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EXHIBIT 20.1
NEWS RELEASE
FOR IMMEDIATE RELEASE CONTACT: Laura Herzog
Thursday, January 23, 1997 (281) 492-5393
DIAMOND OFFSHORE DRILLING, INC.
ANNOUNCES EARNINGS AND
CONVERTIBLE SUBORDINATED NOTES OFFERING
Houston, Texas, January 23, 1997 -- Diamond Offshore Drilling, Inc. (NYSE:DO)
today reported net income of $56.2 million, or $.82 per share, on revenues of
$187.0 million for the quarter ended December 31, 1996. This compares to net
income of $5.9 million on revenues of $98.0 million for the quarter ended
December 31, 1995. On a pro forma basis, which restates the Company's actual
results as if the Company's public offering in October of 1995 had taken place
on January 1, 1995, net income per share for the quarter ended December 31,
1995 was $.13. Net income for the fourth quarter of 1996 included an after-tax
gain of $16.2 million, or $.24 per share, related to asset sales, offset by an
after-tax charge of $2.2 million, or $.03 per share, primarily related to
origination costs for a loan which was refinanced during the period.
For the year ended December 31, 1996, the Company reported net income of $146.4
million, or $2.35 per share, on revenues of $611.4 million. This compares to a
net loss of $7.0 million on revenues of $336.6 million, or $.20 per share on a
pro forma basis, for the year ended December 31, 1995. Net income for the full
year 1996 included an after-tax gain of $22.8 million, or $.37 per share,
related to asset sales, offset by an after-tax charge of $2.2 million, or $.03
per share, primarily related to loan origination costs.
Separately, Diamond Offshore announced that it plans to offer $300 million of
Convertible Subordinated Notes due 2007 in a public offering to be lead managed
by Credit Suisse First Boston. The Company filed a shelf registration
statement on Form S-3 on January 17, 1997 for a maximum amount of $600 million,
and will be issuing the Notes pursuant to a prospectus supplement to the shelf
registration statement.
Diamond Offshore is a leader in deep water drilling. The Company owns 46
mobile offshore drilling rigs, including 30 semisubmersibles, 15 jack-ups and
one drillship. The fleet is operating in the waters of six of the world's
seven continents.
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This announcement is neither an offer to sell, nor a solicitation of an offer
to buy, any of the Convertible Subordinated Notes. The offer is made only by a
prospectus supplement, copies of which may be obtained in any state in which
this announcement is circulated where Credit Suisse First Boston and the other
underwriters may legally offer such securities in compliance with the
securities laws of such state.
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
DECEMBER 31, DECEMBER 31,
----------------------- -----------------------
1996 1995
----------------------- -----------------------
ASSETS
------
Current assets:
Cash items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,180 15,347
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . 172,214 74,496
Rig inventory and supplies . . . . . . . . . . . . . . . . . . . . . 30,407 15,330
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . 12,166 10,601
----------------------- -----------------------
Total current assets . . . . . . . . . . . . . . . . . . . . . . 242,967 115,774
Drilling and other property and equipment, less
accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . 1,198,160 502,278
Goodwill, net of amortization, and other assets . . . . . . . . . . . . . 133,373 --
----------------------- -----------------------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,574,500 618,052
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,000 52,251
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,000 --
Deferred tax liability . . . . . . . . . . . . . . . . . . . . . . . . . 176,296 72,907
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,472 --
Stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . 1,194,732 492,894
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Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,574,500 618,052
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
QUARTER ENDED
DECEMBER 31,
----------------------------------------
1996 1995
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(in thousands)
REVENUES
Fourth-Generation Semisubmersibles . . . . . . . . . . . . . . . $35,400 $20,737
Other Semisubmersibles . . . . . . . . . . . . . . . . . . . . . 103,957 46,967
Jack-ups . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,268 18,890
Turnkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,579 15,255
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,295 5,180
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 4
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . (3,542) (9,031)
----------------------------------------
Total Revenues . . . . . . . . . . . . . . . . . . . . . . . $186,957 $98,002
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CONTRACT DRILLING EXPENSE
Fourth-Generation Semisubmersibles . . . . . . . . . . . . . . . 11,652 8,927
Other Semisubmersibles . . . . . . . . . . . . . . . . . . . . . 54,626 35,036
Jack-ups . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,109 14,737
Turnkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,811 17,963
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,883 5,022
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309 1,895
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . (3,845) (9,280)
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Total Contract Drilling Expense $99,545 $74,300
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OPERATING INCOME
Fourth-Generation Semisubmersibles . . . . . . . . . . . . . . . $23,748 $11,810
Other Semisubmersibles . . . . . . . . . . . . . . . . . . . . . 49,331 11,931
Jack-ups . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,159 4,153
Turnkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768 (2,708)
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 412 158
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (309) (1,891)
Eliminations . . . . . . . . . . . . . . . . . . . . . . . . . . 303 249
General and Administrative Expense (4,979) (4,404)
Depreciation and Amortization Expense . . . . . . . . . . . . . . (23,705) (11,440)
Gain on Sale of Assets . . . . . . . . . . . . . . . . . . . . . 24,933 895
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Total Operating Income . . . . . . . . . . . . . . . . . . . $83,661 $8,753
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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
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1996 1995 1996 1995
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Revenues . . . . . . . . . . . . . . . . . . $ 186,957 $ 98,002 $ 611,430 $ 336,584
Operating expenses:
Contract Drilling . . . . . . . . . . . 99,545 74,300 341,654 259,560
General and administrative . . . . . . . 4,979 4,404 15,640 13,857
Depreciation and amortization . . . . . 23,705 11,440 75,767 52,865
Gain on sale of assets . . . . . . . . . (24,933) (895) (35,122) (1,349)
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Total operating expenses . . . . . 103,296 89,249 397,939 324,933
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Operating income . . . . . . . . . . . . . . 83,661 8,753 213,491 11,651
Other income (expense):
Interest expense . . . . . . . . . . . . (2,222) (913) (2,326) (27,052)
Currency transaction losses . . . . . . (70) (12) (28) (191)
Other . . . . . . . . . . . . . . . . . 493 526 1,568 1,789
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Income (loss) before income tax (expense)
benefit . . . . . . . . . . . . . . . . . 81,862 8,354 212,705 (13,803)
Income tax (expense) benefit . . . . . . . . (25,708) (2,460) (66,317) 6,777
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Net income (loss) . . . . . . . . . . . . . . $ 56,154 $ 5,894 $ 146,388 $ (7,026)
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Net income per share . . . . . . . . . . . . $ 0.82 $ 2.35
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Weighted average shares outstanding . . . . . 68,343 62,231
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Pro forma net income per share . . . . . . . $ 0.13 $ 0.20
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