Press Release
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Diamond Offshore Drilling Inc. Announces Fourth Quarter/Year-End 2003 Results
HOUSTON--(BUSINESS WIRE)--Jan. 29, 2004--Diamond Offshore Drilling Inc. (NYSE:DO) today reported net income for the fourth quarter of 2003 of $1.3 million, or $0.01 per share on a diluted basis, compared with net income of $6.3 million, or $0.05 per share on a diluted basis in the same period a year earlier. Revenues for the fourth quarter of 2003 were $187.7 million, compared with revenues of $183.0 million for the fourth quarter of 2002.
For the year ended Dec. 31, 2003, the Company reported a net loss of $48.4 million, or $0.37 per share on a diluted basis, compared with net income of $62.5 million, or $0.47 per share on a diluted basis for the same period in 2002. Revenues for the year 2003 were $680.9 million, compared with revenues of $752.6 million in the same period a year earlier.
As of Dec. 31, 2003, there were 129.3 million shares of Diamond Offshore common stock outstanding. During the fourth quarter of 2003, the Company repurchased 1,014,000 shares of its common stock at an aggregate cost of $18.2 million, or $17.96 per share. 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 45 offshore drilling rigs consists of 30 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 fourth quarter and year-end 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 Jan. 29, 2004, 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 may 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, and 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
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2003 2002 2003 2002
------------------- --------- ---------
Revenues:
Contract drilling $180,278 $176,725 $652,098 $724,213
Revenues related to
reimbursable expenses 7,407 6,316 28,843 28,348
--------- --------- --------- ---------
Total revenues 187,685 183,041 680,941 752,561
--------- --------- --------- ---------
Operating expenses:
Contract drilling 122,629 114,108 487,839 468,272
Reimbursable expenses 6,579 5,873 26,050 25,885
Depreciation 43,492 45,026 175,578 177,495
General and administrative 6,273 7,895 28,868 29,009
(Gain) loss on sale and
disposition of assets (522) (42) 929 (84)
--------- --------- --------- ---------
Total operating expenses 178,451 172,860 719,264 700,577
--------- --------- --------- ---------
Operating income (loss) 9,234 10,181 (38,323) 51,984
Other income (expense):
Gain (loss) on sale of
marketable securities 426 2,483 (6,884) 36,504
Interest income 1,772 5,875 12,007 29,767
Interest expense (6,543) (5,825) (23,928) (23,583)
Other, net -- 874 2,891 1,502
--------- --------- --------- ---------
Income (loss) before income tax
expense 4,889 13,588 (54,237) 96,174
Income tax benefit (expense)
(Note 1) (3,587) (7,292) 5,823 (33,654)
--------- --------- --------- ---------
Net income (loss) $1,302 $6,296 $(48,414) $62,520
========= ========= ========= =========
Earnings per share:
Basic $0.01 $0.05 $(0.37) $0.48
========= ========= ========= =========
Diluted $0.01 $0.05 $(0.37) $0.47
========= ========= ========= =========
Weighted average shares
outstanding:
Shares of common stock 130,005 130,366 130,253 131,285
Dilutive potential shares of
common stock -- 2 -- 9,428
--------- --------- --------- ---------
Total weighted average
shares outstanding 130,005 130,368 130,253 140,713
========= ========= ========= =========
Note 1. The increase in the effective tax rate for the quarter ended
December 31, 2003 resulted primarily from the Company's current
inability to use foreign tax credits, partially offset by certain
other tax reserve adjustments.
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(In thousands)
Three Months Ended
December 31,
-------------------------
2003 2002
------------ ------------
CONTRACT DRILLING REVENUE
High Specification Floaters $74,862 $69,078
Other Semisubmersibles 74,711 74,541
Jack-ups 28,086 24,318
Integrated Services -- 4,822
Other 2,619 5,596
Eliminations -- (1,630)
------------ ------------
Total Contract Drilling Revenue $180,278 $176,725
============ ============
Revenues Related to Reimbursable Expenses $7,407 $6,316
============ ============
CONTRACT DRILLING EXPENSE
High Specification Floaters $40,093 $39,844
Other Semisubmersibles 59,790 51,711
Jack-ups 22,365 23,559
Integrated Services (419) 4,098
Other 800 (3,474)
Eliminations -- (1,630)
------------ ------------
Total Contract Drilling Expense $122,629 $114,108
============ ============
Reimbursable Expenses $6,579 $5,873
============ ============
OPERATING INCOME
High Specification Floaters $34,769 $29,234
Other Semisubmersibles 14,921 22,830
Jack-ups 5,721 759
Integrated Services 419 724
Other 1,819 9,070
Reimbursables, net 828 443
Depreciation (43,492) (45,026)
General and Administrative Expense (6,273) (7,895)
Gain on Sale of Assets 522 42
------------ ------------
Total Operating Income $9,234 $10,181
============ ============
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31,
-----------------------
2003 2002
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $106,345 $182,453
Marketable securities 503,995 627,614
Accounts receivable 154,124 146,957
Rig inventory and supplies 48,035 45,405
Prepaid expenses and other 22,764 28,870
----------- -----------
Total current assets 835,263 1,031,299
Drilling and other property and equipment,
net of accumulated depreciation 2,257,876 2,164,627
Goodwill, net of accumulated amortization 11,099 24,714
Other assets 30,781 35,668
----------- -----------
Total assets $3,135,019 $3,256,308
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $100,000 $115,945
Long-term debt 928,030 924,475
Deferred tax liability 384,505 375,309
Other liabilities 42,004 33,065
Stockholders' equity 1,680,480 1,807,514
----------- -----------
Total liabilities and stockholders'
equity $3,135,019 $3,256,308
=========== ===========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Fourth Quarter Third Quarter Fourth Quarter
2003 2003 2002
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Utili- Utili- Utili-
Dayrate zation Dayrate zation Dayrate zation
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(Dayrate in thousands)
High
Specification
Floaters $97 84% $97 90% $99 84%
Other
Semisubmersibles $56 69% $60 57% $64 61%
Jack-ups $30 72% $28 64% $28 68%
CONTACT: Diamond Offshore Drilling Inc., Houston Les Van Dyke, 281-492-5370 SOURCE: Diamond Offshore Drilling Inc.