Press Release
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Diamond Offshore Announces Third Quarter 2012 Results
Since the start of the third quarter of 2012, the Company entered into
13 new agreements that are expected to generate maximum total revenue of
approximately
-
The Ocean Endeavor was awarded an 18-month contract at a
dayrate of
$505,000 , plus a potential 6.6% performance bonus. The dayrate on the current contract is$285,000 . The customer name and location of rig operation have not yet been announced. -
The Ocean
Lexington was awarded a 477-day job inTrinidad at a rate of$300,000 per day versus its current rate of$277,000 per day. The rig will be mobilized toTrinidad upon completion of its current contracted term inBrazil . -
The Ocean Valiant received a two-well contract extension for
work offshore
Equatorial Guinea . The new rate will be$515,000 per day versus the current contract rate of$375,000 per day. -
The Ocean America was awarded an 18-month contract for work
offshore
Australia at a dayrate of$475,000 . The rig is currently contracted at a rate of$405,000 per day.
“We posted excellent operating results for the quarter and announced
several new contracts at strong dayrates across all ranges of water
depths,” said
“During the quarter, we entered into a
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ABOUT
FORWARD-LOOKING STATEMENTS
Maximum contract revenue as stated above assumes 100% rig utilization.
Generally, rig utilization rates approach 92-98% during contracted
periods; however, utilization rates can be adversely impacted by
additional downtime due to unscheduled repairs, maintenance and weather.
Additional information on
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 future revenues and backlog, future performance
under contract awards and extensions, future operations and dayrates,
future financial condition, market outlook and future market conditions,
future rig construction and future contracting opportunities.
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) |
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Three Months Ended |
|
Nine Months Ended |
|||||||||||||||
September 30, |
|
September 30, |
|||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
Revenues: | |||||||||||||||||
Contract drilling | $ | 714,027 | $ | 861,511 | $ | 2,195,443 | $ | 2,520,030 | |||||||||
Revenues related to reimbursable expenses | 15,114 | 16,666 | 40,528 | 54,032 | |||||||||||||
Total revenues | 729,141 | 878,177 | 2,235,971 | 2,574,062 | |||||||||||||
Operating expenses: | |||||||||||||||||
Contract drilling, excluding depreciation | 357,281 | 391,369 | 1,159,635 | 1,141,739 | |||||||||||||
Reimbursable expenses | 14,563 | 16,206 | 39,351 | 52,443 | |||||||||||||
Depreciation | 99,207 | 101,175 | 300,069 | 303,523 | |||||||||||||
General and administrative | 13,476 | 14,879 | 49,803 | 48,976 | |||||||||||||
Bad debt recovery | -- | 4,734 | (1,018 | ) | (5,413 | ) | |||||||||||
Gain on disposition of assets | (208 | ) | (463 | ) | (79,285 | ) | (4,344 | ) | |||||||||
Total operating expenses | 484,319 | 527,900 | 1,468,555 | 1,536,924 | |||||||||||||
Operating income | 244,822 | 350,277 | 767,416 | 1,037,138 | |||||||||||||
Other income (expense): | |||||||||||||||||
Interest income | 773 | 2,024 | 4,052 | 3,565 | |||||||||||||
Interest expense | (8,720 | ) | (15,874 | ) | (36,780 | ) | (60,144 | ) | |||||||||
Foreign currency transaction gain (loss) | (1,860 | ) | (1,442 | ) | (881 | ) | (4,603 | ) | |||||||||
Other, net | (168 | ) | (136 | ) | (767 | ) | (232 | ) | |||||||||
Income before income tax expense | 234,847 | 334,849 | 733,040 | 975,724 | |||||||||||||
Income tax expense | (56,661 | ) | (77,995 | ) | (168,224 | ) | (201,672 | ) | |||||||||
Net Income | $ | 178,186 | $ | 256,854 | $ | 564,816 | $ | 774,052 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 1.28 | $ | 1.85 | $ | 4.06 | $ | 5.57 | |||||||||
Diluted | $ | 1.28 | $ | 1.85 | $ | 4.06 | $ | 5.57 | |||||||||
Weighted average shares outstanding: | |||||||||||||||||
Shares of common stock | 139,030 | 139,027 | 139,029 | 139,027 | |||||||||||||
