HOUSTON, Nov. 2, 2015 /PRNewswire/ -- Diamond
Offshore Drilling, Inc. (NYSE: DO) today reported net income
of $136 million, or $0.99 per share, in the third quarter of 2015,
compared to $53 million, or
$0.38 per share, in the third quarter
of 2014. Revenues in the third quarter of 2015 were
$610 million, compared to revenues of
$738 million in the third quarter of
2014.
"I am pleased with our solid third quarter results, which
demonstrate Diamond Offshore's ability to execute on managing our
costs and controlling downtime," said Marc
Edwards, President and Chief Executive Officer.
"During the quarter, our three newbuild drillships delivered
operational efficiency of 99.3 percent, which directly benefits our
topline and improves project economics for our clients."
Diamond Offshore also confirmed the Ocean Guardian was
awarded a contract for a one-year term in the UK North Sea
beginning in March of 2016 at a rate of $220,000 per day.
The Company announced that it reached agreement with Petrobras
for contracts on the semisubmersible rig Ocean Alliance and
the drillship Ocean Clipper to be ended as of October 30, 2015, ahead of their original end
dates, in return for an additional 875 days of contract term on the
semisubmersible rig Ocean Courage. The additional term will
be at a rate of $380,000 per day,
representing revenue backlog of $333
million, and will extend the contract into mid-2020.
After export from Brazil, the
Ocean Alliance will be cold-stacked and the Ocean
Clipper will be retired and scrapped. The terminated
portions of the contracts represent a loss to revenue backlog of
approximately $91 million.
Diamond Offshore also announced that it has declared a regular
quarterly dividend of $0.125 per
share, payable on December 1, 2015 to
shareholders of record as of November 13,
2015.
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results
has been scheduled for 7:30 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 60130700. 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 33 offshore drilling rigs, including one rig
under construction. Diamond Offshore's fleet consists of 23
semisubmersibles, one of which is under construction, four
dynamically positioned drillships, and six 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 53% by Loews Corporation (NYSE: L).
FORWARD-LOOKING STATEMENTS
Contract revenue as stated above assumes 100% rig
utilization. Rig utilization rates vary depending on a
variety of circumstances, many of which are beyond the Company's
control. Rig utilization rates generally approach 92-98%
during contracted periods; however, utilization rates can be
adversely impacted by additional downtime due to various operating
factors, including, but not limited to, weather conditions and
unscheduled repairs and maintenance. Additional information
on the Company and access to the Company's SEC filings is available
at www.diamondoffshore.com.
Statements contained in this press release or made during the
above conference call 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 drilling rig deliveries, operations and
timing; contract effectiveness, effective dates and estimated
duration; plans regarding retirement and scrapping of drilling
rigs; future impairments; future dividends; expectations of future
backlog, revenue, operating costs and performance; future
liquidity, financial condition, market conditions, commodity prices
and strategic opportunities; revenue expected to result from
backlog; future credit ratings; future dayrates, future status,
start and end dates and future contracts and availability; future
contract opportunities and termination rights; contract
noncompliance by customers and other third parties; utilization,
surveys, downtime and other aspects of the Company's drilling rigs;
statements concerning customer discussions and outcomes thereof and
the impact of these and related events on the Company's operations
and revenues; rigs being upgraded or to be upgraded and rigs under
