LOEWS CORPORATION 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 Twelve Months Ended
December 31, 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
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SOURCE Diamond Offshore Drilling, Inc.
