Press Release
<< Back
Diamond Offshore Announces Fourth Quarter 2015 Results
For full year 2015,
"Given the severe and prolonged downturn in industry fundamentals, we believe it is prudent to bolster our already strong balance sheet," said
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 |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
(Unaudited) |
||||||||
(In thousands, except per share data) |
||||||||
Three Months Ended |
Twelve Months Ended |
|||||||
December 31, |
December 31, |
|||||||
2015 |
2014 |
2015 |
2014 |
|||||
Revenues: |
||||||||
Contract drilling |
$ |
544,129 |
$ |
674,376 |
$ |
2,360,184 |
$ |
2,737,126 |
Revenues related to reimbursable expenses |
11,434 |
945 |
59,209 |
77,545 |
||||
Total revenues |
555,563 |
675,321 |
2,419,393 |
2,814,671 |
||||
Operating expenses: |
||||||||
Contract drilling, excluding depreciation |
256,393 |
358,655 |
1,227,864 |
1,523,623 |
||||
Reimbursable expenses |
11,146 |
698 |
58,050 |
76,091 |
||||
Depreciation |
114,448 |
131,712 |
493,162 |
456,483 |
||||
General and administrative |
15,574 |
19,923 |
66,462 |
81,832 |
||||
Impairment of assets |
499,367 |
-- |
860,441 |
109,462 |
||||
Restructuring and separation costs |
1,043 |
-- |
9,778 |
-- |
||||
(Gain) loss on disposition of assets |
(2,309) |
2,230 |
(2,290) |
(5,382) |
||||
Total operating expenses |
895,662 |
513,218 |
2,713,467 |
2,242,109 |
||||
Operating (loss) income |
(340,099) |
162,103 |
(294,074) |
572,562 |
||||
Other income (expense): |
||||||||
Interest income |
1,526 |
157 |
3,322 |
801 |
||||
Interest expense |
(23,134) |
(15,997) |
(93,934) |
(62,053) |
||||
Foreign currency transaction gain |
1,511 |
6,923 |
2,465 |
3,199 |
||||
Other, net |
171 |
84 |
873 |
682 |
||||
(Loss) income before income tax (expense) benefit |
(360,025) |
153,270 |
(381,348) |
515,191 |
||||
Income tax benefit (expense) |
114,641 |
(54,427) |
107,063 |
(128,180) |
||||
Net (loss) income |
$ |
(245,384) |
$ |
98,843 |
$ |
(274,285) |
$ |
387,011 |
(Loss) income per share: |
||||||||
Basic |
$ |
(1.79) |
$ |
0.72 |
$ |
(2.00) |
$ |
2.82 |
Diluted |
$ |
(1.79) |
$ |
0.72 |
$ |
(2.00) |
$ |
2.81 |
Weighted average shares outstanding: |
||||||||
Shares of common stock |
137,159 |
137,148 |
137,157 |
137,473 |
||||
Dilutive potential shares of common stock |
-- |
59 |
-- |
50 |
||||
Total weighted average shares outstanding |
137,159 |
137,207 |
137,157 |
137,523 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||
RESULTS OF OPERATIONS |
||||||
(Unaudited) |
||||||
(In thousands) |
||||||
Three Months Ended |
||||||
December 31, |
September 30, |
December 31, |
||||
2015 |
2015 |
2014 |
||||
REVENUES |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ |
395,798 |
$ |
376,195 |
$ |
285,991 |
Deepwater |
92,125 |
136,668 |
115,777 |
|||
Mid-Water |
44,766 |
69,500 |
231,933 |
|||
Total Floaters |
532,689 |
582,363 |
633,701 |
|||
Jack-ups |
11,440 |
16,673 |
40,675 |
|||
Total Contract Drilling Revenue |
$ |
544,129 |
$ |
599,036 |
$ |
674,376 |
Revenues Related to Reimbursable |
$ |
11,434 |
$ |
10,706 |
$ |
945 |
CONTRACT DRILLING EXPENSE |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ |
147,991 |
$ |
156,107 |
$ |
133,103 |
Deepwater |
60,010 |
67,630 |
66,093 |
|||
Mid-Water |
28,767 |
35,784 |
119,763 |
|||
Total Floaters |
236,768 |
259,521 |
318,959 |
|||
Jack-ups |
10,749 |
12,507 |
