ZUG, SWITZERLAND--(Marketwire - May 04, 2011) - Transocean Ltd. (NYSE: RIG) (SIX: RIGN)

today reported net income attributable to controlling interest of $310

million, or $0.96 per diluted share, for the three months ended March 31,

2011. The results compare to net income attributable to controlling

interest of $677 million, or $2.09 per diluted share for the three months

ended March 31, 2010.

First quarter 2011 results included the following items, after tax, that

resulted in a net positive impact of approximately $139 million, or $0.43

per diluted share:

-- $176 million of income from discontinued operations, nearly all of
 which is from the gain on the sale of the Trident 20,
-- $9 million from the gain on the sale of the Transocean Mercury,
-- $8 million of net charges related to litigation matters not associated
 with the Macondo well incident, and
-- $38 million of net charges primarily related to discrete tax items.

First quarter 2011 results also included expenses associated with the

Macondo well incident of $23 million, $19 million after tax, or $0.06 per

diluted share. These expenses were primarily related to increased insurance

premiums and legal costs.

Operations Quarterly Review

Revenues for the three months ended March 31, 2011 were $2.144 billion,

compared to revenues of $2.127 billion during the three months ended

December 31, 2010. First quarter contract drilling revenues were impacted

by lower utilization and revenue efficiency. Our Deepwater and Midwater

Floater fleets experienced lower utilization due to the stacking of rigs,

as well as increased shipyard time related to contract preparation, special

periodic surveys and major maintenance projects. Compliance with new well

control equipment certification requirements, higher standards for

equipment condition and capacity constraints on our vendors contributed to

reduced revenue efficiency among our Ultra-Deepwater and Deepwater

Floaters. Partially offsetting lower contract drilling revenue was

additional revenue from two newbuild rigs commencing operations. Other

revenues increased primarily from additional drilling management services

activity.

Operating and maintenance expenses totaled $1.359 billion for the first

quarter 2011, up slightly from $1.339 billion for the prior quarter. The

change was due to increased drilling management services activity, which

was partially offset by reduced rig-related maintenance costs.

Depreciation and amortization expense was $354 million in the first quarter

2011 compared to $381 million in the prior quarter. The $27 million

decrease was primarily due to the reduced carrying amounts of our Standard

Jackups resulting from the approximately $1 billion asset impairment

recognized on that asset group during the fourth quarter 2010.

Liquidity and Interest Expense

Interest expense, net of amounts capitalized for the first quarter 2011,

was $145 million, compared to $152 million in the fourth quarter 2010.

Cash flow from operating activities decreased to $390 million for the first

quarter 2011 compared to $796 million for the fourth quarter 2010. The

decline in cash flow from operations resulted primarily from an increase in

working capital.

Effective Tax Rate

Transocean's Annual Effective Tax Rate(1) for the first quarter 2011, which

excludes various discrete items, was 19.3 percent. The Effective Tax Rate(2)

for the first quarter was 33.1 percent, primarily reflecting the impact of

discrete items resulting from changes in estimates.

Conference Call Information

Transocean will conduct a teleconference call at 10:00 a.m. EDT, 4:00 p.m.

CEST, on May 5, 2011. To participate, dial +1 719-325-2234 and refer to

confirmation code 8570996 approximately five to 10 minutes prior to the

scheduled start time of the call.

In addition, the conference call will be simultaneously broadcast over the

Internet in a listen-only mode and can be accessed by logging onto

Transocean's website at www.deepwater.com and selecting "Investor

Relations." A file containing four charts to be discussed during the

conference call, titled "1Q11 Charts," has been posted to Transocean's

website and can also be found by selecting "Investor Relations/Quarterly

Toolkit." The conference call may also be accessed via the Internet at

www.CompanyBoardroom.com by typing in Transocean's New York Stock Exchange

trading symbol, "RIG."

A telephonic replay of the conference call should be available after 1:00

p.m. EDT, 7:00 p.m. CEST, on May 5, 2011, and can be accessed by dialing +1

719-457-0820 or +1 888-203-1112 and referring to the confirmation code

8570996. Also, a replay will be available through the Internet and can be

accessed by visiting either of the above-referenced internet addresses.

