Diamond Offshore Announces First Quarter 2014 Results PR Newswire HOUSTON, April 24, 2014 HOUSTON, April 24, 2014 /PRNewswire/ --Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net income for the first quarter of 2014 of $146 million, or $1.05 per share, compared with net income of $176 million, or $1.27 per share, in the same period a year earlier. Results for the quarter benefited from a $17 million, or $0.12 per share, credit to tax expense related to a settlement of certain disputes with Egyptian tax authorities. Revenues in the first quarter of 2014 were $709 million, compared with revenues of $730 million in the prior-year quarter. Diamond Offshore Drilling, Inc. Logo. "I am pleased to begin my tenure at Diamond Offshore with very solid first quarter results," said Marc Edwards, President and Chief Executive Officer. "Diamond Offshore has added new capacity and upgraded its fleet while maintaining the highest credit rating and strongest balance sheet amongst its peers. This places us in a strong position to navigate through any downturn, and take advantage of strategic opportunities that may materialize. We remain focused on delivering superior financial performance and providing sector-leading shareholder returns." At March 31, 2014, Diamond Offshore had 137,170,137 shares of common stock outstanding. During the three months ended March 31, 2014, the Company purchased 1,865,311 shares of its common stock at an aggregate cost of $86.4 million. From April 1, 2014 to April 23, 2014 the Company repurchased an additional 30,250 shares of its common stock at an aggregate cost of $1.4 million. CONFERENCE CALL A conference call to discuss Diamond Offshore's earnings results has been scheduled for 9:00 a.m. CDT 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 25367618. 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 51% 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 strategic opportunities and future performance, shareholder returns, financial performance and market conditions. 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. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended March 31, 2014 2013 Revenues: Contract drilling $ 685,308 $ 699,973 Revenues related to reimbursable expenses 24,116 29,768 Total revenues 709,424 729,741 Operating expenses: Contract drilling, excluding depreciation 369,790 375,094 Reimbursable expenses 23,666 29,289 Depreciation 107,011 96,821 General and administrative 22,827 16,815 Gain on disposition of assets (147) (2,004) Total operating expenses 523,147 516,015 Operating income 186,277 213,726 Other income (expense): Interest income 408 617 Interest expense (18,155) (8,069) Foreign currency transaction gain (loss) (1,178) 159 Other, net 327 (254) Income before income tax expense 167,679 206,179 Income tax expense (21,869) (30,190) Net income $ 145,810 $ 175,989 Income per share $ 1.05 $ 1.27 Weighted average shares outstanding: Shares of common stock 138,469 139,032 Dilutive potential shares of common stock 4 49 Total weighted average shares 138,473 139,081 outstanding DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands) Three Months Ended Mar 31, Dec 31, Mar 31, 2014 2013 2013 REVENUES Floaters: Ultra-Deepwater $ 205,794 $ 236,842 $ 191,357 Deepwater 146,559 121,222 164,420 Mid-Water 285,979 306,485 305,221 Total Floaters 638,332 664,549 660,998 Jack-ups 46,976 43,423 38,975 Total Contract Drilling Revenue $ 685,308 $ 707,972 $ 699,973 Revenues Related to Reimbursable Expenses $ 24,116 $ 18,525 $ 29,768 CONTRACT DRILLING EXPENSE Floaters: Ultra-Deepwater $ 123,530 $ 135,153 $ 135,776 Deepwater 71,949 76,649 56,436 Mid-Water 134,046 156,075 143,647 Total Floaters 329,525 367,877 335,859 Jack-ups 28,029 29,349 29,667 Other 12,236 11,681 9,568 Total Contract Drilling Expense $ 369,790 $ 408,907 $ 375,094 Reimbursable Expenses $ 23,666 $ 17,969 $ 29,289 OPERATING INCOME Floaters: Ultra-Deepwater $ 82,264 $ 101,689 $ 55,581 Deepwater 74,610 44,573 107,984 Mid-Water 151,933 150,410 161,574 Total Floaters 308,807 296,672 325,139 Jack-ups 18,947 14,074 9,308 Other (12,236) (11,681) (9,568) Reimbursable expenses, net 450 556 479 Depreciation (107,011) (96,985) (96,821) General and administrative expense (22,827) (16,298) (16,815) Bad debt recovery -- 50 -- Gain on disposition of assets 147 1,281 2,004 Total Operating Income $ 186,277 $ 187,669 $ 213,726 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) March 31, December 31, 2014 2013 ASSETS Current assets: Cash and cash equivalents $ 420,140 $ 347,011 Marketable securities 1,175,135 1,750,053 Accounts receivable, net of allowance for bad 416,177 469,355 debts Prepaid expenses and other current assets 146,510 143,997 Assets held for sale 7,694 7,694 Total current assets 2,165,656 2,718,110 Drilling and other property and equipment, net of accumulated depreciation 5,954,496 5,467,227 Other assets 207,835 206,097 Total assets $ 8,327,987 $ 8,391,434 LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt $ 249,973 $ 249,954 Other current liabilities 504,487 495,628 Long-term debt 2,244,262 2,244,189 Deferred tax liability 531,988 525,541 Other liabilities 219,186 238,864 Stockholders' equity 4,578,091 4,637,258 Total liabilities and stockholders' equity $ 8,327,987 $ 8,391,434 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES AVERAGE DAYRATES AND UTILIZATION (Dayrate in thousands) First Quarter Fourth Quarter (a) First Quarter 2014 2013 2013 Dayrate Utilization Dayrate Utilization Dayrate Utilization Ultra-Deepwater $387 66% $350 91% $360 73% Floaters Deepwater Floaters $418 64% $402 65% $389 94% Mid-Water Floaters $276 64% $277 66% $262 64% Jack-Ups $93 79% $87 76% $85 71% (a) Dayrate and utilization calculations include revenue earning days for which revenue was not recognized pursuant to GAAP. By rig category, these are 82 days in Q4 for ultra-deepwater floaters and 42 days in Q4 for mid-water floaters. Contact: Darren Daugherty Director, Investor Relations (281) 492-5370 Logo- http://photos.prnewswire.com/prnh/20130725/NY53104LOGO-b SOURCE Diamond Offshore Drilling, Inc. Website: http://www.diamondoffshore.com
Diamond Offshore Announces First Quarter 2014 Results
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