Diamond Offshore Drilling Inc. Announces Fourth Quarter Earnings and Declares Cash Dividend.HOUSTON--(BUSINESS WIRE)--Jan. 25, 1999--Diamond 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. Inc. (NYSE NYSE See: New York Stock Exchange :DO) today reported net income of $82.6 million, or $0.58 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, on revenues of $283.4 million for the fourth quarter of 1998, compared to net income of $79.3 million, or $0.55 per share on a diluted basis, on revenues of $272.3 million for the fourth quarter of 1997. For the year ended December December: see month. 31, 1998, the Company reported net income of $383.7 million, or $2.66 per share on a diluted basis, on revenues of $1,208.8 million, compared to net income of $278.6 million, or $1.93 per share on a diluted basis, on revenues of $956.1 million for 1997. Basic earnings per share for the fourth quarter of 1998 were $0.61, compared to $0.57 for the fourth quarter of 1997. Basic earnings per share for the year ended December 31, 1998 were $2.78, compared to $2.01 for 1997. The Board has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a cash dividend of $0.125 per common share payable March 1, 1999 to stockholders of record on February February: see month. 1, 1999. As of December 31, 1998, there were 135.8 million common shares outstanding. Depending on market conditions, the Company from time to time purchases shares of its outstanding common stock in the open market. Diamond Offshore is a leader in deep water drilling. The Company's fleet of 46 offshore drilling rigs consists of 30 semisubmersibles, 15 jack-ups and one drillship
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. . The fleet operates in the waters of six of the world's seven continents. -0-
DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
------ ------ ------ ------
Revenues $283,429 $272,329 $1,208,801 $956,093
Operating expenses:
Contract drilling 126,686 118,476 484,625 406,343
Depreciation and
amortization 32,220 26,747 130,271 108,335
General and
administrative 6,349 7,711 25,324 22,556
Gain on sale of
assets (81) (930) (418) (1,014)
--------- --------- ---------- ---------
Total operating
expenses 165,174 152,004 639,802 536,220
--------- --------- ---------- ---------
Operating income 118,255 120,325 568,999 419,873
Other income (expense):
Interest income 8,331 5,742 30,565 19,379
Interest expense (3,248) (3,330) (14,487) (10,270)
Other, net 2,595 583 5,154 1,079
--------- --------- ---------- ---------
Income before income
tax expense 125,933 123,320 590,231 430,061
Income tax expense (43,363) (44,010) (206,572) (151,456)
--------- --------- ---------- ---------
Net income $82,570 $79,310 $383,659 $278,605
========= ========= ========== =========
Earnings per share:
Basic $0.61 $0.57 $2.78 $2.01
========= ========= ========== =========
Diluted $0.58 $0.55 $2.66 $1.93
========= ========= ========== =========
Weighted average shares
outstanding
Common shares 135,816 139,310 138,020 138,560
Dilutive potential
common shares 9,876 9,876 9,876 8,929
--------- --------- ---------- ---------
Total weighted
average shares
outstanding 145,692 149,186 147,896 147,489
========= ========= ========== =========
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DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(in thousands)
Three Months Ended
December 31,
1998 1997
------ ------
REVENUES
Fourth-Generation Semisubmersibles $69,671 $60,581
Other Semisubmersibles 178,392 152,436
Jack-ups 32,827 54,658
Integrated Services 5,338 21,101
Other -- 1,195
Eliminations (2,799) (17,642)
--------- ---------
Total Revenues $283,429 $272,329
========= =========
CONTRACT DRILLING EXPENSE
Fourth-Generation Semisubmersibles $26,467 $19,827
Other Semisubmersibles 66,686 67,574
Jack-ups 27,685 26,275
Integrated Services 5,027 19,606
Other 3,620 2,986
Eliminations (2,799) (17,792)
--------- ---------
Total Contract Drilling Expense $126,686 $118,476
========= =========
OPERATING INCOME
Fourth-Generation Semisubmersibles $43,204 $40,754
Other Semisubmersibles 111,706 84,862
Jack-ups 5,142 28,383
Integrated Services 311 1,495
Other (3,620) (1,791)
Eliminations -- 150
Depreciation and Amortization Expense (32,220) (26,747)
General and Administrative Expense (6,349) (7,711)
Gain on Sale of Assets 81 930
--------- ---------
Total Operating Income $118,255 $120,325
========= =========
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DIAMOND OFFSHORE DRILLING INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
1998 1997
------ ------
ASSETS
Current assets:
Cash and cash equivalents $101,198 $102,958
Marketable securities 535,774 363,137
Accounts receivable 233,719 205,589
Rig inventory and supplies 35,794 33,714
Prepaid expenses and other 31,939 13,377
---------- ----------
Total current assets 938,424 718,775
Drilling and other property
and equipment, less
accumulated depreciation 1,551,820 1,451,741
Goodwill, net of amortization 109,825 118,623
Other assets 9,647 9,422
---------- ----------
Total assets $2,609,716 $2,298,561
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $160,401 $131,145
Long-term debt 400,000 400,000
Deferred tax liability 263,797 209,513
Other liabilities 30,260 22,376
Stockholders' equity 1,755,258 1,535,527
---------- ----------
Total liabilities and
stockholders' equity $2,609,716 $2,298,561
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