Diamond Offshore Announces Second Quarter 2014 Results

Thu Jul 24, 2014 6:00am EDT

* Reuters is not responsible for the content in this press release.

Diamond Offshore Announces Second Quarter 2014 Results

PR Newswire

HOUSTON, July 24, 2014 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net income of $90 million, or $0.65 per share, for the second quarter of 2014, compared with net income of $185 million, or $1.33 per share, in the same period a year earlier.  Revenues in the second quarter of 2014 were $692 million, compared with revenues of $758 million in the prior-year quarter.

Net income for the quarter included $0.08 per share received from Niko Resources Ltd. related to a previously announced settlement agreement.  Results also included a gain of $0.05 per share from the sale of the jack-up rig Ocean Spartan during the second quarter.  Offsetting these items was a negative impact of $0.14 per share related to customer cancellation of the Ocean Vanguard contract.

"During the quarter, the first of our four newbuild drillships, the Ocean BlackHawk, commenced operations in the Gulf of Mexico," said Marc Edwards, President and Chief Executive Officer.  "During 2014, Diamond Offshore will have added five very capable assets to its fleet, three new drillships and two semi-submersibles, with a fourth drillship to be delivered in early 2015."

"We retain a strong credit rating and a healthy balance sheet," added Mr. Edwards.  "Diamond Offshore remains well positioned to navigate through the current market cycle."

CONFERENCE CALL

A conference call to discuss Diamond Offshore's earnings results has been scheduled for 8:00 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 63586906.  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 44 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 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 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 drilling rig deliveries and timing, and future performance, financial condition 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



Six Months Ended



June 30,



June 30,



2014



2013



2014



2013













Revenues:












           Contract drilling

$

649,554


$

744,898


$

1,334,862


$

1,444,871

          Revenues related to reimbursable expenses


42,690



13,120



66,806



42,888

                     Total revenues


692,244



758,018



1,401,668



1,487,759













Operating expenses:












           Contract drilling, excluding depreciation


395,376



369,036



765,166



744,130

           Reimbursable expenses


42,290



12,805



65,956



42,094

           Depreciation


108,906



97,143



215,917



193,964

           General and administrative


20,478



16,435



43,305



33,250

           Gain on disposition of assets


(8,572)



(260)



(8,719)



(2,264)

                     Total operating expenses


558,478



495,159



1,081,625



1,011,174













Operating income


133,766



262,859



320,043



476,585













Other income (expense):












           Interest income


150



271



558



888

           Interest expense


(18,523)



(7,951)



(36,678)



(16,020)

Foreign currency transaction gain (loss)


(2,971)



448



(4,149)



607

           Other, net


181



674



508



420













Income before income tax expense


112,603



256,301



280,282



462,480













Income tax expense


(22,890)



(70,967)



(44,759)



(101,157)













Net Income                                                                                    

$

89,713


$

185,334


$

235,523


$

361,323













Income per share, Basic and Diluted

$

0.65


$

1.33


$

1.71


$

2.60













Weighted average shares outstanding:












Shares of common stock


137,145



139,035



137,803



139,034

Dilutive potential shares of common stock


4



37



5



43

      Total weighted average shares outstanding


137,149



139,072



137,808



139,077

 

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS

(Unaudited) 
(In thousands)






Three Months Ended



Jun 30,


Mar 31,


Jun 30,



2014


2014


2013

REVENUES







 Floaters:







   Ultra-Deepwater 

$

182,656

$

205,794

$

231,101

    Deepwater 


120,539


146,559


184,105

    Mid-water 


300,902


285,979


288,860

      Total Floaters 


604,097


638,332


704,066

  Jack-ups 


45,457


46,976


40,832

Total Contract Drilling Revenue 

$

649,554

$

685,308

$

744,898








Revenues Related to Reimbursable Expenses 







$

42,690

$

24,116

$

13,120








CONTRACT DRILLING EXPENSE







 Floaters:







   Ultra-Deepwater 

$

122,327

$

123,530

$

128,147

    Deepwater 


81,641


71,949


60,126

    Mid-water 


148,931


134,046


139,252

      Total Floaters 


352,899


329,525


327,525

  Jack-ups 


29,851


28,029


27,377

  Other 


12,626


12,236


14,134

Total Contract Drilling Expense 

$

395,376

$

369,790

$

369,036








Reimbursable Expenses 

$

42,290

$

23,666

$

12,805








OPERATING INCOME







 Floaters:







   Ultra-Deepwater 

$

60,329

$

82,264

$

102,954

    Deepwater 


38,898


74,610


123,979

    Mid-water 


151,971


151,933


149,608

      Total Floaters 


251,198


308,807


376,541

  Jack-ups 


15,606


18,947


13,455

  Other 


(12,626)


(12,236)


(14,134)

  Reimbursable expenses, net 


400


450


315

  Depreciation 


(108,906)


(107,011)


(97,143)

  General and administrative expense 


(20,478)


(22,827)


(16,435)

  Gain on disposition of assets 


8,572


147


260

          Total Operating Income 

$

133,766

$

186,277

$

262,859



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)








June 30,


December 31,


2014


2013

ASSETS












Current assets:







Cash and cash equivalents

$

980,817


$

347,011









Marketable securities


350,156



1,750,053









Accounts receivable, net of allowance for bad debts


545,024



469,355









Prepaid expenses and other current assets


200,867



143,997









Asset held for sale


--



7,694





2,076,864



2,718,110







Drilling and other property and equipment, net of






     accumulated depreciation


6,055,990



5,467,227








Other assets


229,468



206,097


Total assets

$

8,362,322


$

8,391,434









LIABILITIES AND STOCKHOLDERS' EQUITY












Current portion of long-term debt

$

249,992


$

249,954







Other current liabilities


550,224



495,628







Long-term debt


2,244,336



2,244,189







Deferred tax liability


533,788



525,541







Other liabilities


237,034



238,864









Stockholders' equity


4,546,948



4,637,258










Total liabilities and stockholders' equity

$

8,362,322


$

8,391,434


 

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

AVERAGE DAYRATES AND UTILIZATION

(Dayrate in thousands)




Second Quarter (A)

First Quarter

Second Quarter



2014

2014

2013



Dayrate

Utilization

Dayrate

Utilization

Dayrate

Utilization

 

Ultra-Deepwater Floaters

$403

51%

$387

66%

$342

92%

Deepwater Floaters

$418

51%

$418

64%

$409

99%

Mid-Water Floaters

$266

68%

$276

64%

$271

65%

Jack-Ups

$97

74%

$93

79%

$88

74%

A)  Dayrate and utilization calculations for Mid-Water Floaters exclude 22 revenue earning days for which we did not recognize revenue pursuant to GAAP.

 

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

 

Diamond Offshore Drilling, Inc. Logo.

 

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

 

SOURCE Diamond Offshore Drilling, Inc.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.