HOUSTON, May 2, 2016 /PRNewswire/ -- Diamond Offshore
Drilling, Inc. (NYSE: DO) today reported net income of $87 million, or $0.64 per share, in the first quarter of 2016
compared to a loss of $256 million,
or a loss of $1.86 per share, in the
first quarter of 2015. Revenues in the first quarter of 2016
were $471 million, compared to
revenues of $620 million in the first
quarter of 2015.
"I am pleased with our solid first quarter results, which
demonstrate Diamond Offshore's ongoing efforts to manage costs
while remaining focused on safe operations and fleet reliability,"
said Marc Edwards, President and
Chief Executive Officer. "Fleet-wide, we achieved operational
efficiency for the quarter of 98.2 percent, which is reflected in
our earnings results and improved project economics for our
clients."
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 89517726. 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
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Contract drilling
|
$
|
443,523
|
$
|
599,577
|
Revenues related to reimbursable expenses
|
|
27,020
|
|
20,479
|
Total revenues
|
|
470,543
|
|
620,056
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Contract drilling, excluding depreciation
|
|
212,841
|
|
350,658
|
Reimbursable expenses
|
|
26,791
|
|
20,092
|
Depreciation
|
|
104,240
|
|
137,299
|
General and administrative
|
|
15,398
|
|
17,452
|
Impairment of assets
|
|
--
|
|
358,528
|
Restructuring and separation costs
|
|
--
|
|
6,168
|
Gain
on disposition of assets
|
|
(296)
|
|
(611)
|
Total operating expenses
|
|
358,974
|
|
889,586
|
|
|
|
|
|
Operating income
(loss)
|
|
111,569
|
|
(269,530)
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest income
|
|
173
|
|
583
|
Interest expense
|
|
(25,516)
|
|
(23,982)
|
Foreign currency
transaction gain (loss)
|
|
(3,608)
|
|
5,590
|
Other, net
|
|
578
|
|
221
|
|
|
|
|
|
Income (loss)
before income tax benefit
|
|
83,196
|
|
(287,118)
|
|
|
|
|
|
Income tax
benefit
|
|
4,229
|
|
31,409
|
|
|
|
|
|
Net income
(loss)
|
$
|
87,425
|
$
|
(255,709)
|
|
|
|
|
|
Earnings (loss)
per share, Basic and Diluted
|
$
|
0.64
|
$
|
(1.86)
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
Shares
of common stock
|
|
137,162
|
|
137,151
|
Dilutive
potential shares of common stock
|
|
44
|
|
--
|
Total weighted
average shares outstanding
|
|
137,206
|
|
137,151
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS (Unaudited)
(In
thousands)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
325,961
|
$
|
395,798
|
$
|
251,396
|
Deepwater
|
|
59,117
|
|
92,125
|
|
138,770
|
Mid-Water
|
|
47,672
|
|
44,766
|
|
176,357
|
Total
Floaters
|
|
432,750
|
|
532,689
|
|
566,523
|
Jack-ups
|
|
10,773
|
|
11,440
|
|
33,054
|
Total Contract
Drilling Revenue
|
$
|
443,523
|
$
|
544,129
|
$
|
599,577
|
|
|
|
|
|
|
|
Revenues Related
to Reimbursable Expenses
|
$
|
27,020
|
$
|
11,434
|
$
|
20,479
|
|
|
|
|
|
|
|
CONTRACT DRILLING
EXPENSE
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
123,736
|
$
|
147,991
|
$
|
154,539
|
Deepwater
|
|
47,509
|
|
60,010
|
|
63,675
|
Mid-Water
|
|
23,884
|
|
