Press Release
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Diamond Offshore Drilling Inc. Announces First Quarter 2002 Earnings
HOUSTON, Apr 18, 2002 (BUSINESS WIRE) -- Diamond Offshore Drilling Inc. (NYSE:DO) today reported net income of $22.6 million, or $0.17 per share on a diluted basis, on revenues of $193.7 million for the first quarter of 2002, compared to net income of $36.8 million, or $0.27 per share on a diluted basis, on revenues of $205.2 million for the first quarter of 2001.
The Company also announced the delivery of the "Ocean Baroness," an ultra-deepwater upgraded semisubmersible, which began its short term contract with Murphy Sabah Oil Co. Ltd. offshore Malaysia in March 2002. The "Baroness" has been upgraded for operations in excess of 7,000 feet of water and is designed for development and extended reach drilling. The cost to complete the ultra-deepwater upgrade of the "Ocean Baroness" rig was approximately $170 million. The adaptability and structural soundness of the original Victory Class hull design contributed to the cost-effectiveness and timeliness of the upgrade.
A second Victory Class rig, the "Ocean Rover," arrived in a Singapore shipyard in January 2002 to begin its upgrade to similar deepwater specifications. The upgrade is expected to be completed in the third quarter of 2003 at a cost of approximately $200 million.
As of March 31, 2002, there were 131.6 million common shares 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. During the first quarter of 2002, the Company purchased 500,000 shares of its common stock upon the exercise of put options that were sold in February 2001.
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 2002 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 18, 2002, 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 the Private Securities Litigation Reform Act of 1995 are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those 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 filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.
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 INCOME
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
----------------------
2002 2001
--------- ---------
Revenues $193,668 $205,225
Operating expenses:
Contract drilling 120,324 108,697
Depreciation and amortization 42,697 41,559
General and administrative 6,648 6,887
--------- ---------
Total operating expenses 169,669 157,143
--------- ---------
Operating income 23,999 48,082
Other income (expense):
Gain on sale of assets 32 121
Interest income 9,581 11,687
Interest expense (5,470) (8,318)
Other, net 4,360 3,105
--------- ---------
Income before income tax expense 32,502 54,677
Income tax expense (9,944) (17,849)
--------- ---------
Net income $22,558 $36,828
========= =========
Earnings per share:
Basic $0.17 $0.28
========= =========
Diluted $0.17 $0.27
========= =========
Weighted average shares outstanding:
Common shares 131,786 133,165
Dilutive potential common shares 9,482 9,862
--------- ---------
Total weighted average shares outstanding 141,268 143,027
========= =========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
March 31,
----------------------
2002 2001
--------- ---------
REVENUES
High Specification Floaters $74,647 $76,666
Other Semisubmersibles 88,080 80,969
Jack-ups 29,500 43,468
Integrated Services 1,823 5,490
Eliminations (382) (1,368)
--------- ---------
Total Revenues $193,668 $205,225
========= =========
CONTRACT DRILLING EXPENSE
High Specification Floaters $35,323 $28,059
Other Semisubmersibles 56,528 50,487
Jack-ups 25,609 25,385
Integrated Services 2,841 5,155
Other 405 979
Eliminations (382) (1,368)
--------- ---------
Total Contract Drilling Expense $120,324 $108,697
========= =========
OPERATING INCOME
High Specification Floaters $39,324 $48,607
Other Semisubmersibles 31,552 30,482
Jack-ups 3,891 18,083
Integrated Services (1,018) 335
Other (405) (979)
Depreciation and Amortization Expense (42,697) (41,559)
General and Administrative Expense (6,648) (6,887)
--------- ---------
Total Operating Income $23,999 $48,082
========= =========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, Dec. 31,
---------- ----------
2002 2001
---------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $249,755 $398,990
Marketable securities 715,842 748,387
Accounts receivable 160,929 193,653
Rig inventory and supplies 40,837 40,814
Prepaid expenses and other 26,750 45,571
---------- ----------
Total current assets 1,194,113 1,427,415
Drilling and other property
and equipment, net of
accumulated depreciation 2,016,493 2,002,873
Goodwill, net of accumulated
amortization 34,926 38,329
Other assets 33,124 33,900
---------- ----------
Total assets $3,278,656 $3,502,517
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Securities sold under
repurchase agreements $ -- $199,062
Other current liabilities 133,754 135,954
---------- ----------
Total current liabilities 133,754 335,016
Long-term debt 924,343 920,636
Deferred tax liability 375,796 376,095
Other liabilities 13,371 17,624
Stockholders' equity 1,831,392 1,853,146
---------- ----------
Total liabilities and
stockholders' equity $3,278,656 $3,502,517
========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
First Quarter Fourth Quarter First Quarter
2002 2001 2001
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Dayrate Utili- Dayrate Utili- Dayrate Utili-
zation zation zation
------------------------------------------------------
(Dayrate in thousands)
High
Specification
Floaters $116 88% $120 98% $112 95%
Other
Semisubmersibles $68 69% $70 69% $65 63%
Jack-ups $30 78% $35 77% $40 87%
CONTACT: Diamond Offshore Drilling Inc., Houston Caren W. Steffes, 281/492-5393