Both replay options will be available for approximately 30 days.

About Transocean

Transocean is the world's largest offshore drilling contractor and the

leading provider of drilling management services worldwide. With a fleet of

137 mobile offshore drilling units as well as one ultra-deepwater drillship

and three high-specification jackups under construction, Transocean's fleet

is considered one of the most modern and versatile in the world due to its

emphasis on technically demanding segments of the offshore drilling

business. Transocean owns or operates a contract drilling fleet of 47

High-Specification Floaters (Ultra-Deepwater, Deepwater and

Harsh-Environment semisubmersibles and drillships), 25 Midwater Floaters,

nine

High-Specification Jackups, 53 Standard Jackups and other assets utilized

in the support of offshore drilling activities worldwide.

(1) Annual Effective Tax Rate is defined as income tax expense excluding

various discrete items (such as changes in estimates and tax on items

excluded from income before income tax expense) divided by income before

income tax expense excluding gains on sales and similar items pursuant to

the accounting standards for income taxes and estimating the annual

effective tax rate. See the accompanying schedule entitled "Supplemental

Effective Tax Rate Analysis."

(2) Effective Tax Rate is defined as income tax expense divided by income

before income taxes. See the accompanying schedule entitled "Supplemental

Effective Tax Rate Analysis."

For more information about Transocean, please visit our website at

www.deepwater.com.

