HOUSTON, April 24, 2014 /PRNewswire/ -- Diamond
Offshore Drilling, Inc. (NYSE: DO) today reported net income for
the first quarter of 2014 of $146
million, or $1.05 per share,
compared with net income of $176
million, or $1.27 per share,
in the same period a year earlier. Results for the quarter
benefited from a $17 million, or
$0.12 per share, credit to tax
expense related to a settlement of certain disputes with Egyptian
tax authorities. Revenues in the first quarter of 2014 were
$709 million, compared with revenues
of $730 million in the prior-year
quarter.
"I am pleased to begin my tenure at Diamond Offshore with very
solid first quarter results," said Marc
Edwards, President and Chief Executive Officer.
"Diamond Offshore has added new
capacity and upgraded its fleet while maintaining the highest
credit rating and strongest balance sheet amongst its peers. This
places us in a strong position to navigate through any downturn,
and take advantage of strategic opportunities that may materialize.
We remain focused on delivering superior financial
performance and providing sector-leading shareholder returns."
At March 31, 2014, Diamond
Offshore had 137,170,137 shares of common stock outstanding.
During the three months ended March 31,
2014, the Company purchased 1,865,311 shares of its common
stock at an aggregate cost of $86.4
million. From April 1,
2014 to April 23, 2014 the
Company repurchased an additional 30,250 shares of its common stock
at an aggregate cost of $1.4
million.
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results
has been scheduled for 9:00 a.m. CDT
today. A live webcast of the call will be available
online on the Company's website, www.diamondoffshore.com.
Those interested in participating in the question and answer
session should dial 800-247-9979 or 973-321-1100, for international
callers. The conference ID number is 25367618. An online
replay will also be available on www.diamondoffshore.com following
the call.
ABOUT DIAMOND OFFSHORE
Diamond Offshore is a leader in offshore drilling, providing
contract drilling services to the energy industry around the globe
with a total fleet of 45 offshore drilling rigs, including five
rigs under construction. Diamond Offshore's fleet consists of
33 semisubmersibles, two of which are under construction, five
dynamically positioned drillships, three of which are under
construction, and seven jack-ups. Additional information about the
Company and access to the Company's SEC filings are available at
www.diamondoffshore.com. Diamond Offshore is owned 51% by Loews
Corporation (NYSE: L).
FORWARD-LOOKING STATEMENTS
Statements contained in this press release that are not
historical facts are "forward-looking statements" within the
meaning of the federal securities laws. Such statements
include, but are not limited to, statements concerning strategic
opportunities and future performance, shareholder returns,
financial performance and market conditions. Forward-looking
statements are inherently uncertain and subject to a variety of
assumptions, risks and uncertainties that could cause actual
results to differ materially from those anticipated or expected by
management of the Company. A discussion of the important risk
factors and other considerations that could materially impact these
matters as well as the Company's overall business and financial
performance can be found in the Company's reports filed with the
Securities and Exchange Commission and readers of this press
release are urged to review those reports carefully when
considering these forward-looking statements. Copies of these
reports are available through the Company's website at
www.diamondoffshore.com. These factors include, among others,
general economic and business conditions, contract cancellations,
customer bankruptcy, operating risks, casualty losses, industry
fleet capacity, changes in foreign and domestic oil and gas
exploration and production activity, competition, changes in
foreign, political, social and economic conditions, regulatory
initiatives and compliance with governmental regulations, customer
preferences and various other matters, many of which are beyond the
Company's control. Given these risk factors, investors and
analysts should not place undue reliance on forward-looking
statements. Each forward-looking statement speaks only as of
the date of this press release. The Company expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement to reflect
any change in the Company's expectations with regard thereto or any
change in events, conditions or circumstances on which any
forward-looking statement is based.
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2014
|
2013
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Contract drilling
|
$
|
685,308
|
$
|
699,973
|
|
Revenues related to reimbursable expenses
|
|
24,116
|
|
29,768
|
|
Total revenues
|
|
709,424
|
|
729,741
