Diamond offshore announces second quarter 2012 results
Houston--(business wire)--diamond offshore drilling, inc. (nyse:do) today reported net income for the second quarter of 2012 of $201.5 million, or $1.45 per share on a diluted basis, compared with net income of $266.6 million, or $1.92 per share on a diluted basis, in the same period a year earlier. revenues in the second quarter of 2012 were $738.2 million, compared with revenues of $889.5 million for the second quarter of 2011. results for the quarter included an after-tax gain of approximately $50.5 million, or $0.36 per share, related to the sale of five jack-up rigs. these transactions included the sale of the ocean sovereign for $38.5 million cash, in addition to the previously announced sales of the ocean heritage, ocean drake, ocean crusader and ocean champion. the reduction in the company’s overall effective tax rate for the quarter, compared to the previous quarter, resulted primarily from the low effective tax rate associated with these sales transactions. since the first quarter of 2012, the company put in place 14 new agreements that are expected to generate maximum total revenue of approximately $1.1 billion and 10 rig-years of contract drilling backlog. significant among these awarded contracts are the following: the ocean onyx was awarded a one-year contract with apache deepwater llc, a subsidiary of apache corporation, at a rate of $490,000 per day. the rig will work in the u.s. gulf of mexico upon its completion and delivery from the shipyard in 3q of 2013. the ocean vanguard was extended with statoil by 20 months to continue operating in the norwegian sector of the north sea into march of 2015. the new rate will be $450,000 per day, up from the previous rate of $352,000 per day. the ocean nomad was awarded a two-year contract with dana petroleum to work in the u.k. north sea until june of 2015. the rate will be $330,000 per day. the ocean guardian was extended with shell for one year at a rate of $350,000 per day to continue working in the u.k. north sea until july of 2015. the current rate is $263,000 per day. “our contract announcements reflect the continued strength in deep and mid-water markets,” said larry dickerson, president and chief executive officer of diamond offshore. “in particular, we are pleased with the award for the ocean onyx, our deepwater semisubmersible rig currently under construction. the company is currently evaluating another potential project that would deliver a rig with enhanced capabilities, similar to the ocean onyx.” “over the past several quarters, our results have also benefitted from our ongoing efforts to control costs and reduce unanticipated rig downtime,” said dickerson. “during the second quarter, we continued to execute on these initiatives, which contributed to our strong operating results.” conference call diamond offshore will host a conference call to discuss first quarter results on thursday, july 19, 2012 beginning at 9:00 a.m. cdt. a live webcast of the call will be available online on the company’s website, www.diamondoffshore.com. those interested in participating in the question and answer session should dial 800-247-9979, or 973-321-1100 for international callers. the conference id number is 93863487. an online replay will also be available on www.diamondoffshore.com following the call. about diamond offshore diamond offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. diamond offshore’s fleet of offshore drilling rigs consists of 31 semisubmersibles, seven jack-ups, and one drillship, in addition to four ultra-deepwater drillships and one deepwater semisubmersible currently under construction. for additional information and access to sec filings, please visit the company’s website at www.diamondoffshore.com. diamond offshore is a 50.4% owned subsidiary of loews corporation (nyse:l). forward-looking statements maximum contract revenue as stated above assumes 100% rig utilization. generally, rig utilization rates approach 92-98% during contracted periods; however, utilization rates can be adversely impacted by additional downtime due to unscheduled repairs, maintenance and weather. additional information on diamond offshore drilling, inc. (“the company”) and access to the company’s sec filings is available on the internet at www.diamondoffshore.com. statements contained in this press release that are not historical facts are “forward-looking statements” within the meaning of the federal securities laws. such statements include, but are not limited to, statements concerning future revenues and backlog, future performance under contract awards and extensions, future operations and dayrates, delivery of the ocean onyx from the shipyard, market outlook and future market conditions, future rig construction and future contracting opportunities. forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by management of the company. a discussion of the important risk factors and other considerations that could materially impact these matters as well as the company’s overall business and financial performance can be found in the company’s reports filed with the securities and exchange commission and readers of this press release are urged to review those reports carefully when considering these forward-looking statements. copies of these reports are available through the company’s website at www.diamondoffshore.com. these factors include, among others, general economic and business conditions, contract cancellations, customer bankruptcy, operating risks, casualty losses, industry fleet capacity, changes in foreign and domestic oil and gas exploration and production activity, competition, changes in foreign, political, social and economic conditions, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the company’s control. given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. each forward-looking statement speaks only as of the date of this press release. the company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward-looking statement is based. six months ended june 30, total weighted average shares outstanding $ 11,927 $ 13,487 $ 19,850 drilling and other property and equipment, net of accumulated depreciation