Press Release
<< Back
Diamond Offshore Announces Third Quarter 2016 Results
Three Months Ended |
|||
Thousands of dollars, except per share data |
September 30, 2016 |
June 30, 2016 |
Change |
Total revenues |
$ 349,178 |
$ 388,747 |
(10)% |
Operating income (loss) |
54,071 |
(626,669) |
-- |
Adjusted operating income |
54,071 |
51,476 |
5% |
Net income (loss) |
13,927 |
(589,937) |
-- |
Adjusted net income |
13,927 |
22,295 |
(38)% |
Earnings (loss) per diluted share |
$ 0.10 |
$ (4.30) |
-- |
Adjusted earnings per diluted share |
$ 0.10 |
$ 0.16 |
(38)% |
"Despite continued market headwinds,
During the quarter, the Company announced new contracts for the Ocean Valiant and
As of
CONFERENCE CALL
A conference call to discuss
ABOUT
FORWARD-LOOKING STATEMENTS
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. 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 |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
2016 |
2015 |
2016 |
2015 |
|||||
Revenues: |
||||||||
Contract drilling |
$ 339,636 |
$ 599,036 |
$ 1,140,568 |
$ 1,816,055 |
||||
Revenues related to reimbursable expenses |
9,542 |
10,706 |
67,900 |
47,775 |
||||
Total revenues |
349,178 |
609,742 |
1,208,468 |
1,863,830 |
||||
Operating expenses: |
||||||||
Contract drilling, excluding depreciation |
186,654 |
277,944 |
597,831 |
971,471 |
||||
Reimbursable expenses |
7,965 |
10,476 |
51,283 |
46,904 |
||||
Depreciation |
86,473 |
118,086 |
295,729 |
378,714 |
||||
General and administrative |
15,237 |
16,888 |
48,774 |
50,888 |
||||
Impairment of assets |
-- |
2,546 |
678,145 |
361,074 |
||||
Restructuring and separation costs |
-- |
1,574 |
-- |
8,735 |
||||
(Gain) loss on disposition of assets |
(1,222) |
794 |
(2,265) |
19 |
||||
Total operating expenses |
295,107 |
428,308 |
1,669,497 |
1,817,805 |
||||
Operating income (loss) |
54,071 |
181,434 |
(461,029) |
46,025 |
||||
Other income (expense): |
||||||||
Interest income |
150 |
629 |
592 |
1,796 |
||||
Interest expense |
(19,032) |
(21,350) |
(68,704) |
(70,800) |
||||
Foreign currency transaction (loss) gain |
(712) |
(1,163) |
(7,833) |
954 |
||||
Other, net |
269 |
217 |
(11,199) |
702 |
||||
Income (loss) before income tax (expense) |
34,746 |
159,767 |
(548,173) |
(21,323) |
||||
Income tax (expense) benefit |
(20,819) |
(23,345) |
59,588 |
(7,578) |
||||
Net income (loss) |
$ 13,927 |
$ 136,422 |
$ (488,585) |
$ (28,901) |
||||
Income (loss) per share |
$ 0.10 |
$ 0.99 |
$ (3.56) |
$ (0.21) |
||||
Weighted-average shares outstanding: |
||||||||
Shares of common stock |
137,170 |
137,159 |
137,167 |
137,156 |
||||
Dilutive potential shares of common stock |
84 |
44 |
-- |
-- |
||||
Total weighted-average shares outstanding |
137,254 |
137,203 |
137,167 |
137,156 |
||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||
Three Months Ended |
||||||
September 30, |
June 30, |
September 30, |
||||
2016 |
2016 |
2015 |
||||
REVENUES |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ 217,275 |
$ 214,102 |
$ 376,195 |
|||
Deepwater |
66,011 |
67,191 |
136,668 |
|||
Mid-water |
56,350 |
56,694 |
69,500 |
|||
Total Floaters |
339,636 |
337,987 |
582,363 |
|||
Jack-ups |
-- |
19,422 |
16,673 |
|||
Total Contract Drilling Revenue |
339,636 |
$ 357,409 |
$ 599,036 |
|||
Revenues Related to Reimbursable Expenses |
$ 9,542 |
$ 31,338 |
$ 10,706 |
|||
CONTRACT DRILLING EXPENSE |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ 124,099 |
$ 127,185 |
$ 156,107 |
|||
Deepwater |
36,226 |
34,776 |
67,630 |
|||
Mid-water |
17,634 |
25,862 |
35,784 |
|||
Total Floaters |
177,959 |
187,823 |
259,521 |
|||
Jack-ups |
1,833 |
6,876 |
12,507 |
|||
Other |
6,862 |
3,637 |
5,916 |
|||
Total Contract Drilling Expense |
$ 186,654 |
$ 198,336 |
$ 277,944 |
|||
Reimbursable Expenses |
$ 7,965 |
$ 16,527 |
$ 10,476 |
|||
OPERATING INCOME (LOSS) |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ 93,176 |
$ 86,917 |
$ 220,088 |
|||
Deepwater |
29,785 |
32,415 |
69,038 |
|||
Mid-water |
38,716 |
30,832 |
33,716 |
|||
Total Floaters |
161,677 |
150,164 |
322,842 |
|||
Jack-ups |
(1,833) |
12,546 |
4,166 |
|||
Other |
(6,862) |
(3,637) |
(5,916) |
|||
Reimbursable expenses, net |
1,577 |
14,811 |
230 |
|||
Depreciation |
(86,473) |
(105,016) |
(118,086) |
|||
General and administrative expense |
(15,237) |
(18,139) |
(16,888) |
|||
Impairment of assets |
-- |
(678,145) |
(2,546) |
|||
Restructuring and separation costs |
-- |
-- |
(1,574) |
|||
Gain (loss) on disposition of assets |
1,222 |
747 |
(794) |
|||
Total Operating Income (Loss) |
$ 54,071 |
$ (626,669) |
$ 181,434 |
|||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(Unaudited) |
|||
(In thousands) |
|||
September 30, |
December 31, |
||
2016 |
2015 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 81,329 |
$ 119,028 |
|
Marketable securities |
46 |
11,518 |
|
Accounts receivable, net of allowance for bad debts |
273,982 |
405,370 |
|
Prepaid expenses and other current assets |
114,166 |
119,479 |
|
Assets held for sale |
7,600 |
14,200 |
|
Total current assets |
477,123 |
669,595 |
|
Drilling and other property and equipment, net of accumulated |
