Press Release
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Diamond Offshore Announces Fourth Quarter 2012 Results
During the fourth quarter, the Company reclassified its four
cold-stacked rigs as held for sale and recognized an after-tax
impairment charge of
The effective tax rate for the quarter was 15.9 percent, compared with 7.4 percent in the fourth quarter of 2011. Lower tax expense in the prior-year quarter was driven by a reduction of the Company’s liability for uncertain tax positions. The full-year 2012 effective tax rate was 21.5 percent versus the prior-year effective tax rate of 18.4 percent.
For the full-year 2012, the Company reported net income of
“Our results for the fourth quarter and full year reflect our continuing
efforts to manage operating costs across the fleet,” said
The Company announced that the Ocean Patriot was awarded a
three-year contract in the
“The opportunity to upgrade the Ocean Patriot to work for our
customer Shell in the
Capital expenditures for the six rigs currently under construction
totaled
CONFERENCE CALL
ABOUT
FORWARD-LOOKING STATEMENTS
Maximum contract revenue as stated above assumes 100% rig utilization.
Generally, rig utilization rates approach 92-98% during contracted
periods; however, utilization rates can be adversely impacted by
additional downtime due to unscheduled repairs, maintenance and weather.
Additional information on
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 future revenues and backlog, future performance
under contract awards and extensions, future operating costs and
expenses, future operations and dayrates, future financial condition,
market outlook and future market conditions, future rig construction and
upgrades and expected expenditures therefor, and future contracting
opportunities. 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) |
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(In thousands, except per share data) |
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Three Months Ended |
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Twelve Months Ended |
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December 31, |
|
December 31, |
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2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Revenues: | |||||||||||||||||||||
Contract drilling | $ | 740,623 | $ | 734,283 | $ | 2,936,066 | $ | 3,254,313 | |||||||||||||
Revenues related to reimbursable expenses | 9,914 | 14,074 | 50,442 | 68,106 | |||||||||||||||||
Total revenues | 750,537 | 748,357 | 2,986,508 | 3,322,419 | |||||||||||||||||
Operating expenses: | |||||||||||||||||||||
Contract drilling, excluding depreciation | 377,589 | 406,763 | 1,537,224 | 1,548,502 | |||||||||||||||||
Reimbursable expenses | 9,427 | 13,609 | 48,778 | 66,052 | |||||||||||||||||
Depreciation | 92,844 | 95,089 | 392,913 | 398,612 | |||||||||||||||||
General and administrative | 14,837 | 16,334 | 64,640 | 65,310 | |||||||||||||||||
Impairment of assets | 62,437 | -- | 62,437 | -- | |||||||||||||||||
Bad debt recovery | -- | (1,300 | ) | (1,018 | ) | (6,713 | ) | ||||||||||||||
Gain on disposition of assets | (1,559 | ) | (414 | ) | (80,844 | ) | (4,758 | ) | |||||||||||||
Total operating expenses | 555,575 | 530,081 | 2,024,130 | 2,067,005 | |||||||||||||||||
Operating income | 194,962 | 218,276 | 962,378 | 1,255,414 | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest income | 858 | 3,103 | 4,910 | 6,668 | |||||||||||||||||
Interest expense | (9,436 | ) | (12,993 | ) | (46,216 | ) | (73,137 | ) | |||||||||||||
Foreign currency transaction gain (loss) | (1,118 | ) | (3,985 | ) | (1,999 | ) | (8,588 | ) | |||||||||||||
Other, net | (225 | ) | (854 | ) | (992 | ) | (1,086 | ) | |||||||||||||
Income before income tax expense | 185,041 | 203,547 | 918,081 | 1,179,271 | |||||||||||||||||
Income tax expense | (29,380 | ) | (15,057 | ) | (197,604 | ) | (216,729 | ) | |||||||||||||
Net Income | $ | 155,661 | $ | 188,490 | $ | 720,477 | $ | 962,542 | |||||||||||||
Income per share: | |||||||||||||||||||||
Basic | $ | 1.12 | $ | 1.36 | $ | 5.18 | $ | 6.92 | |||||||||||||
Diluted | $ | 1.12 | $ | 1.36 | $ | 5.18 | $ | 6.92 | |||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||
Shares of common stock | 139,031 | 139,027 | 139,029 | 139,027 | |||||||||||||||||
