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Diamond Offshore Announces Fourth Quarter 2010 Results
HOUSTON, Feb 03, 2011 (BUSINESS WIRE) -- Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the fourth quarter of 2010 of $241.7 million, or $1.74 per share on a diluted basis, compared with net income of $276.1 million, or $1.98 per share on a diluted basis, in the same period a year earlier. Revenues in the fourth quarter of 2010 were $840.9 million, compared with revenues of $890.8 million for the fourth quarter of 2009.
Results for the fourth quarter of 2010 were positively impacted by lower tax expense resulting from passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 in mid-December 2010. Provisions in the legislation contributed to an effective tax rate for the Company of 22.2% for the fourth quarter of the year, compared to an effective tax rate of 30.4% for the first nine months of 2010 which did not include any impact from the legislation.
For the year ended December 31, 2010, the Company reported net income of $955.5 million, or $6.87 per share on a diluted basis, compared with net income of $1.4 billion, or $9.89 per share on a diluted basis, for the year ended December 31, 2009. Revenues for the year ended December 31, 2010 were $3.3 billion, compared with $3.6 billion for 2009.
Diamond Offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. Additional information on Diamond Offshore and access to the Company's SEC filings is available on the Internet at www.diamondoffshore.com.
As previously announced, Diamond Offshore will provide a simulcast and rebroadcast of its fourth quarter 2010 earnings release conference call. The live broadcast of our quarterly conference call will be available online at www.diamondoffshore.com on February 3, 2011 beginning at 9:00 a.m. Central Time. The online replay will follow immediately and continue for the remainder of the calendar quarter 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 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) | |||||||||||||||||
| Three Months Ended |
Twelve Months Ended | ||||||||||||||||
| December 31, |
December 31, | ||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Contract drilling | $ | 824,561 | $ | 872,132 | $ | 3,229,736 | $ | 3,536,579 | |||||||||
| Revenues related to reimbursable expenses | 16,405 | 18,650 | 93,238 | 94,705 | |||||||||||||
| Total revenues | 840,966 | 890,782 | 3,322,974 | 3,631,284 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Contract drilling, excluding depreciation | 382,535 | 317,025 | 1,391,086 | 1,223,771 | |||||||||||||
| Reimbursable expenses | 15,843 | 18,078 | 91,240 | 93,097 | |||||||||||||
| Depreciation | 95,912 | 89,468 | 393,177 | 346,446 | |||||||||||||
| General and administrative | 16,098 | 14,804 | 66,600 | 62,913 | |||||||||||||
| Bad debt (recovery) expense | (3,843 | ) | 9,746 | (9,789 | ) | 9,746 | |||||||||||
| Gain on disposition of assets | (1,289 | ) | (7,537 | ) | (34,714 | ) | (7,902 | ) | |||||||||
| Total operating expenses | 505,256 | 441,584 | 1,897,600 | 1,728,071 | |||||||||||||
| Operating income | 335,710 | 449,198 | 1,425,374 | 1,903,213 | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest income | 755 | 852 | 2,909 | 4,497 | |||||||||||||
| Interest expense | (24,477 | ) | (23,174 | ) | (90,698 | ) | (49,610 | ) | |||||||||
| Foreign currency transaction gain (loss) | 1,175 | (6,438 | ) | 1,369 | 11,483 | ||||||||||||
| Other, net | (2,651 | ) | (1,467 | ) | (2,938 | ) | (1,152 | ) | |||||||||
| Income before income tax expense | 310,512 | 418,971 | 1,336,016 | 1,868,431 | |||||||||||||
| Income tax expense | (68,825 | ) | (142,907 | ) | (380,559 | ) | (492,212 | ) | |||||||||
| Net Income | $ | 241,687 | $ | 276,064 | $ | 955,457 | $ | 1,376,219 | |||||||||
