Diamond Offshore Announces Fourth Quarter 2013 Results

            Diamond Offshore Announces Fourth Quarter 2013 Results

PR Newswire

HOUSTON, Feb. 6, 2014

HOUSTON, Feb. 6, 2014 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE:
DO) today reported net income for the fourth quarter of 2013 of $93 million,
or $0.67 per share. Results for the fourth quarter were negatively impacted by
$0.41 per share to reserve for an uncertain tax position related to Egyptian
operations. Partially offsetting this reserve was revenue recognized in
connection with a settlement agreement with a customer, resulting in a gain of
$0.12 per share, after tax.

In the fourth quarter of 2012, Diamond Offshore reported net income of $156
million, or $1.12 per share, which included an after-tax impairment charge of
$40.6 million, or $0.29 per share, related to the reclassification of four
cold-stacked rigs as held for sale. Revenues in the fourth quarter of 2013
were $726 million, compared with revenues of $751 million in the prior year
quarter.

For the full year 2013, the Company reported net income of $549 million, or
$3.95 per share, compared with net income of $720 million, or $5.18 per share,
in 2012. Revenues for the full year 2013 were $2.920 billion, compared with
$2.987 billion in 2012.

"We have taken delivery of the Ocean BlackHawk, the first of our four newbuild
ultra-deepwater drillships," announced Larry Dickerson, President and Chief
Executive Officer of Diamond Offshore. "The rig will soon be on its way to
the U.S. Gulf of Mexico, where it will begin a five year contract with
Anadarko. Additionally, our deepwater semi Ocean Onyx has been delivered by
the shipyard and is currently on location in the U.S. Gulf working for
Apache. These rig deliveries represent important milestones for Diamond's
ongoing fleet renewal program."

"Additionally, our operating results for the quarter and the full year reflect
our ongoing focus on managing costs and reducing downtime," said Dickerson.

Capital expenditures for newbuilds, upgrades and maintenance, but excluding
capitalized interest, totaled $1.0 billion in 2013, and are expected to total
$2.1 billion in 2014.

CONFERENCE CALL

A conference call to discuss Diamond Offshore's earnings results has been
scheduled for 9:00 a.m. CST 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 31346715. 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 five rigs under construction. Diamond
Offshore's fleet consists of 33 semisubmersibles, two of which are under
construction, five dynamically positioned drillships, three of which are under
construction, and seven jack-ups. Additional information about the Company and
access to the Company's SEC filings are available 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
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 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, 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.

(Logo: http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b )

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

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
                            Three Months Ended    Twelve Months Ended
                            December 31,          December 31,
                          2013          2012         2013         2012
   Revenues:
    Contract   $    707,972  $   740,623  $   2,843,584 $   2,936,066
   drilling
    Revenues
   related to                18,525       9,914        76,837        50,442
   reimbursable
   expenses
         726,497      750,537      2,920,421     2,986,508
   Total revenues
   Operating expenses:
    Contract
   drilling, excluding       408,907      377,589      1,572,525     1,537,224
   depreciation
   
   Reimbursable              17,969       9,427        74,967        48,778
   expenses
                   96,985       92,844       388,092       392,913
   Depreciation
    General        16,298       14,837       64,788        64,640
   and administrative
                   --              62,437        --          62,437
   Impairment of assets
    Bad debt       (50)         --           22,513        (1,018)
   expense (recovery)
    Gain on
   disposition of            (1,281)      (1,559)      (4,070)       (80,844)
   assets
   
   Total operating           538,828      555,575      2,118,815     2,024,130
   expenses
   Operating income          187,669      194,962      801,606       962,378
   Other income
   (expense):
    Interest       (323)        858          701           4,910
   income
    Interest       (7,130)      (9,436)      (24,843)      (46,216)
   expense
   Foreign currency          (966)        (1,118)      (4,915)       (1,999)
   transaction loss
    Other,         945          (225)        1,691         (992)
   net
   Income before income      180,195      185,041      774,240       918,081
   tax expense
   Income tax expense        (87,580)     (29,380)     (225,554)     (197,604)
   Net Income           $    92,615   $   155,661  $   548,686   $   720,477
   Income per share     $    0.67     $   1.12     $   3.95      $   5.18
   Weighted average
   shares outstanding:
   Shares of common         139,035      139,031      139,035      139,029
   stock
   Dilutive potential
   shares of common          12           31           29           19
   stock
    Total
   weighted average          139,047      139,062      139,064      139,048
   shares outstanding

