Diamond Offshore Drilling, Inc. Announces Second Quarter 2009 Results

Thursday, July 23, 2009 7:09 AM

Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the second quarter of 2009 of $387.4 million, or $2.79 per share on a diluted basis, compared with net income of $416.2 million, or $2.99 per share on a diluted basis, in the same period a year earlier. Revenues in the second quarter of 2009 were $946.4 million, compared with revenues of $954.4 million for the second quarter of 2008.

For the six months ended June 30, 2009, the Company reported net income of $736.0 million, or $5.29 per share on a diluted basis, compared with net income of $706.7 million, or $5.08 per share on a diluted basis, for the same period in 2008. Revenue for the six months ended June 30, 2009 was $1.8 billion, compared with $1.7 billion for the first six months of 2008.

Diamond Offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. Additional information on Diamond Offshore and access to the Company’s SEC filings is available on the Internet at www.diamondoffshore.com.

As previously announced, Diamond Offshore will provide a simulcast and rebroadcast of its second quarter 2009 earnings release conference call. The live broadcast of our quarterly conference call will be available online at www.diamondoffshore.com on July 23, 2009 beginning at 9:00 a.m. Central Time. The online replay will follow immediately and continue for the remainder of the calendar quarter after the original call. Please go to the web site at least 15 minutes before the broadcast to register, download and install any necessary audio software.

Statements contained in this press release which are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are inherently uncertain and subject to a variety of risks that could cause actual results to differ materially from those expected by management of the Company. A discussion of the important risk factors and other considerations that could materially impact these matters as well as the Company’s overall business and financial performance can be found in the Company’s reports filed with the Securities and Exchange Commission and readers of this release are urged to review those reports carefully when considering these forward-looking statements. Copies of these reports are available through the Company’s website www.diamondoffshore.com. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Any such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances 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,
		2009			2008			2009			2008

Revenues:
Contract drilling	$	923,458		$	936,626		$	1,779,166		$	1,706,966
Revenues related to reimbursable expenses		22,949			17,746			52,961			33,508
Total revenues		946,407			954,372			1,832,127			1,740,474

Operating expenses:
Contract drilling		304,853			273,436			602,600			558,443
Reimbursable expenses		22,431			17,346			52,146			32,534
Depreciation		85,431			70,803			170,493			139,995
General and administrative		16,166			15,768			32,481			31,490
Gain on disposition of assets		(93	)		(226	)		(148	)		(277	)
Total operating expenses		428,788			377,127			857,572			762,185

Operating income		517,619			577,245			974,555			978,289

Other income (expense):
Interest income		1,190			2,941			1,766			7,314
Interest expense		(11,288	)		(1,895	)		(12,405	)		(3,237	)
Foreign currency transaction gain		13,733			12,574			9,608			14,441
Other, net		(416	)		(86	)		651			(248	)

Income before income tax expense		520,838			590,779			974,175			996,559

Income tax expense		(133,398	)		(174,615	)		(238,154	)		(289,888	)

Net Income	$	387,440		$	416,164		$	736,021		$	706,671

Income per share:
Basic	$	2.79		$	2.99		$	5.30		$	5.09
Diluted	$	2.79		$	2.99		$	5.29		$	5.08

Weighted average shares outstanding:
Shares of common stock		139,002			138,959			139,001			138,916
Dilutive potential shares of common stock		79			124			72			152
Total weighted average shares outstanding		139,081			139,083			139,073			139,068



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)

	Three Months Ended
	June 30,
		2009			2008

REVENUES
High Specification Floaters	$	334,527		$	354,218
Intermediate Semisubmersibles		465,762			464,598
Jack-ups		123,169			117,810
Total Contract Drilling Revenue	$	923,458		$	936,626

Revenues Related to Reimbursable Expenses	$	22,949		$	17,746

CONTRACT DRILLING EXPENSE
High Specification Floaters	$	98,991		$	89,503
Intermediate Semisubmersibles		132,696			131,539
Jack-ups		66,233			48,834
Other		6,933			3,560
Total Contract Drilling Expense	$	304,853		$	273,436

Reimbursable Expenses	$	22,431		$	17,346

OPERATING INCOME
High Specification Floaters	$	235,536		$	264,715
Intermediate Semisubmersibles		333,066			333,059
Jack-ups		56,936			68,976
Other		(6,933	)		(3,560	)
Reimbursable expenses, net		518			400
Depreciation		(85,431	)		(70,803	)
General and administrative expense		(16,166	)		(15,768	)
Gain on disposition of assets		93			226
Total Operating Income	$	517,619		$	577,245



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

				June 30,		December 31,
				2009		2008
				(unaudited)
ASSETS

Current assets:
	Cash and cash equivalents		$	470,428	$	336,052

	Marketable securities			200,920		400,592

	Accounts receivable, net of provision for bad debts			736,518		574,842

	Prepaid expenses and other			182,253		155,247

		Total current assets		1,590,119		1,466,733

Drilling and other property and equipment, net of
accumulated depreciation				3,918,052		3,414,373

Long-term receivable				17,157		--

Other assets				83,205		73,325
		Total assets	$	5,608,533	$	4,954,431

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities			$	432,670	$	509,087

Long-term debt				998,562		503,280

Deferred tax liability				501,745		462,026

Other liabilities				129,371		118,553

Stockholders’ equity				3,546,185		3,361,485

		Total liabilities and stockholders’ equity	$	5,608,533	$	4,954,431



DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION

	Second Quarter				First Quarter				Second Quarter
	2009				2009				2008
	Dayrate		Utilization		Dayrate		Utilization		Dayrate		Utilization
	(Dayrate in thousands)
High Specification Floaters	$	381	79	%	$	360	80	%	$	385	92	%
Intermediate Semis	$	286	93	%	$	283	85	%	$	285	93	%
Jack-ups	$	146	63	%	$	131	73	%	$	103	92	%

Diamond Offshore Drilling, Inc.
Director, Investor Relations
Les Van Dyke, 281-492-5370

(Source: Business Wire )

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