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Contract drilling, excluding depreciation
|
|
369,790
|
|
375,094
|
|
Reimbursable expenses
|
|
23,666
|
|
29,289
|
|
Depreciation
|
|
107,011
|
|
96,821
|
|
General and administrative
|
|
22,827
|
|
16,815
|
|
Gain on disposition of assets
|
|
(147)
|
|
(2,004)
|
|
Total operating expenses
|
|
523,147
|
|
516,015
|
|
|
|
|
|
|
Operating
income
|
|
186,277
|
|
213,726
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest income
|
|
408
|
|
617
|
|
Interest expense
|
|
(18,155)
|
|
(8,069)
|
|
Foreign currency transaction gain (loss)
|
|
(1,178)
|
|
159
|
|
Other,
net
|
|
327
|
|
(254)
|
|
|
|
|
|
|
Income before
income tax expense
|
|
167,679
|
|
206,179
|
|
|
|
|
|
|
Income tax
expense
|
|
(21,869)
|
|
(30,190)
|
|
|
|
|
|
|
Net
income
|
$
|
145,810
|
$
|
175,989
|
|
|
|
|
|
|
Income per
share
|
$
|
1.05
|
$
|
1.27
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Shares of common stock
|
|
138,469
|
|
139,032
|
|
Dilutive potential shares of common stock
|
|
4
|
|
49
|
|
Total weighted average shares outstanding
|
|
138,473
|
|
139,081
|
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
|
RESULTS OF
OPERATIONS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
Mar
31,
|
|
Dec
31,
|
|
Mar
31,
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
205,794
|
$
|
236,842
|
$
|
191,357
|
|
Deepwater
|
|
146,559
|
|
121,222
|
|
164,420
|
|
Mid-Water
|
|
285,979
|
|
306,485
|
|
305,221
|
|
Total
Floaters
|
|
638,332
|
|
664,549
|
|
660,998
|
|
Jack-ups
|
|
46,976
|
|
43,423
|
|
38,975
|
|
Total Contract
Drilling Revenue
|
$
|
685,308
|
$
|
707,972
|
$
|
699,973
|
|
|
|
|
|
|
|
|
Revenues Related
to Reimbursable Expenses
|
$
|
24,116
|
$
|
18,525
|
$
|
29,768
|
|
|
|
|
|
|
|
|
CONTRACT DRILLING
EXPENSE
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
123,530
|
$
|
135,153
|
$
|
135,776
|
|
Deepwater
|
|
71,949
|
|
76,649
|
|
56,436
|
|
Mid-Water
|
|
134,046
|
|
156,075
|
|
143,647
|
|
Total
Floaters
|
|
329,525
|
|
367,877
|
|
335,859
|
|
Jack-ups
|
|
28,029
|
|
29,349
|
|
29,667
|
|
Other
|
|
12,236
|
|
11,681
|
|
9,568
|
|
Total Contract
Drilling Expense
|
$
|
369,790
|
$
|
408,907
|
$
|
375,094
|
|
|
|
|
|
|
|
|
Reimbursable
Expenses
|
$
|
23,666
|
$
|
17,969
|
$
|
29,289
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
82,264
|
$
|
101,689
|
$
|
55,581
|
|
Deepwater
|
|
74,610
|
|
44,573
|
|
107,984
|
|
Mid-Water
|
|
151,933
|
|
150,410
|
|
161,574
|
|
Total
Floaters
|
|
308,807
|
|
296,672
|
|
325,139
|
|
Jack-ups
|
|
18,947
|
|
14,074
|
|
9,308
|
|
Other
|
|
(12,236)
|
|
(11,681)
|
|
(9,568)
|
|
Reimbursable
expenses, net
|
|
450
|
|
556
|
|
479
|
|
Depreciation
|
|
(107,011)
|
|
(96,985)
|
|
(96,821)
|
|
General and
administrative expense
|
|
(22,827)
|
|
(16,298)
|
|
(16,815)
|
|
Bad debt
recovery
|
|
--
|
|
50
|
|
--
|
|
Gain on
disposition of assets
|
|
147
|
|
1,281
|
|
2,004
|
|
Total Operating Income
|
$
|
186,277
|
$
|
187,669
|
$
|
213,726
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
420,140
|
$
|
347,011
|
|
|
|
|
|
|
|
Marketable
securities
|
|
1,175,135
|
|
1,750,053
|
|
|
|
|
|
|
|
Accounts receivable,
net of allowance for bad debts
|
|
416,177
|
|
469,355
|
|
|
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
146,510
|
|
143,997
|
|
|
|
|
|
|
|
Assets held for
sale
|
|
7,694
|
|
7,694
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
2,165,656
|
|
2,718,110
|
|
|
|
|
|
|
Drilling and other
property and equipment, net of
|
|
|
|
|
|
accumulated
depreciation
|
|
5,954,496
|
|
5,467,227
|
|
|
|
|
|
|
Other
assets
|
|
207,835
|
|
206,097
|
|
|
Total
assets
|
$
|
8,327,987
|
$
|
8,391,434
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
249,973
|
$
|
249,954
|
|
|
|
|
|
|
Other current
liabilities
|
|
504,487
|
|
495,628
|
|
|
|
|
|
|
Long-term
debt
|
|
2,244,262
|
|
2,244,189
|
|
|
|
|
|
|
Deferred tax
liability
|
|
531,988
|
|
525,541
|
|
|
|
|
|
|
Other
liabilities
|
|
219,186
|
|
238,864
|
|
|
|
|
|
|
Stockholders'
equity
|
|
4,578,091
|
|
4,637,258
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
8,327,987
|
$
|
8,391,434
|
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in
thousands)
|
|
|
First
Quarter
|
Fourth Quarter
(a)
|
First
Quarter
|
|
2014
|
2013
|
2013
|
|
Dayrate
|
Utilization
|
Dayrate
|
Utilization
|
Dayrate
|
Utilization
|
|
Ultra-Deepwater
Floaters
|
$387
|
66%
|
$350
|
91%
|
$360
|
73%
|
|
Deepwater
Floaters
|
$418
|
64%
|
$402
|
65%
|
$389
|
94%
|
|
Mid-Water
Floaters
|
$276
|
64%
|
$277
|
66%
|
$262
|
64%
|
|
Jack-Ups
|
$93
|
79%
|
$87
|
76%
|
$85
|
71%
|
|
|
|
|
|
|
|
(a) Dayrate and utilization calculations include revenue
earning days for which revenue was not recognized pursuant to
GAAP. By rig category, these are 82 days in Q4 for
ultra-deepwater floaters and 42 days in Q4 for mid-water
floaters.
Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370
Logo -
http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b
SOURCE Diamond Offshore Drilling, Inc.