Press Release
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Diamond Offshore Announces Fourth Quarter 2011 Results
For the year ended
Results for the fourth quarter of 2011 were positively impacted by lower tax expense partially resulting from the reduction of the Company’s liability for uncertain tax positions. This adjustment, along with current year foreign tax expense adjustments, resulted in a fourth quarter effective tax rate of 7.4% and a full year 2011 effective tax rate of 18.4%.
Full year 2011 results benefited from reduced unanticipated equipment downtime, which was lower than the historical average. Results for the fourth quarter, however, were negatively impacted by a higher number of downtime days than in the preceding three quarters, attributable to scheduled rig maintenance and survey downtime.
Since the end of the third quarter, Diamond has received contract awards
and extensions that when performed are expected to generate maximum
total revenue of approximately
“The
CONFERENCE CALL
ABOUT
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
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 |
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Twelve Months Ended |
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December 31, |
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December 31, |
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2011 |
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2010 |
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2011 |
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2010 |
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Revenues: | |||||||||||||||||
Contract drilling | $ | 734,283 | $ | 824,561 | $ | 3,254,313 | $ | 3,229,736 | |||||||||
Revenues related to reimbursable expenses | 14,074 | 16,405 | 68,106 | 93,238 | |||||||||||||
Total revenues | 748,357 | 840,966 | 3,322,419 | 3,322,974 | |||||||||||||
Operating expenses: | |||||||||||||||||
Contract drilling, excluding depreciation | 406,763 | 382,535 | 1,548,502 | 1,391,086 | |||||||||||||
Reimbursable expenses | 13,609 | 15,843 | 66,052 | 91,240 | |||||||||||||
Depreciation | 95,089 | 95,912 | 398,612 | 393,177 | |||||||||||||
General and administrative | 16,334 | 16,098 | 65,310 | 66,600 | |||||||||||||
Bad debt recovery | (1,300 | ) | (3,843 | ) | (6,713 | ) | (9,789 | ) | |||||||||
Gain on disposition of assets | (414 | ) | (1,289 | ) | (4,758 | ) | (34,714 | ) | |||||||||
Total operating expenses | 530,081 | 505,256 | 2,067,005 | 1,897,600 | |||||||||||||
Operating income | 218,276 | 335,710 | 1,255,414 | 1,425,374 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | 3,103 | 755 | 6,668 | 2,909 | |||||||||||||
Interest expense | (12,993 | ) | (24,477 | ) | (73,137 | ) | (90,698 | ) | |||||||||
Foreign currency transaction gain (loss) | (3,985 | ) | 1,175 | (8,588 | ) | 1,369 | |||||||||||
Other, net | (854 | ) | (2,651 | ) | (1,086 | ) | (2,938 | ) | |||||||||
Income before income tax expense | 203,547 | 310,512 | 1,179,271 | 1,336,016 | |||||||||||||
Income tax expense | (15,057 | ) | (68,825 | ) | (216,729 | ) | (380,559 | ) | |||||||||
Net Income | $ | 188,490 | $ | 241,687 | $ | 962,542 | $ | 955,457 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 1.36 | $ | 1.74 | $ | 6.92 | $ | 6.87 | |||||||||
Diluted | $ | 1.36 | $ | 1.74 | $ | 6.92 | $ | 6.87 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Shares of common stock | 139,027 | 139,027 | 139,027 | 139,026 | |||||||||||||
Dilutive potential shares of common stock | 9 | 11 | 11 | 44 | |||||||||||||
Total weighted average shares outstanding | 139,036 | 139,038 | 139,038 | 139,070 | |||||||||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
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RESULTS OF OPERATIONS |
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(Unaudited) |
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(In thousands) |
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— Three Months Ended — |