28,767
|
|
99,320
|
Total
Floaters
|
|
195,129
|
|
236,768
|
|
317,534
|
Jack-ups
|
|
6,055
|
|
10,749
|
|
21,570
|
Other
|
|
11,657
|
|
8,876
|
|
11,554
|
Total Contract
Drilling Expense
|
$
|
212,841
|
$
|
256,393
|
$
|
350,658
|
|
|
|
|
|
|
|
Reimbursable
Expenses
|
$
|
26,791
|
$
|
11,146
|
$
|
20,092
|
|
|
|
|
|
|
|
OPERATING
INCOME(LOSS)
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
202,225
|
$
|
247,807
|
$
|
96,857
|
Deepwater
|
|
11,608
|
|
32,115
|
|
75,095
|
Mid-Water
|
|
23,788
|
|
15,999
|
|
77,037
|
Total
Floaters
|
|
237,621
|
|
295,921
|
|
248,989
|
Jack-ups
|
|
4,718
|
|
691
|
|
11,484
|
Other
|
|
(11,657)
|
|
(8,876)
|
|
(11,554)
|
Reimbursable
expenses, net
|
|
229
|
|
288
|
|
387
|
Depreciation
|
|
(104,240)
|
|
(114,448)
|
|
(137,299)
|
General and
administrative expense
|
|
(15,398)
|
|
(15,574)
|
|
(17,452)
|
Impairment of
assets
|
|
--
|
|
(499,367)
|
|
(358,528)
|
Restructuring
and separation costs
|
|
--
|
|
(1,043)
|
|
(6,168)
|
Gain on
disposition of assets
|
|
296
|
|
2,309
|
|
611
|
Total Operating Income (Loss)
|
$
|
111,569
|
$
|
(340,099)
|
$
|
(269,530)
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
128,928
|
$
|
119,028
|
|
|
|
|
|
|
|
Marketable
securities
|
|
5,067
|
|
11,518
|
|
|
|
|
|
|
|
Accounts receivable,
net of allowance for bad debts
|
|
363,597
|
|
405,370
|
|
|
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
110,842
|
|
119,479
|
|
|
|
|
|
|
|
Assets held for
sale
|
|
6,600
|
|
14,200
|
|
|
|
|
|
|
|
|
|
|
615,034
|
|
669,595
|
|
|
|
|
|
Drilling and other
property and equipment, net of
|
|
|
|
|
accumulated
depreciation
|
|
6,219,242
|
|
6,378,814
|
|
|
|
|
|
|
Other
assets
|
|
110,323
|
|
101,485
|
|
|
Total
assets
|
$
|
6,944,599
|
$
|
7,149,894
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
--
|
$
|
286,589
|
Other current
liabilities
|
|
380,987
|
|
339,134
|
|
|
|
|
|
Long-term
debt
|
|
1,980,049
|
|
1,979,778
|
|
|
|
|
|
Deferred tax
liability
|
|
230,332
|
|
276,529
|
|
|
|
|
|
Other
liabilities
|
|
158,451
|
|
155,094
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
4,194,780
|
|
4,112,770
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
6,944,599
|
$
|
7,149,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION (Dayrate in
thousands)
|
|
|
First
Quarter
2016
|
Fourth
Quarter
2015
|
First
Quarter
2015
|
|
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
|
$533
|
61%
|
98.4%
|
$531
|
70%
|
95.5%
|
$497
|
51%
|
81.5%
|
|
|
|
|
|
|
|
|
|
|
Deepwater
Floaters
|
$334
|
28%
|
97.1%
|
$337
|
42%
|
97.7%
|
$486
|
45%
|
95.1%
|
|
|
|
|
|
|
|
|
|
|
Mid-Water
Floaters
|
$263
|
25%
|
97.7%
|
$249
|
24%
|
97.8%
|
$266
|
49%
|
94.1%
|
|
|
|
|
|
|
|
|
|
|
Jack-ups
|
$118
|
18%
|
100%
|
$124
|
17%
|
100%
|
$92
|
66%
|
99.4%
|
|
|
|
|
|
|
|
|
|
|
Fleet
Total
|
|
|
98.2%
|
|
|
96.6%
|
|
|
91.2%
|
|
|
(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 March 31, 2016, our cold-stacked rigs
included three ultra-deepwater semisubmersibles, four deepwater
semisubmersibles, five mid-water semisubmersibles and four 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.