HOUSTON--(BUSINESS WIRE)--July 24, 2008--Diamond Offshore
Drilling, Inc. (NYSE:DO) today reported net income for the second
quarter of 2008 of $416.3 million, or $2.99 per share on a diluted
basis, compared with net income of $251.9 million, or $1.81 per share
on a diluted basis, in the same period a year earlier. Revenues in the
second quarter of 2008 were $954.4 million, compared with revenues of
$648.9 million for the second quarter of 2007.
For the six months ended June 30, 2008, the Company reported net
income of $706.9 million, or $5.08 per share on a diluted basis,
compared with net income of $476.1 million, or $3.46 per share on a
diluted basis, for the same period in 2007. Revenue for the six months
ended June 30, 2008 was $1.7 billion, compared with $1.3 billion for
the first six months of 2007.
The Company also announced that it has received Letters of Intent
(LOIs) for four semisubmersible rigs that could earn maximum revenue,
excluding un-priced options, totaling approximately $900 million and
provide 6.5 rig years of work. The LOIs, which are subject to
customary conditions, including the execution of a definitive
agreement, include:
International
-- Ocean Ambassador - three years, plus un-priced option,
commencing June 2009. Maximum total revenue $285 million.
U.S. Gulf of Mexico
-- Ocean Star - 18 months commencing November 2008. Maximum total
revenue $285 million.
-- Ocean America - one year commencing July 2009. Maximum total
revenue $190 million.
-- Ocean Victory - one year minimum term commencing May 2009.
Maximum total revenue $197 million.
Diamond Offshore provides contract drilling services to the energy
industry and is a leader in deepwater drilling. Maximum contract
revenue as stated above assumes 100% rig utilization. Generally, rig
utilization rates approach 95-98% during contracted periods; however,
utilization rates can be adversely impacted by additional downtime due
to unscheduled repairs, maintenance and weather. Additional
information on Diamond Offshore Drilling, Inc. and access to the
Company's SEC filings is available on the Internet at
www.diamondoffshore.com.
As previously announced, Diamond Offshore will provide a simulcast
and rebroadcast of its second quarter 2008 earnings release conference
call. The live broadcast of the Diamond Offshore Drilling, Inc.
quarterly conference call will be available online at
www.diamondoffshore.com on July 24, 2008, beginning at 9:00 a.m.
Central Time. The online replay will follow immediately and continue
for the remainder of the second calendar quarter after the original
call. Please go to the web site at least 15 minutes before the
broadcast to register, download and install any necessary audio
software.
Statements in this press release may contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such statements may include, but are not limited to,
statements concerning future earnings, future cash flows, market
conditions, future market improvements, future growth in demand for
equipment types or in any region and future contracts. Such statements
are inherently subject to a variety of risks and uncertainties that
could cause actual results to differ materially from those anticipated
or projected, including, among others, the risk that a Letter of
Intent will not be converted to a contract, the risk that full rig
utilization may not be achieved during a contract period, the risk
that the fleet's available days may be reduced by unscheduled
downtime, the risk that these and other factors outside of the
Company's control may adversely impact the amount of profit realized
from a contract, the risk that the markets for the Company's services
will not continue to improve, the risk that the Company's market
position may deteriorate, or the risk that the Company may not be able
to participate fully in any future market improvements. A discussion
of additional risk factors that could impact these areas and the
Company's overall business and financial performance can be found in
the Company's reports and other filings with the Securities and
Exchange Commission. These factors include, among others, general
economic and business conditions, 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
concerns, 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,
--------------------------------------------------
2008 2007 2008 2007
----------- ------------ ------------ ------------
Revenues:
Contract drilling $ 936,626 $ 635,927 $ 1,706,966 $ 1,225,839
Revenues
related to
reimbursable
expenses 17,746 12,948 33,508 31,220
----------- ------------ ------------ ------------
Total
revenues 954,372 648,875 1,740,474 1,257,059
