HOUSTON, May 4, 2015 /PRNewswire/ -- Diamond Offshore
Drilling, Inc. (NYSE: DO) today reported a net loss of
$256 million, or $1.86 per share, in the first quarter of 2015,
compared to net income of $146
million, or $1.05 per share,
in the first quarter of 2014. Revenues in the first quarter
of 2015 were $620 million, compared
to revenues of $709 million in the
first quarter of 2014.
Results for the quarter included a non-cash charge of
$319 million after tax, or
$2.33 per share, associated with the
impairment of eight drilling units, three of which are to be
retired and scrapped. The units to be retired are the
mid-water semisubmersibles Ocean Saratoga, Ocean Worker and Ocean
Yorktown, which are all cold
stacked in the U.S. Gulf of Mexico. Other rigs included in
the impairment group are the mid-water semisubmersibles Ocean
Ambassador, Ocean General, Ocean Lexington, Ocean Nomad and the
drillship Ocean Clipper.
The Company also recognized a charge during the quarter of
$4 million after tax, or $0.03 per share, related to restructuring and
employee separation-related costs.
"We have continued to implement cost savings measures while
maintaining our focus on safe operations and delivering performance
for our clients," said Marc Edwards,
President and Chief Executive Officer. "Our first-quarter
safety statistics were the best that we have recorded."
"During the second quarter, our next two newbuild drillships
will begin working in the Gulf of
Mexico, and the yard will complete our fourth drillship,
which will also be headed to the U.S., where all four of drillships
will work on term contracts extending into 2019 or beyond," added
Mr. Edwards.
In addition, the Company announced that it has declared a
regular quarterly dividend of $0.125
per share, payable on June 1, 2015 to
shareholders of record as of May 15,
2015.
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results
has been scheduled for 7:30 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 22913137. 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 35 offshore drilling rigs, including two rigs
under construction. Diamond Offshore's fleet consists of 24
semisubmersibles, one of which is under construction, five
dynamically positioned drillships, one of which is under
construction, and six 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 53% by Loews
Corporation (NYSE: L).
FORWARD-LOOKING STATEMENTS
Statements contained in this press release or made during the
above conference call 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 drilling rig deliveries, operations and
timing; contract effectiveness, effective dates and estimated
duration; plans regarding retirement and scrapping of drilling
rigs; future impairments; future dividends; expectations of future
backlog, revenue, operating costs and performance; future
liquidity, financial condition, market conditions, commodity prices
and strategic opportunities; revenue expected to result from
backlog; future credit ratings; future dayrates, future status,
start and end dates and future contracts and availability; future
contract opportunities and termination rights; contract
noncompliance by customers and other third parties; utilization,
surveys, downtime and other aspects of the Company's drilling rigs;
statements concerning customer discussions and outcomes thereof and
the impact of these and related events on the Company's operations
and revenues; rigs being upgraded or to be upgraded and rigs under
construction; and other statements that are not of historical
fact. 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 risk
