HOUSTON -- (Business Wire)
Diamond Offshore Drilling, Inc. (NYSE: DO) today reported net
income for the fourth quarter of 2012 of $156 million, or $1.12 per
share on a diluted basis, compared with net income of $188 million, or
$1.36 per share on a diluted basis, in the same period a year earlier.
Revenues in the fourth quarter of 2012 were $751 million, compared with
revenues of $748 million in the prior-year quarter.
During the fourth quarter, the Company reclassified its four
cold-stacked rigs as held for sale and recognized an after-tax
impairment charge of $40.6 million, or $0.29 per share. These units are
the semisubmersible rigs Ocean Epoch, Ocean New Era and Ocean
Whittington and the jack-up rig Ocean Spartan.
The effective tax rate for the quarter was 15.9 percent, compared with
7.4 percent in the fourth quarter of 2011. Lower tax expense in the
prior-year quarter was driven by a reduction of the Company’s liability
for uncertain tax positions. The full-year 2012 effective tax rate was
21.5 percent versus the prior-year effective tax rate of 18.4 percent.
For the full-year 2012, the Company reported net income of $720 million,
or $5.18 per share on a diluted basis, compared with net income of $963
million, or $6.92 per share on a diluted basis, in 2011. Revenues for
the full-year 2012 were $2.987 billion, compared with $3.322 billion in
2011.
“Our results for the fourth quarter and full year reflect our continuing
efforts to manage operating costs across the fleet,” said Larry
Dickerson, President and Chief Executive Officer of Diamond Offshore.
“While there is some cost inflation pressure in our industry, we remain
focused on controlling and reducing expenses.”
The Company announced that the Ocean Patriot was awarded a
three-year contract in the North Sea at a rate of $400,500 per day,
which is expected to generate maximum total revenue of approximately
$439 million. After completing its current contracts in Southeast Asia,
the rig will undergo required North Sea enhancements at a total
estimated cost of approximately $120 million. Following these upgrades
and subsequent mobilization to the North Sea, the rig is expected to
commence work early in the second quarter of 2014.
“The opportunity to upgrade the Ocean Patriot to work for our
customer Shell in the North Sea demonstrates the ongoing strength in
that market,” said Larry Dickerson. “This project is consistent with
Diamond Offshore’s long-term strategy of investing in our fleet at
attractive capital costs.”
Capital expenditures for the six rigs currently under construction
totaled $499 million in full-year 2012, excluding capitalized interest.
To complete these projects, the Company estimates that remaining capital
expenditures, excluding capitalized interest, will be $1.3 billion in
2013 and $1.1 billion in 2014.
CONFERENCE CALL
Diamond Offshore will host a conference call to discuss fourth quarter
results on Tuesday, February 5, 2013 beginning at 9:00 a.m. CST. 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 86787795. An online replay will also be
available on www.diamondoffshore.com
following the call.
ABOUT DIAMOND OFFSHORE
Diamond Offshore provides contract drilling services to the energy
industry and is a leader in deepwater drilling. Diamond Offshore’s fleet
of offshore drilling rigs consists of 30 semisubmersibles, seven
jack-ups and one drillship, in addition to four ultra-deepwater
drillships and two deepwater semisubmersibles currently under
construction. For additional information and access to SEC filings,
please visit the Company’s website at www.diamondoffshore.com.
Diamond Offshore is a 50.4% owned subsidiary of Loews Corporation (NYSE:
L).
FORWARD-LOOKING STATEMENTS
Maximum contract revenue as stated above assumes 100% rig utilization.
Generally, rig utilization rates approach 92-98% 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. (“the
Company”) and access to the Company’s SEC filings is available on the
Internet at www.diamondoffshore.com.
