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Diamond Offshore Announces Third Quarter 2013 Results
Results for the quarter included the unfavorable pretax impact of
- Unrecognized revenue of
$70 million , pretax, and - Bad debt expense of
$23 million , pretax.
"Although our results were adversely affected this quarter by customers with cash flow issues, which is highly unusual, we are working hard to reposition these rigs," said
The Company has received the following letters of intent (LOI):
- The Ocean Scepter received an LOI for a 1,136-day contract extension at a new rate of
$158,000 per day; and - The Ocean Apex received an LOI to begin work for an international oil company in
Southeast Asia during Q4 2014 at a dayrate comparable to that of our other new deepwater semisubmersible, the Ocean Onyx.
CONFERENCE CALL
A conference call to discuss
ABOUT
FORWARD-LOOKING STATEMENTS
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 customer non-payments, future opportunities for and repositioning of our drilling rigs, future work and dayrate for the Ocean Scepter as contemplated by its letter of intent, which is subject to customary conditions including execution of a definitive agreement, future work and dayrate for the Ocean Apex as contemplated by its letter of intent, which is subject to customary conditions including execution of a definitive agreement, and future operations. 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, |
|||||||||||||||||||||||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||||||||||
Contract drilling |
$ |
690,741 |
$ |
714,027 |
$ |
2,135,612 |
$ |
2,195,443 |
||||||||||||||||||||||||||||
Revenues related to reimbursable expenses |
15,424 |
15,114 |
58,312 |
40,528 |
||||||||||||||||||||||||||||||||
Total revenues |
706,165 |
729,141 |
2,193,924 |
2,235,971 |
||||||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||
Contract drilling, excluding depreciation |
419,488 |
357,281 |
1,163,618 |
1,159,635 |
||||||||||||||||||||||||||||||||
Reimbursable expenses |
14,904 |
14,563 |
56,998 |
39,351 |
||||||||||||||||||||||||||||||||
Depreciation |
97,143 |
99,207 |
291,107 |
300,069 |
||||||||||||||||||||||||||||||||
General and administrative |
15,240 |
13,476 |
48,490 |
49,803 |
||||||||||||||||||||||||||||||||
Bad debt expense (recovery) |
22,563 |
-- |
22,563 |
(1,018) |
||||||||||||||||||||||||||||||||
Gain on disposition of assets |
(525) |
(208) |
(2,789) |
(79,285) |
||||||||||||||||||||||||||||||||
Total operating expenses |
568,813 |
484,319 |
1,579,987 |
1,468,555 |
||||||||||||||||||||||||||||||||
Operating income |
137,352 |
244,822 |
613,937 |
767,416 |
||||||||||||||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||||||||||
Interest income |
136 |
773 |
1,024 |
4,052 |
||||||||||||||||||||||||||||||||
Interest expense |
(1,693) |
(8,720) |
(17,713) |
(36,780) |
||||||||||||||||||||||||||||||||
Foreign currency transaction loss |
(4,556) |
(1,860) |
(3,949) |
(881) |
||||||||||||||||||||||||||||||||
Other, net |
326 |
(168) |
746 |
(767) |
||||||||||||||||||||||||||||||||
Income before income tax expense |
131,565 |
234,847 |
594,045 |
733,040 |
||||||||||||||||||||||||||||||||
Income tax expense |
(36,817) |
(56,661) |
(137,974) |
(168,224) |
||||||||||||||||||||||||||||||||
Net Income |
$ |
94,748 |
$ |
178,186 |
$ |
456,071 |
$ |
564,816 |
||||||||||||||||||||||||||||
Income per share: |
||||||||||||||||||||||||||||||||||||
Basic |
$ |
0.68 |
$ |
1.28 |
$ |
3.28 |
$ |
4.06 |
||||||||||||||||||||||||||||
Diluted |
$ |
0.68 |
$ |
1.28 |
$ |
3.28 |
$ |
4.06 |
||||||||||||||||||||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||||||||||||||||||
Shares of common stock |
139,035 |
139,030 |
139,034 |
139,029 |
||||||||||||||||||||||||||||||||
Dilutive potential shares of common stock |
30 |
23 |
38 |
17 |
||||||||||||||||||||||||||||||||
Total weighted average shares outstanding |
139,065 |
139,053 |
139,072 |
139,046 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands) |
