Press Release
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Diamond Offshore Announces Third Quarter 2002 Earnings
For the nine months ended Sept. 30, 2002, the Company reported net income of $56.2 million, or $0.42 per share on a diluted basis, compared to net income of $134.0 million, or $0.97 per share on a diluted basis, for the same period in 2001. Revenues for the nine months ended Sept. 30, 2002 were $547.5 million compared to revenues of $663.2 million for the first nine months of 2001. Net income for the nine months ended Sept. 30, 2002 includes investment gains of $22.1 million, or $0.16 per share on a diluted basis, compared to $12.8 million, or $0.09 per share on a diluted basis, for the same period of 2001.
As of Sept. 30, 2002, there were 131.0 million common shares outstanding. During the third quarter of 2002, the Company repurchased 535,800 shares of its common stock at an aggregate cost of $10.6 million. Subsequent to Sept. 30, 2002 to date, the Company has 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 45 offshore drilling rigs consists of 30 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 third 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 Oct. 17, 2002, 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 Nine Months
Ended Ended
Sept. 30, Sept. 30,
-----------------------------------
2002 2001 2002 2001
-----------------------------------
Revenues $174,146 $230,636 $547,488 $663,192
Operating expenses:
Contract drilling 112,491 115,726 352,407 338,979
Depreciation and amortization 45,187 43,143 132,469 126,873
General and administrative 7,026 6,054 21,114 19,020
-----------------------------------
Total operating expenses 164,704 164,923 505,990 484,872
-----------------------------------
Operating income 9,442 65,713 41,498 178,320
Other income (expense):
Gain on sale of marketable
securities 21,858 6,720 34,021 19,626
Interest income 6,660 13,156 23,892 36,436
Interest expense (5,998) (5,927) (17,758) (32,244)
Other, net (449) (232) 933 (2,897)
------------------------------------
Income before income tax expense 31,513 79,430 82,586 199,241
Income tax expense (9,809) (26,003) (26,362) (65,226)
------------------------------------
Net income $21,704 $53,427 $56,224 $134,015
===================================
Earnings per share:
Basic $0.17 $0.40 $0.43 $1.00
===================================
Diluted $0.16 $0.38 $0.42 $0.97
===================================
Weighted average shares
outstanding:
Shares of common stock 131,450 132,889 131,595 133,166
Dilutive potential shares of
common stock 9,383 16,528 9,425 16,362
-----------------------------------
Total weighted average
shares outstanding 140,833 149,417 141,020 149,528
===================================
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
Sept 30,
---------------------------
2002 2001
----------- ----------
REVENUES
High Specification Floaters $72,376 $81,168
Other Semisubmersibles 80,745 101,206
Jack-ups 18,703 48,245
Integrated Services 3,017 16
Other -- 1
Eliminations (695) --
----------- ----------
Total Revenues $174,146 $230,636
=========== ==========
CONTRACT DRILLING EXPENSE
High Specification Floaters $38,114 $30,971
Other Semisubmersibles 51,064 56,024
Jack-ups 20,728 27,619
Integrated Services 3,038 196
Other 242 916
Eliminations (695) --
----------- ----------
Total Contract Drilling Expense $112,491 $115,726
=========== ==========
OPERATING INCOME
High Specification Floaters $34,262 $50,197
Other Semisubmersibles 29,681 45,182
Jack-ups (2,025) 20,626
Integrated Services (21) (180)
Other (242) (915)
Depreciation and Amortization Expense (45,187) (43,143)
General and Administrative Expense (7,026) (6,054)
----------- ----------
Total Operating Income $9,442 $65,713
=========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, Dec. 31,
----------- ---------
2002 2001
----------- ---------
(unaudited)
ASSETS
------
Current assets:
Cash and cash equivalents $268,949 $398,990
Marketable securities 677,979 748,387
Accounts receivable 136,617 193,653
Rig inventory and supplies 41,228 40,814
Prepaid expenses and other 30,116 45,571
----------- ----------
Total current assets 1,154,889 1,427,415
Drilling and other property and equipment, net
of accumulated depreciation
2,075,018 2,002,873
Goodwill, net of accumulated amortization 28,118 38,329
Other assets 32,481 33,900
----------- ----------
Total assets $3,290,506 $3,502,517
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Securities sold under repurchase agreements $ -- $199,062
Other current liabilities 136,398 135,954
----------- ----------
Total current liabilities 136,398 335,016
Long-term debt 931,840 920,636
Deferred tax liability 381,627 376,095
Other liabilities 13,751 17,624
Stockholders' equity 1,826,890 1,853,146
----------- ----------
Total liabilities and
stockholders' equity $3,290,506 $3,502,517
=========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Third Quarter Second Quarter Third Quarter
2002 2002 2001
----------------------------------------------------
Dayrate Util- Dayrate Util- Dayrate Util-
ization ization ization
----------------------------------------------------
(Dayrate in
thousands)
High
Specification
Floaters $109 80% $115 80% $121 91%
Other
Semisubmersibles $69 61% $72 54% $67 74%
Jack-ups $22 65% $29 74% $45 84%
CONTACT: Diamond Offshore Drilling Inc.
Caren W. Steffes, 281/492-5393
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