Dilutive potential shares of common stock | 31 | 9 | 19 | 11 | |||||||||||||||||
Total weighted average shares outstanding | 139,062 | 139,036 | 139,048 | 139,038 | |||||||||||||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||||||||||||
RESULTS OF OPERATIONS | ||||||||||||||||
(Unaudited) |
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(In thousands) |
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|
Three Months Ended |
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|
Dec 31, | Sep 30, | Dec 31, | |||||||||||||
2012 | 2012 | 2011 | ||||||||||||||
REVENUES | ||||||||||||||||
Floaters: | ||||||||||||||||
Ultra-Deepwater | $ | 229,560 | $ | 195,574 | $ | 189,148 | ||||||||||
Deepwater | 145,310 | 163,816 | 190,615 | |||||||||||||
Mid-water | 326,520 | 319,491 | 312,256 | |||||||||||||
Total Floaters | 701,390 | 678,881 | 692,019 | |||||||||||||
Jack-ups | 39,233 | 35,146 | 42,264 | |||||||||||||
Total Contract Drilling Revenue | $ | 740,623 | $ | 714,027 | $ | 734,283 | ||||||||||
Revenues Related to Reimbursable Expenses |
$ |
9,914 |
$ |
15,114 |
$ |
14,074 |
||||||||||
CONTRACT DRILLING EXPENSE | ||||||||||||||||
Floaters: | ||||||||||||||||
Ultra-Deepwater | $ | 135,837 | $ | 132,705 | $ | 132,187 | ||||||||||
Deepwater | 67,772 | 58,029 | 52,843 | |||||||||||||
Mid-water | 143,124 | 135,935 | 169,481 | |||||||||||||
Total Floaters | 346,733 | 326,669 | 354,511 | |||||||||||||
Jack-ups | 21,582 | 24,245 | 45,597 | |||||||||||||
Other | 9,274 | 6,367 | 6,655 | |||||||||||||
Total Contract Drilling Expense | $ | 377,589 | $ | 357,281 | $ | 406,763 | ||||||||||
Reimbursable Expenses | $ | 9,427 | $ | 14,563 | $ | 13,609 | ||||||||||
OPERATING INCOME | ||||||||||||||||
Floaters: | ||||||||||||||||
Ultra-Deepwater | $ | 93,723 | $ | 62,869 | $ | 56,961 | ||||||||||
Deepwater | 77,538 | 105,787 | 137,772 | |||||||||||||
Mid-water | 183,396 | 183,556 | 142,775 | |||||||||||||
Total Floaters | 354,657 | 352,212 | 337,508 | |||||||||||||
Jack-ups | 17,651 | 10,901 | (3,333 | ) | ||||||||||||
Other | (9,274 | ) | (6,367 | ) | (6,655 | ) | ||||||||||
Reimbursable expenses, net | 487 | 551 | 465 | |||||||||||||
Depreciation | (92,844 | ) | (99,207 | ) | (95,089 | ) | ||||||||||
General and administrative expense | (14,837 | ) | (13,476 | ) | (16,334 | ) | ||||||||||
Impairment of assets | (62,437 | ) | -- | -- | ||||||||||||
Bad debt recovery | -- | -- | 1,300 | |||||||||||||
Gain on disposition of assets | 1,559 | 208 | 414 | |||||||||||||
Total Operating Income | $ | 194,962 | $ | 244,822 | $ | 218,276 | ||||||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | 335,432 | $ | 333,765 | |||||||||
Marketable securities | 1,150,158 | 902,414 | |||||||||||
Accounts receivable, net of allowance for bad debts | 499,660 | 563,934 | |||||||||||
Prepaid expenses and other current assets | 136,099 | 192,570 | |||||||||||
|
Assets held for sale | 11,594 | -- | ||||||||||
Total current assets | 2,132,943 | 1,992,683 | |||||||||||
Drilling and other property and equipment, net of accumulated depreciation |
4,864,972 | 4,667,469 | |||||||||||
Other assets | 237,371 | 304,005 | |||||||||||
Total assets | $ | 7,235,286 | $ | 6,964,157 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current liabilities | $ | 485,546 | $ | 427,291 | |||||||||
Long-term debt | 1,496,066 | 1,495,823 | |||||||||||
Deferred tax liability | 490,946 | 536,815 | |||||||||||
Other liabilities | 186,334 | 171,165 | |||||||||||
Stockholders’ equity | 4,576,394 | 4,333,063 | |||||||||||
Total liabilities and stockholders’ equity | $ | 7,235,286 | $ | 6,964,157 | |||||||||
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | |||||||||||||||||||
AVERAGE DAYRATES AND UTILIZATION | |||||||||||||||||||
(Dayrate in thousands) |
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Fourth Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||
2012 | 2012 | 2011 | |||||||||||||||||
Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | ||||||||||||||
Ultra-Deepwater Floaters | $348 | 89% | $354 | 75% | $356 | 70% | |||||||||||||
Deepwater Floaters | $372 | 85% | $373 | 95% | $422 | 97% | |||||||||||||
Mid-Water Floaters | $268 | 70% | $258 | 71% | $271 | 60% | |||||||||||||
Jack-Ups | $85 | 71% | $98 | 56% | $79 | 36% |
Source:
Diamond Offshore Drilling, Inc.
Darren Daugherty, 281-492-5370
Director,
Investor Relations