LOEWS CORPORATION HOUSTON, July 24, 2014 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net income of $90 million, or $0.65 per share, for the second quarter of 2014, compared with net income of $185 million, or $1.33 per share, in the same period a year earlier. Revenues in the second quarter of 2014 were $692 million, compared with revenues of $758 million in the prior-year quarter.
Net income for the quarter included $0.08 per share received from Niko Resources Ltd. related to a previously announced settlement agreement. Results also included a gain of $0.05 per share from the sale of the jack-up rig Ocean Spartan during the second quarter. Offsetting these items was a negative impact of $0.14 per share related to customer cancellation of the Ocean Vanguard contract.
"During the quarter, the first of our four newbuild drillships, the Ocean BlackHawk, commenced operations in the Gulf of Mexico," said Marc Edwards, President and Chief Executive Officer. "During 2014, Diamond Offshore will have added five very capable assets to its fleet, three new drillships and two semi-submersibles, with a fourth drillship to be delivered in early 2015."
"We retain a strong credit rating and a healthy balance sheet," added Mr. Edwards. "Diamond Offshore remains well positioned to navigate through the current market cycle."
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results has been scheduled for 8:00 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 63586906. 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 44 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 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 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 drilling rig deliveries and timing, and future performance, financial condition 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 Six Months Ended
June 30, June 30,
-------- --------
2014 2013 2014 2013
---- ---- ---- ----
Revenues:
Contract drilling $649,554 $744,898 $1,334,862 $1,444,871
Revenues related to reimbursable expenses 42,690 13,120 66,806 42,888
------ ------ ------ ------
Total revenues 692,244 758,018 1,401,668 1,487,759
------- ------- --------- ---------
Operating expenses:
Contract drilling, excluding depreciation 395,376 369,036 765,166 744,130
Reimbursable expenses 42,290 12,805 65,956 42,094
Depreciation 108,906 97,143 215,917 193,964
General and administrative 20,478 16,435 43,305 33,250
Gain on disposition of assets (8,572) (260) (8,719) (2,264)
------ ---- ------ ------
Total operating expenses 558,478 495,159 1,081,625 1,011,174
------- ------- --------- ---------
Operating income 133,766 262,859 320,043 476,585
Other income (expense):
Interest income 150 271 558 888
Interest expense (18,523) (7,951) (36,678) (16,020)
Foreign currency transaction gain (loss) (2,971) 448 (4,149) 607
Other, net 181 674 508 420
--- --- --- ---
Income before income tax expense 112,603 256,301 280,282 462,480
Income tax expense (22,890) (70,967) (44,759) (101,157)
------- ------- ------- --------
Net Income $89,713 $185,334 $235,523 $361,323
======= ======== ======== ========
Income per share, Basic and Diluted $0.65 $1.33 $1.71 $2.60
===== ===== ===== =====
Weighted average shares outstanding:
Shares of common stock 137,145 139,035 137,803 139,034
Dilutive potential shares of common stock 4 37 5 43
--- --- --- ---
Total weighted average shares outstanding 137,149 139,072 137,808 139,077
======= ======= ======= =======
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
Jun 30, Mar 31, Jun 30,
------- ------- -------
2014 2014 2013
---- ---- ----
REVENUES
Floaters:
Ultra-Deepwater $182,656 $205,794 $231,101
Deepwater 120,539 146,559 184,105
Mid-water 300,902 285,979 288,860
------- ------- -------
Total Floaters 604,097 638,332 704,066
Jack-ups 45,457 46,976 40,832
------
Total Contract Drilling
Revenue $649,554 $685,308 $744,898
=== ===
Revenues Related to Reimbursable
Expenses
$42,690 $24,116 $13,120
======= ======= =======
CONTRACT DRILLING EXPENSE
Floaters:
Ultra-Deepwater $122,327 $123,530 $128,147
Deepwater 81,641 71,949 60,126
Mid-water 148,931 134,046 139,252
------- ------- -------
Total Floaters 352,899 329,525 327,525
Jack-ups 29,851 28,029 27,377
Other 12,626 12,236 14,134
------ ------ ------
Total Contract Drilling
Expense $395,376 $369,790 $369,036
=== ===
Reimbursable Expenses $42,290 $23,666 $12,805
=== ===
OPERATING INCOME
Floaters:
Ultra-Deepwater $60,329 $82,264 $102,954
Deepwater 38,898 74,610 123,979
Mid-water 151,971 151,933 149,608
------- ------- -------
Total Floaters 251,198 308,807 376,541
Jack-ups 15,606 18,947 13,455
Other (12,626) (12,236) (14,134)
Reimbursable expenses, net 400 450 315
Depreciation (108,906) (107,011) (97,143)
General and administrative expense (20,478) (22,827) (16,435)
Gain on disposition of assets 8,572 147 260
---
Total Operating Income $133,766 $186,277 $262,859
=== ===
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
June 30, December 31,
-------- ------------
2014 2013
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $980,817 $347,011
Marketable
securities 350,156 1,750,053
Accounts
receivable,
net of
allowance for
bad debts 545,024 469,355
Prepaid
expenses and
other current
assets 200,867 143,997
Asset held for
sale -- 7,694
2,076,864 2,718,110
Drilling and other property and
equipment, net of
accumulated depreciation 6,055,990 5,467,227
Other assets 229,468 206,097
Total assets $8,362,322 $8,391,434
===
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current portion of long-term
debt $249,992 $249,954
Other current liabilities 550,224 495,628
Long-term debt 2,244,336 2,244,189
Deferred tax liability 533,788 525,541
Other liabilities 237,034 238,864
Stockholders' equity 4,546,948 4,637,258
Total
liabilities
and
stockholders'
equity $8,362,322 $8,391,434
===
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in thousands)
Second Quarter (A) First Quarter Second Quarter
2014 2014 2013
---- ---- ----
Dayrate Utilization Dayrate Utilization Dayrate Utilization
------- ----------- ------- ----------- ------- -----------
$403 51% $387 66% $342 92%
Ultra-Deepwater Floaters
Deepwater Floaters $418 51% $418 64% $409 99%
Mid-Water Floaters $266 68% $276 64% $271 65%
Jack-Ups $97 74% $93 79% $88 74%
A) Dayrate and utilization calculations for Mid-Water Floaters exclude 22 revenue earning days for which we did not recognize revenue pursuant to GAAP.
Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370
http://photos.prnewswire.com/prnvar/20130725/NY53104LOGO-b
Logo- http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b
SOURCE Diamond Offshore Drilling, Inc.
