Diamond Offshore Drilling, Inc. Announces Second-Quarter/First-Half 2006 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 for the second quarter of 2006 of $175.7 million, or $1.27 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, compared with net income of $41.3 million, or $0.31 per share on a diluted basis, in the same period a year earlier. Revenues for the second quarter of 2006 were $512.2 million, compared with revenues of $283.4 million for the second quarter of 2005. For the six months ended June June: see month. 30, 2006, the Company reported net income of $321.0 million, or $2.33 per share on a diluted basis, compared with net income of $71.4 million, or $0.53 per share on a diluted basis, for the same period in 2005. Revenue for the six months ended June 30, 2006 was $959.9 million, compared to $542.2 million for the first six months of 2005. The improvement in operating results reflects continuing record-high average dayrates and rig utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be for the Company's entire fleet. Currently, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 95% of our fleet's available days are contracted or committed through the end of 2006, and about 67% of our fleet's available days are contracted or committed through the end of 2007. 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:
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/first-half 2006 earnings release conference call. The live broadcast of our quarterly conference call will be available online at www.diamondoffshore.com on July July: see month. 26, 2006, beginning at 9:00 a.m. Central Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Savings Time. The online replay will follow immediately and continue for the remainder of the third 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 may 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 may include, but are not limited to, statements concerning existing contracts, commitments and 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. , fleet enhancements, access to new markets, 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 full rig utilization may not be achieved during a contract period, the risk that the fleet's available days may be reduced by unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. , the risk that 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 de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. , 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 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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,
---------------------------------------
2006 2005 2006 2005
--------- --------- --------- ---------
Revenues:
Contract drilling $498,390 $272,665 $933,043 $522,687
Revenues related to
reimbursable expenses 13,798 10,734 26,875 19,470
--------- --------- --------- ---------
Total revenues 512,188 283,399 959,918 542,157
--------- --------- --------- ---------
Operating expenses:
Contract drilling 200,182 162,489 374,388 310,703
Reimbursable expenses 11,810 9,099 23,101 16,434
Depreciation 49,519 45,978 99,101 91,450
General and administrative 9,886 9,186 19,827 18,659
Loss (gain) on sale of
assets 2,696 (8,250) 2,463 (7,992)
--------- --------- --------- ---------
Total operating
expenses 274,093 218,502 518,880 429,254
--------- --------- --------- ---------
Operating income 238,095 64,897 441,038 112,903
Other income (expense):
Interest income 8,431 6,128 16,806 11,896
Interest expense (5,744) (15,756) (12,550) (25,323)
(Loss) gain on sale of
marketable securities (8) 77 (202) (1,197)
Other, net 1,393 445 3,766 870
--------- --------- --------- ---------
Income before income tax
expense 242,167 55,791 448,858 99,149
Income tax expense (66,446) (14,509) (127,816) (27,749)
--------- --------- --------- ---------
Net income $175,721 $41,282 $321,042 $71,400
========= ========= ========= =========
Income per share:
Basic $1.36 $0.32 $2.49 $0.56
========= ========= ========= =========
Diluted $1.27 $0.31 $2.33 $0.53
========= ========= ========= =========
Weighted average shares
outstanding:
Shares of common stock 129,131 128,590 129,079 128,582
Dilutive potential shares
of common stock 9,651 9,544 9,678 9,550
--------- --------- --------- ---------
Total weighted average
shares outstanding 138,782 138,134 138,757 138,132
========= ========= ========= =========
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
Three Months Ended
June 30,
-------------------
2006 2005
-------------------
REVENUES
High Specification Floaters $189,003 $97,579
Intermediate Semisubmersibles 198,738 112,359
Jack-ups 110,649 63,160
Other -- (433)
-------------------
Total Contract Drilling Revenue $498,390 $272,665
===================
Revenues Related to Reimbursable Expenses $13,798 $10,734
===================
CONTRACT DRILLING EXPENSE
High Specification Floaters $62,051 $46,011
Intermediate Semisubmersibles 95,465 80,873
Jack-ups 39,872 32,751
Other 2,794 2,854
-------------------
Total Contract Drilling Expense $200,182 $162,489
===================
Reimbursable Expenses $11,810 $9,099
===================
OPERATING INCOME
High Specification Floaters $126,952 $51,568
Intermediate Semisubmersibles 103,273 31,486
Jack-ups 70,777 30,409
Other (2,794) (3,287)
Reimbursable Expenses, net 1,988 1,635
Depreciation (49,519) (45,978)
General and Administrative Expense (9,886) (9,186)
(Loss) Gain on Sale of Assets (2,696) 8,250
-------------------
Total Operating Income $238,095 $64,897
===================
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
--------------------------
2006 2005
------------ ------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $643,916 $842,590
Marketable securities 2,040 2,281
Accounts receivable 462,239 357,104
Rig inventory and supplies 47,517 47,196
Prepaid expenses and other 69,242 32,707
------------ ------------
Total current assets 1,224,954 1,281,878
Drilling and other property and equipment,
net of accumulated depreciation 2,459,728 2,302,020
Other assets 22,286 23,024
------------ ------------
Total assets $3,706,968 $3,606,922
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $256,565 $268,986
Long-term debt 965,718 977,654
Deferred tax liability 451,263 445,094
Other liabilities 67,691 61,861
Stockholders' equity 1,965,731 1,853,327
------------ ------------
Total liabilities and stockholders'
equity $3,706,968 $3,606,922
============ ============
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
Second Quarter First Quarter Second Quarter
2006 2006 2005
---------------------------------------------------------------------
Utili- Utili- Utili-
Dayrate zation Dayrate zation Dayrate zation
---------------------------------------------------------------------
(Dayrate in thousands)
High
Specification
Floaters $219 94% $189 96% $122 88%
Intermediate
Semi-
submersibles $119 96% $104 98% $73 87%
Jack-ups $103 89% $85 96% $52 92%
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