factors include, among others, risks associated with worldwide
demand for drilling services, level of activity in the oil and gas
industry, renewing or replacing expired or terminated contracts,
contract cancellations and terminations, maintenance and
realization of backlog, competition and industry fleet capacity,
impairments and retirements, declaration of dividends, operating
risks, changes in tax laws and rates, regulatory initiatives and
compliance with governmental regulations, construction of new
builds, casualty losses, and various other factors, 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,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Contract drilling
|
$
|
599,577
|
$
|
685,308
|
|
Revenues related to reimbursable expenses
|
|
20,479
|
|
24,116
|
|
Total revenues
|
|
620,056
|
|
709,424
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Contract drilling, excluding depreciation
|
|
350,658
|
|
369,790
|
|
Reimbursable expenses
|
|
20,092
|
|
23,666
|
|
Depreciation
|
|
137,299
|
|
107,011
|
|
General and administrative
|
|
17,452
|
|
22,827
|
|
Impairment of assets
|
|
358,528
|
|
--
|
|
Restructuring and separation costs
|
|
6,168
|
|
--
|
|
Gain on disposition of assets
|
|
(611)
|
|
(147)
|
|
Total operating expenses
|
|
889,586
|
|
523,147
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
(269,530)
|
|
186,277
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest income
|
|
583
|
|
408
|
|
Interest expense
|
|
(23,982)
|
|
(18,155)
|
|
Foreign currency transaction gain (loss)
|
|
5,590
|
|
(1,178)
|
|
Other, net
|
|
221
|
|
327
|
|
|
|
|
|
|
|
(Loss) income
before income tax (benefit) expense
|
|
(287,118)
|
|
167,679
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
31,409
|
|
(21,869)
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(255,709)
|
$
|
145,810
|
|
|
|
|
|
|
|
(Loss) income per
share
|
$
|
(1.86)
|
$
|
1.05
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
Shares of common stock
|
|
137,151
|
|
138,469
|
|
Dilutive potential shares of common stock
|
|
--
|
|
4
|
|
Total weighted average shares outstanding
|
|
137,151
|
|
138,473
|
DIAMOND OFFSHORE DRILLING, INC. AND
SUBSIDIARIES
|
RESULTS OF OPERATIONS
|
(Unaudited)
|
(In thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
Mar
31,
|
|
Dec
31,
|
|
Mar
31,
|
|
|
|
2015
|
|
2014
|
|
2014
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
251,396
|
$
|
285,991
|
$
|
205,794
|
|
Deepwater
|
|
138,770
|
|
115,777
|
|
146,559
|
|
Mid-water
|
|
176,357
|
|
231,933
|
|
285,979
|
|
Total
Floaters
|
|
566,523
|
|
633,701
|
|
638,332
|
|
Jack-ups
|
|
33,054
|
|
40,675
|
|
46,976
|
|
Total Contract
Drilling Revenue
|
$
|
599,577
|
$
|
674,376
|
$
|
685,308
|
|
|
|
|
|
|
|
|
|
Revenues Related
to Reimbursable
Expenses
|
$
|
20,479
|
$
|
945
|
$
|
24,116
|
|
|
|
|
|
|
|
|
|
CONTRACT DRILLING
EXPENSE
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
154,539
|
$
|
133,103
|
$
|
123,530
|
|
Deepwater
|
|
63,675
|
|
66,093
|
|
71,949
|
|
Mid-water
|
|
99,320
|
|
119,763
|
|
134,046
|
|
Total
Floaters
|
|
317,534
|
|
318,959
|
|
329,525
|
|
Jack-ups
|
|
21,570
|
|
25,268
|
|
28,029
|
|
Other
|
|
11,554
|
|
14,428
|
|
12,236
|
|
Total Contract
Drilling Expense
|
$
|
350,658
|
$
|
358,655
|
$
|
369,790
|
|
|
|
|
|
|
|
|
|
Reimbursable
Expenses
|
$
|
20,092
|
$
|
698
|
$
|
23,666
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
96,857
|
$
|
152,888
|
$
|
82,264
|
|
Deepwater
|
|
75,095
|
|
49,684
|
|
74,610
|
|
Mid-water
|
|
77,037
|
|
112,170
|
|
151,933
|
|
Total
Floaters
|
|
248,989
|
|
314,742
|
|
308,807
|
|
Jack-ups
|
|
11,484
