Press Release
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Diamond Offshore Drilling Inc. Announces Second Quarter 2002 Earnings
For the six months ended June 30, 2002, the Company reported net income of $34.5 million, or $0.26 per share on a diluted basis, compared to net income of $80.6 million, or $0.59 per share on a diluted basis for the same period in 2001. Revenue for the six months ended June 30, 2002 were $373.3 million compared to revenues of $432.6 million for the first six months of 2001.
As of June 30, 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.
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 second 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 July 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 Six Months Ended
June 30, June 30,
------------------------------------------------
2002 2001 2002 2001
------ ------ ------ ------
Revenues $179,674 $227,331 $373,342 $432,556
Operating expenses:
Contract drilling 119,592 114,556 239,916 223,253
Depreciation and
amortization 44,585 42,171 87,282 83,730
General and
administrative 7,440 6,079 14,088 12,966
-------- -------- -------- --------
Total operating
expenses 171,617 162,806 341,286 319,949
-------- -------- -------- --------
Operating income 8,057 64,525 32,056 112,607
Other income
(expense):
Gain on sale of
assets 33 88 65 209
Interest income 7,651 11,593 17,232 23,280
Interest expense (6,290) (6,119) (11,760) (14,437)
Other, net 9,120 (4,953) 13,480 (1,848)
-------- -------- -------- --------
Income before
income tax expense 18,571 65,134 51,073 119,811
Income tax expense (6,609) (21,374) (16,553) (39,223)
-------- -------- -------- --------
Net income $11,962 $43,760 $34,520 $80,588
======== ======== ======== ========
Earnings per share:
Basic $0.09 $0.33 $0.26 $0.60
======== ======== ======== ========
Diluted $0.09 $0.32 $0.26 $0.59
======== ======== ======== ========
Weighted average
shares outstanding
Common shares 131,553 133,447 131,669 133,307
Dilutive
potential
common shares 8 8,895 9,426 9,372
-------- -------- -------- --------
Total
weighted
average
shares
outstanding 131,561 142,342 141,095 142,679
======== ======== ======== ========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
June 30,
----------------------
2002 2001
----------------------
REVENUES
High Specification Floaters $75,748 $82,552
Other Semisubmersibles 73,977 97,062
Jack-ups 26,839 47,490
Integrated Services 4,406 18
Other (436) 209
Eliminations (860) --
--------- ---------
Total Revenues $179,674 $227,331
========= =========
CONTRACT DRILLING EXPENSE
High Specification Floaters $39,325 $31,520
Other Semisubmersibles 53,060 55,983
Jack-ups 22,678 26,318
Integrated Services 4,689 (181)
Other 700 916
Eliminations (860) --
--------- ---------
Total Contract Drilling Expense $119,592 $114,556
========= =========
OPERATING INCOME
High Specification Floaters $36,423 $51,032
Other Semisubmersibles 20,917 41,079
Jack-ups 4,161 21,172
Integrated Services (283) 199
Other (1,136) (707)
Depreciation and Amortization Expense (44,585) (42,171)
General and Administrative Expense (7,440) (6,079)
--------- ---------
Total Operating Income $8,057 $64,525
========= =========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, Dec. 31,
----------------------------
2002 2001
---------- ----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $448,739 $398,990
Marketable securities 762,909 748,387
Accounts receivable 170,208 193,653
Rig inventory and supplies 40,754 40,814
Prepaid expenses and other 33,002 45,571
---------- ----------
Total current assets 1,455,612 1,427,415
Drilling and other property
and equipment, net of
accumulated depreciation 2,032,131 2,002,873
Goodwill, net of accumulated
amortization 31,522 38,329
Other assets 32,694 33,900
---------- ----------
Total assets $3,551,959 $3,502,517
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Securities sold under
repurchase agreements $252,188 $199,062
Other current liabilities 143,809 135,954
---------- ----------
Total current liabilities 395,997 335,016
Long-term debt 928,068 920,636
Deferred tax liability 379,815 376,095
Other liabilities 14,361 17,624
Stockholders' equity 1,833,718 1,853,146
---------- ----------
Total liabilities and
stockholders' equity $3,551,959 $3,502,517
========== ==========
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Second Quarter First Quarter Second Quarter
2002 2002 2001
--------------------------------------------------
Dayrate Utili- Dayrate Utili- Dayrate Utili-
zation zation zation
--------------------------------------------------
(Dayrate in
thousands)
High Specification
Floaters $115 80% $116 88% $118 96%
Other
Semisubmersibles $72 54% $68 69% $65 75%
Jack-ups $29 74% $30 78% $44 85%
CONTACT: Diamond Offshore Drilling Inc., Houston Caren W. Steffes, 281/492-5393
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