 TRANSOCEAN LTD. AND SUBSIDIARIIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In millions, except per share data)
 (Unaudited)
 Three months ended
 March 31,
 ------------------------
 2011 2010
 ----------- -----------
 (As adjusted)
Operating revenues
 Contract drilling revenues $ 1,950 $ 2,425
 Contract drilling intangible revenues 10 33
 Other revenues 184 121
 ----------- -----------
 2,144 2,579
 ----------- -----------
Costs and expenses
 Operating and maintenance 1,359 1,186
 Depreciation and amortization 354 374
 General and administrative 67 63
 ----------- -----------
 1,780 1,623
 ----------- -----------
Gain (loss) on disposal of assets, net 8 (14)
 ----------- -----------
Operating income 372 942
 ----------- -----------
Other income (expense), net
 Interest income 15 5
 Interest expense, net of amounts capitalized (145) (132)
 Other, net 3 15
 ----------- -----------
 (127) (112)
 ----------- -----------
Income from continuing operations before income
 tax expense 245 830
Income tax expense 81 147
 ----------- -----------
Income from continuing operations 164 683
Income from discontinued operations, net of tax 176 2
 ----------- -----------
Net income 340 685
Net income attributable to noncontrolling
 interest 30 8
 ----------- -----------
Net income attributable to controlling interest $ 310 $ 677
 =========== ===========
Earnings per share-basic
 Earnings from continuing operations $ 0.42 $ 2.09
Earnings from discontinued operations 0.54 0.01
 ----------- -----------
 Earnings per share 0.96 2.10
 =========== ===========
Earnings per share-diluted
 Earnings from continuing operations $ 0.42 $ 2.08
 Earnings from discontinued operations 0.54 0.01
 ----------- -----------
 Earnings per share 0.96 2.09
 =========== ===========
Weighted-average shares outstanding
 Basic 319 321
 Diluted 320 322
 TRANSOCEAN LTD. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In millions, except share data)
 (Unaudited)
 March 31, December 31,
 2011 2010
 ----------- -----------
 (As adjusted)
Assets
Cash and cash equivalents $ 3,812 $ 3,394
Accounts receivable, net of allowance for
 doubtful accounts of $33 and $38 at March 31,
 2011 and December 31, 2010, respectively 2,161 1,978
Materials and supplies, net of allowance for
 obsolescence of $70 at March 31, 2011 and
 December 31, 2010 541 514
Deferred income taxes, net 116 115
Assets held for sale 77 --
Other current assets 197 194
 ----------- -----------
 Total current assets 6,904 6,195
 ----------- -----------
Property and equipment 26,819 26,721
Property and equipment of consolidated variable
 interest entities 2,241 2,214
Less accumulated depreciation 7,887 7,616
 ----------- -----------
 Property and equipment, net 21,173 21,319
 ----------- -----------
Goodwill 8,132 8,132
Other assets 1,001 1,165
 ----------- -----------
 Total assets $ 37,210 $ 36,811
 =========== ===========
Liabilities and equity
Accounts payable $ 808 $ 832
Accrued income taxes 67 109
Debt due within one year 1,965 1,917
Debt of consolidated variable interest entities
 due within one year 95 95
Other current liabilities 906 883
 ----------- -----------
 Total current liabilities 3,841 3,836
 ----------- -----------
Long-term debt 8,361 8,354
Long-term debt of consolidated variable interest
 entities 820 855
Deferred income taxes, net 586 575
Other long-term liabilities 1,840 1,791
 ----------- -----------
 Total long-term liabilities 11,607 11,575
 ----------- -----------
Commitments and contingencies
Redeemable noncontrolling interest 57 25
Shares, CHF 15.00 par value, 335,235,298
 authorized, 167,617,649 conditionally
 authorized, 335,235,298 issued at March 31, 2011
 and December 31, 2010; 319,538,901 and
 319,080,678 outstanding at March 31, 2011 and
 December 31, 2010, respectively 4,488 4,482
Additional paid-in capital 7,518 7,504
Treasury shares, at cost, 2,863,267 held at
 March 31, 2011 and December 31, 2010 (240) (240)
Retained earnings 10,279 9,969
Accumulated other comprehensive loss (335) (332)
 ----------- -----------
 Total controlling interest shareholders'
 equity 21,710 21,383
 ----------- -----------
 Noncontrolling interest (5) (8)
 ----------- -----------
 Total equity 21,705 21,375
 ----------- -----------
 Total liabilities and equity $ 37,210 $ 36,811
 =========== ===========
 TRANSOCEAN LTD. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In millions)
 (Unaudited)
 Three months ended
 March 31,
 ------------------------
 2011 2010
 ----------- -----------
 (As adjusted)
Cash flows from operating activities
 Net income $ 340 $ 685
 Adjustments to reconcile net income to net
 cash provided by operating activities:
 Amortization of drilling contract
 intangibles (10) (33)
 Depreciation and amortization 354 374
 Share-based compensation expense 27 35
 Gain on disposal of discontinued operations (173) --
 (Gain) loss on disposal of assets, net (8) 14
 Amortization of debt issue costs, discounts
 and premiums, net 26 49
 Deferred income taxes 11 (22)
 Other, net (3) 31
 Deferred revenue, net 46 151
 Deferred expenses, net (36) (14)
 Changes in operating assets and liabilities (184) (98)
 ----------- -----------
