HOUSTON, Feb. 13, 2017 /PRNewswire/ -- Diamond
Offshore Drilling, Inc. (NYSE: DO) today announced it has revised
its previously-announced earnings for the quarter and year ended
December 31, 2016.
As it was completing its year-end financial reporting process,
the Company discovered that its liability for uncertain tax
positions in certain foreign jurisdictions did not appropriately
reflect changes in foreign exchange rates. The majority of the
impact was related to the devaluation of the Egyptian Pound,
primarily in the fourth quarter of 2016. After the local tax
liabilities were re-valued consistent with exchange rates at
December 31, 2016:
- The Company's tax liability reflected in "Other liabilities" on
its Consolidated Balance Sheet was reduced by approximately
$43 million.
- The Company's provision for income taxes reflected in "Income
tax benefit" on its Consolidated Statement of Operations was
reduced by approximately $43 million
for both the fourth quarter and full year 2016.
- The Company's net income for the fourth quarter of 2016
increased by approximately $43
million, or approximately $0.32 per diluted share. Net loss for the full
year 2016 declined by approximately $43
million, or $0.31 per diluted
share.
The adjustments did not affect any of the other
previously-announced operating results. Copies of the
fully-adjusted financial statements are enclosed in this press
release.
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).
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(In
thousands, except per share data)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Contract drilling
|
$
384,646
|
|
$
544,129
|
|
$ 1,525,214
|
|
$
2,360,184
|
|
Revenues
related to reimbursable expenses
|
7,228
|
|
11,434
|
|
75,128
|
|
59,209
|
|
Total
revenues
|
391,874
|
|
555,563
|
|
1,600,342
|
|
2,419,393
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Contract
drilling, excluding depreciation
|
174,342
|
|
256,393
|
|
772,173
|
|
1,227,864
|
|
Reimbursable expenses
|
6,775
|
|
11,146
|
|
58,058
|
|
58,050
|
|
Depreciation
|
86,031
|
|
114,448
|
|
381,760
|
|
493,162
|
|
General
and administrative
|
14,786
|
|
15,574
|
|
63,560
|
|
66,462
|
|
Impairment
of assets
|
--
|
|
499,367
|
|
678,145
|
|
860,441
|
|
Restructuring and separation costs
|
--
|
|
1,043
|
|
--
|
|
9,778
|
|
Bad debt
recovery
|
(265)
|
|
--
|
|
(265)
|
|
--
|
|
Loss
(gain) on disposition of assets
|
6,060
|
|
(2,309)
|
|
3,795
|
|
(2,290)
|
|
Total operating expenses
|
287,729
|
|
895,662
|
|
1,957,226
|
|
2,713,467
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
104,145
|
|
(340,099)
|
|
(356,884)
|
|
(294,074)
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
176
|
|
1,526
|
|
768
|
|
3,322
|
|
Interest
expense
|
(21,230)
|
|
(23,134)
|
|
(89,934)
|
|
(93,934)
|
|
Foreign
currency transaction (loss) gain
|
(3,689)
|
|
1,511
|
|
(11,522)
|
|
2,465
|
|
Other,
net
|
472
|
|
171
|
|
(10,727)
|
|
873
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income tax benefit
|
79,874
|
|
(360,025)
|
|
(468,299)
|
|
(381,348)
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
36,208
|
|
114,641
|
|
95,796
|
|
107,063
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
116,082
|
|
$
(245,384)
|
|
$
(372,503)
|
|
$
(274,285)
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share
|
$
0.85
|
|
$
(1.79)
|
|
$
(2.72)
|
|
$
(2.00)
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding:
|
|
|
|
|
|
|
|
|
Shares of common
stock
|
137,170
|
|
137,159
|
|
137,168
|
|
137,157
|
|
Dilutive potential shares
of common stock
|
93
|
|
--
|
|
--
|
|
--
|
|
Total weighted-average shares outstanding
|
137,263
|
|
137,159
|
|
137,168
|
|
137,157
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
RESULTS OF
OPERATIONS
(Unaudited)
(In
thousands)
|
|
|
|
Three Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
231,820
|
|
$
217,275
|
|
$
395,798
|
|
Deepwater
|
64,678
|
|
66,011
|
|
92,125
|
|
Mid-water
|
88,130
|
|
56,350
|
|
44,766
|
|
Total
Floaters
|
384,628
|
|
339,636
|
|
532,689
|
|
Jack-ups
|
18
|
|
--
|
|
11,440
|
|
Total Contract
Drilling Revenue
|
$
384,646
|
|
$
339,636
|
|
$
544,129
|
|
|
|
|
|
|
|
Revenues Related
