Diamond Offshore Drilling, Inc. Announces Second Quarter Earnings and Declares Cash Dividend
BusinessWire, Thursday, July 16, 1998 at 08:31
HOUSTON--(BUSINESS WIRE)--July 16, 1998--Diamond Offshore
Drilling, Inc. (NYSE:DO) today reported net income for the second
quarter of 1998 of $111.7 million, or $0.76 per share on a diluted
basis compared to net income for the prior year quarter of $65.2
million, or $0.45 per share on a diluted basis. Revenues for the
second quarter of 1998 were $323.5 million compared to revenues of
$228.5 million for the second quarter of 1997.
For the six months ended June 30, 1998, the Company reported net
income of $192.4 million, or $1.32 per share on a diluted basis
compared to net income of $121.5 million, or $0.85 per share for the
same period in 1997. Revenues for the six months ended June 30, 1998
were $609.6 million compared to revenues of $433.3 million for the
first six months of 1997.
Basic earnings per share for the second quarter of 1998 were
$0.80, compared to $0.47 for the second quarter of 1997. Basic
earnings per share for the six months ended June 30, 1998 were $1.38,
compared to $0.89 for the same period in 1997.
The Board has declared a cash dividend of $0.125 per common share
payable September 1, 1998 to stockholders of record on August 3, 1998.
Additionally, the Company stated that depending on market conditions
it may from time to time purchase shares of its 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. The fleet operates in
the waters of six of the world's seven continents.
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-----------------------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues $ 323,517 $ 228,534 $ 609,586 $ 433,267
Operating expenses:
Contract drilling 116,103 98,221 241,436 187,960
Depreciation and
amortization 32,747 27,230 64,746 53,042
General and
administrative 6,219 4,859 12,991 9,800
Gain on sale of assets (4) (5) (82) (70)
-------- -------- -------- ---------
Total operating expenses 155,065 130,305 319,091 250,732
-------- -------- -------- ---------
Operating income 168,452 98,229 290,495 182,535
Other income (expense):
Interest income 7,442 5,499 14,027 8,392
Interest expense (3,781) (3,349) (7,624) (3,349)
Other, net 317 10 180 (175)
-------- -------- -------- ---------
Income before income
tax expense 172,430 100,389 297,078 187,403
Income tax expense (60,765) (35,155) (104,691) (65,939)
--------- -------- -------- ---------
Net income $ 111,665 $ 65,234 $ 192,387 $ 121,464
========= ======== ======== =========
Earnings per share:
Basic $ 0.80 $ 0.47 $ 1.38 $ 0.89
========= ======== ======== =========
Diluted $ 0.76 $ 0.45 $ 1.32 $ 0.85
========= ======== ======== ==========
Weighted average shares
outstanding
Common shares 139,328 138,826 139,326 137,044
Dilutive potential
common shares 9,876 9,876 9,876 7,967
--------- -------- -------- ---------
Total weighted average
shares outstanding 149,204 148,702 149,202 145,011
========= ======== ======== =========
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(in thousands)
Three Months Ended
June 30,
---------------------
1998 1997
------ ------
REVENUES
Fourth-Generation Semisubmersibles $ 68,030 $ 49,215
Other Semisubmersibles 191,378 130,916
Jack-ups 63,236 46,824
Integrated Services 5,438 1,284
Other -- 682
Eliminations (4,565) (387)
----------- -----------
Total Revenues $ 323,517 $ 228,534
=========== ===========
CONTRACT DRILLING EXPENSE
Fourth-Generation Semisubmersibles $ 19,961 $ 13,696
Other Semisubmersibles 65,622 57,188
Jack-ups 27,880 24,713
Integrated Services 5,451 1,417
Other 1,754 1,825
Eliminations (4,565) (618)
----------- -----------
Total Contract Drilling Expense $ 116,103 $ 98,221
=========== ===========
OPERATING INCOME
Fourth-Generation Semisubmersibles $ 48,069 $ 35,519
Other Semisubmersibles 125,756 73,728
Jack-ups 35,356 22,111
Integrated Services (13) (133)
Other (1,754) (1,143)
Eliminations -- 231
Depreciation and Amortization Expense (32,747) (27,230)
General and Administrative Expense (6,219) (4,859)
Gain on Sale of Assets 4 5
----------- ------------
Total Operating Income $ 168,452 $ 98,229
=========== ============
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
----------------------------
1998 1997
------ ------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 57,481 $ 102,958
Short-term investments 326,789 363,137
Accounts receivable 272,787 205,589
Rig inventory and supplies 34,997 33,714
Prepaid expenses and other 28,911 13,377
---------- ----------
Total current assets 720,965 718,775
Drilling and other property
and equipment, less
Accumulated depreciation 1,463,063 1,451,741
Goodwill, net of amortization 115,388 118,623
Long-term investments 203,435 --
Other assets 10,190 9,422
---------- ----------
Total assets $ 2,513,041 $ 2,298,561
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 143,982 $ 131,145
Long-term debt 400,000 400,000
Deferred tax liability 248,322 209,513
Other liabilities 28,685 22,376
Stockholders' equity 1,692,052 1,535,527
---------- -----------
Total liabilities and
stockholders' equity $ 2,513,041 $ 2,298,561
========== ============
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CONTACT: Diamond Offshore Drilling, Inc., Houston
Kathy Trillos, 281/492-5393 |