construction; and other statements that are not of historical
fact. 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 risk
factors include, among others, risks associated with worldwide
demand for drilling services, level of activity in the oil and gas
industry, renewing or replacing expired or terminated contracts,
contract cancellations and terminations, maintenance and
realization of backlog, competition and industry fleet capacity,
impairments and retirements, declaration of dividends, operating
risks, changes in tax laws and rates, regulatory initiatives and
compliance with governmental regulations, construction of new
builds, casualty losses, and various other factors, 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Contract drilling
|
$
|
599,036
|
$
|
727,888
|
$
|
1,816,055
|
$
|
2,062,750
|
Revenues related to reimbursable expenses
|
|
10,706
|
|
9,794
|
|
47,775
|
|
76,600
|
Total revenues
|
|
609,742
|
|
737,682
|
|
1,863,830
|
|
2,139,350
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Contract drilling, excluding depreciation
|
|
277,944
|
|
399,802
|
|
971,471
|
|
1,164,968
|
Reimbursable expenses
|
|
10,476
|
|
9,437
|
|
46,904
|
|
75,393
|
Depreciation
|
|
118,086
|
|
108,854
|
|
378,714
|
|
324,771
|
General and administrative
|
|
16,888
|
|
18,604
|
|
50,888
|
|
61,909
|
Impairment of assets
|
|
2,546
|
|
109,462
|
|
361,074
|
|
109,462
|
Restructuring and separation costs
|
|
1,574
|
|
--
|
|
8,735
|
|
--
|
Loss
(gain) on disposition of assets
|
|
794
|
|
1,107
|
|
19
|
|
(7,612)
|
Total operating expenses
|
|
428,308
|
|
647,266
|
|
1,817,805
|
|
1,728,891
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
181,434
|
|
90,416
|
|
46,025
|
|
410,459
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income
|
|
629
|
|
86
|
|
1,796
|
|
644
|
Interest expense
|
|
(21,350)
|
|
(9,378)
|
|
(70,800)
|
|
(46,056)
|
Foreign currency
transaction gain (loss)
|
|
(1,163)
|
|
425
|
|
954
|
|
(3,724)
|
Other, net
|
|
217
|
|
90
|
|
702
|
|
598
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income tax expense
|
|
159,767
|
|
81,639
|
|
(21,323)
|
|
361,921
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(23,345)
|
|
(28,994)
|
|
(7,578)
|
|
(73,753)
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
|
136,422
|
$
|
52,645
|
$
|
(28,901)
|
$
|
288,168
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share
|
$
|
0.99
|
$
|
0.38
|
$
|
(0.21)
|
$
|
2.09
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Shares
of common stock
|
|
137,159
|
|
137,146
|
|
137,156
|
|
137,582
|
Dilutive
potential shares of common stock
|
|
44
|
|
1
|
|
--
|
|
3
|
Total weighted
average shares outstanding
|
|
137,203
|
|
137,147
|
|
137,156
|
|
137,585
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
RESULTS OF
OPERATIONS
|
(Unaudited)
|
(In
thousands)
|
|
|
|
|
Three Months
Ended
|
|
|
September
30,
|
|
June 30,
|
|
September
30,
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
376,195
|
$
|
315,670
|
$
|
313,124
|
Deepwater
|
|
136,668
|
|
181,104
|
|
111,372
|
Mid-water
|
|
69,500
|
|
96,926
|
|
258,028
|
Total
Floaters
|
|
582,363
|
|
593,700
|
|
682,524
|
Jack-ups
|
|
16,673
|
|
23,742
|
|
45,364
|
Total Contract
Drilling Revenue
|
$
|
599,036
|
$
|
617,442
|
$
|
727,888
|
|
|
|
|
|
|
|
Revenues Related
to Reimbursable Expenses
|
$
|
10,706
|
$
|
16,590
|
$
|
9,794
|
|
|
|
|
|
|
|
CONTRACT DRILLING
EXPENSE
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
156,107
|
$
|
161,485
|
$
|
157,655
|
Deepwater
|
|
67,630
|
|
86,464
|
|
72,367
|
Mid-water
|
|
35,784
|
|
66,735
|
|
132,340
|
Total
Floaters
|
|
259,521
|
|
314,684
|
|
362,362
|
Jack-ups
|
|
12,507
|
|
20,873
|
|
28,056
|
Other
|
|
5,916
|
|
7,312
|
|
9,384
|
Total Contract
Drilling Expense
|
$
|
277,944
|
$
|
342,869
|
$
|
399,802
|
|
|
|
|
|
|
|
Reimbursable
Expenses
|
$
|
10,476
|
$
|
16,336
|
$
|
9,437
|
|
|
|
|
|
|
|
OPERATING (LOSS)
INCOME
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
Ultra-Deepwater
|
$
|
220,088
|
$
|
154,185
|
$
|
155,469
|
Deepwater
|
|
69,038
|
|
94,640
|
|