Dilutive potential shares of common stock | 23 | 14 | 17 | 21 | |||||||||||||
Total weighted average shares outstanding | 139,053 | 139,041 | 139,046 | 139,048 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands) |
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|
Three Months Ended |
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Sep 30, | Jun 30, | Sep 30, | ||||||||||
2012 | 2012 | 2011 | ||||||||||
REVENUES | ||||||||||||
Floaters: | ||||||||||||
Ultra-Deepwater | $ | 195,574 | $ | 233,071 | $ | 220,415 | ||||||
Deepwater | 163,816 | 142,565 | 217,379 | |||||||||
Mid-water | 319,491 | 310,462 | 377,127 | |||||||||
Total Floaters | 678,881 | 686,098 | 814,921 | |||||||||
Jack-ups | 35,146 | 40,163 | 46,540 | |||||||||
Other | -- | -- | 50 | |||||||||
Total Contract Drilling Revenue | $ | 714,027 | $ | 726,261 | $ | 861,511 | ||||||
Revenues Related to Reimbursable Expenses |
$ |
15,114 |
$ |
11,927 |
$ |
16,666 |
||||||
CONTRACT DRILLING EXPENSE | ||||||||||||
Floaters: | ||||||||||||
Ultra-Deepwater | $ | 132,705 | $ | 137,087 | $ | 119,868 | ||||||
Deepwater | 58,029 | 68,653 | 57,662 | |||||||||
Mid-water | 135,935 | 160,642 | 163,957 | |||||||||
Total Floaters | 326,669 | 366,382 | 341,487 | |||||||||
Jack-ups | 24,245 | 29,240 | 43,281 | |||||||||
Other | 6,367 | 9,630 | 6,601 | |||||||||
Total Contract Drilling Expense | $ | 357,281 | $ | 405,252 | $ | 391,369 | ||||||
Reimbursable Expenses | $ | 14,563 | $ | 11,637 | $ | 16,206 | ||||||
OPERATING INCOME | ||||||||||||
Floaters: | ||||||||||||
Ultra-Deepwater | $ | 62,869 | $ | 95,984 | $ | 100,547 | ||||||
Deepwater | 105,787 | 73,912 | 159,717 | |||||||||
Mid-water | 183,556 | 149,820 | 213,170 | |||||||||
Total Floaters | 352,212 | 319,716 | 473,434 | |||||||||
Jack-ups | 10,901 | 10,923 | 3,259 | |||||||||
Other | (6,367 | ) | (9,630 | ) | (6,551 | ) | ||||||
Reimbursable expenses, net | 551 | 290 | 460 | |||||||||
Depreciation | (99,207 | ) | (99,469 | ) | (101,175 | ) | ||||||
General and administrative expense | (13,476 | ) | (18,741 | ) | (14,879 | ) | ||||||
Bad debt recovery (expense) | -- | 400 | (4,734 | ) | ||||||||
Gain on disposition of assets | 208 | 53,695 | 463 | |||||||||
Total Operating Income | $ | 244,822 | $ | 257,184 | $ | 350,277 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(In thousands) | |||||||||
September 30, | December 31, | ||||||||
2012 | 2011 | ||||||||
(unaudited) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 316,599 | $ | 333,765 | |||||
Marketable securities | 1,175,572 | 902,414 | |||||||
Accounts receivable, net of allowance for bad debts | 463,219 | 563,934 | |||||||
Prepaid expenses and other current assets | 143,441 | 192,570 | |||||||
Total current assets | 2,098,831 | 1,992,683 | |||||||
Drilling and other property and equipment, net of | |||||||||
accumulated depreciation | 4,835,715 | 4,667,469 | |||||||
Other assets | 245,204 | 304,005 | |||||||
Total assets | $ | 7,179,750 | $ | 6,964,157 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current liabilities | $ | 432,698 | $ | 427,291 | |||||
Long-term debt | 1,496,004 | 1,495,823 | |||||||
Deferred tax liability | 534,767 | 536,815 | |||||||
Other liabilities | 174,851 | 171,165 | |||||||
Stockholders’ equity | 4,541,430 | 4,333,063 | |||||||
Total liabilities and stockholders’ equity | $ | 7,179,750 | $ | 6,964,157 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES AVERAGE DAYRATES AND UTILIZATION (Dayrate in thousands) |
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Third Quarter | Second Quarter | Third Quarter | |||||||||||||||
2012 | 2012 | 2011 | |||||||||||||||
Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | ||||||||||||
Ultra-Deepwater Floaters | $354 | 75% | $354 | 89% | $336 | 88% | |||||||||||
Deepwater Floaters | $373 | 95% | $372 | 83% | $465 | 99% | |||||||||||
Mid-Water Floaters | $258 | 71% | $262 | 66% | $268 | 70% | |||||||||||
Jack-Ups | $98 | 56% | $94 | 49% | $84 | 44% |
Source:
Diamond Offshore Drilling, Inc.
Darren Daugherty, 281-492-5370
Director,
Investor Relations