25,268 |
|||
Other |
8,876 |
5,916 |
14,428 |
|||
Total Contract Drilling Expense |
$ |
256,393 |
$ |
277,944 |
$ |
358,655 |
Reimbursable Expenses |
$ |
11,146 |
$ |
10,476 |
$ |
698 |
OPERATING (LOSS) INCOME |
||||||
Floaters: |
||||||
Ultra-Deepwater |
$ |
247,807 |
$ |
220,088 |
$ |
152,888 |
Deepwater |
32,115 |
69,038 |
49,684 |
|||
Mid-Water |
15,999 |
33,716 |
112,170 |
|||
Total Floaters |
295,921 |
322,842 |
314,742 |
|||
Jack-ups |
691 |
4,166 |
15,407 |
|||
Other |
(8,876) |
(5,916) |
(14,428) |
|||
Reimbursable expenses, net |
288 |
230 |
247 |
|||
Depreciation |
(114,448) |
(118,086) |
(131,712) |
|||
General and administrative expense |
(15,574) |
(16,888) |
(19,923) |
|||
Impairment of assets |
(499,367) |
(2,546) |
-- |
|||
Restructuring and separation costs |
(1,043) |
(1,574) |
-- |
|||
Gain (loss) on disposition of assets |
2,309 |
(794) |
(2,230) |
|||
Total Operating (Loss) Income |
$ |
(340,099) |
$ |
181,434 |
$ |
162,103 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(Unaudited) |
||||||||||
(In thousands) |
||||||||||
December 31, |
December 31, |
|||||||||
2015 |
2014 |
|||||||||
ASSETS |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
$ |
119,028 |
$ |
233,623 |
||||||
Marketable securities |
11,518 |
16,033 |
||||||||
Accounts receivable, net of allowance for bad debts |
405,370 |
463,862 |
||||||||
Prepaid expenses and other current assets |
119,479 |
185,541 |
||||||||
Assets held for sale |
14,200 |
-- |
||||||||
669,595 |
899,059 |
|||||||||
Drilling and other property and equipment, net of |
||||||||||
accumulated depreciation |
6,378,814 |
6,945,953 |
||||||||
Other assets |
116,480 |
176,277 |
||||||||
Total assets |
$ |
7,164,889 |
$ |
8,021,289 |
||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||||
Current portion of long-term debt |
$ |
-- |
$ |
249,962 |
||||||
Short-term borrowings |
286,589 |
-- |
||||||||
Other current liabilities |
339,134 |
606,684 |
||||||||
Long-term debt |
1,994,773 |
1,994,526 |
||||||||
Deferred tax liability |
276,529 |
530,394 |
||||||||
Other liabilities |
155,094 |
188,160 |
||||||||
Stockholders' equity |
4,112,770 |
4,451,563 |
||||||||
Total liabilities and stockholders' equity |
$ |
7,164,889 |
$ |
8,021,289 |
||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
|||||||||
AVERAGE DAYRATES AND UTILIZATION |
|||||||||
(Dayrate in thousands) |
|||||||||
Fourth Quarter 2015 |
Third Quarter 2015 |
Fourth Quarter 2014 |
|||||||
Average Dayrate (1) |
Utilization (2) |
Operational Efficiency (3) |
Average Dayrate |
Utilization (2) |
Operational Efficiency (3) |
Average Dayrate |
Utilization (2) |
Operational Efficiency (3) |
|
Ultra-Deepwater |
$531 |
70% |
95.5% |
$479 |
71% |
96.8% |
$493 |
66% |
90.2% |
Deepwater |
$337 |
42% |
97.7% |
$361 |
59% |
90.3% |
$431 |
48% |
97.3% |
Mid-Water |
$249 |
24% |
97.8% |
$289 |
31% |
97.5% |
$270 |
55% |
96.8% |
Jack-ups |
$124 |
17% |
100% |
$97 |
31% |
99.8% |
$96 |
77% |
99.5% |
Fleet Total |
96.6% |
95.5% |
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 December 31, 2015, our cold-stacked rigs included one ultra-deepwater semisubmersible, two deepwater semisubmersibles, 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. |
Contact:
Director, Investor Relations
(281) 492-5370
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-fourth-quarter-2015-results-300216250.html
SOURCE