Diamond Offshore Reports Second Quarter 2023 Results
- Diamond Offshore Drilling reports Q2 2023 total revenues of $281,563, a 21.4% increase from Q1 2023. Net income for Q2 is $238,783, a significant increase from $7,229 in Q1. Backlog increases by $229 million, providing increased visibility to 2024 revenue stream. Operational highlights include revenue efficiency of at least 96% for the fifth consecutive quarter and successful completion of contracts.
- None.
- Backlog of
Added During Second Quarter$229 Million - Ocean GreatWhite Completes Second Well Post-Reactivation; First Option Exercised
- Ocean BlackHawk Completes Senegal Contract; Commences Shipyard Project
- Ocean Apex Completes Shipyard Project; Mobilizing to Location Offshore Australia
Three Months Ended | |||||||
Thousands of dollars, except per share data | June 30, 2023 | March 31, 2023 | |||||
Total revenues | $ | 281,563 | $ | 232,021 | |||
Operating income (loss) | 10,240 | (4,960) | |||||
Adjusted EBITDA | 36,213 | 21,733 | |||||
Net income | 238,783 | 7,229 | |||||
Income per diluted share | $ | 2.29 | $ | 0.07 |
Bernie Wolford, Jr., President and Chief Executive Officer of Diamond Offshore, stated "Our clients continue to commit additional capital to offshore drilling and make critical investments in long-lead subsea equipment. This coupled with strong commodity demand outlooks and favorable economics for deepwater projects are setting the stage for sustainable demand for our drilling services as momentum continues to build in this cycle. During the quarter, we secured term work for the Ocean BlackHawk and added a two-well contract for the Ocean Patriot, both at higher dayrates. We also extended the Ocean Endeavor by two wells, and our customers exercised options for the Ocean GreatWhite and the Ocean BlackRhino. These wins, which total more than
We now have
Second Quarter Results
Contract drilling revenue for the second quarter totaled
Contract drilling expense for the second quarter increased to
General and administrative expenses were
Tax benefit for the second quarter was
Operational Highlights
Operationally, the Company's rigs continued to perform exceptionally well, achieving revenue efficiency of at least
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results has been scheduled for 8:00 a.m. CDT on Tuesday, August 8, 2023. A live webcast of the call will be available online on the Company's website, www.diamondoffshore.com. Participants who want to join the call via telephone or want to participate in the question and answer session may register here to receive the dial-in numbers and unique PIN to access the call. An online replay will also be available on www.diamondoffshore.com following the call.
ABOUT DIAMOND OFFSHORE
Diamond Offshore is a leader in offshore drilling, providing innovation, thought leadership and contract drilling services to solve complex deepwater challenges around the globe. Additional information and access to the Company's SEC filings are available at http://www.diamondoffshore.com/.
FORWARD-LOOKING STATEMENTS
Statements contained in this press release and made in the referenced conference call that are not historical facts are "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. Forward-looking statements include, but are not limited to, any statement that may project, indicate or imply future results, events, performance or achievements, including statements relating to future financial results; future recovery in the offshore contract drilling industry; expectations regarding the Company's plans, strategies and opportunities; expectations regarding the Company's business or financial outlook; future borrowing capacity and liquidity; expected utilization, dayrates, revenues, operating expenses, rig commitments and availability, cash flows, tax rates and accounting treatment, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the COVID-19 pandemic; the offshore drilling market, including supply and demand, customer drilling programs, repricings, stacking of rigs, effects of new rigs on the market and effect of the volatility of commodity prices; expected work commitments, awards and contracts; future operations; increasing regulatory complexity; general market, business and industry conditions, trends and outlook; and general political conditions, including political tensions, conflicts and war, including
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited) | ||||||||
(In thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
June 30, | March 31, | |||||||
2023 | 2023 | |||||||
Revenues: | ||||||||
Contract drilling | $ | 264,990 | $ | 214,383 | ||||
Revenues related to reimbursable expenses | 16,573 | 17,638 | ||||||
Total revenues | 281,563 | 232,021 | ||||||
Operating expenses: | ||||||||
Contract drilling, excluding depreciation | 212,947 | 173,490 | ||||||
Reimbursable expenses | 15,579 | 17,213 | ||||||
Depreciation | 27,906 | 27,906 | ||||||
General and administrative | 16,824 | 19,585 | ||||||
Gain on disposition of assets | (1,933) | (1,213) | ||||||
Total operating expenses | 271,323 | 236,981 | ||||||
Operating income (loss) | 10,240 | (4,960) | ||||||
Other income (expense): | ||||||||
Interest income | 5 | 7 | ||||||
Interest expense | (12,755) | (12,040) | ||||||
Foreign currency transaction loss | (1,968) | (1,271) | ||||||
Other, net | 136 | (152) | ||||||
Loss before income tax benefit | (4,342) | (18,416) | ||||||
Income tax benefit | 243,125 | 25,645 | ||||||
Net income | $ | 238,783 | $ | 7,229 | ||||
Income per share | ||||||||
Basic | $ | 2.35 | $ | 0.07 | ||||
Diluted | $ | 2.29 | $ | 0.07 | ||||
Weighted-average shares outstanding, Basic | 101,487 | 101,331 | ||||||
Weighted-average shares outstanding, Diluted | 104,236 | 103,936 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
June 30, | December 31, | |||||||
2023 | 2022 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 29,685 | $ | 63,041 | ||||
Restricted cash | 14,284 | 34,293 | ||||||
Accounts receivable, net of allowance for credit losses | 201,080 | 172,053 | ||||||
Prepaid expenses and other current assets | 137,473 | 48,695 | ||||||
Asset held for sale | 1,000 | — | ||||||
Total current assets | 383,522 | 318,082 | ||||||
Drilling and other property and equipment, net of | ||||||||
accumulated depreciation | 1,138,544 | 1,141,908 | ||||||
Other assets | 265,704 | 67,966 | ||||||
Total assets | $ | 1,787,770 | $ | 1,527,956 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Total current liabilities | $ | 257,028 | $ | 261,661 | ||||
Long-term debt | 365,859 | 360,644 | ||||||
Noncurrent finance lease liabilities | 122,499 | 131,393 | ||||||
Deferred tax liability | 705 | 700 | ||||||
Other liabilities | 108,753 | 93,888 | ||||||
Stockholders' equity | 932,926 | 679,670 | ||||||
Total liabilities and stockholders' equity | $ | 1,787,770 | $ | 1,527,956 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(Unaudited) | ||||
(In thousands) | ||||
Six Months Ended | ||||
June 30, 2023 | ||||
Operating activities: | ||||
Net income | $ | 246,012 | ||
Adjustments to reconcile net income to net cash provided by | ||||
Depreciation | 55,812 | |||
Gain on disposition of assets | (3,146) | |||
Deferred tax provision | (200,658) | |||
Stock-based compensation expense | 8,082 | |||
Contract liabilities, net | (2,707) | |||
Contract assets, net | (1,980) | |||
Deferred contract costs, net | 4,893 | |||
Other assets, noncurrent | 2,577 | |||
Other liabilities, noncurrent | 16,870 | |||
Other | 1,501 | |||
Current income tax assets | (85,266) | |||
Net changes in other operating working capital | (31,247) | |||
Net cash provided by operating activities | 10,743 | |||
Investing activities: | ||||
Capital expenditures | (58,953) | |||
Proceeds from disposition of assets, net of disposal costs | 348 | |||
Net cash used in investing activities | (58,605) | |||
Financing activities: | ||||
Borrowings under credit facility, net of repayments | 5,000 | |||
Principal payments of finance lease liabilities | (10,503) | |||
Net cash used in financing activities | (5,503) | |||
Net change in cash, cash equivalents and restricted cash | (53,365) | |||
Cash, cash equivalents and restricted cash, beginning of period | 97,334 | |||
Cash, cash equivalents and restricted cash, end of period | $ | 43,969 |
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES | |||||||||
AVERAGE DAYRATE, UTILIZATION AND OPERATIONAL EFFICIENCY | |||||||||
(Dayrate in thousands) | |||||||||
TOTAL FLEET | |||||||||
Second Quarter | First Quarter | ||||||||
2023 | 2023 | ||||||||
Average Dayrate | Utilization | Revenue Efficiency | Average Dayrate | Utilization | Revenue Efficiency | ||||
$ | 299 | 70 % | 95.8 % | $ | 272 | 63 % | 95.9 % | ||
(1) | Average dayrate is defined as total contract drilling revenue for all of the rigs in our fleet (including managed rigs) per revenue-earning day. A revenue-earning day is defined as a 24-hour period during which a rig earns a dayrate after commencement of operations and excludes mobilization, demobilization and contract preparation days. |
(2) | Utilization is calculated as the ratio of total revenue-earning days divided by the total calendar days in the period for all rigs in our fleet (including managed and cold-stacked rigs). |
(3) | Revenue efficiency is calculated as actual contract drilling revenue earned divided by potential revenue, assuming a full dayrate is earned. |
Non-GAAP Financial Measures (Unaudited)
To supplement the Company's unaudited condensed consolidated financial statements presented on a basis in conformity with generally accepted accounting principles in
Reconciliation of Loss Before Income Tax Benefit (Expense) to Adjusted EBITDA: | ||||||||
(In thousands) | ||||||||
Three Months Ended | ||||||||
June 30, | March 31, | |||||||
2023 | 2023 | |||||||
As reported loss before income tax benefit | $ | (4,342) | $ | (18,416) | ||||
Interest expense | 12,755 | 12,040 | ||||||
Interest income | (5) | (7) | ||||||
Foreign currency transaction loss | 1,968 | 1,271 | ||||||
Depreciation | 27,906 | 27,906 | ||||||
Gain on disposition of assets | (1,933) | (1,213) | ||||||
Other, net | (136) | 152 | ||||||
Adjusted EBITDA | $ | 36,213 | $ | 21,733 |
Contact:
Kevin Bordosky
Senior Director, Investor Relations
(281) 647-4035
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SOURCE Diamond Offshore Drilling, Inc.
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