Transocean Sedco Forex reports third quarter results

Company News - November 3, 2000

Transocean Sedco Forex has announced that net income for the three months ended September 30 was $49.3 million or $0.23 per diluted share on revenues of$314.5 million. The results include an extraordinary gain of $1.4 million or$0.01 per diluted share, relating to the early termination of certain debt, aswell as a net gain of $7.8 million or $0.03 per diluted share resulting fromthe sale of two offshore rigs, partially offset by net charges resulting fromadjustments to provisions for legal claims.

Excluding the after-tax impact of the extraordinary gain and the net gain resulting primarily from the sale of rigs, net income for the three months ended September 30 was $40.8 million or $0.19 per diluted share. The quarterly results compare favourablywith net income of $35.9 million or $0.17 per diluted share reported for the second quarter of 2000. Revenues in the preceding quarter of2000 were $299.2 million. For the three months ended September 30, 1999, netincome was $31.8 million or $0.29 per diluted share on revenues of $165.3 million.

For the nine months ended September 30, 2000, net income totalled $117.7 million or $0.56 per diluted share on revenues of $914.6 million. Results for the first nine months of 2000 include the previously mentioned extraordinary gain, the net gain resulting primarily from the rig sales, as well as a cash settlement of $25.1 million or a net $0.08 per diluted share relating to the early termination of a rig contract.

During the first nine months of 1999, net income was $70.5 million or $0.64 per diluted share on revenues of $516.8 million and included charges totalling $42.0 million or a net $0.30 per diluted share relating to severance costs and provisions for legalclaims.Average utilisation of the company's 61 fully owned or chartered and active mobile offshore drilling units continued to improve, reaching 81% for the three months ended September 30, 2000, up from 75% and a pro forma 74% for the three months ended June 30, 2000 and September 30, 1999, respectively. The company's fleet of 42 fully owned or chartered and active semi-submersibles and drill ships saw utilisation improve to 84%, up from 75% in both the previous three months ended June 30, 2000 and the thirdquarter of 1999 on a pro forma basis.