HOUSTON, Feb. 8, 2016 /PRNewswire/ -- Diamond
Offshore Drilling, Inc. (NYSE: DO) today reported a fourth quarter
2015 net loss of $245 million, a loss
of $1.79 per diluted share, compared
to net income of $99 million, or
$0.72 per diluted share, in the
fourth quarter of 2014. Results for the quarter included a non-cash
charge of $499 million associated
with the impairment of nine drilling units, which resulted in an
after-tax charge of $2.68 per
share. Revenues in the fourth quarter of 2015 were
$556 million, compared to revenues of
$675 million in the fourth quarter of
2014.
For full year 2015, Diamond Offshore reported a net loss of
$274 million or a loss of
$2.00 per diluted share, compared to
net income of $387 million, or
$2.81 per diluted share, in
2014. Results for the full year included non-cash charges of
$860 million associated with the
impairment of 17 drilling units, which resulted in an after-tax
charge of $5.05 per share.
Revenues for full year 2015 were $2.419 billion, compared to $2.815 billion in 2014.
Diamond Offshore also announced that its Board of Directors has
discontinued the quarterly cash dividend of $0.125 per share, which will preserve an
additional $69 million on an annual
basis.
"Given the severe and prolonged downturn in industry
fundamentals, we believe it is prudent to bolster our already
strong balance sheet," said Marc
Edwards, President and Chief Executive Officer. "By
conserving additional cash, we will have increased flexibility to
manage the company through difficult market conditions and position
ourselves for the eventual recovery in offshore drilling."
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results
has been scheduled for 7:30 a.m. CST
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 26416613. 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. Additional information 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. 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
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Contract drilling
|
$
|
544,129
|
$
|
674,376
|
$
|
2,360,184
|
$
|
2,737,126
|
Revenues related to reimbursable expenses
|
|
11,434
|
|
945
|
|
59,209
|
|
77,545
|
Total revenues
|
|
555,563
|
|
675,321
|
|
2,419,393
|
|
2,814,671
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Contract drilling, excluding depreciation
|
|
256,393
|
|
358,655
|
|
1,227,864
|
|
1,523,623
|
Reimbursable expenses
|
|
11,146
|
|
698
|
|
58,050
|
|
76,091
|
Depreciation
|
|
114,448
|
|
131,712
|
|
493,162
|
|
456,483
|
General and administrative
|
|
15,574
|
|
19,923
|
|
66,462
|
|
81,832
|
Impairment of assets
|
|
499,367
|
|
--
|
|
860,441
|
|
109,462
|
Restructuring and separation costs
|
|
1,043
|
|
--
|
|
9,778
|
|
--
|
(Gain) loss on disposition of assets
|
|
(2,309)
|
|
2,230
|
|
(2,290)
|
|
(5,382)
|
Total operating expenses
|
|
895,662
|
|
513,218
|
|
2,713,467
|
|
2,242,109
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
(340,099)
|
|
162,103
|
|
(294,074)
|
|
572,562
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income
|
|
1,526
|
|
157
|
|
3,322
|
|
801
|
Interest expense
|
|
(23,134)
|
|
(15,997)
|
|
(93,934)
|
|
(62,053)
|
Foreign
currency transaction gain
|
|
1,511
|
|
6,923
|
|
2,465
|
|
3,199
|
Other, net
|
|
171
|
|
84
|
|
873
|
|
682
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income tax (expense) benefit
|
|
(360,025)
|
|
153,270
|
|
(381,348)
|
|
515,191
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
114,641
|
|
(54,427)
|
|
107,063
|
|
(128,180)
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(245,384)
|
$
|
98,843
|
$
|
(274,285)
|
$
|
387,011
|
|
|
|
|
|
|
|
|
|
(Loss) income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(1.79)
|
$
|
0.72
|
$
|
(2.00)
|
$
|
2.82
|
Diluted
|
$
|
(1.79)
|
$
|
0.72
|
$
|
(2.00)
|
$
|
2.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Shares
of common stock
|
|
137,159
|
|
137,148
|
|
137,157
|
|
137,473
|
Dilutive
potential shares of common stock
|
|
--
|
|
59
|
|
--
|
|
50
|
Total weighted
average shares outstanding
|
|
137,159
|
|
137,207
|
|
137,157
|
|
137,523
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