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Dec 31, | Sep 30, | Dec 31, | ||||||||||
2011 | 2011 | 2010 | ||||||||||
REVENUES | ||||||||||||
Floaters: | ||||||||||||
Ultra-Deepwater | $ | 189,148 | $ | 220,415 | $ | 187,793 | ||||||
Deepwater | 190,615 | 217,379 | 163,447 | |||||||||
Mid-water | 312,256 | 377,127 | 430,551 | |||||||||
Total Floaters | 692,019 | 814,921 | 781,791 | |||||||||
Jack-ups | 42,264 | 46,540 | 42,678 | |||||||||
Other | -- | 50 | 92 | |||||||||
Total Contract Drilling Revenue | $ | 734,283 | $ | 861,511 | $ | 824,561 | ||||||
Revenues Related to Reimbursable Expenses |
$ |
14,074 |
$ |
16,666 |
$ |
16,405 |
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CONTRACT DRILLING EXPENSE | ||||||||||||
Floaters: | ||||||||||||
Ultra-Deepwater | $ | 132,187 | $ | 119,868 | $ | 108,184 | ||||||
Deepwater | 52,843 | 57,662 | 65,958 | |||||||||
Mid-water | 169,481 | 163,957 | 164,627 | |||||||||
Total Floaters | 354,511 | 341,487 | 338,769 | |||||||||
Jack-ups | 45,597 | 43,281 | 40,882 | |||||||||
Other | 6,655 | 6,601 | 2,884 | |||||||||
Total Contract Drilling Expense | $ | 406,763 | $ | 391,369 | $ | 382,535 | ||||||
Reimbursable Expenses | $ | 13,609 | $ | 16,206 | $ | 15,843 | ||||||
OPERATING INCOME | ||||||||||||
Floaters: | ||||||||||||
Ultra-Deepwater | $ | 56,961 | $ | 100,547 | $ | 79,609 | ||||||
Deepwater | 137,772 | 159,717 | 97,489 | |||||||||
Mid-water | 142,775 | 213,170 | 265,924 | |||||||||
Total Floaters | 337,508 | 473,434 | 443,022 | |||||||||
Jack-ups | (3,333 | ) | 3,259 | 1,796 | ||||||||
Other | (6,655 | ) | (6,551 | ) | (2,792 | ) | ||||||
Reimbursable expenses, net | 465 | 460 | 562 | |||||||||
Depreciation | (95,089 | ) | (101,175 | ) | (95,912 | ) | ||||||
General and administrative expense | (16,334 | ) | (14,879 | ) | (16,098 | ) | ||||||
Bad debt (expense) recovery | 1,300 | (4,734 | ) | 3,843 | ||||||||
Gain on disposition of assets | 414 | 463 | 1,289 | |||||||||
Total Operating Income | $ | 218,276 | $ | 350,277 | $ | 335,710 | ||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(In thousands) | ||||||
December 31, | ||||||
2011 | 2010 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 333,765 | $ | 464,393 | ||
Marketable securities | 902,414 | 612,346 | ||||
Accounts receivable, net of allowance for bad debts | 563,934 | 609,606 | ||||
Prepaid expenses and other current assets | 192,570 | 177,153 | ||||
Total current assets | 1,992,683 | 1,863,498 | ||||
Drilling and other property and equipment, net of accumulated depreciation |
4,667,469 | 4,283,792 | ||||
Long-term receivable | -- | 35,361 | ||||
Other assets | 304,005 | 544,333 | ||||
Total assets | $ | 6,964,157 | $ | 6,726,984 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current liabilities | $ | 427,291 | $ | 626,288 | ||
Long-term debt | 1,495,823 | 1,495,593 | ||||
Deferred tax liability | 536,815 | 542,258 | ||||
Other liabilities | 171,165 | 201,133 | ||||
Stockholders’ equity | 4,333,063 | 3,861,712 | ||||
Total liabilities and stockholders’ equity | $ | 6,964,157 | $ | 6,726,984 | ||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
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AVERAGE DAYRATES AND UTILIZATION |
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Fourth Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||
2011 | 2011 | 2010 | |||||||||||||||||||||
Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | ||||||||||||||||||
(Dayrate in thousands) | |||||||||||||||||||||||
Ultra-Deepwater Floaters | $ | 356 | 70 | % | $ | 336 | 88 | % | $ | 341 | 70 | % | |||||||||||
Deepwater Floaters | $ | 422 | 97 | % | $ | 466 | 99 | % | $ | 380 | 89 | % | |||||||||||
Mid-Water Floaters | $ | 271 | 60 | % | $ | 268 | 70 | % | $ | 285 | 80 | % | |||||||||||
Jack-Ups | $ | 79 | 36 | % | $ | 84 | 44 | % | $ | 82 | 43 | % |
Source:
Diamond Offshore Drilling, Inc.
Darren Daugherty, 281-492-5370
Director,
Investor Relations