EXHIBIT 99.1
FOR IMMEDIATE RELEASE CONTACT: CAREN W. STEFFES
THURSDAY, APRIL 17, 2003 (281) 492-5393
DIAMOND OFFSHORE DRILLING, INC.
ANNOUNCES FIRST QUARTER 2003 EARNINGS
Houston, Texas, April 17, 2003 -- Diamond Offshore Drilling, Inc. (NYSE:DO)
today reported a net loss of $21.6 million, or $0.17 per share on a diluted
basis, on revenues of $146.1 million for the first quarter of 2003, compared to
net income of $22.6 million, or $0.17 per share on a diluted basis, on revenues
of $201.6 million for the first quarter of 2002.
As of March 31, 2003, there were 130.3 million shares of common stock
outstanding. Depending on market conditions, the Company may, from time to time,
purchase shares of its outstanding common stock in the open market or otherwise.
Diamond Offshore is a leader in deep water drilling. The Company's fleet of 47
offshore drilling rigs consists of 32 semisubmersibles, 14 jack-ups and one
drillship. The fleet operates in the waters of six of the world's seven
continents.
As previously announced, Diamond Offshore will provide an online, real-time
simulcast and rebroadcast of its 2003 first quarter 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 17,
2003, beginning at 9:00 a.m. Central Time. The online replay will follow
immediately and continue for 5 days 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 that 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, include, but are
not limited to, statements concerning the Company's possible purchase of shares
of its outstanding common stock. 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. A discussion of the 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.
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED
MARCH 31,
------------------------------------
2003 2002
----------------- ----------------
REVENUES:
Contract drilling.......................................... $ 139,859 $ 193,668
Revenues related to reimbursable expenses.................. 6,290 7,882
----------------- -----------------
Total revenues....................................... 146,149 201,550
----------------- -----------------
OPERATING EXPENSES:
Contract drilling.......................................... 113,670 120,947
Reimbursable expenses...................................... 5,738 7,212
Depreciation............................................... 47,277 42,697
General and administrative................................. 7,200 6,648
----------------- -----------------
Total operating expenses............................. 173,885 177,504
----------------- -----------------
OPERATING INCOME (LOSS)............................................ (27,736) 24,046
OTHER INCOME (EXPENSE):
Interest income............................................ 4,156 9,581
Interest expense........................................... (5,575) (5,470)
(Loss) gain on sale of marketable securities............... (61) 3,492
Other, net................................................. 1,743 853
----------------- -----------------
INCOME BEFORE INCOME TAX EXPENSE................................... (27,473) 32,502
INCOME TAX BENEFIT (EXPENSE)....................................... 5,907 (9,944)
----------------- -----------------
NET INCOME (LOSS).................................................. $ (21,566) $ 22,558
================= =================
EARNINGS (LOSS) PER SHARE:
Basic ..................................................... $ (0.17) $ 0.17
================= =================
Diluted.................................................... $ (0.17) $ 0.17
================= =================
WEIGHTED AVERAGE SHARES OUTSTANDING:
Shares of common stock.................................. 130,336 131,786
Dilutive potential shares of common stock............... -- 9,482
----------------- -----------------
Total weighted average shares outstanding..... 130,336 141,268
================= =================
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
THREE MONTHS ENDED
MARCH 31,
---------------------------------
2003 2002
---------------- ----------------
REVENUES
High Specification Floaters....................... $ 63,634 $ 74,647
Other Semisubmersibles............................ 51,703 88,080
Jack-ups.......................................... 23,566 29,500
Integrated Services............................... 1,189 1,823
Eliminations...................................... (233) (382)
---------------- ----------------
TOTAL CONTRACT DRILLING REVENUE..................... $ 139,859 $ 193,668
================ ================
REVENUES RELATED TO REIMBURSABLE EXPENSES........... $ 6,290 $ 7,882
================ ================
CONTRACT DRILLING EXPENSE
High Specification Floaters....................... $ 38,276 $ 35,528
Other Semisubmersibles............................ 49,717 56,873
Jack-ups.......................................... 24,251 25,682
Integrated Services............................... 1,249 2,841
Other............................................. 410 405
Eliminations...................................... (233) (382)
---------------- ----------------
TOTAL CONTRACT DRILLING EXPENSE..................... $ 113,670 $ 120,947
================ ================
REIMBURSABLE EXPENSES............................... $ 5,738 $ 7,212
================ ================
OPERATING INCOME (LOSS)
High Specification Floaters....................... $ 25,358 $ 39,119
Other Semisubmersibles............................ 1,986 31,207
Jack-ups.......................................... (685) 3,818
Integrated Services............................... (60) (1,018)
Other............................................. (410) (405)
Reimbursables, net................................ 552 670
Depreciation Expense.............................. (47,277) (42,697)
General and Administrative Expense................ (7,200) (6,648)
---------------- ----------------
Total Operating Income (Loss)............. $ (27,736) $ 24,046
================ ================
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
MARCH 31, DECEMBER 31,
---------------------------------------
2003 2002
------------------- -------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents................................. $ 195,525 $ 184,910
Marketable securities..................................... 495,563 627,614
Accounts receivable....................................... 138,297 146,957
Rig inventory and supplies................................ 46,715 45,405
Prepaid expenses and other................................ 27,172 28,870
------------------- -------------------
Total current assets........................ 903,272 1,033,756
Drilling and other property and equipment, net of
accumulated depreciation................................... 2,250,999 2,164,627
Goodwill, net of accumulated amortization....................... 21,311 24,714
Other assets.................................................... 35,443 35,668
------------------- -------------------
Total assets................................ $ 3,211,025 $ 3,258,765
=================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities............................................. $ 121,405 $ 118,402
Long-term debt.................................................. 928,313 924,475
Deferred tax liability.......................................... 360,643 375,309
Other liabilities............................................... 33,401 33,065
Stockholders' equity............................................ 1,767,263 1,807,514
------------------- -------------------
Total liabilities and stockholders' equity.......... $ 3,211,025 $ 3,258,765
=================== ===================
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
FIRST QUARTER FOURTH QUARTER FIRST QUARTER
2003 2002 2002
--------------------------------------------------------------------------------------------------
DAYRATE UTILIZATION DAYRATE UTILIZATION DAYRATE UTILIZATION
--------------------------------------------------------------------------------------------------
(Dayrate in thousands)
HIGH SPECIFICATION FLOATERS $94 83% $99 84% $116 88%
OTHER SEMISUBMERSIBLES $62 43% $64 61% $68 69%
JACK-UPS $28 68% $28 68% $30 78%
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