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 future revenues and backlog, future performance
under contract awards and extensions, future operating costs and
expenses, future operations and dayrates, future financial condition,
market outlook and future market conditions, future rig construction and
upgrades and expected expenditures therefor, and future contracting
opportunities. 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 |
|
|
| Twelve Months Ended |
| | | | | December 31, |
|
|
| December 31, |
| | | | | 2012 |
|
| | 2011 | | | | 2012 |
|
| | 2011 |
| | | | | |
|
Revenues: | | | | | | | | | | | | | | | | | |
Contract drilling
| | | |
$
|
740,623
| | | |
$
|
734,283
| | | |
$
|
2,936,066
| | | |
$
|
3,254,313
| |
Revenues related to reimbursable expenses
| | | | |
9,914
|
| | | |
14,074
|
| | | |
50,442
|
| | | |
68,106
|
|
Total revenues
| | | | |
750,537
|
| | | |
748,357
|
| | | |
2,986,508
|
| | | |
3,322,419
|
|
| | | | | | | | | | | | | | | | |
|
Operating expenses: | | | | | | | | | | | | | | | | | |
Contract drilling, excluding depreciation
| | | | |
377,589
| | | | |
406,763
| | | | |
1,537,224
| | | | |
1,548,502
| |
Reimbursable expenses
| | | | |
9,427
| | | | |
13,609
| | | | |
48,778
| | | | |
66,052
| |
Depreciation
| | | | |
92,844
| | | | |
95,089
| | | | |
392,913
| | | | |
398,612
| |
General and administrative
| | | | |
14,837
| | | | |
16,334
| | | | |
64,640
| | | | |
65,310
| |
Impairment of assets
| | | | |
62,437
| | | | |
--
| | | | |
62,437
| | | | |
--
| |
Bad debt recovery
| | | | |
--
| | | | |
(1,300
|
)
| | | |
(1,018
|
)
| | | |
(6,713
|
)
|
Gain on disposition of assets
| | | | |
(1,559
|
)
| | | |
(414
|
)
| | | |
(80,844
|
)
| | | |
(4,758
|
)
|
Total operating expenses
| | | | |
555,575
|
| | | |
530,081
|
| | | |
2,024,130
|
| | | |
2,067,005
|
|
| | | | | | | | | | | | | | | | |
|
Operating income | | | | |
194,962
| | | | |
218,276
| | | | |
962,378
| | | | |
1,255,414
| |
| | | | | | | | | | | | | | | | |
|
Other income (expense): | | | | | | | | | | | | | | | | | |
Interest income
| | | | |
858
| | | | |
3,103
| | | | |
4,910
| | | | |
6,668
| |
Interest expense
| | | | |
(9,436
|
)
| | | |
(12,993
|
)
| | | |
(46,216
|
)
| | | |
(73,137
|
)
|
Foreign currency transaction gain (loss)
| | | | |
(1,118
|
)
| | | |
(3,985
|
)
| | | |
(1,999
|
)
| | | |
(8,588
|
)
|
Other, net
| | | | |
(225
|
)
| | | |
(854
|
)
| | | |
(992
|
)
| | | |
(1,086
|
)
|
| | | | | | | | | | | | | | | | |
|
Income before income tax expense | | | | |
185,041
| | | | |
203,547
| | | | |
918,081
| | | | |
1,179,271
| |
| | | | | | | | | | | | | | | | |
|
Income tax expense | | | | |
(29,380
|
)
| | | |
(15,057
|
)
| | | |
(197,604
|
)
| | | |
(216,729
|
)
|
| | | | | | | | | | | | | | | | |
|
Net Income | | | |
$
|
155,661
|
| | |
$
|
188,490
|
| | |
$
|
720,477
|
| | |
$
|
962,542
|
|
| | | | | | | | | | | | | | | | |
|
