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Diamond Offshore Announces Second Quarter 2014 Results
Net income for the quarter included
"During the quarter, the first of our four newbuild drillships, the Ocean BlackHawk, commenced operations in the Gulf of
"We retain a strong credit rating and a healthy balance sheet," added Mr. Edwards. "
CONFERENCE CALL
A conference call to discuss
ABOUT
FORWARD-LOOKING STATEMENTS
Statements contained in this press release 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 and timing, and future performance, financial condition and market conditions. 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 |
Six Months Ended |
|||||||||||||||||||||||||||||
June 30, |
June 30, |
|||||||||||||||||||||||||||||
2014 |
2013 |
2014 |
2013 |
|||||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||
Contract drilling |
$ |
649,554 |
$ |
744,898 |
$ |
1,334,862 |
$ |
1,444,871 |
||||||||||||||||||||||
Revenues related to reimbursable expenses |
42,690 |
13,120 |
66,806 |
42,888 |
||||||||||||||||||||||||||
Total revenues |
692,244 |
758,018 |
1,401,668 |
1,487,759 |
||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||
Contract drilling, excluding depreciation |
395,376 |
369,036 |
765,166 |
744,130 |
||||||||||||||||||||||||||
Reimbursable expenses |
42,290 |
12,805 |
65,956 |
42,094 |
||||||||||||||||||||||||||
Depreciation |
108,906 |
97,143 |
215,917 |
193,964 |
||||||||||||||||||||||||||
General and administrative |
20,478 |
16,435 |
43,305 |
33,250 |
||||||||||||||||||||||||||
Gain on disposition of assets |
(8,572) |
(260) |
(8,719) |
(2,264) |
||||||||||||||||||||||||||
Total operating expenses |
558,478 |
495,159 |
1,081,625 |
1,011,174 |
||||||||||||||||||||||||||
Operating income |
133,766 |
262,859 |
320,043 |
476,585 |
||||||||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||||
Interest income |
150 |
271 |
558 |
888 |
||||||||||||||||||||||||||
Interest expense |
(18,523) |
(7,951) |
(36,678) |
(16,020) |
||||||||||||||||||||||||||
Foreign currency transaction gain (loss) |
(2,971) |
448 |
(4,149) |
607 |
||||||||||||||||||||||||||
Other, net |
181 |
674 |
508 |
420 |
||||||||||||||||||||||||||
Income before income tax expense |
112,603 |
256,301 |
280,282 |
462,480 |
||||||||||||||||||||||||||
Income tax expense |
(22,890) |
(70,967) |
(44,759) |
(101,157) |
||||||||||||||||||||||||||
Net Income |
$ |
89,713 |
$ |
185,334 |
$ |
235,523 |
$ |
361,323 |
||||||||||||||||||||||
Income per share, Basic and Diluted |
$ |
0.65 |
$ |
1.33 |
$ |
1.71 |
$ |
2.60 |
||||||||||||||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||||||||||||
Shares of common stock |
137,145 |
139,035 |
137,803 |
139,034 |
||||||||||||||||||||||||||
Dilutive potential shares of common stock |
4 |
37 |
5 |
43 |
||||||||||||||||||||||||||
Total weighted average shares outstanding |
137,149 |
139,072 |
137,808 |
139,077 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||||||||
Three Months Ended |
|||||||||
Jun 30, |
Mar 31, |
Jun 30, |
|||||||
2014 |
2014 |
2013 |
|||||||
REVENUES |
|||||||||
Floaters: |
|||||||||
Ultra-Deepwater |
$ |
182,656 |
$ |
205,794 |
$ |
231,101 |
|||
Deepwater |
120,539 |
146,559 |
184,105 |
||||||
Mid-water |
300,902 |
285,979 |
288,860 |
||||||
Total Floaters |
604,097 |
638,332 |
704,066 |
||||||
Jack-ups |
45,457 |
46,976 |
40,832 |
||||||
Total Contract Drilling Revenue |
