HOUSTON--(BUSINESS WIRE)--Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the first quarter of 2012 of $185.2 million, or $1.33 per share on a diluted basis, compared with net income of $250.6 million, or $1.80 per share on a diluted basis, in the same period a year earlier. Revenues in the first quarter of 2012 were $768.6 million, compared with revenues of $806.4 million for the first quarter of 2011. The sale of the jack-up rig Ocean Columbia was completed during the quarter, resulting in an after-tax gain of approximately $16 million, or $0.12 per share.
“Our ongoing efforts to control costs and maximize operating efficiency, expressed in terms of minimal rig downtime, enabled us to achieve favorable operating results for the quarter,” said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. “Our systems and employees continue to perform for our customers and shareholders.”
“Looking ahead, we are optimistic about future contracting opportunities for our fleet, given the continuing market strength in the offshore drilling industry,” noted Dickerson.
CONFERENCE CALL
Diamond Offshore will host a conference call to discuss first quarter results on Thursday, April 19, 2012 beginning at 9:00 a.m. CDT. A live webcast of the call will be available online on our 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 65195830. An online replay will also be available on www.diamondoffshore.com following the call.
ABOUT DIAMOND OFFSHORE
Diamond Offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. Diamond Offshore’s fleet of offshore drilling rigs consists of 32 semisubmersibles, 12 jack-ups, and one drillship, in addition to three ultra-deepwater drillships currently under construction. For additional information and access to SEC filings, please visit the Company’s website at www.diamondoffshore.com. Diamond Offshore is a 50.4% owned subsidiary of Loews Corporation (NYSE: L).
FORWARD-LOOKING STATEMENTS
Statements contained in this press release which 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 risks that could cause actual results to differ materially from those 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 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 www.diamondoffshore.com. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak 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.
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
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(Unaudited) |
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(In thousands, except per share data) |
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| Three Months Ended | ||||||
| March 31, | ||||||
| 2012 | 2011 | |||||
| Revenues: | ||||||
| Contract drilling | $ | 755,155 | $ | 788,873 | ||
| Revenues related to reimbursable expenses | 13,487 | 17,516 | ||||
| Total revenues | 768,642 | 806,389 | ||||
| Operating expenses: | ||||||
| Contract drilling, excluding depreciation | 397,102 | 362,364 | ||||
| Reimbursable expenses | 13,151 | 16,950 | ||||
| Depreciation | 101,393 | 101,173 | ||||
| General and administrative | 17,586 | 17,725 | ||||
| Bad debt recovery | (618) | (8,447) | ||||
| Gain on disposition of assets | (25,382) | (2,641) | ||||
| Total operating expenses | 503,232 | 487,124 | ||||
| Operating income | 265,410 | 319,265 | ||||
| Other income (expense): | ||||||
| Interest income | 1,783 | 450 | ||||
| Interest expense | (15,329) | (22,044) | ||||
| Foreign currency transaction loss | (104) | (1,606) | ||||
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Other, net |
(325) | 784 | ||||
| Income before income tax expense | 251,435 | 296,849 | ||||
| Income tax expense | (66,266) | (46,237) | ||||
| Net income | $ | 185,169 | $ | 250,612 | ||
| Earnings per share: | ||||||
| Basic | $ | 1.33 | $ | 1.80 | ||
| Diluted | $ | 1.33 | $ | 1.80 | ||
| Weighted average shares outstanding: | ||||||
| Shares of common stock | 139,028 | 139,027 | ||||
| Dilutive potential shares of common stock | 12 | 26 | ||||
| Total weighted average shares outstanding | 139,040 | 139,053 | ||||
| DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||||||||
