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8-K - FORM 8-K - DIAMOND OFFSHORE DRILLING, INC. | h79409e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE | CONTACT: Les Van Dyke Director, Investor Relations (281) 492-5370 |
DIAMOND OFFSHORE ANNOUNCES
FOURTH QUARTER 2010 RESULTS
FOURTH QUARTER 2010 RESULTS
Houston, Texas, February 3, 2011 Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net
income for the fourth quarter of 2010 of $241.7 million, or $1.74 per share on a diluted basis,
compared with net income of $276.1 million, or $1.98 per share on a diluted basis, in the same
period a year earlier. Revenues in the fourth quarter of 2010 were $840.9 million, compared with
revenues of $890.8 million for the fourth quarter of 2009.
Results for the fourth quarter of 2010 were positively impacted by lower tax expense resulting from
passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 in
mid-December 2010. Provisions in the legislation contributed to an effective tax rate for the
Company of 22.2% for the fourth quarter of the year, compared to an effective tax rate of 30.4% for
the first nine months of 2010 which did not include any impact from the legislation.
For the year ended December 31, 2010, the Company reported net income of $955.5 million, or $6.87
per share on a diluted basis, compared with net income of $1.4 billion, or $9.89 per share on a
diluted basis, for the year ended December 31, 2009. Revenues for the year ended December 31, 2010
were $3.3 billion, compared with $3.6 billion for 2009.
Diamond Offshore provides contract drilling services to the energy industry and is a leader in
deepwater drilling. Additional information on Diamond Offshore and access to the Companys SEC
filings is available on the Internet at www.diamondoffshore.com.
As previously announced, Diamond Offshore will provide a simulcast and rebroadcast of its fourth
quarter 2010 earnings release conference call. The live broadcast of our quarterly conference call
will be available online at www.diamondoffshore.com on February 3, 2010 beginning at 9:00
a.m. Central Time. The online replay will follow immediately and continue for the remainder of the
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 contained in this press release which are not historical facts are forward-looking
statements within the meaning of the federal securities laws. Forward-looking statements are
inherently uncertain and subject to a variety of risks that could cause actual results to differ
materially from those expected by management of the Company. A
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discussion of the important risk factors and other considerations that could materially impact
these matters as well as the Companys overall business and financial performance can be found in
the Companys reports filed with the Securities and Exchange Commission and readers of this release
are urged to review those reports carefully when considering these forward-looking statements.
Copies of these reports are available through the Companys website
www.diamondoffshore.com. Given these risk factors, investors and analysts should not place
undue reliance on forward-looking statements. Any such forward-looking statements speak 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 Companys expectations with regard thereto or any change in events, conditions or circumstances
on which any forward-looking statement is based.
####
5
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues: |
||||||||||||||||
Contract drilling |
$ | 824,561 | $ | 872,132 | $ | 3,229,736 | $ | 3,536,579 | ||||||||
Revenues related to reimbursable expenses |
16,405 | 18,650 | 93,238 | 94,705 | ||||||||||||
Total revenues |
840,966 | 890,782 | 3,322,974 | 3,631,284 | ||||||||||||
Operating expenses: |
||||||||||||||||
Contract drilling, excluding depreciation |
382,535 | 317,025 | 1,391,086 | 1,223,771 | ||||||||||||
Reimbursable expenses |
15,843 | 18,078 | 91,240 | 93,097 | ||||||||||||
Depreciation |
95,912 | 89,468 | 393,177 | 346,446 | ||||||||||||
General and administrative |
16,098 | 14,804 | 66,600 | 62,913 | ||||||||||||
Bad debt (recovery) expense |
(3,843 | ) | 9,746 | (9,789 | ) | 9,746 | ||||||||||
