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Diamond Offshore Announces Third Quarter 2011 Results
HOUSTON, Oct 20, 2011 (BUSINESS WIRE) -- Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the third quarter of 2011 of $256.9 million, or $1.85 per share on a diluted basis, compared with net income of $198.5 million, or $1.43 per share on a diluted basis, in the same period a year earlier. Revenues in the third quarter of 2011 were $878.2 million, compared with revenues of $799.7 million in the third quarter of 2010.
"We are pleased with our third quarter results, which reflect continued strength in the market," said Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. "Since the second quarter, we have added 14 new contracts, totaling 18 rig years or $1.4 billion of revenue backlog."
"We continue to execute on initiatives to contain operating costs and minimize unplanned rig repair downtime," said Dickerson. "Additionally, results benefited from revenues related to the mobilization of a rig from Brazil to the Gulf of Mexico and a shift of some planned downtime into the fourth quarter."
CONFERENCE CALL
Diamond Offshore will host a conference call to discuss third quarter results on Thursday, October 20, 2011 beginning at 9:00 a.m. Central Daylight Time. A live webcast of the call will be available online on our Company's website, http://www.diamondoffshore.com. Those interested in participating in the question and answer session should dial 800-247-9979, or for international callers, 973-321-1100. The conference ID number is 13267272. An online replay will also be available on http://www.diamondoffshore.com following the call.
ABOUT DIAMOND OFFSHORE
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 http://www.diamondoffshore.com.
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 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 http://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 |
Nine Months Ended | ||||||||||||||||
| September 30, |
September 30, | ||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Contract drilling | $ | 861,511 | $ | 748,998 | $ | 2,520,030 | $ | 2,405,175 | |||||||||
| Revenues related to reimbursable expenses | 16,666 | 50,726 | 54,032 | 76,833 | |||||||||||||
| Total revenues | 878,177 | 799,724 | 2,574,062 | 2,482,008 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Contract drilling, excluding depreciation | 391,369 | 350,555 | 1,141,739 | 1,008,551 | |||||||||||||
| Reimbursable expenses | 16,206 | 50,313 | 52,443 | 75,397 | |||||||||||||
| Depreciation | 101,175 | 99,117 | 303,523 | 297,265 | |||||||||||||
| General and administrative | 14,879 | 16,999 | 48,976 | 50,502 | |||||||||||||
| Bad debt expense (recovery) | 4,734 | (2,048 | ) | (5,413 | ) | (5,946 | ) | ||||||||||
| Gain on disposition of assets | (463 | ) | (32,392 | ) | (4,344 | ) | (33,425 | ) | |||||||||
| Total operating expenses | 527,900 | 482,544 | 1,536,924 | 1,392,344 | |||||||||||||
| Operating income | 350,277 | 317,180 | 1,037,138 | 1,089,664 | |||||||||||||
| Other income (expense): | |||||||||||||||||
| Interest income | 2,024 | 395 | 3,565 | 2,154 | |||||||||||||
| Interest expense | (15,874 | ) | (22,567 | ) | (60,144 | ) | (66,221 | ) | |||||||||
| Foreign currency transaction gain (loss) | (1,442 | ) | 3,724 | (4,603 | ) | 194 | |||||||||||
| Other, net | (136 | ) | (166 | ) | (232 | ) | (287 | ) | |||||||||
| Income before income tax expense | 334,849 | 298,566 | 975,724 | 1,025,504 | |||||||||||||
| Income tax expense | (77,995 | ) | (100,042 | ) | (201,672 | ) | (311,734 | ) | |||||||||
| Net Income | $ | 256,854 | $ | 198,524 | $ | 774,052 | $ | 713,770 | |||||||||
| Income per share: | |||||||||||||||||
| Basic | $ | 1.85 | $ | 1.43 | $ | 5.57 | $ | 5.13 | |||||||||