5,819,309 |
6,378,814 |
|
Other assets |
112,743 |
101,485 |
|
Total assets |
$ 6,409,175 |
$ 7,149,894 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Short-term borrowings |
$ 182,100 |
$ 286,589 |
|
Other current liabilities |
297,781 |
339,134 |
|
Long-term debt |
1,980,602 |
1,979,778 |
|
Deferred tax liability |
164,389 |
276,529 |
|
Other liabilities |
151,375 |
155,094 |
|
Stockholders' equity |
3,632,928 |
4,112,770 |
|
Total liabilities and stockholders' equity |
$ 6,409,175 |
$ 7,149,894 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||||||||
Third Quarter 2016 |
Second Quarter 2016 |
Third Quarter 2015 |
|||||||
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
|
Ultra-Deepwater Floaters |
$452 |
48% |
87.1% |
$452 |
47% |
86.7% |
$479 |
71% |
96.8% |
Deepwater Floaters |
$303 |
34% |
94.5% |
$301 |
35% |
100% |
$361 |
59% |
90.3% |
Mid-Water floaters |
$311 |
33% |
98.4% |
$313 |
30% |
99.4% |
$289 |
31% |
97.5% |
Jack-ups |
-- |
-- |
-- |
$335 |
13% |
100% |
$97 |
31% |
99.8% |
Fleet Total |
91.0% |
92.7% |
95.5% |
(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, 2016, our cold-stacked rigs included four ultra-deepwater semisubmersibles, three deepwater semisubmersibles, three mid-water semisubmersibles and four marketed-for-sale 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. |
Non-GAAP Financial Measures (Unaudited)
To supplement the Company's unaudited condensed consolidated financial statements presented on a GAAP basis, this press release provides investors with adjusted operating income, adjusted net income and adjusted earnings per diluted share, which are non-GAAP financial measures. Management believes that these measures provide meaningful information about the Company's performance by excluding certain charges that may not be indicative of the Company's ongoing operating results. This allows investors and others to better compare the company's financial results across previous and subsequent accounting periods and to those of peer companies and to better understand the long-term performance of the Company. Non-GAAP financial measures should be considered to be a supplement to, and not as a substitute for, or superior to, financial measures prepared in accordance with GAAP.
In order to fully assess the financial operating results of the Company, management believes that the results of operations adjusted to exclude the second quarter 2016 impairment of rigs and associated inventory, as well as the related tax effect thereof and other second quarter discrete tax items, are appropriate measures of the continuing and normal operations of the Company. However, these measures should be considered in addition to, and not as a substitute for, or superior to, contract drilling revenue, contract drilling expense, operating income, cash flows from operations or other measures of financial performance prepared in accordance with GAAP.
Three Months Ended |
||||
September 30, |
June 30, 2016 |
|||
Reconciliation of As Reported Operating (Loss) Income to (In thousands) |
||||
As reported operating income (loss) |
$ 54,071 |
$ (626,669) |
||
Impairments and other charges: |
||||
Impairment of rigs and associated inventory (1) |
-- |
678,145 |
||
Adjusted operating income |
$ 54,071 |
$ 51,476 |
||
Reconciliation of As Reported Net Loss to Adjusted Net Income: (In thousands) |
||||
As reported net income (loss) |
$ 13,927 |
$ (589,937) |
||
Impairments and other charges: |
||||
Impairment of rigs and associated inventory (1) |
-- |
678,145 |
||
Tax effect of impairments and other charges: |
||||
Impairment of rigs and associated inventory (2) |
-- |
(143,165) |
||
Discrete tax items (3) |
77,252 |
|||
Adjusted net income |
$ 13,927 |
$ 22,295 |
||
Three Months Ended |
|||
September 30, |
June 30, 2016 |
||
Reconciliation of As Reported Income (Loss) per Diluted Share |
|||
As reported income (loss) per diluted share |
$ 0.10 |
$ (4.30) |
|
Impairments and other charges: |
|||
Impairment of rigs and associated inventory (1) |
-- |
4.94 |
|
Tax effect of impairments and other charges: |
|||
Impairment of rigs and associated inventory (2) |
-- |
(1.04) |
|
Other discrete tax items (3) |
-- |
0.56 |
|
Adjusted earnings per diluted share |
$ 0.10 |
$ 0.16 |
(1) |
Represents the aggregate amount of impairment losses recognized during the second quarter of 2016 related to eight of our drilling rigs and associated inventory. |
(2) |
Represents the income tax effects of the aggregate impairment loss recognized in the second quarter of 2016. |
(3) |
Represents the aggregate of certain discrete income tax adjustments recognized during the second quarter of 2016, primarily related to valuation allowances for current and prior year tax assets associated with foreign tax credits, which we no longer expect to be able to utilize to offset income taxes in the U.S. tax jurisdiction. |
Contact:
Sr. Director, Investor Relations & Corporate Development
(281) 647-4035
Logo - http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/diamond-offshore-announces-third-quarter-2016-results-300353784.html
SOURCE