$ |
649,554 |
$ |
685,308 |
$ |
744,898 |
|||
Revenues Related to Reimbursable Expenses |
|||||||||
$ |
42,690 |
$ |
24,116 |
$ |
13,120 |
||||
CONTRACT DRILLING EXPENSE |
|||||||||
Floaters: |
|||||||||
Ultra-Deepwater |
$ |
122,327 |
$ |
123,530 |
$ |
128,147 |
|||
Deepwater |
81,641 |
71,949 |
60,126 |
||||||
Mid-water |
148,931 |
134,046 |
139,252 |
||||||
Total Floaters |
352,899 |
329,525 |
327,525 |
||||||
Jack-ups |
29,851 |
28,029 |
27,377 |
||||||
Other |
12,626 |
12,236 |
14,134 |
||||||
Total Contract Drilling Expense |
$ |
395,376 |
$ |
369,790 |
$ |
369,036 |
|||
Reimbursable Expenses |
$ |
42,290 |
$ |
23,666 |
$ |
12,805 |
|||
OPERATING INCOME |
|||||||||
Floaters: |
|||||||||
Ultra-Deepwater |
$ |
60,329 |
$ |
82,264 |
$ |
102,954 |
|||
Deepwater |
38,898 |
74,610 |
123,979 |
||||||
Mid-water |
151,971 |
151,933 |
149,608 |
||||||
Total Floaters |
251,198 |
308,807 |
376,541 |
||||||
Jack-ups |
15,606 |
18,947 |
13,455 |
||||||
Other |
(12,626) |
(12,236) |
(14,134) |
||||||
Reimbursable expenses, net |
400 |
450 |
315 |
||||||
Depreciation |
(108,906) |
(107,011) |
(97,143) |
||||||
General and administrative expense |
(20,478) |
(22,827) |
(16,435) |
||||||
Gain on disposition of assets |
8,572 |
147 |
260 |
||||||
Total Operating Income |
$ |
133,766 |
$ |
186,277 |
$ |
262,859 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES (In thousands) |
|||||||||||
June 30, |
December 31, |
||||||||||
2014 |
2013 |
||||||||||
ASSETS |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ |
980,817 |
$ |
347,011 |
|||||||
Marketable securities |
350,156 |
1,750,053 |
|||||||||
Accounts receivable, net of allowance for bad debts |
545,024 |
469,355 |
|||||||||
Prepaid expenses and other current assets |
200,867 |
143,997 |
|||||||||
Asset held for sale |
-- |
7,694 |
|||||||||
2,076,864 |
2,718,110 |
||||||||||
Drilling and other property and equipment, net of |
|||||||||||
accumulated depreciation |
6,055,990 |
5,467,227 |
|||||||||
Other assets |
229,468 |
206,097 |
|||||||||
Total assets |
$ |
8,362,322 |
$ |
8,391,434 |
|||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||
Current portion of long-term debt |
$ |
249,992 |
$ |
249,954 |
|||||||
Other current liabilities |
550,224 |
495,628 |
|||||||||
Long-term debt |
2,244,336 |
2,244,189 |
|||||||||
Deferred tax liability |
533,788 |
525,541 |
|||||||||
Other liabilities |
237,034 |
238,864 |
|||||||||
Stockholders' equity |
4,546,948 |
4,637,258 |
|||||||||
Total liabilities and stockholders' equity |
$ |
8,362,322 |
$ |
8,391,434 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES AVERAGE DAYRATES AND UTILIZATION (Dayrate in thousands) |
|||||||||||||||
Second Quarter (A) |
First Quarter |
Second Quarter |
|||||||||||||
2014 |
2014 |
2013 |
|||||||||||||
Dayrate |
Utilization |
Dayrate |
Utilization |
Dayrate |
Utilization |
||||||||||
Ultra-Deepwater Floaters |
$403 |
51% |
$387 |
66% |
$342 |
92% |
|||||||||
Deepwater Floaters |
$418 |
51% |
$418 |
64% |
$409 |
99% |
|||||||||
Mid-Water Floaters |
$266 |
68% |
$276 |
64% |
$271 |
65% |
|||||||||
Jack-Ups |
$97 |
74% |
$93 |
79% |
$88 |
74% |
A) Dayrate and utilization calculations for Mid-Water Floaters exclude 22 revenue earning days for which we did not recognize revenue pursuant to GAAP.
Contact:
Director, Investor Relations
(281) 492-5370
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