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[DIAMOND OFFSHORE LETTERHEAD]
EXHIBIT 20.1
FOR IMMEDIATE RELEASE CONTACT: Caren W. Steffes
Monday, April 14, 1997 (281) 492-5393
DIAMOND OFFSHORE DRILLING, INC.
ANNOUNCES EARNINGS
Houston, Texas, April 14, 1997 -- Diamond Offshore Drilling, Inc.
(NYSE:DO) today reported net income of $56.2 million, or $0.79 per share and
common equivalent share, on revenues of $204.7 million for the quarter ended
March 31, 1997 compared to net income of $18.7 million, or $0.37 per share, on
revenues of $106.9 million for the quarter ended March 31, 1996.
"Our quarterly earnings reflect the positive dayrate environment,"
commented Robert E. Rose, President and Chief Executive Officer of Diamond
Offshore, "as well as revenues from deliveries of two of our fourth generation
capable upgrades. The current quarter reflects the March 4, 1997 delivery of
the Ocean Star, which is currently drilling in approximately 4,300 feet of
water, as well as a full quarter for the Ocean Quest, which is currently
drilling in approximately 3,200 feet of water." Both of these fourth generation
capable rigs are operating under three-year contracts in the Gulf of Mexico.
Separately, Diamond Offshore's Ocean Crusader has been awarded the 1996
Safety Award for Excellence ("SAFE" Award) by the Houma District of the U.S.
Department of the Interior, Minerals Management Service (MMS). The award
recognizes companies for their record of performance in safety and
environmental protection. This is the fifth consecutive district SAFE Award
presented to the Company since 1992 when the Company implemented its quality
program, the Global Excellence Management System. Diamond Offshore was the
recipient of the 1993 and 1994 MMS National SAFE Award.
Diamond Offshore is a leader in deep water drilling. The Company owns
46 offshore major mobile drilling rigs, including 30 semisubmersibles, 15
jack-ups and one drillship. The fleet operates in the waters of six of the
world's seven continents.
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
MARCH 31, DECEMBER 31,
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1997 1996
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ASSETS
Current assets:
Cash items ........................... $ 39,258 $ 28,180
Investment securities ................ 213,465 --
Accounts receivable .................. 180,318 172,214
Rig inventory and supplies ........... 30,754 30,407
Prepaid expenses and other ........... 16,873 12,166
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Total current assets ......... 480,668 242,967
Drilling and other property and equipment,
less accumulated depreciation ............. 1,247,561 1,198,160
Other investments ............................ 98,912 --
Goodwill, net of amortization, and other
assets .................................... 136,618 133,373
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Total ........................ $1,963,759 $1,574,500
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities .......................... $ 108,532 $ 128,000
Long-term debt ............................... 400,000 63,000
Deferred tax and other liabilities ........... 204,643 188,768
Stockholders' equity ......................... 1,250,584 1,194,732
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Total ........................ $1,963,759 $1,574,500
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
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1997 1996
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Revenues .......................................... $ 204,733 $ 106,868
Operating expenses:
Contract drilling............................... 89,739 66,157
Depreciation and amortization................... 25,813 12,069
General and administrative...................... 4,941 3,103
Gain on sale of assets.......................... (66) (157)
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Total operating expenses.................... 120,427 81,172
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Operating income................................... 84,306 25,696
Other income (expense):
Interest expense................................ -- --
Other........................................... 2,708 434
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Income before income tax expense................... 87,014 26,130
Income tax expense................................. (30,784) (7,398)
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Net income......................................... $ 56,230 $ 18,732
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Net income per share and common equivalent share... $ 0.79 $ 0.37
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Shares outstanding:
Weighted average common shares.................. 68,384 50,000
Weighted average common share equivalents(1).... 3,018 --
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Adjusted........................................ 71,402 50,000
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(1) On February 4, 1997, the Company issued
$400.0 million of 3 3/4 percent convertible
subordinated notes due February 15, 2007.
The notes are convertible into approximately
4.9 million shares of the Company's common
stock at any time prior to February 15, 2007
at a conversion price of $81.00 per share.
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DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
QUARTER ENDED
MARCH 31,
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1997 1996
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(in thousands)
REVENUES
Fourth-Generation Semisubmersibles....... $ 42,643 $ 21,465
Other Semisubmersibles................... 116,833 52,995
Jack-ups................................. 43,554 20,136
Turnkey.................................. 4,311 13,626
Land..................................... - 5,102
Other.................................... - -
Eliminations............................. (2,608) (6,456)
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Total Revenues......................... $204,733 $106,868
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CONTRACT DRILLING EXPENSE
Fourth-Generation Semisubmersibles....... 11,473 7,898
Other Semisubmersibles................... 55,336 31,490
Jack-ups................................. 21,260 14,927
Turnkey.................................. 4,259 14,128
Land..................................... - 4,772
Other.................................... 361 102
Eliminations............................. (2,950) (7,160)
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Total Contract Drilling Expense........ $ 89,739 $ 66,157
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OPERATING INCOME (LOSS)
Fourth-Generation Semisubmersibles....... $ 31,170 $ 13,567
Other Semisubmersibles................... 61,497 21,504
Jack-ups................................. 22,294 5,210
Turnkey.................................. 52 (502)
Land..................................... - 330
Other.................................... (361) (102)
Eliminations............................. 342 704
General and Administrative Expense....... (4,941) (3,103)
Depreciation and Amortization Expense.... (25,813) (12,069)
Gain on Sale of Assets................... 66 157
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Total Operating Income............... $ 84,306 $ 25,696
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