Press Release
<< Back
Diamond Offshore Announces Fourth Quarter 2002 Earnings
HOUSTON--(BUSINESS WIRE)--Jan. 28, 2003--Diamond Offshore Drilling Inc. (NYSE:DO) today reported net income for the fourth quarter of 2002 of $6.3 million, or $0.05 per share on a diluted basis, compared to net income for the fourth quarter of the prior year of $39.8 million, or $0.29 per share on a diluted basis. Total revenues for the fourth quarter of 2002 were $183.0 million compared to total revenues of $231.1 million for the fourth quarter of 2001. Net income for the fourth quarter of 2002 includes investment gains of $1.6 million, or $0.01 per share on a diluted basis, compared to $4.9 million, or $0.03 per share on a diluted basis for the fourth quarter of the prior year.
For the year ended Dec. 31, 2002, the Company reported net income of $62.5 million, or $0.47 per share on a diluted basis, compared to net income of $173.8 million, or $1.26 per share on a diluted basis, for the same period in 2001. Total revenues for the year ended Dec. 31, 2002 were $752.6 million compared to total revenues of $924.3 million for the year ended Dec. 31, 2001. Net income for the year ended December 31, 2002 includes investment gains of $23.7 million, or $0.17 per share on a diluted basis, compared to $17.6 million, or $0.12 per share on a diluted basis, for the same period of 2001.
As of Dec. 31, 2002, there were 130.3 million common shares outstanding. During the fourth quarter of 2002, the Company repurchased 680,900 shares of its common stock at an aggregate cost of $12.9 million. Depending on market conditions, the Company may, from time to time, purchase shares of its outstanding common stock in the open market or otherwise.
Diamond Offshore is a leader in deep water drilling. The Company's fleet of 46 offshore drilling rigs consists of 31 semisubmersibles, 14 jack-ups and one drillship. The fleet operates in the waters of six of the world's seven continents.
As previously announced, Diamond Offshore will provide an online, real-time simulcast and rebroadcast of its 2002 fourth quarter earnings release conference call. The live broadcast of the Diamond Offshore Drilling Inc. quarterly conference call will be available online at www.diamondoffshore.com on Jan. 28, 2003, beginning at 9:00 a.m. Central Time. The online replay will follow immediately and continue for 5 days after the original call. Please go to the Web site at least 15 minutes before the broadcast to register, download and install any necessary audio software.
Statements in this press release that contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. A discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.
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 INCOME
(Unaudited)
(In thousands, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
-----------------------------------
2002 2001 2002 2001
-------- -------- -------- --------
Revenues:
Contract drilling $176,725 $222,157 $724,213 $885,349
Revenues related to
reimbursable expenses 6,316 8,947 28,348 38,951
-------- -------- -------- --------
Total revenues 183,041 231,104 752,561 924,300
-------- -------- -------- --------
Operating expenses:
Contract drilling 114,108 126,696 468,272 467,547
Reimbursable expenses 5,873 8,176 25,885 36,151
Depreciation and amortization 45,026 43,144 177,495 170,017
General and administrative 7,895 6,482 29,009 25,502
-------- -------- -------- --------
Total operating expenses 172,902 184,498 700,661 699,217
-------- -------- -------- --------
Operating income 10,139 46,606 51,900 225,083
Other income (expense):
Gain on sale of marketable
securities 2,483 7,515 36,504 27,141
Interest income 5,875 12,246 29,767 48,682
Interest expense (5,825) (5,841) (23,583) (38,085)
Other, net 916 718 1,586 (2,336)
-------- -------- -------- --------
Income before income tax expense 13,588 61,244 96,174 260,485
Income tax expense (7,292) (21,436) (33,654) (86,662)
-------- -------- -------- --------
Net income $6,296 $39,808 $62,520 $173,823
======== ======== ======== ========
Earnings per share:
Basic $0.05 $0.30 $0.48 $1.31
======== ======== ======== ========
Diluted $0.05 $0.29 $0.47 $1.26
======== ======== ======== ========
Weighted average shares
outstanding:
Shares of common stock 130,366 132,054 131,285 132,886
Dilutive potential shares of
common stock 2 9,645 9,428 9,479
-------- -------- -------- --------
Total weighted average
shares outstanding 130,368 141,699 140,713 142,365
======== ======== ======== ========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
December 31,
------------------
2002 2001
------------------
CONTRACT DRILLING REVENUE
High Specification Floaters $69,078 $86,450
Other Semisubmersibles 74,541 98,478
Jack-ups 24,318 35,295
Integrated Services 4,822 2,254
Other 5,596 337
Eliminations (1,630) (657)
------------------
Total Contract Drilling Revenue $176,725 $222,157
==================
Revenues Related to Reimbursable Expenses $6,316 $8,947
==================
CONTRACT DRILLING EXPENSE
High Specification Floaters $39,844 $33,029
Other Semisubmersibles 51,711 61,728
Jack-ups 23,559 30,868
Integrated Services 4,098 1,968
Other (3,474) (240)
Eliminations (1,630) (657)
------------------
Total Contract Drilling Expense $114,108 $126,696
==================
Reimbursable Expenses $5,873 $8,176
==================
OPERATING INCOME
High Specification Floaters $29,234 $53,421
Other Semisubmersibles 22,830 36,750
Jack-ups 759 4,427
Integrated Services 724 286
Other 9,070 577
Reimbursables, net 443 771
Depreciation and Amortization Expense (45,026) (43,144)
General and Administrative Expense (7,895) (6,482)
------------------
Total Operating Income $10,139 $46,606
==================
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December December
31, 31,
---------------------
2002 2001
---------- ----------
ASSETS
--------
Current assets:
Cash and cash equivalents $184,910 $398,990
Marketable securities 627,614 748,387
Accounts receivable 146,957 193,653
Rig inventory and supplies 45,405 40,814
Prepaid expenses and other 28,870 45,735
---------- ----------
Total current assets 1,033,756 1,427,579
Drilling and other property and equipment, net
of accumulated depreciation 2,164,627 2,002,873
Goodwill, net of accumulated amortization 24,714 38,329
Other assets 35,668 33,900
---------- ----------
Total assets $3,258,765 $3,502,681
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------
Current liabilities:
Securities sold under repurchase agreements $-- $199,062
Other current liabilities 118,402 117,189
---------- ----------
Total current liabilities 118,402 316,251
Long-term debt 924,475 920,636
Deferred tax liability 375,309 376,259
Other liabilities 33,065 36,389
Stockholders' equity 1,807,514 1,853,146
---------- ----------
Total liabilities and stockholders'
equity $3,258,765 $3,502,681
========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Fourth Quarter Third Quarter Fourth Quarter
2002 2002 2001
-------------------------------------------------
Utili- Utili- Utili-
Dayrate zation Dayrate zation Dayrate zation
-------------------------------------------------
(Dayrate in thousands)
High Specification
Floaters $99 84% $109 80% $120 98%
Other Semi-
submersibles $64 61% $69 61% $70 69%
Jack-ups $28 68% $22 65% $35 77%
| CONTACT: | Diamond Offshore Drilling Inc., Houston |
|---|---|
| Caren W. Steffes, 281/492-5393 | |