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
                                          Three Months Ended
                                          Dec 31,    Sep 30,    Dec 31,
                                          2013       2013       2012
REVENUES
Floaters:
 Ultra-Deepwater                        $ 236,842  $ 195,215  $ 229,560
 Deepwater                               121,222    147,333    145,310
 Mid-water                               306,485    297,368    326,520
 Total Floaters                        664,549    639,916    701,390
 Jack-ups                                  43,423     50,825     39,233
Total Contract Drilling Revenue           $ 707,972  $ 690,741  $ 740,623
Revenues Related to Reimbursable Expenses $ 18,525   $ 15,424   $ 9,914
CONTRACT DRILLING EXPENSE
Floaters:
 Ultra-Deepwater                        $ 135,153  $ 139,689  $ 135,837
 Deepwater                               76,649     74,609     67,772
 Mid-water                               156,075    165,518    143,124
 Total Floaters                        367,877    379,816    346,733
 Jack-ups                                  29,349     28,685     21,582
 Other                                     11,681     10,987     9,274
Total Contract Drilling Expense           $ 408,907  $ 419,488  $ 377,589
Reimbursable Expenses                     $ 17,969   $ 14,904   $ 9,427
OPERATING INCOME
Floaters:
 Ultra-Deepwater                        $ 101,689  $ 55,526   $ 93,723
 Deepwater                               44,573     72,724     77,538
 Mid-water                               150,410    131,850    183,396
 Total Floaters                        296,672    260,100    354,657
 Jack-ups                                  14,074     22,140     17,651
 Other                                     (11,681)   (10,987)   (9,274)
 Reimbursable expenses, net                556        520        487
 Depreciation                              (96,985)   (97,143)   (92,844)
 General and administrative expense        (16,298)   (15,240)   (14,837)
 Impairment of assets                      --         --         (62,437)
 Bad debt recovery (expense)               50         (22,563)   --
 Gain on disposition of assets             1,281      525        1,559
 Total Operating Income          $ 187,669  $ 137,352  $ 194,962







DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
                                                     December 31, December 31,
                                                     2013           2012
ASSETS
Current assets:
 Cash and cash equivalents                         $ 347,011    $   335,432
 Marketable securities                               1,750,053      1,150,158
 Accounts receivable, net of allowance for bad       469,355        499,660
 debts
 Prepaid expenses and other current assets           143,997        136,099
 Assets held for sale                                7,694          11,594
    Total current assets                             2,718,110      2,132,943
Drilling and other property and equipment, net of
 accumulated depreciation                        5,467,227      4,864,972
Other assets                                         206,097        237,371
    Total assets                                   $ 8,391,434  $   7,235,286
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt                  $ 249,954    $   --
Other current liabilities                            495,628        485,546
Long-term debt                                       2,244,189      1,496,066
Deferred tax liability                               525,541        490,946
Other liabilities                                    238,864        186,334
Stockholders' equity                                 4,637,258      4,576,394
    Total liabilities and stockholders' equity     $ 8,391,434  $   7,235,286

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
(Dayrate in thousands)
                Fourth Quarter (a)     Third Quarter (a)   Fourth Quarter
                2013                   2013                2012
                   Dayrate Utilization Dayrate Utilization Dayrate Utilization
Ultra-Deepwater    $350    91%         $284    93%         $348    89%
Floaters
Deepwater Floaters $402    65%         $380    84%         $372    85%
Mid-Water Floaters $277    66%         $258    68%         $268    70%
Jack-Ups           $87     76%         $93     84%         $85     71%

(a) Dayrate and utilization calculations include revenue earning days for
which revenue was not recognized pursuant to GAAP. These days by rig category
are ultra-deepwater floaters: Q4-82 days, Q3-88 days; deepwater floaters:
Q3-31 days; and mid-water floaters: Q4-42 days, Q3-94 days.

SOURCE Diamond Offshore Drilling, Inc.

Website: http://www.diamondoffshore.com
 
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