Diamond Offshore Drilling, Inc. Provides Interest Expense Guidance for the Third Quarter of 2014, Capital Expenditure for the Full Year 2014 and 2015 and Tax Rate Guidance for the Final Two Quarters of the Year 2014
July 24, 2014 at 06:30 pm IST
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Diamond Offshore Drilling, Inc. provided interest expense guidance for the third quarter of 2014, capital expenditure for the full year 2014 and 2015 and tax rate guidance for the final two quarters of the year 2014. Depreciation expense for third quarter of 2014 is expected to increase to $110 million to $115 million, with a full year depreciation expense not expected to be between $445 million and $455 million. This is a little lower than the company's previous guidance and is driven primarily by the delivery delays from the company's drill ships. Interest expense should be in the $15 million to $20 million range in third quarter of 2014 and G&A expansion, should be in the range of $18 million to $21 million per the quarter for the rest of the year. The company's tax rate for the final two quarters of the year 2014 is expected to fall between 20% and 24%. The company's capital expenditure guidance again, remains unchanged from the last quarter. For 2014, the company expects to incur $285 million of maintenance CapEx and $1.8 billion of new-build CapEx for a total of $2.1 billion.
For 2015, the company is still expecting the capital expenditures to be approximately $800 million, primarily made up by the shipyard completion payment on the BlackLion, plus maintenance CapEx.
Diamond Offshore Drilling, Inc. provides offshore drilling services. The Company provides contract drilling services to the energy industry around the globe with a fleet of approximately 13 offshore drilling rigs, consisting of four owned drill ships, seven owned semisubmersible rigs and two managed rigs. The Company also provides management and marketing services. It provides offshore drilling services to a customer base that includes independent oil and gas companies and government-owned oil companies. The Company's fleet enables it to offer services in the floater market on a worldwide basis. The principal markets for its offshore contract drilling services are the Gulf of Mexico, including the United States, and Mexico; Canada; South America, principally offshore Brazil; Australia and Southeast Asia; Europe, principally offshore the United Kingdom; East and West Africa, and the Mediterranean. Its semisubmersible rigs include Ocean Apex, Ocean Onyx, Ocean Valiant and Ocean Patriot.
Diamond Offshore Drilling, Inc. Provides Interest Expense Guidance for the Third Quarter of 2014, Capital Expenditure for the Full Year 2014 and 2015 and Tax Rate Guidance for the Final Two Quarters of the Year 2014