| Diluted | $ | 1.85 | $ | 1.43 | $ | 5.57 | $ | 5.13 | |||||||||
| Weighted average shares outstanding: | |||||||||||||||||
| Shares of common stock | 139,027 | 139,027 | 139,027 | 139,026 | |||||||||||||
| Dilutive potential shares of common stock | 14 | 10 | 21 | 55 | |||||||||||||
| Total weighted average shares outstanding | 139,041 | 139,037 | 139,048 | 139,081 | |||||||||||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands) | ||||||||||
| Three Months Ended | ||||||||||
| September 30, | ||||||||||
| 2011 | 2010 | |||||||||
| REVENUES | ||||||||||
| High Specification Floaters | $ | 464,512 | $ | 305,335 | ||||||
| Intermediate Semisubmersibles | 350,409 | 380,438 | ||||||||
| Jack-ups | 46,540 | 63,133 | ||||||||
| Other | 50 | 92 | ||||||||
| Total Contract Drilling Revenue | $ | 861,511 | $ | 748,998 | ||||||
| Revenues Related to Reimbursable Expenses |
$ |
16,666 |
$ |
50,726 |
||||||
| CONTRACT DRILLING EXPENSE | ||||||||||
| High Specification Floaters | $ | 188,071 | $ | 148,503 | ||||||
| Intermediate Semisubmersibles | 153,416 | 154,731 | ||||||||
| Jack-ups | 43,281 | 43,940 | ||||||||
| Other | 6,601 | 3,381 | ||||||||
| Total Contract Drilling Expense | $ | 391,369 | $ | 350,555 | ||||||
| Reimbursable Expenses | $ | 16,206 | $ | 50,313 | ||||||
| OPERATING INCOME | ||||||||||
| High Specification Floaters | $ | 276,441 | $ | 156,832 | ||||||
| Intermediate Semisubmersibles | 196,993 | 225,707 | ||||||||
| Jack-ups | 3,259 | 19,193 | ||||||||
| Other | (6,551 | ) | (3,289 | ) | ||||||
| Reimbursable expenses, net | 460 | 413 | ||||||||
| Depreciation | (101,175 | ) | (99,117 | ) | ||||||
| General and administrative expense | (14,879 | ) | (16,999 | ) | ||||||
| Bad debt (expense) recovery | (4,734 | ) | 2,048 | |||||||
| Gain on disposition of assets | 463 | 32,392 | ||||||||
| Total Operating Income | $ | 350,277 | $ | 317,180 | ||||||
| DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands) | ||||||||||
| September 30, | December 31, | |||||||||
| 2011 | 2010 | |||||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 348,003 | $ | 464,393 | ||||||
| Marketable securities | 801,931 | 612,346 | ||||||||
| Accounts receivable, net of allowance for bad debts | 622,949 | 609,606 | ||||||||
| Prepaid expenses and other current assets | 157,389 | 177,153 | ||||||||
| Total current assets | 1,930,272 | 1,863,498 | ||||||||
|
Drilling and other property and equipment, net of accumulated depreciation |
4,605,748 | 4,283,792 | ||||||||
| Long-term receivable | -- | 35,361 | ||||||||
| Other assets | 303,215 | 544,333 | ||||||||
| Total assets | $ | 6,839,235 | $ | 6,726,984 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities | $ | 372,961 | $ | 626,288 | ||||||
| Long-term debt | 1,495,765 | 1,495,593 | ||||||||
| Deferred tax liability | 519,980 | 542,258 | ||||||||
| Other liabilities | 189,914 | 201,133 | ||||||||
| Stockholders' equity | 4,260,615 | 3,861,712 | ||||||||
| Total liabilities and stockholders' equity | $ | 6,839,235 | $ | 6,726,984 | ||||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES AVERAGE DAYRATES AND UTILIZATION | ||||||||||||||||||||||||
| Third Quarter | Second Quarter | Third Quarter | ||||||||||||||||||||||
| 2011 | 2011 | 2010 | ||||||||||||||||||||||
| Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | |||||||||||||||||||
|
(Dayrate in thousands) |
||||||||||||||||||||||||
| High Specification Floaters | $ | 380 | 93 | % | $ | 364 | 94 | % | $ | 364 | 56 | % | ||||||||||||
| Intermediate Semis | $ | 268 | 68 | % | $ | 266 | 76 | % | $ | 280 | 76 | % | ||||||||||||
| Jack-ups | $ | 84 | 44 | % | $ | 82 | 60 | % | $ | 82 | 60 | % | ||||||||||||
SOURCE: Diamond Offshore Drilling, Inc.
Diamond Offshore Drilling, Inc.
Darren Daugherty, 281-492-5370
Director, Investor Relations