to Reimbursable Expenses
|
$
7,228
|
|
$
9,542
|
|
$
11,434
|
|
|
|
|
|
|
|
CONTRACT DRILLING
EXPENSE
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
119,490
|
|
$
124,099
|
|
$
147,991
|
|
Deepwater
|
30,481
|
|
36,226
|
|
60,010
|
|
Mid-water
|
16,814
|
|
17,634
|
|
28,767
|
|
Total Floaters
|
166,785
|
|
177,959
|
|
236,768
|
|
Jack-ups
|
3,090
|
|
1,833
|
|
10,749
|
|
Other
|
4,467
|
|
6,862
|
|
8,876
|
|
Total Contract
Drilling Expense
|
$
174,342
|
|
$
186,654
|
|
$
256,393
|
|
|
|
|
|
|
|
Reimbursable
Expenses
|
$
6,775
|
|
$
7,965
|
|
$
11,146
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
112,330
|
|
$
93,176
|
|
$
247,807
|
|
Deepwater
|
34,197
|
|
29,785
|
|
32,115
|
|
Mid-water
|
71,316
|
|
38,716
|
|
15,999
|
|
Total Floaters
|
217,843
|
|
161,677
|
|
295,921
|
|
Jack-ups
|
(3,072)
|
|
(1,833)
|
|
691
|
|
Other
|
(4,467)
|
|
(6,862)
|
|
(8,876)
|
|
Reimbursable expenses, net
|
453
|
|
1,577
|
|
288
|
|
Depreciation
|
(86,031)
|
|
(86,473)
|
|
(114,448)
|
|
General
and administrative expense
|
(14,786)
|
|
(15,237)
|
|
(15,574)
|
|
Impairment of assets
|
--
|
|
--
|
|
(499,367)
|
|
Restructuring and separation costs
|
--
|
|
--
|
|
(1,043)
|
|
Bad debt
recovery
|
265
|
|
--
|
|
--
|
|
(Loss)
gain on disposition of assets
|
(6,060)
|
|
1,222
|
|
2,309
|
|
Total Operating Income (Loss)
|
$
104,145
|
|
$
54,071
|
|
$
(340,099)
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
156,233
|
|
$
119,028
|
|
Marketable
securities
|
35
|
|
11,518
|
|
Accounts receivable,
net of allowance for bad debts
|
247,028
|
|
405,370
|
|
Prepaid expenses and
other current assets
|
102,111
|
|
119,479
|
|
Assets held for
sale
|
400
|
|
14,200
|
|
Total current assets
|
505,807
|
|
669,595
|
|
|
|
|
|
Drilling and other
property and equipment, net of accumulated depreciation
|
5,726,935
|
|
6,378,814
|
|
Other
assets
|
139,135
|
|
101,485
|
|
Total assets
|
$
6,371,877
|
|
$
7,149,894
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Short-term
borrowings
|
$
104,200
|
|
$
286,589
|
|
Other current
liabilities
|
236,299
|
|
339,134
|
|
Long-term
debt
|
1,980,884
|
|
1,979,778
|
|
Deferred tax
liability
|
197,011
|
|
276,529
|
|
Other
liabilities
|
103,349
|
|
155,094
|
|
Stockholders'
equity
|
3,750,134
|
|
4,112,770
|
|
Total liabilities and stockholders' equity
|
$
6,371,877
|
|
$
7,149,894
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands, except
per share data)
|
|
|
|
Year ended
December 31,
|
|
2016
|
|
2015
|
|
Operating
activities:
|
|
|
|
|
Net loss
|
$
(372,503)
|
|
$
(274,285)
|
|
Adjustments to reconcile net loss to net cash provided
by
|
|
|
|
|
operating activities:
|
|
|
|
|
Depreciation
|
381,760
|
|
493,162
|
|
Loss on impairment of assets
|
678,145
|
|
860,441
|
|
Deferred tax provision
|
(106,263)
|
|
(242,034)
|
|
Other
|
(27,696)
|
|
(69,771)
|
|
Net changes in operating working
capital
|
93,111
|
|
(31,086)
|
|
Net cash provided by operating activities
|
646,554
|
|
736,427
|
|
Investing
activities:
|
|
|
|
|
Capital
expenditures (including rig construction)
|
(652,673)
|
|
(830,655)
|
|
Proceeds from
disposition of assets, net of disposal costs
|
221,722
|
|
13,049
|
|
Proceeds from sale of marketable securities
|
4,614
|
|
51
|
|
Net cash used in investing activities
|
(426,337)
|
|
(817,555)
|
|
Financing
activities:
|
|
|
|
|
Repayment of
long-term debt
|
--
|
|
(250,000)
|
|
(Repayment of)
proceeds from short-term borrowings, net
|
(182,389)
|
|
286,589
|
|
Debt issuance
costs and arrangement fees
|
(215)
|
|
(624)
|
|
Payment of dividends and anti-dilution payments
|
(408)
|
|
(69,432)
|
|
Net cash used in financing activities
|
(183,012)
|
|
(33,467)
|
|
Net change in cash
and cash equivalents
|
37,205
|
|
(114,595)
|
|
Cash and cash
equivalents, beginning of year
|
119,028
|
|
233,623
|
|
Cash and cash
equivalents, end of year
|
$
156,233
|
|
$
119,028
|
Contact:
Samir Ali
Sr. Director, Investor Relations & Corporate Development
(281) 647-4035
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/diamond-offshore-announces-tax-expense-adjustment-to-fourth-quarter-and-full-year-2016-earnings-300405993.html
SOURCE Diamond Offshore Drilling, Inc.