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Diamond Offshore Drilling Inc. Announces First Quarter 2003 Earnings
HOUSTON--(BUSINESS WIRE)--April 17, 2003--Diamond Offshore Drilling Inc. (NYSE:DO) today reported a net loss of $21.6 million, or $0.17 per share on a diluted basis, on revenues of $146.1 million for the first quarter of 2003, compared to net income of $22.6 million, or $0.17 per share on a diluted basis, on revenues of $201.6 million for the first quarter of 2002.
As of March 31, 2003, there were 130.3 million shares of common stock outstanding. 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 47 offshore drilling rigs consists of 32 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 2003 first 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 April 17, 2003, 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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, include, but are not limited to, statements concerning the Company's possible purchase of shares of its outstanding common stock. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated or 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 and other filings with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company's control. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks 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.
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
------------------------
2003 2002
----------- -----------
Revenues:
Contract drilling $139,859 $193,668
Revenues related to reimbursable
expenses 6,290 7,882
----------- ------------
Total revenues 146,149 201,550
----------- ------------
Operating expenses:
Contract drilling 113,670 120,947
Reimbursable expenses 5,738 7,212
Depreciation 47,277 42,697
General and administrative 7,200 6,648
----------- ------------
Total operating expenses 173,885 177,504
----------- ------------
Operating income (loss) (27,736) 24,046
Other income (expense):
Interest income 4,156 9,581
Interest expense (5,575) (5,470)
(Loss) gain on sale of marketable
securities (61) 3,492
Other, net 1,743 853
----------- ------------
Income before income tax expense (27,473) 32,502
Income tax benefit (expense) 5,907 (9,944)
----------- ------------
Net income (loss) $(21,566) $22,558
=========== ============
Earnings (loss) per share:
Basic $(0.17) $0.17
=========== ============
Diluted $(0.17) $0.17
=========== ============
Weighted average shares outstanding:
Shares of common stock 130,336 131,786
Dilutive potential shares of
common stock -- 9,482
----------- ------------
Total weighted average
shares outstanding 130,336 141,268
=========== ============
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
March 31,
-------------------
2003 2002
--------- ---------
REVENUES
High Specification Floaters $63,634 $74,647
Other Semisubmersibles 51,703 88,080
Jack-ups 23,566 29,500
Integrated Services 1,189 1,823
Eliminations (233) (382)
--------- ---------
Total Contract Drilling Revenue $139,859 $193,668
========= =========
Revenues Related to Reimbursable Expenses $6,290 $7,882
========= =========
CONTRACT DRILLING EXPENSE
High Specification Floaters $38,276 $35,528
Other Semisubmersibles 49,717 56,873
Jack-ups 24,251 25,682
Integrated Services 1,249 2,841
Other 410 405
Eliminations (233) (382)
--------- ---------
Total Contract Drilling Expense $113,670 $120,947
========= =========
Reimbursable Expenses $5,738 $7,212
========= =========
OPERATING INCOME (LOSS)
High Specification Floaters $25,358 $39,119
Other Semisubmersibles 1,986 31,207
Jack-ups (685) 3,818
Integrated Services (60) (1,018)
Other (410) (405)
Reimbursables, net 552 670
Depreciation Expense (47,277) (42,697)
General and Administrative Expense (7,200) (6,648)
--------- ---------
Total Operating Income (Loss) $(27,736) $24,046
========= =========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, Dec. 31,
----------- -----------
2003 2002
----------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $195,525 $184,910
Marketable securities 495,563 627,614
Accounts receivable 138,297 146,957
Rig inventory and supplies 46,715 45,405
Prepaid expenses and other 27,172 28,870
----------- ----------
Total current assets 903,272 1,033,756
Drilling and other property and equipment,
net of accumulated depreciation 2,250,999 2,164,627
Goodwill, net of accumulated amortization 21,311 24,714
Other assets 35,443 35,668
----------- ----------
Total assets $3,211,025 $3,258,765
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $121,405 $118,402
Long-term debt 928,313 924,475
Deferred tax liability 360,643 375,309
Other liabilities 33,401 33,065
Stockholders' equity 1,767,263 1,807,514
----------- ----------
Total liabilities and stockholders'
equity $3,211,025 $3,258,765
=========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
-------------------------------------------------
Dayrate Utili- Dayrate Utili- Dayrate Utili-
zation zation zation
------- ------- ------- ------- ------- -------
(Dayrate in
thousands)
High Specification
Floaters $94 83% $99 84% $116 88%
Other Semi-
submersibles $62 43% $64 61% $68 69%
Jack-ups $28 68% $28 68% $30 78%
CONTACT: Diamond Offshore Drilling Inc., Houston Caren W. Steffes, 281/492-5393 SOURCE: Diamond Offshore Drilling Inc.