| Income per share: | |||||||||||||||||
| Basic | $ | 1.74 | $ | 1.99 | $ | 6.87 | $ | 9.90 | |||||||||
| Diluted | $ | 1.74 | $ | 1.98 | $ | 6.87 | $ | 9.89 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Shares of common stock | 139,027 | 139,019 | 139,026 | 139,007 | |||||||||||||
| Dilutive potential shares of common stock | 11 | 118 | 44 | 90 | |||||||||||||
| Total weighted average shares outstanding | 139,038 | 139,137 | 139,070 | 139,097 | |||||||||||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands) | ||||||||||||
|
Three Months Ended | ||||||||||||
| December 31, | ||||||||||||
| 2010 | 2009 | |||||||||||
| REVENUES | ||||||||||||
| High Specification Floaters | $ | 385,187 | $ | 380,792 | ||||||||
| Intermediate Semisubmersibles | 396,604 | 394,677 | ||||||||||
| Jack-ups | 42,678 | 96,663 | ||||||||||
| Other | 92 | -- | ||||||||||
| Total Contract Drilling Revenue | $ | 824,561 | $ | 872,132 | ||||||||
| Revenues Related to Reimbursable Expenses |
$ |
16,405 |
$ |
18,650 |
||||||||
| CONTRACT DRILLING EXPENSE | ||||||||||||
| High Specification Floaters | $ | 184,263 | $ | 111,326 | ||||||||
| Intermediate Semisubmersibles | 154,506 | 152,067 | ||||||||||
| Jack-ups | 40,882 | 48,214 | ||||||||||
| Other | 2,884 | 5,418 | ||||||||||
| Total Contract Drilling Expense | $ | 382,535 | $ | 317,025 | ||||||||
| Reimbursable Expenses | $ | 15,843 | $ | 18,078 | ||||||||
| OPERATING INCOME | ||||||||||||
| High Specification Floaters | $ | 200,924 | $ | 269,466 | ||||||||
| Intermediate Semisubmersibles | 242,098 | 242,610 | ||||||||||
| Jack-ups | 1,796 | 48,449 | ||||||||||
| Other | (2,792 | ) | (5,418 | ) | ||||||||
| Reimbursable expenses, net | 562 | 572 | ||||||||||
| Depreciation | (95,912 | ) | (89,468 | ) | ||||||||
| General and administrative expense | (16,098 | ) | (14,804 | ) | ||||||||
| Bad debt recovery (expense) | 3,843 | (9,746 | ) | |||||||||
| Gain on disposition of assets | 1,289 | 7,537 | ||||||||||
| Total Operating Income | $ | 335,710 | $ | 449,198 | ||||||||
| DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands) | |||||||||
| December 31, | |||||||||
| 2010 | 2009 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 464,393 | $ | 376,417 | |||||
| Marketable securities | 612,346 | 400,853 | |||||||
| Accounts receivable, net of provision for bad debts | 609,606 | 791,023 | |||||||
| Prepaid expenses and other | 177,153 | 155,077 | |||||||
| Total current assets | 1,863,498 | 1,723,370 | |||||||
|
Drilling and other property and equipment, net of accumulated depreciation |
4,283,792 | 4,432,052 | |||||||
| Long-term receivable | 35,361 | -- | |||||||
| Other assets | 544,333 | 108,839 | |||||||
| Total assets | $ |
6,726,984 |
$ | 6,264,261 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities | 626,288 | 413,475 | |||||||
| Long-term debt | 1,495,593 | 1,495,375 | |||||||
| Deferred tax liability | 542,258 | 546,024 | |||||||
| Other liabilities | 201,133 | 178,745 | |||||||
| Stockholders' equity | 3,861,712 | 3,630,642 | |||||||
| Total liabilities and stockholders' equity | $ | 6,726,984 | $ | 6,264,261 | |||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES AVERAGE DAYRATES AND UTILIZATION | |||||||||||||||||||
| Fourth Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||
| 2010 | 2010 | 2009 | |||||||||||||||||
| Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | ||||||||||||||
|
(Dayrate in thousands) |
|||||||||||||||||||
| High Specification Floaters | $ | 357 | 79 | % | $ | 364 | 56 | % | $ | 388 | 81 | % | |||||||
| Intermediate Semis | $ | 281 | 79 | % | $ | 280 | 76 | % | $ | 280 | 78 | % | |||||||
| Jack-ups | $ | 82 | 43 | % | $ | 82 | 60 | % | $ | 112 | 63 | % | |||||||
SOURCE: Diamond Offshore Drilling, Inc.
Diamond Offshore Drilling, Inc.
Les Van Dyke, 281-492-5370
Director, Investor Relations