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Diamond Offshore Announces Fourth Quarter 2014 Results
For full year 2014,
"Since Diamond Offshore began paying a special dividend to shareholders in January of 2006, we have paid total dividends of over
"Given the significant downturn in industry fundamentals, we believe it is prudent to retain cash so that the Company is in a stronger position to take advantage of opportunities that may materialize in a distressed market," added Mr. Edwards.
"In 2014, we took delivery of three new-build drillships and two deepwater semis, and in the first quarters of 2015 and 2016, respectively, we expect to take delivery of our fourth new-build drillship and a new-build harsh environment semisubmersible. All of our new-build units have attractive term contracts in place."
CONFERENCE CALL
A conference call to discuss
ABOUT
FORWARD-LOOKING STATEMENTS
Statements contained in this press release or made during the above conference call that are not historical facts are "forward-looking statements" within the meaning of the federal securities laws. Such statements include, but are not limited to, statements concerning drilling rig deliveries, operations and timing; contract effectiveness and effective dates; plans regarding retirement and scrapping of drilling rigs; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions and strategic opportunities; revenue expected to result from backlog; declaration and payment of dividends; future credit ratings; and other statements that are not of historical fact. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or 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 |
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(In thousands, except per share data) |
||||||||||||||||||||||||
Three Months Ended |
Twelve Months Ended |
|||||||||||||||||||||||
December 31, |
December 31, |
|||||||||||||||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Contract drilling |
$ |
674,376 |
$ |
707,972 |
$ |
2,737,126 |
$ |
2,843,584 |
||||||||||||||||
Revenues related to reimbursable expenses |
945 |
18,525 |
77,545 |
76,837 |
||||||||||||||||||||
Total revenues |
675,321 |
726,497 |
2,814,671 |
2,920,421 |
||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Contract drilling, excluding depreciation |
358,655 |
408,907 |
1,523,623 |
1,572,525 |
||||||||||||||||||||
Reimbursable expenses |
698 |
17,969 |
76,091 |
74,967 |
||||||||||||||||||||
Depreciation |
131,712 |
96,985 |
456,483 |
388,092 |
||||||||||||||||||||
General and administrative |
19,923 |
16,298 |
81,832 |
64,788 |
||||||||||||||||||||
Bad debt (recovery) expense |
-- |
(50) |
-- |
22,513 |
||||||||||||||||||||
Loss (gain) on disposition of assets |
2,230 |
(1,281) |
(5,382) |
(4,070) |
||||||||||||||||||||
Impairment of assets |
-- |
-- |
109,462 |
-- |
||||||||||||||||||||
Total operating expenses |
513,218 |
538,828 |
2,242,109 |
2,118,815 |
||||||||||||||||||||
Operating income |
162,103 |
187,669 |
572,562 |
801,606 |
||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||
Interest income |
157 |
(323) |
801 |
701 |
||||||||||||||||||||
Interest expense |
(15,997) |
(7,130) |
(62,053) |
(24,843) |
||||||||||||||||||||
Foreign currency transaction gain (loss) |
6,923 |
(966) |
3,199 |
(4,915) |
||||||||||||||||||||
Other, net |
84 |
945 |
682 |
1,691 |
||||||||||||||||||||
Income before income tax expense |
153,270 |
180,195 |
515,191 |
774,240 |
||||||||||||||||||||
Income tax expense |
(54,427) |
(87,580) |
(128,180) |
(225,554) |
||||||||||||||||||||
Net Income |
$ |
98,843 |
$ |
92,615 |
$ |
387,011 |
$ |
548,686 |
||||||||||||||||
Income per share: |
||||||||||||||||||||||||
Basic |
$ |
0.72 |
$ |
0.67 |
$ |
2.82 |
$ |
3.95 |
||||||||||||||||
Diluted |
$ |
0.72 |
$ |
0.67 |
$ |
2.81 |
$ |
3.95 |
||||||||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||||||
Shares of common stock |
137,148 |
139,035 |
137,473 |
139,035 |
||||||||||||||||||||
Dilutive potential shares of common stock |
59 |
12 |
50 |
29 |
||||||||||||||||||||
Total weighted average shares outstanding |
137,207 |
139,047 |
137,523 |
139,064 |
||||||||||||||||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||||||
RESULTS OF OPERATIONS |
||||||||||
(Unaudited) |
||||||||||
(In thousands) |
||||||||||
Three Months Ended |
||||||||||
Dec 31, |
Sep 30, |
Dec 31, |
||||||||
2014 |
2014 |
2013 |
||||||||
REVENUES |
||||||||||
Floaters: |
||||||||||
Ultra-Deepwater |
$ |
285,991 |
$ |
313,124 |
$ |
236,842 |
||||
Deepwater |
115,777 |
111,372 |
121,222 |
|||||||
Mid-water |
231,933 |
258,028 |
306,485 |
|||||||
Total Floaters |
633,701 |
682,524 |
664,549 |
|||||||
Jack-ups |
40,675 |
