Press Release
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Diamond Offshore Drilling Inc. Announces Fourth Quarter 2001 Earnings
For the year ended December 31, 2001, the Company reported net income before extraordinary items of $181.5 million, or $1.31 per share on a diluted basis compared to net income of $72.3 million, or $0.53 per share on a diluted basis for the same period in 2000. Revenues for the year ended December 31, 2001 were $885.3 million compared to revenues of $659.4 million for the year ended 2000. Net income after extraordinary items related to the early retirement of debt was $173.8 million, or $1.26 per share on a diluted basis, for the year ended December 31, 2001.
As of December 31, 2001, there were 132.1 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 2001, the Company repurchased 1.4 million shares of its common stock at an aggregate cost of $37.8 million, of which during the fourth quarter of 2001 the Company repurchased 0.04 million shares of its common stock at an aggregate cost of $1.0 million.
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.
Diamond Offshore will provide an online, real-time simulcast and rebroadcast of its 2001 fourth 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 January 22, 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 include, but are not limited to, statements concerning the repurchase of the Company's common stock in the open market. Such statements 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
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $222,157 $190,943 $885,349 $659,436
Operating expenses:
Contract drilling 125,985 118,091 464,964 433,091
Depreciation and
amortization 43,144 35,096 170,017 145,596
General and
administrative 6,482 5,950 25,502 23,803
-------- -------- -------- --------
Total operating
expenses 175,611 159,137 660,483 602,490
-------- -------- -------- --------
Operating income 46,546 31,806 224,866 56,946
Other income (expense):
Gain on sale of assets 35 93 327 14,324
Interest income 12,246 14,288 48,682 49,525
Interest expense (5,841) (3,570) (26,205) (10,272)
Other, net 8,258 1,081 24,695 344
-------- -------- -------- --------
Income before income tax
expense and
extraordinary item 61,244 43,698 272,365 110,867
Income tax expense (21,436) (15,019) (90,820) (38,586)
-------- -------- -------- --------
Income before
extraordinary item 39,808 28,679 181,545 72,281
-------- -------- -------- --------
Extraordinary item-loss on
early debt extinguishment,
less applicable income
tax of $4,158 -- -- (7,722) --
-------- -------- -------- --------
Net income $39,808 $28,679 $173,823 $72,281
======== ======== ======== ========
Earnings per share:
Basic
Income before
extraordinary item $0.30 $0.21 $1.37 $0.53
Extraordinary item -- -- (0.06) --
-------- -------- -------- --------
Net $0.30 $0.21 $1.31 $0.53
======== ======== ======== ========
Diluted
Income before
extraordinary item $0.29 $0.20 $1.31 $0.53
Extraordinary item -- -- (0.05) --
-------- -------- -------- --------
Net $0.29 $0.20 $1.26 $0.53
======== ======== ======== ========
Weighted average shares
outstanding
Common shares 132,054 133,976 132,886 135,164
Dilutive potential
common shares 9,645 16,837 16,408 9,876
-------- -------- -------- --------
Total weighted average
shares outstanding 141,699 150,813 149,294 145,040
======== ======== ======== ========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(In thousands)
Three Months Ended
December 31,
------------------------
2001 2000
--------- ---------
REVENUES
High Specification Floaters $86,449 $58,364
Other Semisubmersibles 98,479 82,550
Jack-ups 35,295 39,501
Integrated Services 2,254 14,458
Other 337 627
Eliminations (657) (4,557)
--------- ---------
Total Revenues $222,157 $190,943
========= =========
CONTRACT DRILLING EXPENSE
High Specification Floaters $32,409 $24,466
Other Semisubmersibles 61,702 57,430
Jack-ups 30,803 26,512
Integrated Services 1,968 12,334
Other (240) 1,906
Eliminations (657) (4,557)
--------- ---------
Total Contract Drilling Expense $125,985 $118,091
========= =========
OPERATING INCOME
High Specification Floaters $54,040 $33,898
Other Semisubmersibles 36,777 25,120
Jack-ups 4,492 12,989
Integrated Services 286 2,124
Other 577 (1,279)
Depreciation and Amortization
Expense (43,144) (35,096)
General and Administrative Expense (6,482) (5,950)
--------- ---------
Total Operating Income $46,546 $31,806
========= =========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Dec. 31, Dec. 31,
---------- ----------
2001 2000
ASSETS ---------- ----------
Current assets:
Cash and cash equivalents $398,990 $144,456
Marketable securities 748,387 717,678
Accounts receivable 193,653 153,452
Rig inventory and supplies 40,814 40,698
Prepaid expenses and other 45,571 15,906
---------- ----------
Total current assets 1,427,415 1,072,190
Drilling and other property
and equipment, net of
accumulated depreciation 2,002,873 1,931,182
Goodwill, net of accumulated
amortization 38,329 55,205
Other assets 33,900 20,929
---------- ----------
Total assets $3,502,517 $3,079,506
========== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Securities sold under
repurchase agreements $199,062 $ --
Other current liabilities 135,954 123,013
---------- ----------
Total current liabilities 335,016 123,013
Long-term debt 920,636 856,559
Deferred tax liability 376,095 316,627
Other liabilities 17,624 15,454
Stockholders' equity 1,853,146 1,767,853
---------- ----------
Total liabilities and
stockholders' equity $3,502,517 $3,079,506
========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Fourth Quarter Third Quarter Fourth Quarter
2001 2001 2000
------------------------------------------------------
Dayrate Utili- Dayrate Utili- Dayrate Utili-
zation zation zation
------------------------------------------------------
(Dayrate in thousands)
High
Specification
Floaters $120 98% $121 91% $96 94%
Other
Semi-
submersibles $70 69% $67 74% $63 65%
Jack-ups $35 77% $45 84% $35 87%
CONTACT: Diamond Offshore Drilling Inc., Houston
Caren W. Steffes, 281/492-5393