EXHIBIT 99.1
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FOR IMMEDIATE RELEASE CONTACT: LES VAN DYKE
DIRECTOR, INVESTOR RELATIONS
(281) 492-5370
DIAMOND OFFSHORE DRILLING, INC. ANNOUNCES
FOURTH QUARTER/YEAR-END 2003 RESULTS
Houston, Texas, January 29, 2004 -- Diamond Offshore Drilling, Inc. (NYSE:DO)
today reported net income for the fourth quarter of 2003 of $1.3 million, or
$0.01 per share on a diluted basis, compared with net income of $6.3 million, or
$0.05 per share on a diluted basis in the same period a year earlier. Revenues
for the fourth quarter of 2003 were $187.7 million, compared with revenues of
$183.0 million for the fourth quarter of 2002.
For the year ended December 31, 2003, the Company reported a net loss of $48.4
million, or $0.37 per share on a diluted basis, compared with net income of
$62.5 million, or $0.47 per share on a diluted basis for the same period in
2002. Revenues for the year 2003 were $680.9 million, compared with revenues of
$752.6 million in the same period a year earlier.
As of December 31, 2003, there were 129.3 million shares of Diamond Offshore
common stock outstanding. During the fourth quarter of 2003, the Company
repurchased 1,014,000 shares of its common stock at an aggregate cost of $18.2
million, or $17.96 per share. 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 45
offshore drilling rigs consists of 30 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 fourth quarter and year-end 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 January 29, 2004, 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 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, and 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.
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
----------------------------------------------------------------
2003 2002 2003 2002
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REVENUES:
Contract drilling....................................... $ 180,278 $ 176,725 $ 652,098 $ 724,213
Revenues related to reimbursable expenses............. 7,407 6,316 28,843 28,348
-------------- ------------ ------------- ------------
Total revenues.................................... 187,685 183,041 680,941 752,561
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OPERATING EXPENSES:
Contract drilling....................................... 122,629 114,108 487,839 468,272
Reimbursable expenses................................... 6,579 5,873 26,050 25,885
Depreciation ........................................... 43,492 45,026 175,578 177,495
General and administrative.............................. 6,273 7,895 28,868 29,009
(Gain) loss on sale and disposition of assets........... (522) (42) 929 (84)
-------------- ------------ ------------- ------------
Total operating expenses.......................... 178,451 172,860 719,264 700,577
-------------- ------------ ------------- ------------
OPERATING INCOME (LOSS)......................................... 9,234 10,181 (38,323) 51,984
OTHER INCOME (EXPENSE):
Gain (loss) on sale of marketable securities............ 426 2,483 (6,884) 36,504
Interest income......................................... 1,772 5,875 12,007 29,767
Interest expense........................................ (6,543) (5,825) (23,928) (23,583)
Other, net.............................................. -- 874 2,891 1,502
-------------- ------------ ------------- ------------
INCOME (LOSS) BEFORE INCOME TAX EXPENSE......................... 4,889 13,588 (54,237) 96,174
INCOME TAX BENEFIT (EXPENSE) (NOTE 1).......................... (3,587) (7,292) 5,823 (33,654)
-------------- ------------ ------------- ------------
NET INCOME (LOSS)............................................... $ 1,302 $ 6,296 $ (48,414) $ 62,520
============== ============= ============= ============
EARNINGS PER SHARE:
BASIC................................................... $ 0.01 $ 0.05 $ (0.37) $ 0.48
============== ============= ============= ============
DILUTED................................................. $ 0.01 $ 0.05 $ (0.37) $ 0.47
============== ============= ============= ============
WEIGHTED AVERAGE SHARES OUTSTANDING:............................
Shares of common stock................................. 130,005 130,366 130,253 131,285
Dilutive potential shares of common stock.............. -- 2 -- 9,428
-------------- ------------ ------------- ------------
Total weighted average shares outstanding..... 130,005 130,368 130,253 140,713
============== ============= ============= ============
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NOTE 1. The increase in the effective tax rate for the quarter ended December
31, 2003 resulted primarily from the Company's current inability to use foreign
tax credits, partially offset by certain other tax reserve adjustments.
6
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(In thousands)
THREE MONTHS ENDED
DECEMBER 31,
-------------------------
2003 2002
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CONTRACT DRILLING REVENUE
High Specification Floaters....................... $ 74,862 $ 69,078
Other Semisubmersibles............................ 74,711 74,541
Jack-ups.......................................... 28,086 24,318
Integrated Services............................... -- 4,822
Other............................................. 2,619 5,596
Eliminations...................................... -- (1,630)
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TOTAL CONTRACT DRILLING REVENUE..................... $ 180,278 $ 176,725
========= =========
REVENUES RELATED TO REIMBURSABLE
EXPENSES........................................ $ 7,407 $ 6,316
========= =========
CONTRACT DRILLING EXPENSE
High Specification Floaters....................... $ 40,093 $ 39,844
Other Semisubmersibles............................ 59,790 51,711
Jack-ups.......................................... 22,365 23,559
Integrated Services............................... (419) 4,098
Other............................................. 800 (3,474)
Eliminations...................................... -- (1,630)
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TOTAL CONTRACT DRILLING EXPENSE..................... $ 122,629 $ 114,108
========= =========
REIMBURSABLE EXPENSES............................. $ 6,579 $ 5,873
========= =========
OPERATING INCOME
High Specification Floaters....................... $ 34,769 $ 29,234
Other Semisubmersibles............................ 14,921 22,830
Jack-ups.......................................... 5,721 759
Integrated Services............................... 419 724
Other............................................. 1,819 9,070
Reimbursables, net................................ 828 443
Depreciation ..................................... (43,492) (45,026)
General and Administrative Expense................ (6,273) (7,895)
Gain on Sale of Assets............................ 522 42
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TOTAL OPERATING INCOME.............................. $ 9,234 $ 10,181
========= =========
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
DECEMBER 31,
------------------------------------
2003 2002
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ASSETS
Current assets:
Cash and cash equivalents........................................... $ 106,345 $ 182,453
Marketable securities............................................... 503,995 627,614
Accounts receivable................................................. 154,124 146,957
Rig inventory and supplies.......................................... 48,035 45,405
Prepaid expenses and other.................................... 22,764 28,870
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Total current assets.................................. 835,263 1,031,299
Drilling and other property and equipment, net of
accumulated depreciation............................................. 2,257,876 2,164,627
Goodwill, net of accumulated amortization................................. 11,099 24,714
Other assets.............................................................. 30,781 35,668
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Total assets.......................................... $ 3,135,019 $ 3,256,308
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities..................................................... $ 100,000 $ 115,945
Long-term debt.......................................................... 928,030 924,475
Deferred tax liability.................................................. 384,505 375,309
Other liabilities....................................................... 42,004 33,065
Stockholders' equity.................................................... 1,680,480 1,807,514
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Total liabilities and stockholders'equity............... $ 3,135,019 $ 3,256,308
=============== ===============
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
FOURTH QUARTER THIRD QUARTER FOURTH QUARTER
2003 2003 2002
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DAYRATE UTILIZATION DAYRATE UTILIZATION DAYRATE UTILIZATION
- ----------------------------------------------------------------------------------------------------------------------
(Dayrate in thousands)
HIGH SPECIFICATION FLOATERS $97 84% $97 90% $99 84%
OTHER SEMISUBMERSIBLES $56 69% $60 57% $64 61%
JACK-UPS $30 72% $28 64% $28 68%
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