 | ) | (2 | )% | ||||||||||
Utilization
|
89 | % | 87 | % |
n/a
|
2 | % | |||||||||
Average
daily revenue
|
$ |
219,700
|
$ |
146,900
|
$ |
72,800
|
50 | % | ||||||||
Contract
drilling revenues
|
$ |
1,455
|
$ |
991
|
$ |
464
|
47 | % | ||||||||
Other
revenues
|
83
|
34
|
49
|
n/m
|
||||||||||||
1,538
|
1,025
|
513
|
50 | % | ||||||||||||
Operating
and maintenance expense
|
(663 | ) | (561 | ) | (102 | ) | (18 | )% | ||||||||
Depreciation
|
(103 | ) | (99 | ) | (4 | ) | (4 | )% | ||||||||
General
and administrative expense
|
(27 | ) | (22 | ) | (5 | ) | (23 | )% | ||||||||
Gain
from disposal of assets, net
|
8
|
47
|
(39 | ) | (83 | )% | ||||||||||
Operating
income
|
753
|
390
|
363
|
93 | % | |||||||||||
Other
income (expense), net
|
||||||||||||||||
Interest
income
|
7
|
4
|
3
|