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)
<Table>
<Caption>
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
========== ==========
</Table>
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
AVERAGE DAYRATES AND UTILIZATION
<Table>
<Caption>
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%
</Table>
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