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Diamond Offshore Announces Third Quarter 2015 Results
"I am pleased with our solid third quarter results, which demonstrate
The Company announced that it reached agreement with Petrobras for contracts on the semisubmersible rig
CONFERENCE CALL
A conference call to discuss
ABOUT
FORWARD-LOOKING STATEMENTS
Contract revenue as stated above assumes 100% rig utilization. Rig utilization rates vary depending on a variety of circumstances, many of which are beyond the Company's control. Rig utilization rates generally approach 92-98% during contracted periods; however, utilization rates can be adversely impacted by additional downtime due to various operating factors, including, but not limited to, weather conditions and unscheduled repairs and maintenance. Additional information on the Company and access to the Company's
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, effective dates and estimated duration; plans regarding retirement and scrapping of drilling rigs; future impairments; future dividends; expectations of future backlog, revenue, operating costs and performance; future liquidity, financial condition, market conditions, commodity prices and strategic opportunities; revenue expected to result from backlog; future credit ratings; future dayrates, future status, start and end dates and future contracts and availability; future contract opportunities and termination rights; contract noncompliance by customers and other third parties; utilization, surveys, downtime and other aspects of the Company's drilling rigs; statements concerning customer discussions and outcomes thereof and the impact of these and related events on the Company's operations and revenues; rigs being upgraded or to be upgraded and rigs under construction; 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 |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
Revenues: |
||||||||
Contract drilling |
$ |
599,036 |
$ |
727,888 |
$ |
1,816,055 |
$ |
2,062,750 |
Revenues related to reimbursable expenses |
10,706 |
9,794 |
47,775 |
76,600 |
||||
Total revenues |
609,742 |
737,682 |
1,863,830 |
2,139,350 |
||||
Operating expenses: |
||||||||
Contract drilling, excluding depreciation |
277,944 |
399,802 |
971,471 |
1,164,968 |
||||
Reimbursable expenses |
10,476 |
9,437 |
46,904 |
75,393 |
||||
Depreciation |
118,086 |
108,854 |
378,714 |
324,771 |
||||
General and administrative |
16,888 |
18,604 |
50,888 |
61,909 |
||||
Impairment of assets |
2,546 |
109,462 |
361,074 |
109,462 |
||||
Restructuring and separation costs |
1,574 |
-- |
8,735 |
-- |
||||
Loss (gain) on disposition of assets |
794 |
1,107 |
19 |
(7,612) |
||||
Total operating expenses |
428,308 |
647,266 |
1,817,805 |
1,728,891 |
||||
Operating income |
181,434 |
90,416 |
46,025 |
410,459 |
||||
Other income (expense): |
||||||||
Interest income |
629 |
86 |
1,796 |
644 |
||||
Interest expense |
(21,350) |
(9,378) |
(70,800) |
(46,056) |
||||
Foreign currency transaction gain (loss) |
(1,163) |
425 |
954 |
(3,724) |
||||
Other, net |
217 |
90 |
702 |
598 |
||||
Income (loss) before income tax expense |
159,767 |
81,639 |
(21,323) |
361,921 |
||||
Income tax expense |
(23,345) |
(28,994) |
(7,578) |
(73,753) |
||||
Net Income (loss) |
$ |
136,422 |
$ |
52,645 |
$ |
(28,901) |
$ |
288,168 |
Income (loss) per share |
$ |
0.99 |
$ |
0.38 |
$ |
(0.21) |
$ |
2.09 |
Weighted average shares outstanding: |
||||||||
Shares of common stock |
137,159 |
137,146 |
137,156 |
137,582 |
||||
Dilutive potential shares of common stock |
44 |
1 |
-- |
3 |
||||
Total weighted average shares outstanding |
137,203 |
137,147 |
137,156 |
137,585 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||
RESULTS OF OPERATIONS |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
Three Months Ended |
||||||
September 30, |
June 30, |
September 30, |
||||
2015 |
2015 |
2014 |
||||
REVENUES |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ |
376,195 |
$ |
315,670 |
$ |
313,124 |