39,005
|
Mid-water
|
|
33,716
|
|
30,191
|
|
125,688
|
Total
Floaters
|
|
322,842
|
|
279,016
|
|
320,162
|
Jack-ups
|
|
4,166
|
|
2,869
|
|
17,308
|
Other
|
|
(5,916)
|
|
(7,312)
|
|
(9,384)
|
Reimbursable
expenses, net
|
|
230
|
|
254
|
|
357
|
Depreciation
|
|
(118,086)
|
|
(123,329)
|
|
(108,854)
|
General and
administrative expense
|
|
(16,888)
|
|
(16,548)
|
|
(18,604)
|
Gain (loss) on
disposition of assets
|
|
(794)
|
|
164
|
|
(1,107)
|
Impairment of
assets
|
|
(2,546)
|
|
--
|
|
(109,462)
|
Restructuring
and separation costs
|
|
(1,574)
|
|
(993)
|
|
--
|
Total Operating Income
|
$
|
181,434
|
$
|
134,121
|
$
|
90,416
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
December
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
141,131
|
$
|
233,623
|
|
|
|
|
|
|
|
Marketable
securities
|
|
13,621
|
|
16,033
|
|
|
|
|
|
|
|
Accounts receivable,
net of allowance for bad debts
|
|
515,754
|
|
463,862
|
|
|
|
|
|
|
|
Prepaid expenses and
other current assets
|
|
163,871
|
|
185,541
|
|
|
|
|
|
|
|
Assets held for
sale
|
|
6,700
|
|
--
|
|
|
|
|
|
|
|
|
|
|
841,077
|
|
899,059
|
|
|
|
|
|
Drilling and other
property and equipment, net of
|
|
|
|
|
accumulated
depreciation
|
|
6,888,248
|
|
6,945,953
|
|
|
|
|
|
|
Other
assets
|
|
121,171
|
|
176,277
|
|
|
Total
assets
|
$
|
7,850,496
|
$
|
8,021,289
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
$
|
--
|
$
|
249,962
|
|
|
|
|
|
Short-term
borrowings
|
|
492,996
|
|
--
|
|
|
|
|
|
Other current
liabilities
|
|
397,421
|
|
606,684
|
|
|
|
|
|
Long-term
debt
|
|
1,994,710
|
|
1,994,526
|
|
|
|
|
|
Deferred tax
liability
|
|
417,621
|
|
530,394
|
|
|
|
|
|
Other
liabilities
|
|
171,595
|
|
188,160
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
4,376,153
|
|
4,451,563
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
7,850,496
|
$
|
8,021,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIAMOND OFFSHORE
DRILLING, INC. AND SUBSIDIARIES
|
AVERAGE DAYRATES
AND UTILIZATION
|
(Dayrate in
thousands)
|
|
|
|
Third
Quarter
2015
|
Second
Quarter
2015
|
Third
Quarter
2014
|
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
Average
Dayrate
(1)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
Revised
Average
Dayrate
(4)
|
Utilization
(2)
|
Operational
Efficiency
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ultra-Deepwater
Floaters
|
$479
|
71%
|
96.8%
|
$483
|
63%
|
90.9%
|
$491
|
77%
|
92.2%
|
|
|
|
|
|
|
|
|
|
|
Deepwater
Floaters
|
$361
|
59%
|
90.3%
|
$451
|
63%
|
99.3%
|
$356
|
57%
|
95.5%
|
|
|
|
|
|
|
|
|
|
|
Mid-Water
Floaters
|
$289
|
31%
|
97.5%
|
$278
|
32%
|
99.7%
|
$265
|
59%
|
94.1%
|
|
|
|
|
|
|
|
|
|
|
Jack-ups
|
$97
|
31%
|
99.8%
|
$83
|
53%
|
98.6%
|
$99
|
83%
|
99.3%
|
|
|
|
|
|
|
|
|
|
|
Fleet
Total
|
|
|
95.5%
|
|
|
95.9%
|
|
|
94.7%
|
(1)
|
Average dayrate is
defined as contract drilling revenue for all of the specified rigs
in our fleet per revenue earning day. A revenue earning day
is
defined as a 24-hour
period during which a rig earns a dayrate after commencement of
operations and excludes mobilization, demobilization and
contract preparation
days.
|
|
|
(2)
|
Utilization is
calculated as the ratio of total revenue-earning days divided by
the total calendar days in the period for all specified rigs in our
fleet (including cold-stacked rigs, but excluding rigs under
construction). As of September 30, 2015, our cold-stacked
rigs included one ultra-deepwater semisubmersible, one deepwater
semisubmersible, four mid-water semisubmersibles and five jack-up
rigs.
|
|
|
(3)
|
Operational
efficiency is calculated as the ratio of total revenue-earning days
divided by the sum of total revenue-earning days plus the number of
days (or portions thereof) associated with unanticipated equipment
downtime.
|
|
|
(4)
|
Average dayrate
reported in prior period has been revised to conform to current
presentation.
|
Contact:
Darren Daugherty
Director, Investor Relations
(281) 492-5370
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SOURCE Diamond Offshore Drilling, Inc.