EXHIBIT 99.1
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[Diamond Offshore logo]
FOR IMMEDIATE RELEASE CONTACT: LES VAN DYKE
DIRECTOR, INVESTOR RELATIONS
(281) 492-5370
DIAMOND OFFSHORE DRILLING, INC. ANNOUNCES
FIRST QUARTER 2004 RESULTS
Houston, Texas, April 20, 2004 -- Diamond Offshore Drilling, Inc. (NYSE:DO)
today reported a net loss for the first quarter of 2004 of $11.0 million, or
$0.08 per share on a diluted basis, compared with a net loss of $21.6 million,
or $0.17 per share on a diluted basis in the same period a year earlier.
Revenues for the first quarter of 2004 were $184.2 million, compared with
revenues of $146.1 million for the first quarter of 2003.
Diamond Offshore President and Chief Operating Officer Larry Dickerson noted
that, "Results for the quarter were impacted by planned surveys as well as
greater than anticipated idle time on several of the Company's mid-water and
deepwater units. However, market conditions appear to be improving, and we are
realizing benefits from continuing cost control programs initiated in 2003.
Scheduled survey work is expected to be completed in the second quarter, and our
goal is to resume the sequential quarterly improvements achieved last year as we
move forward in 2004."
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 2004 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 20,
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.
####
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
THREE MONTHS ENDED
MARCH 31,
------------------------------------
2004 2003
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REVENUES:
Contract drilling.......................................... $ 177,240 $ 139,859
Revenues related to reimbursable expenses.................. 6,958 6,290
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Total revenues....................................... 184,198 146,149
----------------- -----------------
OPERATING EXPENSES:
Contract drilling.......................................... 134,678 113,670
Reimbursable expenses........................................ 6,234 5,738
Depreciation............................................... 44,520 47,277
General and administrative................................. 8,789 7,200
Gain on sale of assets..................................... (325) (1)
----------------- -----------------
Total operating expenses............................. 193,896 173,884
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OPERATING LOSS..................................................... (9,698) (27,735)
OTHER INCOME (EXPENSE):
Interest income............................................ 1,568 4,156
Interest expense........................................... (6,354) (5,575)
Loss on sale of marketable securities...................... (25) (61)
Other, net.............................................. (154) 1,742
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LOSS BEFORE INCOME TAX BENEFIT..................................... (14,663) (27,473)
INCOME TAX BENEFIT................................................. 3,691 5,907
----------------- -----------------
NET LOSS.......................................................... $ (10,972) $ (21,566)
================= =================
EARNINGS PER SHARE:
Basic ..................................................... $ (0.08) $ (0.17)
================= =================
Diluted.................................................... $ (0.08) $ (0.17)
================= =================
WEIGHTED AVERAGE SHARES OUTSTANDING:
Common shares........................................... 129,322 130,336
Dilutive potential common shares........................ -- --
----------------- -----------------
Total weighted average shares outstanding....... 129,322 130,336
================= =================
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
(Unaudited)
(In thousands)
THREE MONTHS ENDED
MARCH 31,
---------------------------------
2004 2003
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REVENUES
High Specification Floaters....................... $ 64,752 $ 63,634
Other Semisubmersibles............................ 71,135 51,703
Jack-ups.......................................... 40,819 23,566
Integrated Services............................... -- 1,189
Other............................................. 534 --
Eliminations...................................... -- (233)
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TOTAL CONTRACT DRILLING REVENUE..................... $ 177,240 $ 139,859
================ ================
REVENUES RELATED TO REIMBURSABLE EXPENSES........... $ 6,958 $ 6,290
================ ================
CONTRACT DRILLING EXPENSE
High Specification Floaters....................... $ 42,470 $ 38,276
Other Semisubmersibles............................ 62,992 49,717
Jack-ups.......................................... 27,937 24,251
Integrated Services............................... -- 1,249
Other............................................. 1,279 410
Eliminations...................................... -- (233)
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TOTAL CONTRACT DRILLING EXPENSE..................... $ 134,678 $ 113,670
================ ================
REIMBURSABLE EXPENSES............................... $ 6,234 $ 5,738
================ ================
OPERATING LOSS
High Specification Floaters....................... $ 22,282 $ 25,358
Other Semisubmersibles............................ 8,143 1,986
Jack-ups.......................................... 12,882 (685)
Integrated Services............................... -- (60)
Other............................................. (745) (410)
Reimbursables, net................................ 724 552
Depreciation Expense.............................. (44,520) (47,277)
General and Administrative Expense................ (8,789) (7,200)
Gain on Sale of Assets............................ 325 1
---------------- ----------------
Total Operating Loss...................... $ (9,698) $ (27,735)
================ ================
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
MARCH 31, DECEMBER 31,
---------------------------------------
2004 2003
------------------- -------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents........................................... $ 115,969 $ 106,345
Marketable securities (1)........................................... 627,773 503,995
Accounts receivable................................................. 149,447 154,124
Rig inventory and supplies.......................................... 48,520 48,035
Prepaid expenses and other.......................................... 19,890 22,764
------------------- -------------------
Total current assets.................................. 961,599 835,263
Drilling and other property and equipment, net of
accumulated depreciation............................................. 2,236,575 2,257,876
Goodwill, net of accumulated amortization................................. 7,695 11,099
Other assets.............................................................. 30,162 30,781
------------------- -------------------
Total assets.......................................... $ 3,236,031 $ 3,135,019
=================== ===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accrued investment purchase (1)..................................... $ 124,908 $ --
Other current liabilities........................................... 100,100 100,000
------------------- -------------------
Total current liabilities............................. 225,008 100,000
Long-term debt............................................................ 932,002 928,030
Deferred tax liability.................................................... 379,095 384,505
Other liabilities......................................................... 38,262 42,004
Stockholders' equity.................................................... 1,661,664 1,680,480
------------------- -------------------
Total liabilities and stockholders' equity............ $ 3,236,031 $ 3,135,019
=================== ===================
(1) Marketable securities and current liabilities at March 31, 2004 reflect an
additional $124.9 million due to an accrual for the purchase of a treasury
bill on March 30, 2004 which was settled on April 1, 2004.
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
FIRST QUARTER FOURTH QUARTER FIRST QUARTER
2004 2003 2003
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DAYRATE UTILIZATION DAYRATE UTILIZATION DAYRATE UTILIZATION
- ------------------------------------------------------------------------------------------------------------------------
(Dayrate in thousands)
HIGH SPECIFICATION FLOATERS $93 77% $97 84% $94 83%
OTHER SEMISUBMERSIBLES $57 66% $56 69% $62 43%
JACK-UPS $36 85% $30 72% $28 68%