-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QcgVQ8xIpVKPy7CnGp37J5lQpiiU8nuhNjqZkVUZbtZdsfPnYAlqswaVm4cEy7vM 0taWtNrrGTjieNYL+4huDA== 0000950129-05-004129.txt : 20050427 0000950129-05-004129.hdr.sgml : 20050427 20050427090152 ACCESSION NUMBER: 0000950129-05-004129 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050427 DATE AS OF CHANGE: 20050427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIAMOND OFFSHORE DRILLING INC CENTRAL INDEX KEY: 0000949039 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 760321760 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13926 FILM NUMBER: 05774676 BUSINESS ADDRESS: STREET 1: 15415 KATY FREEWAY CITY: HOUSTON STATE: TX ZIP: 77094 BUSINESS PHONE: 7134925300 MAIL ADDRESS: STREET 1: 15415 KATY FREEWAY CITY: HOUSTON STATE: TX ZIP: 77094 8-K 1 h24714e8vk.txt DIAMOND OFFSHORE DRILLING, INC. - APRIL 27, 2005 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): APRIL 27, 2005 DIAMOND OFFSHORE DRILLING, INC. (Exact Name of Registrant as Specified in Charter) DELAWARE 1-13926 76-0321760 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 15415 KATY FREEWAY HOUSTON, TEXAS 77094 (Address of Principal Executive Offices and Zip Code) Registrant's telephone number, including area code: (281) 492-5300 NOT APPLICABLE (Former name or former address, if changed since last report) Check the appropriate line below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) INFORMATION TO BE INCLUDED IN THE REPORT ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On April 27, 2005, Diamond Offshore Drilling, Inc. issued a press release announcing its financial results for the fiscal quarter ended March 31, 2005. A copy of such press release is furnished herewith as Exhibit 99.1. The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed "filed" with the Securities and Exchange Commission and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits. The following exhibit is furnished as part of Item 2.02 of this Current Report on Form 8-K: Exhibit number Description -------------- ----------- 99.1 Press Release dated April 27, 2005 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DIAMOND OFFSHORE DRILLING, INC. By: /s/ William C. Long --------------------------- William C. Long Vice President, General Counsel and Secretary Dated: April 27, 2005 3 EXHIBIT INDEX Exhibit number Description -------------- ----------- 99.1 Press Release dated April 27, 2005 EX-99.1 2 h24714exv99w1.txt PRESS RELEASE EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACT: LES VAN DYKE DIRECTOR, INVESTOR RELATIONS (281) 492-5370 DIAMOND OFFSHORE DRILLING, INC. ANNOUNCES FIRST QUARTER 2005 RESULTS Houston, Texas, April 27, 2005 -- Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income of $30.1 million, or $0.23 per share on a diluted basis for the first quarter of 2005, compared to a net loss of $11.0 million, or $0.08 per share on a diluted basis, in the same period a year earlier. Revenues for the first quarter of 2005 were $258.8 million, compared to revenues of $184.2 million for the first period in 2004. The improvement in operating results reflects a continuation of higher dayrates and rig utilization across the Company's entire fleet, and is indicative of the present worldwide offshore drilling market. Currently, the fleet's highest dayrates in the Gulf of Mexico include: $172,500 for the 4th generation semisubmersible Ocean Star for work commencing in the third quarter of 2005; $125,000 for the mid-water floater Ocean Voyager for work beginning in mid-November; $76,000 for the 350-ft. jack-up Ocean Titan for work commencing in mid-July; and $60,000 for the 300-ft. jack-up Ocean King for work beginning in early June 2005. The Company is currently bidding renewals in international markets at dayrates also reflecting increases. Larry Dickerson, President and Chief Operating Officer, said, "Approximately 83% of the Diamond Offshore fleet is contracted or committed in 2005 and we are currently building backlog into 2006, with about 25% of our fleet contracted or committed. We remain confident in the strength of our markets, and believe the Company is well positioned to take advantage of any future market improvements." Diamond Offshore provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling. The Company's fleet of 45 offshore drilling rigs consists of 30 semisubmersibles, 14 jack-ups and one drillship. As previously announced, Diamond Offshore will provide a simulcast and rebroadcast of its first quarter 2005 earnings release conference call. The live broadcast of the Diamond Offshore Drilling, Inc. quarterly conference call will be available online at www.diamondoffshore.com on April 27, 2005, beginning at 9:30 a.m. Central Time. The online replay will follow immediately and continue for the remainder of the first 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 in this press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include, but are not limited to, statements concerning commitments for drilling work or contracts, future dayrates, future contract revenues and future contracts. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated or projected, including the risk that a Letter of Intent may not result in a binding contract or the risk that the markets for the Company's services will not continue to improve. A discussion of additional risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports and other filings with the Securities and Exchange Commission. These factors include, among others, general economic and business conditions, casualty losses, 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. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. Each forward-looking statement speaks 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. #### 2 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)
