Diamond Offshore Drilling (DODRW) 8-K Diamond Offshore Drilling, Inc. Announces First Quarter 2008 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE CONTACT: Les Van Dyke
Director, Investor Relations
(281) 492-5370

DIAMOND OFFSHORE DRILLING, INC. ANNOUNCES
FIRST QUARTER 2008 RESULTS

     Houston, Texas, April 24, 2008 — Diamond Offshore Drilling, Inc. (NYSE:DO) today reported net income for the first quarter of 2008 of $290.6 million, or $2.09 per share on a diluted basis, compared with net income of $224.1 million, or $1.64 per share on a diluted basis, in the same period a year earlier. Revenues in the first quarter of 2008 were $786.1 million, compared with revenues of $608.2 million for the first quarter of 2007.

     Diamond Offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. Additional information on Diamond Offshore Drilling, Inc. 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 first quarter 2008 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 24, 2008, beginning at 9:00 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 may include, but are not limited to, statements concerning future earnings, future cash flows, market conditions, future market improvements, future growth in demand for equipment types or in any region 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, among others, the risk that full rig utilization may not be achieved during a contract period, the risk that the fleet’s available days may be reduced by unscheduled downtime, the risk that these and other factors outside of the Company’s control may adversely impact the amount of profit realized from a contract, the risk that the markets for the Company’s services will not continue to improve, the risk that the Company’s market position may deteriorate, or the risk that the Company may not be able to participate fully in any future market improvements. 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

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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.

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)

	Three Months Ended
	March 31,
	2008			2007
Revenues:
Contract drilling	$	770,340		$	589,912
Revenues related to reimbursable expenses		15,762			18,272
Total revenues		786,102			608,184
Operating expenses:
Contract drilling		287,099			214,002
Reimbursable expenses		13,096			16,071
Depreciation		69,050			55,705
General and administrative		15,722			11,966
Gain on disposition of assets		(51	)		(1,502	)
Total operating expenses		384,916			296,242
Operating income		401,186			311,942
Other income (expense):
Interest income		4,373			9,793
Interest expense		(1,342	)		(10,855	)
Loss on sale of marketable securities		(1	)		(3	)
Other, net		1,706			(607	)
Income before income tax expense		405,922			310,270
Income tax expense		(115,297	)		(86,120	)
Net income	$	290,625		$	224,150
Earnings per share:
Basic	$	2.09		$	1.66
Diluted	$	2.09		$	1.64
Weighted average shares outstanding:
Shares of common stock		138,873			135,286
Dilutive potential shares of common stock		181			3,542
Total weighted average shares outstanding		139,054			138,828

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

RESULTS OF OPERATIONS
(Unaudited)
(In thousands)

	Three Months Ended
	March 31,
	2008			2007
REVENUES
High-Specification Floaters	$	281,071		$	246,381
Intermediate Semisubmersibles		373,222			223,726
Jack-ups		116,047			119,805
Total Contract Drilling Revenue	$	770,340		$	589,912
Revenues Related to Reimbursable Expenses	$	15,762		$	18,272
CONTRACT DRILLING EXPENSE
High-Specification Floaters	$	91,898		$	62,234
Intermediate Semisubmersibles		144,800			102,751
Jack-ups		46,587			40,926
Other		3,814			8,091
Total Contract Drilling Expense	$	287,099		$	214,002
Reimbursable Expenses	$	13,096		$	16,071
OPERATING INCOME
High-Specification Floaters	$	189,173		$	184,147
Intermediate Semisubmersibles		228,422			120,975
Jack-ups		69,460			78,879
Other		(3,814	)		(8,091	)
Reimbursable expenses, net		2,666			2,201
Depreciation		(69,050	)		(55,705	)
General and administrative expense		(15,722	)		(11,966	)
Gain on disposition of assets		51			1,502
Total Operating Income	$	401,186		$	311,942

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

	March 31,		December 31,
	2008		2007
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	621,324	$	637,961
Marketable securities		1,282		1,301
Accounts receivable		600,354		522,808
Prepaid expenses and other current assets		101,922		103,120
Total current assets		1,324,882		1,265,190
Drilling and other property and equipment, net of accumulated depreciation		3,144,656		3,040,063
Other assets		33,248		36,212
Total assets	$	4,502,786	$	4,341,465
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities	$	495,002	$	453,011
Long-term debt		503,098		503,071
Deferred tax liability		408,093		397,629
Other liabilities		118,405		110,687
Stockholders’ equity		2,978,188		2,877,067
Total liabilities and stockholders’ equity	$	4,502,786	$	4,341,465

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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES

AVERAGE DAYRATES AND UTILIZATION

	First Quarter					Fourth Quarter					First Quarter
	2008					2007					2007
	Dayrate		Utilization			Dayrate		Utilization			Dayrate		Utilization
	(Dayrate in thousands)
High Specification Floaters	$	323		87	%	$	317		81	%	$	280		98	%
Intermediate Semis	$	249		85	%	$	218		78	%	$	150		86	%
Jack-ups	$	102		90	%	$	115		63	%	$	112		90	%

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