| RESULTS OF OPERATIONS | ||||||||||||
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(Unaudited) |
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(In thousands) |
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Three Months Ended | |||||||||||
| Mar 31, | Dec 31, | Mar 31, | ||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| REVENUES | ||||||||||||
| Floaters: | ||||||||||||
| Ultra-Deepwater | $ | 244,589 | $ | 189,148 | $ | 198,730 | ||||||
| Deepwater | 146,003 | 190,615 | 132,252 | |||||||||
| Mid-water | 318,595 | 312,256 | 409,583 | |||||||||
| Total Floaters | 709,187 | 692,019 | 740,565 | |||||||||
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Jack-ups |
45,968 | 42,264 | 48,218 | |||||||||
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Other |
-- | -- | 90 | |||||||||
| Total Contract Drilling Revenue | $ | 755,155 | $ | 734,283 | $ | 788,873 | ||||||
| Revenues Related to Reimbursable Expenses |
$ |
13,487 |
$ |
14,074 |
$ |
17,516 |
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| CONTRACT DRILLING EXPENSE | ||||||||||||
| Floaters: | ||||||||||||
| Ultra-Deepwater | $ | 139,961 | $ | 132,187 | $ | 108,645 | ||||||
| Deepwater | 58,594 | 52,843 | 58,109 | |||||||||
| Mid-water | 162,779 | 169,481 | 152,020 | |||||||||
| Total Floaters | 361,334 | 354,511 | 318,774 | |||||||||
| Jack-ups | 31,443 | 45,597 | 42,100 | |||||||||
| Other | 4,325 | 6,655 | 1,490 | |||||||||
| Total Contract Drilling Expense | $ | 397,102 | $ | 406,763 | $ | 362,364 | ||||||
| Reimbursable Expenses | $ | 13,151 | $ | 13,609 | $ | 16,950 | ||||||
| OPERATING INCOME | ||||||||||||
| Floaters: | ||||||||||||
| Ultra-Deepwater | $ | 104,628 | $ | 56,961 | $ | 90,085 | ||||||
| Deepwater | 87,409 | 137,772 | 74,143 | |||||||||
| Mid-water | 155,816 | 142,775 | 257,563 | |||||||||
| Total Floaters | 347,853 | 337,508 | 421,791 | |||||||||
| Jack-ups | 14,525 | (3,333 | ) | 6,118 | ||||||||
| Other | (4,325 | ) | (6,655 | ) | (1,400 | ) | ||||||
| Reimbursable expenses, net | 336 | 465 | 566 | |||||||||
| Depreciation | (101,393 | ) | (95,089 | ) | (101,173 | ) | ||||||
| General and administrative expense | (17,586 | ) | (16,334 | ) | (17,725 | ) | ||||||
| Bad debt recovery | 618 | 1,300 | 8,447 | |||||||||
| Gain on disposition of assets | 25,382 | 414 | 2,641 | |||||||||
| Total Operating Income | $ | 265,410 | $ | 218,276 | $ | 319,265 | ||||||
| DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
| March 31, | December 31, | |||||
| 2012 | 2011 | |||||
| (unaudited) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 123,521 | 333,765 | |||
| Marketable securities | 1,276,592 | 902,414 | ||||
| Accounts receivable, net of allowance for bad debts | 574,906 | 563,934 | ||||
| Prepaid expenses and other current assets | 134,682 | 192,570 | ||||
| Assets held for sale | 22,223 | -- | ||||
| Total current assets | 2,131,924 | 1,992,683 | ||||
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Drilling and other property and equipment, net of accumulated depreciation |
4,611,233 | 4,667,469 | ||||
| Other assets | 282,381 | 304,005 | ||||
| Total assets | $ | 7,025,538 | $ | 6,964,157 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | $ | 409,694 | $ | 427,291 | ||
| Long-term debt | 1,495,883 | 1,495,823 | ||||
| Deferred tax liability | 538,980 | 536,815 | ||||
| Other liabilities | 178,432 | 171,165 | ||||
| Stockholders’ equity | 4,402,549 | 4,333,063 | ||||
| Total liabilities and stockholders’ equity | $ | 7,025,538 | $ | 6,964,157 | ||
| DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||||||||
| AVERAGE DAYRATES AND UTILIZATION | ||||||||||||
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(Dayrate in thousands) |
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| First Quarter | Fourth Quarter | First Quarter | ||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | |||||||
| Ultra-Deepwater Floaters | $364 | 85% | $356 | 70% | $343 | 77% | ||||||
| Deepwater Floaters | $359 | 88% | $422 | 97% | $343 | 83% | ||||||
| Mid-Water Floaters | $266 | 65% | $271 | 60% | $275 | 81% | ||||||
| Jack-Ups | $87 | 44% | $79 | 36% | $82 | 47% | ||||||