||||||||||
Three Months Ended |
||||||||||
Sep 30, |
Jun 30, |
Sep 30, |
||||||||
2013 |
2013 |
2012 |
||||||||
REVENUES |
||||||||||
Floaters: |
||||||||||
Ultra-Deepwater |
$ |
195,215 |
$ |
231,101 |
$ |
195,574 |
||||
Deepwater |
147,333 |
184,105 |
163,816 |
|||||||
Mid-water |
297,368 |
288,860 |
319,491 |
|||||||
Total Floaters |
639,916 |
704,066 |
678,881 |
|||||||
Jack-ups |
50,825 |
40,832 |
35,146 |
|||||||
Total Contract Drilling Revenue |
$ |
690,741 |
$ |
744,898 |
$ |
714,027 |
||||
Revenues Related to Reimbursable Expenses |
$ |
15,424 |
$ |
13,120 |
$ |
15,114 |
||||
Floaters: |
||||||||||
Ultra-Deepwater |
$ |
139,689 |
$ |
128,147 |
$ |
132,705 |
||||
Deepwater |
74,609 |
60,126 |
58,029 |
|||||||
Mid-water |
165,518 |
139,252 |
135,935 |
|||||||
Total Floaters |
379,816 |
327,525 |
326,669 |
|||||||
Jack-ups |
28,685 |
27,377 |
24,245 |
|||||||
Other |
10,987 |
14,134 |
6,367 |
|||||||
Total Contract Drilling Expense |
$ |
419,488 |
$ |
369,036 |
$ |
357,281 |
||||
Reimbursable Expenses |
$ |
14,904 |
$ |
12,805 |
$ |
14,563 |
||||
OPERATING INCOME |
||||||||||
Floaters: |
||||||||||
Ultra-Deepwater |
$ |
55,526 |
$ |
102,954 |
$ |
62,869 |
||||
Deepwater |
72,724 |
123,979 |
105,787 |
|||||||
Mid-water |
131,850 |
149,608 |
183,556 |
|||||||
Total Floaters |
260,100 |
376,541 |
352,212 |
|||||||
Jack-ups |
22,140 |
13,455 |
10,901 |
|||||||
Other |
(10,987) |
(14,134) |
(6,367) |
|||||||
Reimbursable expenses, net |
520 |
315 |
551 |
|||||||
Depreciation |
(97,143) |
(97,143) |
(99,207) |
|||||||
General and administrative expense |
(15,240) |
(16,435) |
(13,476) |
|||||||
Bad debt expense |
(22,563) |
-- |
-- |
|||||||
Gain on disposition of assets |
525 |
260 |
208 |
|||||||
Total Operating Income |
$ |
137,352 |
$ |
262,859 |
$ |
244,822 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||||||
September 30, |
December 31, |
|||||||||
2013 |
2012 |
|||||||||
(unaudited) |
||||||||||
ASSETS |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
$ |
438,794 |
$ |
335,432 |
||||||
Marketable securities |
800,204 |
1,150,158 |
||||||||
Accounts receivable, net of allowance for bad debts |
424,808 |
499,660 |
||||||||
Prepaid expenses and other current assets |
142,152 |
136,099 |
||||||||
Assets held for sale |
11,594 |
11,594 |
||||||||
Total current assets |
1,817,552 |
2,132,943 |
||||||||
Drilling and other property and equipment, net of |
||||||||||
accumulated depreciation |
5,331,470 |
4,864,972 |
||||||||
Other assets |
193,586 |
237,371 |
||||||||
Total assets |
$ |
7,342,608 |
$ |
7,235,286 |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||
Current portion of long-term debt |
$ |
249,935 |
$ |
-- |
||||||
Other current liabilities |
466,940 |
485,546 |
||||||||
Long-term debt |
1,246,321 |
1,496,066 |
||||||||
Deferred tax liability |
532,729 |
490,946 |
||||||||
Other liabilities |
182,347 |
186,334 |
||||||||
Stockholders' equity |
4,664,336 |
4,576,394 |
||||||||
Total liabilities and stockholders' equity |
$ |
7,342,608 |
$ |
7,235,286 |
||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||||||||||||||
Third Quarter (a) |
Second Quarter |
Third Quarter |
|||||||||||||
2013 |
2013 |
2012 |
|||||||||||||
Dayrate |
Utilization |
Dayrate |
Utilization |
Dayrate |
Utilization |
||||||||||
Ultra-Deepwater Floaters |
$284 |
93% |
$342 |
92% |
$354 |
75% |
|||||||||
Deepwater Floaters |
$380 |
84% |
$409 |
99% |
$373 |
95% |
|||||||||
Mid-Water Floaters |
$258 |
68% |
$271 |
65% |
$258 |
71% |
|||||||||
Jack-Ups |
$93 |
84% |
$88 |
74% |
$98 |
56% |
|||||||||
(a) Dayrate and utilization calculations include revenue earning days for which revenue was not recognized pursuant to GAAP. For the rig categories Ultra-Deepwater, Deepwater, and Mid-water Floaters, these include 88, 31 and 94 days, respectively. |
Contact:
Director, Investor Relations
(281) 492-5370
(Logo: http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b )
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