Diamond Offshore Drilling announces third quarter 1995 pro forma earnings of $7 million or $.14 per common share.HOUSTON--(BUSINESS WIRE)--Oct. 23, 1995--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. announces third quarter 1995 pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. of $7 million or $.14 per common share. -0-
Three Months Ended Nine Months Ended
September 30 September 30
Actual Pro Forma Actual Pro Forma
(in thousands, except per share data)
1995 Revenues $ 91,716 $ 91,716 $238,582 $238,582 Operating Income 11,572 11,572 2,898 2,898 Net Income (loss) 1,422 7,043 (12,920) 3,636 Pro Forma Earnings (Loss) per Share .03 .14 (.26) .07 1994 Revenues $ 78,872 $ 78,872 $227,705 $227,705 Operating Loss (4,536) (4,536) (7,679) (7,679) Net Loss (7,930) (3,040) (24,993) (10,778) Pro Forma Loss per Share (.16) (.06) (.50) (.22) 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) reported net income for the quarter ended Sept. 30, 1995 of $1.4 million on revenues of $91.7 million as compared to a net loss of $7.9 million on revenues of $78.9 million for the same period in the prior year. This increase was primarily due to increased dayrates for the company's three fourth-generation semisubmersibles and improved utilization and dayrates for the company's 19 other semisubmersibles. The company began trading its common stock on Oct. 11, 1995 following an initial public offering. Upon completion of this transaction, the company's debt to Loews Corporation existing on Oct. 11, 1995 will be retired and 50,000,000 common shares will be outstanding. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, if the offering and related transactions had been consummated as of Jan. 1, 1995, the company's net income for the quarter would have been $7.0 million or $.14 per common share, as compared to actual net income of $1.4 million or $.03 per common share (based on 50,000,000 shares outstanding). For the nine months ended Sept. 30, 1995, the company reported a net loss of $12.9 million on revenues of $238.6 million, as compared to a net loss of $25.0 million on revenues of$227.7 million for the same period in the prior year. This improvement also is attributable primarily to increased dayrates and utilization for the company's semisubmersibles, partially offset by declines in jack-up dayrates and utilization. Assuming 50,000,000 shares outstanding, net loss per common share would have been $.26. On a pro forma basis, the company would have earned $3.6 million or $.07 per share. During the quarter, the company received a three-year commitment from a major oil company for the Ocean Quest, one of the company's Victory-class semisubmersibles 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 , pursuant to which the rig will be upgraded to conduct drilling operations in water depths of up to 3,500 feet. This project contemplates stability enhancements to provide additional hull buoyancy buoyancy (boi`ənsē, b  `yən–), upward force exerted by a fluid on any body immersed in it. Buoyant force can be explained in terms of Archimedes' principle. , which will allow a variable deck
load exceeding 5,000 tons, the addition of a new self-contained
chain/wire mooring MOORING, mar. law. The act of arriving of a ship or vessel at a particular port, and there being anchored or otherwise fastened to the shore.2. Policies of insurance frequently contain a provision that the ship is insured from one place to another, "and till system, a 15,000 psi blow-out prevention system, a third mud pump and 2,900 barrel liquid mud capacity. The Ocean Quest is scheduled to be placed into service in the fourth quarter of 1996. In addition, the company received a three-year commitment for a second Victory-class rig, the Ocean Countess, which will be upgraded to conduct drilling operations in the Gulf of Mexico in water depths of up to 4,500 feet, including stability enhancements and upgrades similar to those planned for the Ocean Quest. The Ocean Countess is scheduled to be placed in service late in the fourth quarter of 1996. Robert E. Rose Robert E. Rose was the Lieutenant Governor of Nevada. In 1986 Rose was appointed to the Eighth Judicial District Court. He was elected three times to the Nevada Supreme Court serving from 1989-2007. , the company's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "We are pleased that two of our customers have endorsed our Victory-class upgrade plans with these commitments for fourth-generation configuration and support our belief that these rigs will compete effectively with other fourth-generation rigs in deep water service. Diamond Offshore owns nine of only 10 Victory-class rigs in the world and we have long recognized that the unique design of these rigs make cost effective upgrades to deck space and variable load feasible. Diamond Offshore is currently pursuing additional opportunities for additional Victory-class rig upgrades for deep water or North Sea service." Diamond Offshore engages in the worldwide offshore contract drilling business with 37 offshore rigs, including the world's largest fleet of 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. rigs and three of the world's 13 fourth-generation semisubmersible rigs. The company is the only drilling contractor to have won more than once (in 1994 and 1995) the annually awarded U.S. Minerals Management Service National Safety Award for Excellence. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of dollars) Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 1995 1994 1995 1994 (unaudited) Revenues 91,716 78,872 238,582 227,705 Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. : Contract drilling 63,828 68,175 185,260 189,811 General and administrative 2,979 3,090 9,453 9,194 Depreciation 13,361 12,311 41,425 37,991 Gain on sale of assets (24) (168) (454) (1,612) Total operating expenses 80,144 83,408 235,684 235,384 Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (loss) 11,572 (4,536) 2,898 (7,679) Other income (expense): Foreign currency transaction losses (133) 47 (179) (1,868) Interest expense (8,874) (7,790) (26,139) (22,556) Other 438 126 1,263 571 Income (loss) before income tax benefit (expense) 3,003 (12,153) (22,157) (31,532) Income tax benefit (expense) (1,581) 4,223 9,237 6,539 Net income (loss) $ 1,422 ($7,930) ($12,920) ($24,993) DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (In thousands of dollars) Sept. 30, Dec. 31, 1995 1994 (unaudited) ASSETS Cash, cash equivalents and short-term investments $ 14,977 $ 22,696 Other Current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 86,498 75,868 Drilling and other property and equipment, net 481,585 488,664 Total assets $ 583,060 587,228 LIABILITIES AND STOCKHOLDER'S EQUITY Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. $ 36,131 $ 41,973 Notes payable to Loews Corp 379,224 394,777 Deferred tax liability 16,941 26,412 Total stockholder's equity 150,764 124,066 Total liabilities and stockholder's equity $ 583,060 $ 587,228 -0- CONTACT: Diamond Offshore Drilling Inc., Houston Larry Dickerson/Sandy Landry, 713/492-5393 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion