Diamond Offshore Drilling, Inc. Announces Second Quarter 2005 Results.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- Diamond Offshore Drilling Diamond Offshore Drilling, Inc. is a deepwater drilling contractor which provides drilling services to the energy industry. The company's headquarters are located in Houston, Texas, but they have offices in Louisiana, Africa, Australia, Brazil, Indonesia, Scotland, Singapore, and , Inc. (NYSE NYSE See: New York Stock Exchange :DO) today reported net income of $41.3 million, or $0.31 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis for the second quarter of 2005, compared to a net loss of $10.5 million, or $0.08 per share on a diluted basis, in the same period a year earlier. Revenues for the second quarter of 2005 were $283.4 million, compared to revenues of $184.9 million for the second period in 2004. For the six months ended June June: see month. 30, 2005, the Company reported net income of $71.4 million, or $0.53 per share on a diluted basis, compared to a net loss of $21.5 million, or $0.17 per share on a diluted basis for the same period in 2004. Revenue for the six months ended June 30, 2005, was $542.2, compared to $369.1 million for the first six months of 2004. The improvement in operating results reflects a continuation of higher dayrates and rig utilization across the Company's entire fleet, and is indicative of the strength of the worldwide offshore drilling Offshore drilling typically refers to the act of extracting resources, primarily oil, in an ocean or lake. Controversy As with all oil drilling, there has been a certain level of controversy surrounding the issue. market. Results for the second quarter also reflect the sale of the cold-stacked semisubmersible sem·i·sub·mers·i·ble n. A seagoing, self-propelled barge that rides at anchor, stands on partially submerged vertical legs on submerged pontoons, and serves as living quarters and a base of operations in offshore drilling. Ocean Liberator Liberator William Lloyd Garrison’s virulently Abolitionist newspaper. [Am. Hist.: Van Doren, 142] See : Antislavery in mid-June n. 1. the middle part of June. Noun 1. mid-June - the middle part of June period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , 2005. The 600-ft. water-depth-rated unit was sold for $14.0 million, for which the Company recognized an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gain of $5.9 million. This gain was largely offset by the after-tax write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of $5.0 million of previously deferred loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. fees related to Diamond Offshore's Zero Coupon Convertible debt, 96% of which was redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. by the Company on June 6, 2005. The previously deferred fees are included as interest expense on the Company's Income Statement for the second quarter ended June 30, 2005. The Company has entered into a Letter of Intent (LOI LOI Letter of Indemnity (international trade and carriage business) LOI Letter Of Intent LOI Loss On Ignition LOI Letter of Inquiry LOI Lack Of Information LOI Lack of Interest LOI Letter of Invitation LOI List Of Items ) to utilize the Ocean Endeavor in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east for a period of between two and four years, commencing when the rig is expected to be delivered from the shipyard in the first quarter of 2007. If a definitive agreement is executed, the rig could earn approximate total revenue of between $198 million and $355 million, depending upon the length of the contract selected by the operator. Actual revenues received could be reduced by various operating factors including utilization rates. The Endeavor, a Victory-class semisubmersible rig, is currently being upgraded in Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km). for ultra-deepwater service. The LOI is subject to customary conditions including execution of a definitive agreement. Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Dickerson Dick·er·son , Eric Demetric Born 1960. American football player. A running back, mainly for the Los Angeles Rams (1983-1986) and the Indianapolis Colts (1987-1992), he led the National Football League in rushing 4 times and gained over 13,000 yards , President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "Approximately 89% of Diamond Offshore's fleet is contracted or committed for the remainder of 2005, and we are currently booking significant work into 2006, with about 50% of our fleet contracted or committed for next year. Assuming fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. of these contracts and commitments, our total potential revenue commitment of $2.8 billion is now the largest dollar backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. we have ever experienced. We remain confident in the strength of our markets, and believe that our exposure to the market in late 2006 and 2007 will allow the Company to participate in any future market improvements." Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater Deepwater or Deep Water may refer to:
