Diamond Offshore Drilling, Inc. Announces First Quarter Earnings
and Declares Cash Dividend
BusinessWire, Thursday, April 16, 1998 at 08:30
HOUSTON--(BUSINESS WIRE)--April 16, 1998--Diamond Offshore
Drilling, Inc. (NYSE:DO) today reported net income of $80.7 million,
or $0.56 per share on a diluted basis, on revenues of $286.1 million
for the first quarter of 1998.
This compares to net income of $56.2 million, or $0.39 per share
on a diluted basis, on revenues of $204.7 million for the first
quarter of 1997. Basic earnings per share for the first quarter of
1998 were $0.58, compared to $0.41 for the first quarter of 1997.
The company also reported that it has declared a cash dividend of
$0.125 per common share payable June 1, 1998 to stockholders of record
on May 1, 1998.
Larry Dickerson, president and chief operating officer said, "We
are pleased with the results for the first quarter. In March, the
Polyconfidence arrived in the Gulf of Mexico and conversion of the
unit is underway. When the unit is delivered in late 1999, the rig
will be a 7,500 foot world-class drilling rig. This upgrade continues
Diamond Offshore's commitment to provide additional deepwater rig
capacity through cost-effective upgrades."
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.
When included herein, the words "expects," "intends," "plans,"
"anticipates," "estimates," and analogous expressions are intended to
identify forward-looking statements. Such statements, as well as any
other forward looking statements, inherently are subject to a variety
of risks and uncertainties that could cause actual results to differ
materially from those projected. Such risks and uncertainties include,
among others, general economic and business conditions, 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 initiatives and compliance
with governmental regulations, customer preferences and various other
matters, many of which are beyond the company's control.
*T
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
1998 1997
Revenues $ 286,069 $ 204,733
Operating expenses:
Contract drilling 125,333 89,739
Depreciation and amortization 31,999 25,812
General and administrative 6,772 4,941
Gain on sale of assets (78) (65)
Total operating expenses 164,026 120,427
Operating income 122,043 84,306
Other income (expense):
Interest income 6,585 2,893
Interest expense (3,843) --
Other, net (137) (185)
Income before income tax expense 124,648 87,014
Income tax expense (43,926) (30,784)
Net income $ 80,722 $ 56,230
Earnings per share:
Basic $ 0.58 $ 0.41
Diluted $ 0.56 $ 0.39
Weighted average shares outstanding:
Common shares $ 139,325 $ 136,768
Dilutive potential common shares 9,876 6,036
Total weighted average
shares outstanding 149,201 142,804
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(In thousands)
Three Months Ended
March 31,
1998 1997
REVENUES
Fourth-Generation Semisubmersible $ 70,945 $ 42,643
Other Semisubmersibles 153,274 116,833
Jack-ups 60,086 43,554
Integrated Services 15,711 4,311
Eliminations (13,947) (2,608)
Total Revenues $ 286,069 $ 204,733
CONTRACT DRILLING EXPENSE
Fourth-Generation Semisubmersibles $ 20,615 $ 11,473
Other Semisubmersibles 79,276 55,336
Jack-ups 21,160 21,260
Integrated Services 15,505 4,259
Other 2,724 361
Eliminations (13,947) (2,950)
Total Contract
Drilling Expenses $ 125,333 $ 89,739
OPERATING INCOME
Fourth-Generation Semisubmersibles $ 50,330 $ 31,170
Other Semisubmersibles 73,998 61,497
Jack-ups 38,926 22,294
Integrated Services 206 52
Other (2,724) (361)
Eliminations -- 342
Depreciation and Amortization
Expense (31,999) (25,812)
General and Administrative Expense (6,772) (4,941)
Gain on Sale of Assets 78 65
Total Operating Income $ 122,043 $ 84,306
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
1998 1997
ASSETS
Current assets:
Cash and cash equivalents $ 78,056 $ 102,958
Short-term investments 277,402 363,137
Accounts 238,295 205,589
receivable
Rig inventory and supplies 34,363 33,714
Prepaid expenses and other 10,560 13,377
Total current assets 638,676 718,775
Drilling and other property and
equipment, less accumulated
depreciation 1,458,192 1,451,741
Goodwill, net of amortization 117,005 118,623
Long-term investments 177,486 --
Other assets 10,250 9,422
Total assets $2,401,609 $2,298,561
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities $ 154,913 $ 131,145
Long-term debt 400,000 400,000
Deferred tax liability 225,210 209,513
Other liabilities 23,607 22,376
Stockholders' equity 1,597,879 1,535,527
Total liabilities and
stockholders' equity $2,401,609 $2,298,561
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CONTACT: Diamond Offshore Drilling, Inc.
Caren W. Steffes, 281/492-5393 |