|
|
15,407
|
|
18,947
|
|
Other
|
|
(11,554)
|
|
(14,428)
|
|
(12,236)
|
|
Reimbursable
expenses, net
|
|
387
|
|
247
|
|
450
|
|
Depreciation
|
|
(137,299)
|
|
(131,712)
|
|
(107,011)
|
|
General and
administrative expense
|
|
(17,452)
|
|
(19,923)
|
|
(22,827)
|
|
Bad debt
recovery
|
|
--
|
|
--
|
|
--
|
|
Gain (loss) on
disposition of assets
|
|
611
|
|
(2,230)
|
|
147
|
|
Impairment of
assets
|
|
(358,528)
|
|
--
|
|
--
|
|
Restructuring
and separation costs
|
|
(6,168)
|
|
--
|
|
--
|
|
Total Operating (Loss) Income
|
$
|
(269,530)
|
$
|
162,103
|
$
|
186,277
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
184,775
|
$
|
233,623
|
|
|
|
|
|
|
|
Marketable
securities
|
|
14,016
|
|
16,033
|
|
|
|
|
|
|
|
Accounts receivable,
net of allowance for bad debts
|
|
445,685
|
|
463,862
|
|
|
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
199,321
|
|
185,541
|
|
|
|
|
843,797
|
|
899,059
|
|
|
|
|
|
Drilling and other
property and equipment, net of
|
|
|
|
|
accumulated
depreciation
|
|
6,574,142
|
|
6,945,953
|
|
|
|
|
|
|
Other
assets
|
|
117,890
|
|
176,277
|
|
|
Total
assets
|
$
|
7,535,829
|
$
|
8,021,289
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
249,979
|
$
|
249,962
|
|
|
|
|
|
Other current
liabilities
|
|
521,079
|
|
606,684
|
|
|
|
|
|
Long-term
debt
|
|
1,994,587
|
|
1,994,526
|
|
|
|
|
|
Deferred tax
liability
|
|
413,009
|
|
530,394
|
|
|
|
|
|
Other
liabilities
|
|
177,329
|
|
188,160
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
4,179,846
|
|
4,451,563
|
|
|
Total liabilities and
stockholders' equity
|
$
|
7,535,829
|
$
|
8,021,289
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
AVERAGE DAYRATES
AND UTILIZATION
|
(Dayrate in
thousands)
|
|
|
First
Quarter
2015
|
Fourth
Quarter
2014
|
First
Quarter
2014
|
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
Revised
Average
Dayrate
(4)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater
Floaters
|
$497
|
51%
|
81.5%
|
$493
|
66%
|
90.2%
|
$401
|
66%
|
95.3%
|
|
|
|
|
|
|
|
|
|
|
Deepwater
Floaters
|
$486
|
45%
|
95.1%
|
$431
|
48%
|
97.3%
|
$427
|
64%
|
96.0%
|
|
|
|
|
|
|
|
|
|
|
Mid-Water
floaters
|
$266
|
49%
|
94.1%
|
$270
|
55%
|
96.8%
|
$278
|
64%
|
94.4%
|
|
|
|
|
|
|
|
|
|
|
Jack-ups
|
$92
|
66%
|
99.4%
|
$96
|
77%
|
99.5%
|
$94
|
79%
|
99.9%
|
|
|
|
|
|
|
|
|
|
|
Fleet
Total
|
|
|
91.2%
|
|
|
95.5%
|
|
|
95.9%
|
|
|
|
(1)
Average dayrate is defined as contract drilling revenue for all of
the specified rigs in our fleet per revenue earning day. A
revenue earning day is defined as a 24-hour period during which a
rig earns a dayrate after commencement of operations and excludes
mobilization, demobilization and contract preparation
days.
|
|
(2)
Utilization is calculated as the ratio of total revenue-earning
days divided by the total calendar days in the period for all
specified rigs in our fleet—including cold-stacked rigs, but
excluding rigs under construction. As of May 4, 2015, one
deepwater and four mid-water semisubmersible rigs and three jack-up
rigs were cold stacked.
|
|
(3)
Operational efficiency is calculated as the ratio of total
revenue-earning days divided by the sum of total revenue-earning
days plus the number of days (or portions thereof) associated with
unanticipated equipment downtime.
|
|
(4)
Average dayrate reported in prior periods has been revised to
conform to current presentation.
|
|
Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370
Logo -
http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/diamond-offshore-announces-first-quarter-2015-results-300076277.html
SOURCE Diamond Offshore Drilling, Inc.