THREE MONTHS ENDED MARCH 31, -------------------------------- 2005 2004 --------- --------- REVENUES: Contract drilling ............................................. $ 250,022 $ 177,240 Revenues related to reimbursable expenses ..................... 8,736 6,958 --------- --------- Total revenues .......................................... 258,758 184,198 --------- --------- OPERATING EXPENSES: Contract drilling ............................................. 148,214 134,678 Reimbursable expenses ........................................... 7,335 6,234 Depreciation .................................................. 45,472 44,520 General and administrative .................................... 9,473 8,789 Loss (gain) on sale of assets ................................. 258 (325) --------- --------- Total operating expenses ................................ 210,752 193,896 --------- --------- OPERATING INCOME (LOSS) ............................................... 48,006 (9,698) OTHER INCOME (EXPENSE): Interest income ............................................... 5,768 1,568 Interest expense .............................................. (9,567) (6,354) Loss on sale of marketable securities ......................... (1,274) (25) Other, net ................................................. 425 (154) --------- --------- INCOME (LOSS) BEFORE INCOME TAX (EXPENSE) BENEFIT ..................... 43,358 (14,663) INCOME TAX (EXPENSE) BENEFIT .......................................... (13,240) 3,691 --------- --------- NET INCOME (LOSS) ..................................................... $ 30,118 $ (10,972) ========= ========= EARNINGS (LOSS) PER SHARE: Basic ......................................................... $ 0.23 $ (0.08) ========= ========= Diluted ....................................................... $ 0.23 $ (0.08) ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING: Common shares ............................................... 128,573 129,322 Dilutive potential common shares ............................ 9,557 -- --------- --------- Total weighted average shares outstanding ........ 138,130 129,322 ========= =========
3 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands)
THREE MONTHS ENDED MARCH 31, ------------------------------- 2005 2004 --------- --------- REVENUES High Specification Floaters ......................... $ 94,111 $ 64,752 Other Semisubmersibles .............................. 94,981 71,135 Jack-ups ............................................ 60,704 40,819 Other ............................................... 226 534 --------- --------- TOTAL CONTRACT DRILLING REVENUE ....................... $ 250,022 $ 177,240 ========= ========= REVENUES RELATED TO REIMBURSABLE EXPENSES ............. $ 8,736 $ 6,958 ========= ========= CONTRACT DRILLING EXPENSE High Specification Floaters ......................... $ 44,034 $ 42,470 Other Semisubmersibles .............................. 75,093 62,992 Jack-ups ............................................ 27,906 27,937 Other ............................................... 1,181 1,279 --------- --------- TOTAL CONTRACT DRILLING EXPENSE ....................... $ 148,214 $ 134,678 ========= ========= REIMBURSABLE EXPENSES ................................. $ 7,335 $ 6,234 ========= ========= OPERATING INCOME (LOSS) High Specification Floaters ......................... $ 50,077 $ 22,282 Other Semisubmersibles .............................. 19,888 8,143 Jack-ups ............................................ 32,798 12,882 Other ............................................... (955) (745) Reimbursables, net .................................. 1,401 724 Depreciation Expense ................................ (45,472) (44,520) General and Administrative Expense .................. (9,473) (8,789) (Loss) gain on Sale of Assets ........................ (258) 325 --------- --------- Total Operating Income (Loss) ............... $ 48,006 $ (9,698) ========= =========
4 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
MARCH 31, DECEMBER 31, 2005 2004 ---------- ---------- (unaudited) ASSETS Current assets: Cash and cash equivalents ............................... $ 242,622 $ 266,007 Investments and marketable securities ................... 702,262 661,849 Accounts ................................................ 220,221 187,558 receivable Rig inventory and ....................................... 47,636 47,590 supplies Prepaid expenses and .................................... 25,462 32,677 other ---------- ---------- Total current assets .............................. 1,238,203 1,195,681 Drilling and other property and equipment, net of accumulated depreciation ................................. 2,129,947 2,154,593 Other assets .................................................. 29,420 29,112 ---------- ---------- Total assets ...................................... $3,397,570 $3,379,386 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities ........................................... $ 600,801 $ 613,907 Long-term debt ................................................ 709,425 709,413 Deferred tax liability ........................................ 380,693 369,722 Other liabilities ............................................. 58,788 60,516 Stockholders' equity .......................................... 1,647,863 1,625,828 ---------- ---------- Total liabilities and stockholders' equity ........ $3,397,570 $3,379,386 ========== ==========
5 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES AVERAGE DAYRATES AND UTILIZATION
FIRST QUARTER FOURTH QUARTER FIRST QUARTER 2005 2004 2004 - ----------------------------------------------------------------------------------------------------------------------------------- DAYRATE UTILIZATION | DAYRATE UTILIZATION | DAYRATE UTILIZATION - ----------------------------------------------------------------------------------------------------------------------------------- (Dayrate in thousands) HIGH SPECIFICATION FLOATERS $109 96% | $94 95% | $93 77% OTHER SEMISUBMERSIBLES $65 83% | $63 81% | $55 66% JACK-UPS $48 96% | $42 88% | $36 85%
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