45,364 |
43,423 |
|||||||
Total Contract Drilling Revenue |
$ |
674,376 |
$ |
727,888 |
$ |
707,972 |
||||
Revenues Related to Reimbursable Expenses |
$ |
945 |
$ |
9,794 |
$ |
18,525 |
||||
CONTRACT DRILLING EXPENSE |
||||||||||
Floaters: |
||||||||||
Ultra-Deepwater |
$ |
133,103 |
$ |
157,655 |
$ |
135,153 |
||||
Deepwater |
66,093 |
72,367 |
76,649 |
|||||||
Mid-water |
119,763 |
132,340 |
156,075 |
|||||||
Total Floaters |
318,959 |
362,362 |
367,877 |
|||||||
Jack-ups |
25,268 |
28,056 |
29,349 |
|||||||
Other |
14,428 |
9,384 |
11,681 |
|||||||
Total Contract Drilling Expense |
$ |
358,655 |
$ |
399,802 |
$ |
408,907 |
||||
Reimbursable Expenses |
$ |
698 |
$ |
9,437 |
$ |
17,969 |
||||
OPERATING INCOME |
||||||||||
Floaters: |
||||||||||
Ultra-Deepwater |
$ |
152,888 |
$ |
155,469 |
$ |
101,689 |
||||
Deepwater |
49,684 |
39,005 |
44,573 |
|||||||
Mid-water |
112,170 |
125,688 |
150,410 |
|||||||
Total Floaters |
314,742 |
320,162 |
296,672 |
|||||||
Jack-ups |
15,407 |
17,308 |
14,074 |
|||||||
Other |
(14,428) |
(9,384) |
(11,681) |
|||||||
Reimbursable expenses, net |
247 |
357 |
556 |
|||||||
Depreciation |
(131,712) |
(108,854) |
(96,985) |
|||||||
General and administrative expense |
(19,923) |
(18,604) |
(16,298) |
|||||||
Bad debt recovery |
-- |
-- |
50 |
|||||||
Gain (loss) on disposition of assets |
(2,230) |
(1,107) |
1,281 |
|||||||
Impairment of assets |
-- |
(109,462) |
-- |
|||||||
Total Operating Income |
$ |
162,103 |
$ |
90,416 |
$ |
187,669 |
||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(Unaudited) (In thousands) |
||||||||||
December 31, |
December 31, |
|||||||||
2014 |
2013 |
|||||||||
ASSETS |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
$ |
233,623 |
$ |
347,011 |
||||||
Marketable securities |
16,033 |
1,750,053 |
||||||||
Accounts receivable, net of allowance for bad debts |
463,862 |
469,355 |
||||||||
Prepaid expenses and other current assets |
185,541 |
143,997 |
||||||||
Asset held for sale |
-- |
7,694 |
||||||||
899,059 |
2,718,110 |
|||||||||
Drilling and other property and equipment, net of |
||||||||||
accumulated depreciation |
6,945,953 |
5,467,227 |
||||||||
Other assets |
176,277 |
206,097 |
||||||||
Total assets |
$ |
8,021,289 |
$ |
8,391,434 |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||
Current portion of long-term debt |
$ |
249,962 |
$ |
249,954 |
||||||
Other current liabilities |
606,684 |
495,628 |
||||||||
Long-term debt |
1,994,526 |
2,244,189 |
||||||||
Deferred tax liability |
530,394 |
525,541 |
||||||||
Other liabilities |
188,160 |
238,864 |
||||||||
Stockholders' equity |
4,451,563 |
4,637,258 |
||||||||
Total liabilities and stockholders' equity |
$ |
8,021,289 |
$ |
8,391,434 |
||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||||||||
AVERAGE DAYRATES AND UTILIZATION |
|||||||||
(Dayrate in thousands) |
|||||||||
Fourth Quarter 2014 |
Third Quarter 2014 |
Fourth Quarter 2013 |
|||||||
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
Revised Average Dayrate (4) |
Utilization (2) |
Operational Efficiency (3) |
Revised Average Dayrate (4) |
Utilization (2) |
Operational Efficiency (3) |
|
Ultra-Deepwater Floaters |
$493 |
66% |
90.2% |
$491 |
77% |
92.2% |
$403 |
80% |
91.0% |
Deepwater Floaters |
$431 |
48% |
97.3% |
$356 |
57% |
95.5% |
$404 |
65% |
97.4% |
Mid-Water floaters |
$270 |
55% |
96.8% |
$265 |
59% |
94.1% |
$292 |
63% |
97.6% |
Jack-ups |
$96 |
77% |
99.5% |
$99 |
83% |
99.3% |
$89 |
76% |
97.7% |
Fleet Total |
95.5% |
94.7% |
95.9% |
(1) |
Average dayrate is defined as contract drilling revenue for all of the specified rigs in our fleet per revenue earning day. A revenue earning day is defined as a 24-hour period during which a rig earns a dayrate after commencement of operations and excludes mobilization, demobilization and contract preparation days. |
(2) |
Utilization is calculated as the ratio of total revenue-earning days divided by the total calendar days in the period for all specified rigs in our fleet (including cold-stacked rigs, but excluding rigs under construction). As of December 31, 2014, three of our mid-water semisubmersible drilling rigs (Ocean General, Ocean Saratoga, and Ocean Vanguard) were cold-stacked. |
(3) |
Operational efficiency is calculated as the ratio of total revenue-earning days divided by the sum of total revenue-earning days plus the number of days (or portions thereof) associated with unanticipated equipment downtime. |
(4) |
Average dayrate reported in prior periods has been revised to conform to fourth quarter of 2014 presentation. |
Contact:
Director, Investor Relations
(281) 492-5370
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