Press Release

HOUSTON, Oct. 24, 2013 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net income of $95 million for the third quarter of 2013, or $0.68 per share on a diluted basis, compared with net income of $178 million, or $1.28 per share on a diluted basis, in the same period a year earlier. Revenues in the third quarter of 2013 totaled $691 million, compared with revenues of $714 million in the prior-year quarter.

Results for the quarter included the unfavorable pretax impact of $93 million, or an after tax impact of $0.54 per diluted share, related to customer non-payments, as follows:

• 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 Larry Dickerson, President and Chief Executive Officer.  "The overall market remains stable, supported by Brent oil prices above $100 per barrel and ongoing rig demand."

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 Diamond Offshore's earnings results has been scheduled for 9:00 a.m. CDT today.  A live webcast of the call will be available online on the Company's website, www.diamondoffshore.com.  Those interested in participating in the question and answer session should dial 800-247-9979 or 973-321-1100, for international callers. The conference ID number is 75559431.  An online replay will also be available on www.diamondoffshore.com following the call.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe with a total fleet of 45 offshore drilling rigs, including seven rigs under construction.  Diamond Offshore's fleet consists of 33 semisubmersibles, three of which are under construction, five dynamically positioned drillships, four of which are under construction, and seven jack-ups. Additional information about the Company and access to the Company's SEC filings is available on the Internet at www.diamondoffshore.com. Diamond Offshore is owned 50.4% by Loews Corporation (NYSE: L).

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 Securities and Exchange Commission and readers of this press release are urged to review those reports carefully when considering these forward-looking statements.  Copies of these reports are available through the Company's website at www.diamondoffshore.com.  These factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty losses, the risk that a letter of intent may not result in a binding contract, 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 risk factors, 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.

 

 

 

 

 

 

 

 

 

 

Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370

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SOURCE Diamond Offshore Drilling, Inc.