RESULTS OF
OPERATIONS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
395,798
|
$
|
376,195
|
$
|
285,991
|
Deepwater
|
|
92,125
|
|
136,668
|
|
115,777
|
Mid-Water
|
|
44,766
|
|
69,500
|
|
231,933
|
Total
Floaters
|
|
532,689
|
|
582,363
|
|
633,701
|
Jack-ups
|
|
11,440
|
|
16,673
|
|
40,675
|
Total Contract
Drilling Revenue
|
$
|
544,129
|
$
|
599,036
|
$
|
674,376
|
|
|
|
|
|
|
|
Revenues Related
to Reimbursable
Expenses
|
$
|
11,434
|
$
|
10,706
|
$
|
945
|
|
|
|
|
|
|
|
CONTRACT DRILLING
EXPENSE
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
147,991
|
$
|
156,107
|
$
|
133,103
|
Deepwater
|
|
60,010
|
|
67,630
|
|
66,093
|
Mid-Water
|
|
28,767
|
|
35,784
|
|
119,763
|
Total
Floaters
|
|
236,768
|
|
259,521
|
|
318,959
|
Jack-ups
|
|
10,749
|
|
12,507
|
|
25,268
|
Other
|
|
8,876
|
|
5,916
|
|
14,428
|
Total Contract
Drilling Expense
|
$
|
256,393
|
$
|
277,944
|
$
|
358,655
|
|
|
|
|
|
|
|
Reimbursable
Expenses
|
$
|
11,146
|
$
|
10,476
|
$
|
698
|
|
|
|
|
|
|
|
OPERATING (LOSS)
INCOME
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
247,807
|
$
|
220,088
|
$
|
152,888
|
Deepwater
|
|
32,115
|
|
69,038
|
|
49,684
|
Mid-Water
|
|
15,999
|
|
33,716
|
|
112,170
|
Total
Floaters
|
|
295,921
|
|
322,842
|
|
314,742
|
Jack-ups
|
|
691
|
|
4,166
|
|
15,407
|
Other
|
|
(8,876)
|
|
(5,916)
|
|
(14,428)
|
Reimbursable
expenses, net
|
|
288
|
|
230
|
|
247
|
Depreciation
|
|
(114,448)
|
|
(118,086)
|
|
(131,712)
|
General and
administrative expense
|
|
(15,574)
|
|
(16,888)
|
|
(19,923)
|
Impairment of
assets
|
|
(499,367)
|
|
(2,546)
|
|
--
|
Restructuring
and separation costs
|
|
(1,043)
|
|
(1,574)
|
|
--
|
Gain (loss) on
disposition of assets
|
|
2,309
|
|
(794)
|
|
(2,230)
|
Total Operating (Loss) Income
|
$
|
(340,099)
|
$
|
181,434
|
$
|
162,103
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
December
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
119,028
|
$
|
233,623
|
|
|
|
|
|
|
|
Marketable
securities
|
|
11,518
|
|
16,033
|
|
|
|
|
|
|
|
Accounts receivable,
net of allowance for bad debts
|
|
405,370
|
|
463,862
|
|
|
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
119,479
|
|
185,541
|
|
|
|
|
|
|
|
Assets held for
sale
|
|
14,200
|
|
--
|
|
|
|
|
|
|
|
|
|
|
669,595
|
|
899,059
|
|
|
|
|
|
Drilling and other
property and equipment, net of
|
|
|
|
|
accumulated
depreciation
|
|
6,378,814
|
|
6,945,953
|
|
|
|
|
|
|
Other
assets
|
|
116,480
|
|
176,277
|
|
|
Total
assets
|
$
|
7,164,889
|
$
|
8,021,289
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
--
|
$
|
249,962
|
|
|
|
|
|
Short-term
borrowings
|
|
286,589
|
|
--
|
Other current
liabilities
|
|
339,134
|
|
606,684
|
|
|
|
|
|
Long-term
debt
|
|
1,994,773
|
|
1,994,526
|
|
|
|
|
|
Deferred tax
liability
|
|
276,529
|
|
530,394
|
|
|
|
|
|
Other
liabilities
|
|
155,094
|
|
188,160
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
4,112,770
|
|
4,451,563
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
7,164,889
|
$
|
8,021,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
AVERAGE DAYRATES
AND UTILIZATION
|
(Dayrate in
thousands)
|
|
|
Fourth
Quarter
2015
|
Third
Quarter
2015
|
Fourth
Quarter
2014
|
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater
Floaters
|
$531
|
70%
|
95.5%
|
$479
|
71%
|
96.8%
|
$493
|
66%
|
90.2%
|
|
|
|
|
|
|
|
|
|
|
Deepwater
Floaters
|
$337
|
42%
|
97.7%
|
$361
|
59%
|
90.3%
|
$431
|
48%
|
97.3%
|
|
|
|
|
|
|
|
|
|
|
Mid-Water
Floaters
|
$249
|
24%
|
97.8%
|
$289
|
31%
|
97.5%
|
$270
|
55%
|
96.8%
|
|
|
|
|
|
|
|
|
|
|
Jack-ups
|
$124
|
17%
|
100%
|
$97
|
31%
|
99.8%
|
$96
|
77%
|
99.5%
|
|
|
|
|
|
|
|
|
|
|
Fleet
Total
|
|
|
96.6%
|
|
|
95.5%
|
|
|
95.5%
|
|
(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 December 31, 2015, our cold-stacked rigs
included one ultra-deepwater semisubmersible, two deepwater
semisubmersibles, four mid-water semisubmersibles and five jack-up
rigs.
|
|
(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.
|
Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370
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SOURCE Diamond Offshore Drilling, Inc.