A drillship is a maritime vessel that has been fitted with drilling apparatus. It is most often used for exploratory drilling of new oil or gas wells in deep water but can also be used for scientific drilling. . As previously announced, Diamond Offshore will provide a simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and rebroadcast of its second quarter 2005 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 July: see month. 27, 2005, 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 To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. Statements in this press release contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, statements concerning commitments for drilling work or contracts, future dayrates, future contract revenues, the term and start date of future contracts, entry into definitive agreements, consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of awarded contracts, satisfaction of conditions precedent, future growth in demand for equipment types or in any region, future cash flows, 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 notification of contract award, letter of intent, or verbal contract verbal contract an agreement made verbally for the provision of goods or services in return for a consideration, in veterinary practice usually in the form of money. commitment may not result in a binding contract, the risk that a binding contract could be terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: , the risk that the markets for the Company's services will not continue to improve, the risk that full rig utilization may not be achieved during a contract period, or the risk that factors outside of the Company's control may adversely impact the amount of profit realized from a contract. 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. 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 there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. or any change in events, conditions or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or 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,
---------------------------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Revenues:
Contract drilling $272,665 $176,685 $522,687 $353,925
Revenues related to
reimbursable expenses 10,734 8,261 19,470 15,219
--------- --------- --------- ---------
Total revenues 283,399 184,946 542,157 369,144
--------- --------- --------- ---------
Operating expenses:
Contract drilling 162,489 133,483 310,703 268,161
Reimbursable expenses 9,099 7,519 16,434 13,753
Depreciation 45,978 44,554 91,450 89,074
General and administrative 9,186 8,760 18,659 17,549
(Gain) loss on sale of
assets (8,250) 130 (7,992) (195)
--------- --------- --------- ---------
Total operating expenses 218,502 194,446 429,254 388,342
--------- --------- --------- ---------
Operating loss 64,897 (9,500) 112,903 (19,198)
Other income (expense):
Interest income 6,128 3,114 11,896 4,682
Interest expense (15,756) (6,373) (25,323) (12,727)
Gain (loss) on sale of
marketable securities 77 283 (1,197) 258
Other, net 445 (257) 870 (411)
--------- --------- --------- ---------
Income (loss) before income
tax (expense) benefit 55,791 (12,733) 99,149 (27,396)
Income tax (expense) benefit (14,509) 2,238 (27,749) 5,929
--------- --------- --------- ---------
Net Income (loss) $41,282 $(10,495) $71,400 $(21,467)
========= ========= ========= =========
Income (loss) per share:
Basic $0.32 $(0.08) $0.56 $(0.17)
========= ========= ========= =========
Diluted $0.31 $(0.08) $0.53 $(0.17)
========= ========= ========= =========
Weighted average shares
outstanding:
Shares of common stock 128,590 129,322 128,582 129,322
Dilutive potential shares
of common stock 9,544 -- 9,550 -
--------- --------- --------- ---------
Total weighted average
shares outstanding 138,134 129,322 138,132 129,322
========= ========= ========= =========
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
June 30,
--------------------------
2005 2004
--------------------------
REVENUES
High Specification Floaters $97,579 $59,088
Other Semisubmersibles 112,359 75,128
Jack-ups 63,160 42,304
Other (433) 165
--------------------------
Total Contract Drilling Revenue $272,665 $176,685
==========================
Revenues Related to Reimbursable Expenses $10,734 $8,261
==========================
CONTRACT DRILLING EXPENSE
High Specification Floaters $46,011 $40,668
Other Semisubmersibles 80,873 67,960
Jack-ups 32,751 24,082
Other 2,854 773
--------------------------
Total Contract Drilling Expense $162,489 $133,483
==========================
Reimbursable Expenses $9,099 $7,519
==========================
OPERATING INCOME (LOSS)
High Specification Floaters $51,568 $18,420
Other Semisubmersibles 31,486 7,168
Jack-ups 30,409 18,222
Other (3,287) (608)
Reimbursables, net 1,635 742
Depreciation Expense (45,978) (44,554)
General and Administrative Expense (9,186) (8,760)
Gain (loss) on Sale of Assets 8,250 (130)
--------------------------
Total Operating Income (Loss) $64,897 $(9,500)
==========================
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
-------------------------
2005 2004
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $687,879 $266,007
Investments and marketable securities 302,335 661,849
Accounts receivable 263,227 187,558
Rig inventory and supplies 47,631 47,590
Prepaid expenses and other 37,682 32,677
------------ ------------
Total current assets 1,338,754 1,195,681
Drilling and other property and equipment,
net of Accumulated depreciation 2,191,437 2,154,593
Other assets 24,333 29,112
------------ ------------
Total assets $3,554,524 $3,379,386
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $12,818 $484,102
Accrued investment purchase 299,633 --
Other current liabilities 126,125 129,805
------------ ------------
Total current liabilities 438,576 613,907
Long-term debt:
4.875% Senior Notes Due 2015 249,464 --
Other long-term debt 727,836 709,413
------------ ------------
Total long-term debt 977,300 709,413
Deferred tax liability 392,278 369,722
Other liabilities 62,006 60,516
Stockholders' equity 1,684,364 1,625,828
------------ ------------
Total liabilities and stockholders'
equity $3,554,524 $3,379,386
============ ============
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Second Quarter First Quarter Second Quarter
2005 2005 2004
---------------------------------------------------------------------
Utili- Utili- Utili-
Dayrate zation Dayrate zation Dayrate zation
---------------------------------------------------------------------
(Dayrate in thousands)
High
Specification
Floaters $122 88% $109 96% $98 66%
Other Semi-
submersibles $73 87% $65 83% $55 71%
Jack-ups $52 92% $48 96% $37 90%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion