Diamond Offshore: New Drillship Delivered. 4Q Net Income at $93M

Diamond Offshore Drilling, Inc. today reported net income for the fourth quarter of 2013 of $93 million, or $0.67 per share.

Results for the fourth quarter were negatively impacted by $0.41 per share to reserve for an uncertain tax position related to Egyptian operations. Partially offsetting this reserve was revenue recognized in connection with a settlement agreement with a customer, resulting in a gain of $0.12 per share, after tax.

In the fourth quarter of 2012, Diamond Offshore reported net income of $156 million, or $1.12 per share, which included an after-tax impairment charge of $40.6 million, or $0.29 per share, related to the reclassification of four cold-stacked rigs as held for sale. Revenues in the fourth quarter of 2013 were $726 million, compared with revenues of $751 million in the prior year quarter.
For the full year 2013, the Company reported net income of $549 million, or $3.95 per share, compared with net income of $720 million, or $5.18 per share, in 2012. Revenues for the full year 2013 were $2.920 billion, compared with $2.987 billion in 2012.

Drillship delivery
“We have taken delivery of the Ocean BlackHawk, the first of our four newbuild ultra-deepwater drillships,” announced Larry Dickerson, President and Chief Executive Officer of Diamond Offshore. “The rig will soon be on its way to the U.S. Gulf of Mexico, where it will begin a five year contract with Anadarko.

According to the company’s fleet status report, the Ocean Blackhawk will begin its $495.000 per day contract with Anadarko in May 2014.

Dickerson further said: “Additionally, our deepwater semi Ocean Onyx has been delivered by the shipyard and is currently on location in the U.S. Gulf working for Apache. These rig deliveries represent important milestones for Diamond’s ongoing fleet renewal program.” 

Capital expenditures for newbuilds, upgrades and maintenance, but excluding capitalized interest, totaled $1.0 billion in 2013, and are expected to total $2.1 billion in 2014.

[mappress]