Income per share: | | | | | | | | | | | | | | | | | |
Basic | | | |
$
|
1.12
|
| | |
$
|
1.36
|
| | |
$
|
5.18
|
| | |
$
|
6.92
|
|
Diluted | | | |
$
|
1.12
|
| | |
$
|
1.36
|
| | |
$
|
5.18
|
| | |
$
|
6.92
|
|
| | | | | | | | | | | | | | | | |
|
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | |
Shares of common stock
| | | | |
139,031
| | | | |
139,027
| | | | |
139,029
| | | | |
139,027
| |
Dilutive potential shares of common stock
| | | | |
31
|
| | | |
9
|
| | | |
19
|
| | | |
11
|
|
Total weighted average shares outstanding
| | | | |
139,062
|
| | | |
139,036
|
| | | |
139,048
|
| | | |
139,038
|
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
RESULTS OF OPERATIONS |
(Unaudited)
|
(In thousands)
|
|
|
|
|
| | Three Months Ended |
| | | | | Dec 31, |
|
|
| Sep 30, |
|
|
| Dec 31, |
| | | | | 2012 |
|
|
| 2012 |
|
|
| 2011 |
| | | | | |
|
| | |
|
| | |
REVENUES | | | | | | | | | | | | | |
Floaters:
| | | | | | | | | | | | | |
Ultra-Deepwater
| | | |
$
|
229,560
| | | |
$
|
195,574
| | | |
$
|
189,148
| |
Deepwater
| | | | |
145,310
| | | | |
163,816
| | | | |
190,615
| |
Mid-water
| | | | |
326,520
|
|
|
|
|
319,491
|
|
|
|
|
312,256
|
|
Total Floaters
| | | | |
701,390
| | | | |
678,881
| | | | |
692,019
| |
Jack-ups
| | | | |
39,233
|
|
|
|
|
35,146
|
|
|
|
|
42,264
|
|
Total Contract Drilling Revenue | | | |
$
|
740,623
|
|
|
|
$
|
714,027
|
|
|
|
$
|
734,283
|
|
| | | | | | | | | | | | |
|
Revenues Related to Reimbursable Expenses | | | |
$
|
9,914
|
|
|
|
$
|
15,114
|
|
|
|
$
|
14,074
|
|
| | | | | | | | | | | | |
|
CONTRACT DRILLING EXPENSE | | | | | | | | | | | | | |
Floaters:
| | | | | | | | | | | | | |
Ultra-Deepwater
| | | |
$
|
135,837
| | | |
$
|
132,705
| | | |
$
|
132,187
| |
Deepwater
| | | | |
67,772
| | | | |
58,029
| | | | |
52,843
| |
Mid-water
| | | | |
143,124
|
|
|
|
|
135,935
|
|
|
|
|
169,481
|
|
Total Floaters
| | | | |
346,733
| | | | |
326,669
| | | | |
354,511
| |
Jack-ups
| | | | |
21,582
| | | | |
24,245
| | | | |
45,597
| |
Other
| | | | |
9,274
|
|
|
|
|
6,367
|
|
|
|
|
6,655
|
|
Total Contract Drilling Expense | | | |
$
|
377,589
|
|
|
|
$
|
357,281
|
|
|
|
$
|
406,763
|
|
| | | | | | | | | | | | |
|
Reimbursable Expenses | | | |
$
|
9,427
|
|
|
|
$
|
14,563
|
|
|
|
$
|
13,609
|
|
| | | | | | | | | | | | |
|
OPERATING INCOME | | | | | | | | | | | | | |
Floaters:
| | | | | | | | | | | | | |
Ultra-Deepwater
| | | |
$
|
93,723
| | | |
$
|
62,869
| | | |
$
|
56,961
| |
Deepwater
| | | | |
77,538
| | | | |
105,787
| | | | |
137,772
| |
Mid-water
| | | | |
183,396
|
|
|
|
|
183,556
|
|
|
|
|
142,775
|
|
Total Floaters
| | | | |
354,657
| | | | |
352,212
| | | | |
337,508
| |
Jack-ups
| | | | |
17,651
| | | | |
10,901
| | | | |
(3,333
|
)
|
Other
| | | | |
(9,274
|
)
| | | |
(6,367
|
)
| | | |
(6,655
|
)
|
Reimbursable expenses, net
| | | | |
487
| | | | |
551
| | | | |
465
| |
Depreciation
| | | | |
(92,844
|
)
| | | |
(99,207
|
)
| | | |
(95,089
|
)
|