Gain on disposition of assets |
(1,289 | ) | (7,537 | ) | (34,714 | ) | (7,902 | ) | ||||||||
Total operating expenses |
505,256 | 441,584 | 1,897,600 | 1,728,071 | ||||||||||||
Operating income |
335,710 | 449,198 | 1,425,374 | 1,903,213 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
755 | 852 | 2,909 | 4,497 | ||||||||||||
Interest expense |
(24,477 | ) | (23,174 | ) | (90,698 | ) | (49,610 | ) | ||||||||
Foreign currency transaction gain (loss) |
1,175 | (6,438 | ) | 1,369 | 11,483 | |||||||||||
Other, net |
(2,651 | ) | (1,467 | ) | (2,938 | ) | (1,152 | ) | ||||||||
Income before income tax expense |
310,512 | 418,971 | 1,336,016 | 1,868,431 | ||||||||||||
Income tax expense |
(68,825 | ) | (142,907 | ) | (380,559 | ) | (492,212 | ) | ||||||||
Net Income |
$ | 241,687 | $ | 276,064 | $ | 955,457 | $ | 1,376,219 | ||||||||
Income per share: |
||||||||||||||||
Basic |
$ | 1.74 | $ | 1.99 | $ | 6.87 | $ | 9.90 | ||||||||
Diluted |
$ | 1.74 | $ | 1.98 | $ | 6.87 | $ | 9.89 | ||||||||
Weighted average shares outstanding: |
||||||||||||||||
Shares of common stock |
139,027 | 139,019 | 139,026 | 139,007 | ||||||||||||
Dilutive potential shares of common stock |
11 | 118 | 44 | 90 | ||||||||||||
Total weighted average shares outstanding |
139,038 | 139,137 | 139,070 | 139,097 | ||||||||||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
REVENUES |
||||||||
High Specification Floaters |
$ | 385,187 | $ | 380,792 | ||||
Intermediate Semisubmersibles |
396,604 | 394,677 | ||||||
Jack-ups |
42,678 | 96,663 | ||||||
Other |
92 | | ||||||
Total Contract Drilling Revenue |
$ | 824,561 | $ | 872,132 | ||||
Revenues Related to Reimbursable Expenses |
$ | 16,405 | $ | 18,650 | ||||
CONTRACT DRILLING EXPENSE |
||||||||
High Specification Floaters |
$ | 184,263 | $ | 111,326 | ||||
Intermediate Semisubmersibles |
154,506 | 152,067 | ||||||
Jack-ups |
40,882 | 48,214 | ||||||
Other |
2,884 | 5,418 | ||||||
Total Contract Drilling Expense |
$ | 382,535 | $ | 317,025 | ||||
Reimbursable Expenses |
$ | 15,843 | $ | 18,078 | ||||
OPERATING INCOME |
||||||||
High Specification Floaters |
$ | 200,924 | $ | 269,466 | ||||
Intermediate Semisubmersibles |
242,098 | 242,610 | ||||||
Jack-ups |
1,796 | 48,449 | ||||||
Other |
(2,792 | ) | (5,418 | ) | ||||
Reimbursable expenses, net |
562 | 572 | ||||||
Depreciation |
(95,912 | ) | (89,468 | ) | ||||
General and administrative expense |
(16,098 | ) | (14,804 | ) | ||||
Bad debt recovery (expense) |
3,843 | (9,746 | ) | |||||
Gain on disposition of assets |
1,289 | 7,537 | ||||||
Total Operating Income |
$ | 335,710 | $ | 449,198 | ||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 464,393 | $ | 376,417 | ||||
Marketable securities |
612,346 | 400,853 | ||||||
Accounts receivable, net of provision for bad debts |
609,606 | 791,023 | ||||||
Prepaid expenses and other |
177,153 | 155,077 | ||||||
Total current assets |
1,863,498 | 1,723,370 | ||||||
Drilling and other property and equipment, net of
accumulated depreciation |
4,283,792 | 4,432,052 | ||||||
Long-term receivable |
35,361 | | ||||||
Other assets |
544,333 | 108,839 | ||||||
Total assets |
$ | 6,726,984 | $ | 6,264,261 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities |
626,288 | 413,475 | ||||||
Long-term debt |
1,495,593 | 1,495,375 | ||||||
Deferred tax liability |
542,258 | 546,024 | ||||||
Other liabilities |
201,133 | 178,745 | ||||||
Stockholders equity |
3,861,712 | 3,630,642 | ||||||
Total liabilities and stockholders equity |
$ | 6,726,984 | $ | 6,264,261 | ||||
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
AVERAGE DAYRATES AND UTILIZATION
Fourth Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||
2010 | 2010 | 2009 | ||||||||||||||||||||||||
Dayrate | Utilization | Dayrate | Utilization | Dayrate | Utilization | |||||||||||||||||||||
(Dayrate in thousands) | ||||||||||||||||||||||||||
High Specification Floaters |
$ | 357 | 79 | % | $ | 364 | 56 | % | $ | 388 | 81 | % | ||||||||||||||
Intermediate Semis |
$ | 281 | 79 | % | $ | 280 | 76 | % | $ | 280 | 78 | % | ||||||||||||||
Jack-ups |
$ | 82 | 43 | % | $ | 82 | 60 | % | $ | 112 | 63 | % |
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