Deepwater |
136,668 |
181,104 |
111,372 |
|||
Mid-water |
69,500 |
96,926 |
258,028 |
|||
Total Floaters |
582,363 |
593,700 |
682,524 |
|||
Jack-ups |
16,673 |
23,742 |
45,364 |
|||
Total Contract Drilling Revenue |
$ |
599,036 |
$ |
617,442 |
$ |
727,888 |
Revenues Related to Reimbursable Expenses |
$ |
10,706 |
$ |
16,590 |
$ |
9,794 |
CONTRACT DRILLING EXPENSE |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ |
156,107 |
$ |
161,485 |
$ |
157,655 |
Deepwater |
67,630 |
86,464 |
72,367 |
|||
Mid-water |
35,784 |
66,735 |
132,340 |
|||
Total Floaters |
259,521 |
314,684 |
362,362 |
|||
Jack-ups |
12,507 |
20,873 |
28,056 |
|||
Other |
5,916 |
7,312 |
9,384 |
|||
Total Contract Drilling Expense |
$ |
277,944 |
$ |
342,869 |
$ |
399,802 |
Reimbursable Expenses |
$ |
10,476 |
$ |
16,336 |
$ |
9,437 |
OPERATING (LOSS) INCOME |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ |
220,088 |
$ |
154,185 |
$ |
155,469 |
Deepwater |
69,038 |
94,640 |
39,005 |
|||
Mid-water |
33,716 |
30,191 |
125,688 |
|||
Total Floaters |
322,842 |
279,016 |
320,162 |
|||
Jack-ups |
4,166 |
2,869 |
17,308 |
|||
Other |
(5,916) |
(7,312) |
(9,384) |
|||
Reimbursable expenses, net |
230 |
254 |
357 |
|||
Depreciation |
(118,086) |
(123,329) |
(108,854) |
|||
General and administrative expense |
(16,888) |
(16,548) |
(18,604) |
|||
Gain (loss) on disposition of assets |
(794) |
164 |
(1,107) |
|||
Impairment of assets |
(2,546) |
-- |
(109,462) |
|||
Restructuring and separation costs |
(1,574) |
(993) |
-- |
|||
Total Operating Income |
$ |
181,434 |
$ |
134,121 |
$ |
90,416 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(Unaudited) (In thousands) |
||||||||||
September 30, |
December 31, |
|||||||||
2015 |
2014 |
|||||||||
ASSETS |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
$ |
141,131 |
$ |
233,623 |
||||||
Marketable securities |
13,621 |
16,033 |
||||||||
Accounts receivable, net of allowance for bad debts |
515,754 |
463,862 |
||||||||
Prepaid expenses and other current assets |
163,871 |
185,541 |
||||||||
Assets held for sale |
6,700 |
-- |
||||||||
841,077 |
899,059 |
|||||||||
Drilling and other property and equipment, net of |
||||||||||
accumulated depreciation |
6,888,248 |
6,945,953 |
||||||||
Other assets |
121,171 |
176,277 |
||||||||
Total assets |
$ |
7,850,496 |
$ |
8,021,289 |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||
Current portion of long-term debt |
$ |
-- |
$ |
249,962 |
||||||
Short-term borrowings |
492,996 |
-- |
||||||||
Other current liabilities |
397,421 |
606,684 |
||||||||
Long-term debt |
1,994,710 |
1,994,526 |
||||||||
Deferred tax liability |
417,621 |
530,394 |
||||||||
Other liabilities |
171,595 |
188,160 |
||||||||
Stockholders' equity |
4,376,153 |
4,451,563 |
||||||||
Total liabilities and stockholders' equity |
$ |
7,850,496 |
$ |
8,021,289 |
||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||||||||
AVERAGE DAYRATES AND UTILIZATION |
|||||||||
(Dayrate in thousands) |
|||||||||
Third Quarter 2015 |
Second Quarter 2015 |
Third Quarter 2014 |
|||||||
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
Revised Average Dayrate (4) |
Utilization (2) |
Operational Efficiency (3) |
|
Ultra-Deepwater Floaters |
$479 |
71% |
96.8% |
$483 |
63% |
90.9% |
$491 |
77% |
92.2% |
Deepwater Floaters |
$361 |
59% |
90.3% |
$451 |
63% |
99.3% |
$356 |
57% |
95.5% |
Mid-Water Floaters |
$289 |
31% |
97.5% |
$278 |
32% |
99.7% |
$265 |
59% |
94.1% |
Jack-ups |
$97 |
31% |
99.8% |
$83 |
53% |
98.6% |
$99 |
83% |
99.3% |
Fleet Total |
95.5% |
95.9% |
94.7% |
(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 September 30, 2015, our cold-stacked rigs included one ultra-deepwater semisubmersible, one deepwater semisubmersible, four mid-water semisubmersibles and five jack-up rigs. |
(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 period has been revised to conform to current presentation. |
Contact:
Director, Investor Relations
(281) 492-5370
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