----------- ------------ ------------ ------------
Operating expenses:
Contract drilling 273,436 221,941 558,443 434,398
Reimbursable
expenses 17,346 12,361 32,534 29,977
Depreciation 70,661 58,335 139,711 114,040
General and
administrative 15,768 12,174 31,490 24,140
Gain on
disposition of
assets (226) (3,553) (277) (5,055)
----------- ------------ ------------ ------------
Total
operating
expenses 376,985 301,258 761,901 597,500
----------- ------------ ------------ ------------
Operating income 577,387 347,617 978,573 659,559
Other income
(expense):
Interest income 2,941 7,599 7,314 17,392
Interest expense (1,895) (3,770) (3,237) (14,625)
Loss on sale of
marketable
securities (2) (5) (3) (8)
Other, net 12,490 1,012 14,196 405
----------- ------------ ------------ ------------
Income before
income tax expense 590,921 352,453 996,843 662,723
Income tax expense (174,638) (100,526) (289,935) (186,646)
----------- ------------ ------------ ------------
Net Income $ 416,283 $ 251,927 $ 706,908 $ 476,077
=========== ============ ============ ============
Income per share:
Basic $ 3.00 $ 1.82 $ 5.09 $ 3.48
=========== ============ ============ ============
Diluted $ 2.99 $ 1.81 $ 5.08 $ 3.46
=========== ============ ============ ============
Weighted average
shares
outstanding:
Shares of common
stock 138,959 138,447 138,916 136,875
Dilutive
potential shares
of common stock 124 481 152 2,004
----------- ------------ ------------ ------------
Total
weighted
average
shares
outstanding 139,083 138,928 139,068 138,879
=========== ============ ============ ============
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
------------ ------------
2008 2007
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 541,580 $ 637,961
Marketable securities 199,086 1,301
Accounts receivable 674,091 522,808
Prepaid expenses and other 135,999 103,120
------------ ------------
Total current assets 1,550,756 1,265,190
Drilling and other property and equipment,
net of accumulated depreciation 3,278,724 3,040,063
Other assets 37,055 36,212
------------ ------------
Total assets $ 4,866,535 $ 4,341,465
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Payable for securities purchased $ 197,837 $ --
Other current liabilities 425,032 453,011
------------ ------------
Total current liabilities 622,869 453,011
Long-term debt 503,158 503,071
Deferred tax liability 419,894 397,629
Other liabilities 109,731 110,687
Stockholders' equity 3,210,883 2,877,067
------------ ------------
Total liabilities and stockholders'
equity $ 4,866,535 $ 4,341,465
============ ============
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
June 30,
-------------------------
2008 2007
-------------------------
REVENUES
High Specification Floaters $ 354,218 $ 264,027
Intermediate Semisubmersibles 464,598 246,232
Jack-ups 117,810 125,668
-------------------------
Total Contract Drilling Revenue $ 936,626 $ 635,927
=========================
Revenues Related to Reimbursable Expenses $ 17,746 $ 12,948
=========================
CONTRACT DRILLING EXPENSE
High Specification Floaters $ 89,503 $ 69,722
Intermediate Semisubmersibles 131,539 108,049
Jack-ups 48,834 42,362
Other 3,560 1,808
-------------------------
Total Contract Drilling Expense $ 273,436 $ 221,941
=========================
Reimbursable Expenses $ 17,346 $ 12,361
=========================
OPERATING INCOME
High Specification Floaters $ 264,715 $ 194,305
Intermediate Semisubmersibles 333,059 138,183
Jack-ups 68,976 83,306
Other (3,560) (1,808)
Reimbursable expenses, net 400 587
Depreciation (70,661) (58,335)
General and administrative expense (15,768) (12,174)
Gain on disposition of assets 226 3,553
-------------------------
Total Operating Income $ 577,387 $ 347,617
=========================
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Second Quarter First Quarter
2008 2008
----------------------------------------------------------------------
Dayrate Utilization Dayrate Utilization
----------------------------------------------------------------------
(Dayrate in thousands)
High Specification Floaters $385 92% $323 87%
Intermediate Semis $285 93% $249 85%
Jack-ups $103 92% $102 90%
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Second Quarter
2007
----------------------------------------------------------------------
Dayrate Utilization
----------------------------------------------------------------------
(Dayrate in thousands)
High Specification Floaters $307 86%
Intermediate Semis $157 90%
Jack-ups $109 88%
CONTACT: Diamond Offshore Drilling, Inc., Houston
Les Van Dyke, 281-492-5370
Director, Investor Relations
SOURCE: Diamond Offshore Drilling, Inc.