General and administrative expense
| | | | |
(14,837
|
)
| | | |
(13,476
|
)
| | | |
(16,334
|
)
|
Impairment of assets
| | | | |
(62,437
|
)
| | | |
--
| | | | |
--
| |
Bad debt recovery
| | | | |
--
| | | | |
--
| | | | |
1,300
| |
Gain on disposition of assets
| | | | |
1,559
|
|
|
|
|
208
|
|
|
|
|
414
|
|
Total Operating Income
| | | |
$
|
194,962
|
|
|
|
$
|
244,822
|
|
|
|
$
|
218,276
|
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited)
|
(In thousands)
|
|
|
|
| |
|
|
| | |
|
| | |
| | | | | | | | | December 31, |
| | | | | | | | | 2012 | | | | 2011 |
| | | | | | | | |
|
ASSETS | | | | | | | | | |
| | | | | | | | |
|
Current assets:
| | | | | | | | | |
| |
Cash and cash equivalents
| | | |
$
|
335,432
| | |
$
|
333,765
|
| | | | | | | | | | |
|
| |
Marketable securities
| | | | |
1,150,158
| | | |
902,414
|
| | | | | | | | | | |
|
| |
Accounts receivable, net of allowance for bad debts
| | | | |
499,660
| | | |
563,934
|
| | | | | | | | | | |
|
| |
Prepaid expenses and other current assets
| | | | |
136,099
| | | |
192,570
|
| | | | | | | | | | |
|
| |
Assets held for sale
| | | | |
11,594
| | | |
--
|
| | | | | | |
| | | |
|
| | | |
Total current assets
| | | | |
2,132,943
| | | |
1,992,683
|
| | | | | | | | |
|
Drilling and other property and equipment, net of accumulated
depreciation
| | | | |
4,864,972
| | | |
4,667,469
|
| | | | | | | | | | |
|
Other assets
| | | | |
237,371
| | | |
304,005
|
| | | |
Total assets
| | | |
$
|
7,235,286
| | |
$
|
6,964,157
|
| | | | | | | | | | | | |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | |
| | | | | | | | |
|
Current liabilities
| | | |
$
|
485,546
| | |
$
|
427,291
|
| | | | | | | | |
|
Long-term debt
| | | | |
1,496,066
| | | |
1,495,823
|
| | | | | | | | |
|
Deferred tax liability
| | | | |
490,946
| | | |
536,815
|
| | | | | | | | |
|
Other liabilities
| | | | |
186,334
| | | |
171,165
|
| | | | | | | | |
|
Stockholders’ equity
| | | | |
4,576,394
| | | |
4,333,063
|
| | | | | | | | |
| | | |
|
| | | |
Total liabilities and stockholders’ equity
| | | |
$
|
7,235,286
| | |
$
|
6,964,157
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES |
AVERAGE DAYRATES AND UTILIZATION |
(Dayrate in thousands)
|
|
|
|
|
| Fourth Quarter |
|
| Third Quarter |
|
| Fourth Quarter |
|
|
|
| 2012 |
|
| 2012 |
|
| 2011 |
|
|
|
| Dayrate |
|
| Utilization |
|
| Dayrate |
|
| Utilization |
|
| Dayrate |
|
| Utilization |
Ultra-Deepwater Floaters | | | | $348 |
|
| 89% | | |
$354
|
|
|
75%
| | |
$356
|
|
|
70%
|
Deepwater Floaters | | | | $372 | | | 85% | | |
$373
| | |
95%
| | |
$422
| | |
97%
|
Mid-Water Floaters | | | | $268 | | | 70% | | |
$258
| | |
71%
| | |
$271
| | |
60%
|
Jack-Ups | | | | $85 | | | 71% | | |
$98
| | |
56%
| | |
$79
| | |
36%
|
Contacts:
Diamond Offshore Drilling, Inc.
Darren Daugherty, 281-492-5370
Director,
Investor Relations
Source: Diamond Offshore Drilling, Inc.
© 2024 Canjex Publishing Ltd. All rights reserved.