Diamond Offshore Announces First Quarter 2014 Results

            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  
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