Diamond Offshore 1Q profit at $146M. CEO pleased

Diamond Offshore Drilling, Inc. today reported net income for the first quarter of 2014 of $146 million, or $1.05 per share, compared with net income of $176 million, or $1.27 per share, in the same period a year earlier.

Results for the quarter benefited from a $17 million, or $0.12 per share, credit to tax expense related to a settlement of certain disputes with Egyptian tax authorities. Revenues in the first quarter of 2014 were $709 million, compared with revenues of $730 million in the prior-year quarter.

“I am pleased to begin my tenure at Diamond Offshore with very solid first quarter results,” said Marc Edwards, President and Chief Executive Officer. “Diamond Offshore has added new capacity and upgraded its fleet while maintaining the highest credit rating and strongest balance sheet amongst its peers. This places us in a strong position to navigate through any downturn, and take advantage of strategic opportunities that may materialize. We remain focused on delivering superior financial performance and providing sector-leading shareholder returns.”

At March 31, 2014, Diamond Offshore had 137,170,137 shares of common stock outstanding. During the three months ended March 31, 2014, the Company purchased 1,865,311 shares of its common stock at an aggregate cost of $86.4 million. From April 1, 2014 to April 23, 2014 the Company repurchased an additional 30,250 shares of its common stock at an aggregate cost of $1.4 million.

Dividend

The company has declared a special quarterly cash dividend of $0.75 per share of common stock and a regular quarterly cash dividend of $0.125 per share of common stock.  Both dividends are payable on June 2, 2014 to shareholders of record on May 7, 2014. 

The Board reiterated its stated policy of considering paying special cash dividends, in amounts to be determined, on a quarterly basis.  Any determination to declare a special dividend, as well as the amount of any special dividend that may be declared, will be based on the Company’s financial position, earnings, earnings outlook, capital spending plans and other relevant factors at that time.