Net cash provided by operating activities 390 1,172
 ----------- -----------
Cash flows from investing activities
 Capital expenditures (240) (369)
 Proceeds from disposal of assets, net 13 41
 Proceeds from disposal of discontinued
 operations 259 --
 Other, net (6) 5
 ----------- -----------
Net cash provided by (used in) investing
 activities 26 (323)
 ----------- -----------
Cash flows from financing activities
 Change in short-term borrowings, net 51 (131)
 Proceeds from debt 5 54
 Repayments of debt (47) (253)
 Purchases of shares held in treasury -- (60)
 Other, net (7) (3)
 ----------- -----------
Net cash provided by (used in) financing
 activities 2 (393)
 ----------- -----------
Net increase in cash and cash equivalents 418 456
 ----------- -----------
Cash and cash equivalents at beginning of period 3,394 1,130
 ----------- -----------
Cash and cash equivalents at end of period $ 3,812 $ 1,586
 =========== ===========
 TRANSOCEAN LTD.
 FLEET OPERATING STATISTICS
 Operating Revenues ($ Millions) (1)
 -------------------------------------
 Three months ended
 -------------------------------------
March 31, December 31, March 31,
 2011 2010 2010
 ----------- ----------- -----------
Contract Drilling Revenues
 High-Specification Floaters:
 Ultra Deepwater Floaters $ 844 $ 740 $ 901
 Deepwater Floaters 290 339 390
 Harsh Environment Floaters 150 155 176
 Total High-Specification Floaters 1,284 1,234 1,467
 Midwater Floaters 400 477 522
 High-Specification Jackups 31 33 77
 Standard Jackups 229 259 352
 Other Rigs 6 6 7
Subtotal 1,950 2,009 2,425
Contract Intangible Revenue 10 13 33
Other Revenues
 Client Reimbursable Revenues 37 34 40
 Integrated Services and Other 15 15 30
 Drilling Management Services 132 56 51
Subtotal 184 105 121
Total Company $ 2,144 $ 2,127 $ 2,579
 Average Daily Revenue (1)
 -------------------------------------
 Three months ended
 -------------------------------------
 March 31, December 31, March 31,
 2011 2010 2010
 ----------- ----------- -----------
 High-Specification Floaters:
 Ultra Deepwater Floaters $ 467,700 $ 435,900 $ 486,000
 Deepwater Floaters $ 395,900 $ 395,600 $ 383,800
 Harsh Environment Floaters $ 402,400 $ 366,800 $ 400,100
 Total High-Specification Floaters $ 441,300 $ 414,500 $ 443,200
 Midwater Floaters $ 313,000 $ 298,500 $ 331,600
 High-Specification Jackups $ 106,200 $ 129,400 $ 162,600
 Standard Jackups $ 109,200 $ 110,600 $ 133,100
 Other Rigs $ 73,400 $ 73,000 $ 72,700
Total Drilling Fleet $ 292,600 $ 276,900 $ 299,600
 Utilization (1)
 -------------------------------------
 Three months ended
 -------------------------------------
 March 31, December 31, March 31,
 2011 2010 2010
 ----------- ----------- -----------
 High-Specification Floaters:
 Ultra Deepwater Floaters 77% 76% 88%
 Deepwater Floaters 51% 58% 71%
 Harsh Environment Floaters 83% 92% 98%
 Total High-Specification Floaters 69% 71% 83%
 Midwater Floaters 60% 68% 67%
 High-Specification Jackups 40% 31% 59%
 Standard Jackups 43% 46% 53%
 Other Rigs 49% 48% 50%
Total Drilling Fleet 55% 58% 66%
 Transocean Ltd. and Subsidiaries
 Supplemental Effective Tax Rate Analysis
 (In US$ millions)
 -------------------------------------
 Three months ended
 -------------------------------------
 Mar 31, Dec 31, Mar 31,
 2011 2010 2010
 ----------- ----------- -----------
 (As adjusted)(As adjusted)
Income from continuing operations
 before income taxes 245 (836) 830
 Add back (subtract):
 Litigation matters 8 1 -
 (Gain) loss on disposal of other
 assets, net (9) - 14
 Loss on impairment of other
 assets, net - 1,010 -
 (Gain) loss on retirement of
 debt - 13 (2)
 Other, net 5 (8) 5
 ----------- ----------- -----------
Adjusted income from continuing
 operations before income taxes 249 180 847
Income tax expense from continuing
 operations 81 (32) 147
 Add back (subtract):
 Changes in estimates (1) (35) (8) (17)
 Other, net 2 - (1)
 ----------- ----------- -----------
Adjusted income tax expense from
 continuing operations (2) 48 (40) 129
 ----------- ----------- -----------
Effective Tax Rate (3) 33.1% 3.8% 17.7%
Annual Effective Tax Rate (4) 19.3% -22.1% 15.2%
1) Our estimates change as we file tax returns, settle disputes with tax
 authorities or become aware of other events and include changes in
 (a) deferred taxes, (b) valuation allowances on deferred taxes and
 (c) other tax liabilities.
2) The three months ended December 31, 2010 includes ($65) million of
 additional tax expense (benefit) reflecting the catch-up effect of an
 increase (decrease) in the annual effective tax rate from the previous
 quarter estimate.
3) Effective Tax Rate is income tax expense divided by income before
 income taxes.
4) Annual Effective Tax Rate is income tax expense excluding various
 discrete items (such as changes in estimates and tax on items excluded
 from income before income taxes) divided by income before income taxes
 excluding gains and losses on sales and similar items pursuant to the
 accounting standards for income taxes and estimating the annual
 effective tax rate.

FOR FURTHER INFORMATION PLEASE CONTACT:

Gregory S. Panagos
Analyst Contact:
+1 713-232-7551

OR

Guy A. Cantwell
Media Contact:
+1 713-232-7647