HOUSTON, Feb. 13, 2017 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE: DO) today announced it has revised its previously-announced earnings for the quarter and year ended December 31, 2016.
As it was completing its year-end financial reporting process, the Company discovered that its liability for uncertain tax positions in certain foreign jurisdictions did not appropriately reflect changes in foreign exchange rates. The majority of the impact was related to the devaluation of the Egyptian Pound, primarily in the fourth quarter of 2016. After the local tax liabilities were re-valued consistent with exchange rates at December 31, 2016:
-- The Company's tax liability reflected in "Other liabilities" on its Consolidated Balance Sheet was reduced by approximately $43 million. -- The Company's provision for income taxes reflected in "Income tax benefit" on its Consolidated Statement of Operations was reduced by approximately $43 million for both the fourth quarter and full year 2016. -- The Company's net income for the fourth quarter of 2016 increased by approximately $43 million, or approximately $0.32 per diluted share. Net loss for the full year 2016 declined by approximately $43 million, or $0.31 per diluted share.
The adjustments did not affect any of the other previously-announced operating results. Copies of the fully-adjusted financial statements are enclosed in this press release.
ABOUT DIAMOND OFFSHORE
Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe. Additional information and access to the Company's SEC filings are available at www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, ------------ ------------ 2016 2015 2016 2015 ---- ---- ---- ---- Revenues: Contract drilling $384,646 $544,129 $1,525,214 $2,360,184 Revenues related to reimbursable expenses 7,228 11,434 75,128 59,209 ----- ------ ------ ------ Total revenues 391,874 555,563 1,600,342 2,419,393 ------- ------- --------- --------- Operating expenses: Contract drilling, excluding depreciation 174,342 256,393 772,173 1,227,864 Reimbursable expenses 6,775 11,146 58,058 58,050 Depreciation 86,031 114,448 381,760 493,162 General and administrative 14,786 15,574 63,560 66,462 Impairment of assets -- 499,367 678,145 860,441 Restructuring and separation costs -- 1,043 -- 9,778 Bad debt recovery (265) -- (265) -- Loss (gain) on disposition of assets 6,060 (2,309) 3,795 (2,290) ----- ------ ----- ------ Total operating expenses 287,729 895,662 1,957,226 2,713,467 ------- ------- --------- --------- Operating income (loss) 104,145 (340,099) (356,884) (294,074) Other income (expense): Interest income 176 1,526 768 3,322 Interest expense (21,230) (23,134) (89,934) (93,934) Foreign currency transaction (loss) gain (3,689) 1,511 (11,522) 2,465 Other, net 472 171 (10,727) 873 --- --- ------- --- Income (loss) before income tax benefit 79,874 (360,025) (468,299) (381,348) Income tax benefit 36,208 114,641 95,796 107,063 ------ ------- ------ ------- Net income (loss) $116,082 $(245,384) $(372,503) $(274,285) ======== ========= ========= ========= Income (loss) per share $0.85 $(1.79) $(2.72) $(2.00) ===== ====== ====== ====== Weighted-average shares outstanding: Shares of common stock 137,170 137,159 137,168 137,157 Dilutive potential shares of common stock 93 -- -- -- --- --- --- --- Total weighted- average shares outstanding 137,263 137,159 137,168 137,157 ======= ======= ======= =======
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS (Unaudited) (In thousands) Three Months Ended ------------------ December 31, September 30, December 31, ------------ ------------- ------------ 2016 2016 2015 ---- ---- ---- REVENUES Floaters: Ultra-Deepwater $231,820 $217,275 $395,798 Deepwater 64,678 66,011 92,125 Mid-water 88,130 56,350 44,766 ------ ------ ------ Total Floaters 384,628 339,636 532,689 Jack-ups 18 -- 11,440 Total Contract Drilling Revenue $384,646 $339,636 $544,129 ======== ======== ======== Revenues Related to Reimbursable Expenses $7,228 $9,542 $11,434 ====== ====== ======= CONTRACT DRILLING EXPENSE Floaters: Ultra-Deepwater $119,490 $124,099 $147,991 Deepwater 30,481 36,226 60,010 Mid-water 16,814 17,634 28,767 ------ ------ ------ Total Floaters 166,785 177,959 236,768 Jack-ups 3,090 1,833 10,749 Other 4,467 6,862 8,876 ----- ----- ----- Total Contract Drilling Expense $174,342 $186,654 $256,393 ======== ======== ======== Reimbursable Expenses $6,775 $7,965 $11,146 ====== ====== ======= OPERATING INCOME (LOSS) Floaters: Ultra-Deepwater $112,330 $93,176 $247,807 Deepwater 34,197 29,785 32,115 Mid-water 71,316 38,716 15,999 ------ ------ ------ Total Floaters 217,843 161,677 295,921 Jack-ups (3,072) (1,833) 691 Other (4,467) (6,862) (8,876) Reimbursable expenses, net 453 1,577 288 Depreciation (86,031) (86,473) (114,448) General and administrative expense (14,786) (15,237) (15,574) Impairment of assets -- -- (499,367) Restructuring and separation costs -- -- (1,043) Bad debt recovery 265 -- -- (Loss) gain on disposition of assets (6,060) 1,222 2,309 Total Operating Income (Loss) $104,145 $54,071 $(340,099) ======== ======= =========
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) December 31, December 31, 2016 2015 ---- ---- ASSETS Current assets: Cash and cash equivalents $156,233 $119,028 Marketable securities 35 11,518 Accounts receivable, net of allowance for bad debts 247,028 405,370 Prepaid expenses and other current assets 102,111 119,479 Assets held for sale 400 14,200 Total current assets 505,807 669,595 Drilling and other property and equipment, net of accumulated depreciation 5,726,935 6,378,814 Other assets 139,135 101,485 ------- ------- Total assets $6,371,877 $7,149,894 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Short-term borrowings $104,200 $286,589 Other current liabilities 236,299 339,134 Long-term debt 1,980,884 1,979,778 Deferred tax liability 197,011 276,529 Other liabilities 103,349 155,094 Stockholders' equity 3,750,134 4,112,770 --------- --------- Total liabilities and stockholders' equity $6,371,877 $7,149,894 ========== ==========
DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands, except per share data) Year ended December 31, 2016 2015 ---- ---- Operating activities: Net loss $(372,503) $(274,285) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 381,760 493,162 Loss on impairment of assets 678,145 860,441 Deferred tax provision (106,263) (242,034) Other (27,696) (69,771) Net changes in operating working capital 93,111 (31,086) Net cash provided by operating activities 646,554 736,427 ------- ------- Investing activities: Capital expenditures (including rig construction) (652,673) (830,655) Proceeds from disposition of assets, net of disposal costs 221,722 13,049 Proceeds from sale of marketable securities 4,614 51 ----- --- Net cash used in investing activities (426,337) (817,555) -------- -------- Financing activities: Repayment of long-term debt -- (250,000) (Repayment of) proceeds from short-term borrowings, net (182,389) 286,589 Debt issuance costs and arrangement fees (215) (624) Payment of dividends and anti-dilution payments (408) (69,432) Net cash used in financing activities (183,012) (33,467) -------- ------- Net change in cash and cash equivalents 37,205 (114,595) Cash and cash equivalents, beginning of year 119,028 233,623 ------- ------- Cash and cash equivalents, end of year $156,233 $119,028 ======== ========
Contact:
Samir Ali
Sr. Director, Investor Relations & Corporate Development
(281) 647-4035
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SOURCE Diamond Offshore Drilling, Inc.