Ocean GreatWhite Awarded Contract
Three other Rigs Secure Additional Backlog
18% Increase in Contract Drilling Revenue and $26m Increase in EBITDA
HOUSTON, Aug. 9, 2022 /PRNewswire/ -- Diamond Offshore Drilling, Inc. (NYSE: DO) today reported the following results for the second quarter of 2022:
Three Months Ended
Thousands of dollars, except per share data
June 30, 2022
March 31, 2022
Total revenues
$
205,702
$
186,239
Operating loss
(9,763)
(33,916)
Adjusted EBITDA
15,245
(11,008)
Net loss
(21,929)
(34,354)
Loss per diluted share
$
(0.22)
$
(0.34)
Diamond Offshore also announced contract awards forthe harsh environment semisubmersible Ocean GreatWhite in the U.K. North Sea, the semisubmersible Ocean Apex in Australia, and two 7th generation drillships - the Ocean BlackHornet and a Diamond-managed rig - in the U.S. Gulf of Mexico.These new contracts added approximately $610 million of backlog for the Company. The new contracts are in addition to the $995 million of backlog reported as of July 1, 2022.
Bernie Wolford, Jr., President and Chief Executive Officer, commented, "We are pleased to announce these significant backlog additions. The contract for the Ocean GreatWhite is a testament to the capabilities of this high-specification harsh environment asset and comes at a time when energy security and longer-term demand in the sector are increasingly visible. With the rig now contracted, we will have three assets working in the UK sector of the North Sea, allowing us to better serve our customer base while growing our presence in an established market."
The Ocean GreatWhite was awarded five wells, with an estimated duration of 300 days. Contract commencement is expected in the first quarter of 2023. Total contract value of the committed scope is approximately $80 million. The contract also includes priced options for up to eight additional wells.
The Ocean Apex has been awarded three new contracts for work on the Northwest Shelf of Australia. The first new award commences in the second quarter of 2023, with an estimated duration of 75 days. The second award is also for an estimated duration of 75 days, commencing in direct continuation of the previous award. The third award has an estimated duration of 150 days with a commencement in 2024. The combined awards add approximately $90 million of backlog to the Ocean Apex. Wolford added, "A potential fourth new contract currently under negotiation would fill out the remaining availability in 2023, and combined, keep the rig fully contracted until late 2024."
Story continues
The Ocean BlackHornet has secured a two-year extension with its current client in the U.S. Gulf of Mexico in direct continuation of the rig's current term. The two-year extension will keep the rig working until early 2025. Total contract value for the extension is approximately $290 million.
A Diamond-managed rig has been extended by its current client for work in the U.S. Gulf of Mexico for an additional one-year term in direct continuation of the rig's current term. The contract value for this extension is approximately $150 million.
Wolford noted, "With improved dayrates and approximately 75% of 2023 marketed capacity contracted, we have an opportunity to earn considerably higher margins in 2023. I would like to thank everyone involved in securing this backlog, as these awards are a testament to the class-leading Diamond Offshore brand, our unwavering commitment to HSE, and the hard-working people who contribute to the Diamond Difference."
Second Quarter Results
Contract drilling revenue for the second quarter totaled $177 million compared to $150 million in the first quarter of 2022. The increase in revenue was primarily driven by the Ocean Apex returning to active service under a new contract that commenced in May 2022, completion of shipyard stays for the Ocean Endeavor and Ocean Patriot, and a full quarter of drilling operations for the Auriga. Contract drilling expense for the second quarter was relatively flat at $142 million compared to $145 million in the first quarter of 2022. During the quarter, the Company continued to perform in an exceptional manner, achieving revenue efficiency of 96.3%.
Operational Highlights
After eight years of continuous and exceptional performance, the Ocean BlackHawk completed its inaugural contract in the U.S. Gulf of Mexico. The rig has now mobilized to Senegal to join the Ocean BlackRhino. The Ocean Apex returned to work in May and the Ocean Monarch completed its contract and was cold stacked.
Notably, three of the Company's rigs reached significant safety milestones this quarter, each achieving three years without a recordable incident.
Liquidity and Outlook
As of June 30, 2022, Diamond Offshore had total liquidity of $339 million, comprised of $43 million of unrestricted cash and $296 million of available capacity on its revolving credit facility and delayed draw First Lien Notes.
Commenting on the outlook for the offshore drilling market, Wolford concluded, "The market continues to improve, as reflected by our recent fixtures for both semisubmersibles and drillships across multiple regions. Visible demand, energy security concerns, and tight supply could lead to sustainable demand for our drilling services for years to come."
CONFERENCE CALL
A conference call to discuss Diamond Offshore's earnings results has been scheduled for 8:00 a.m. CDT on Wednesday, August 10, 2022. A live webcast of the call will be available online on the Company's website, http://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 http://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 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, contract status, terms and duration, contract backlog, capital expenditures, insurance, financing and funding; the effect, impact, potential duration and other implications of the ongoing COVID-19 pandemic; the impact of our emergence from bankruptcy; 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. 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 certain of the 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 Item 1A "Risk Factors" in the Company's most recent annual report on Form 10-K and the Company's other 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 http://www.diamondoffshore.com. These risk factors include, among others, risks associated with worldwide demand for drilling services, levels of activity in the oil and gas industry, renewing or replacing expired or terminated contracts, contract cancellations and terminations, maintenance and realization of backlog, competition and industry fleet capacity, impairments and retirements, operating risks, litigation and disputes, permits and approvals for drilling operations, the COVID-19 pandemic and related disruptions to the global economy, supply chain and normal business operations across sectors and countries, changes in tax laws and rates, regulatory initiatives and compliance with governmental regulations, casualty losses, and various other factors, many of which are beyond the Company's control. Given these risk factors and other considerations, 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, and 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.
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,
2022
2022
Revenues:
Contract drilling
$
176,879
$
150,252
Revenues related to reimbursable expenses
28,823
35,987
Total revenues
205,702
186,239
Operating expenses:
Contract drilling, excluding depreciation
142,150
144,902
Reimbursable expenses
28,554
35,613
Depreciation
25,693
26,952
General and administrative
19,753
16,732
Gain on disposition of assets
(685)
(4,044)
Total operating expenses
215,465
220,155
Operating loss
(9,763)
(33,916)
Other income (expense):
Interest income
1
Interest expense
(10,103)
(8,325)
See the rest here:
- Equinor stepping up gas investments at North Sea Troll project - Offshore magazine - May 25th, 2024 [May 25th, 2024]
- Coastal community meetings on proposed offshore wind leases to be held - Curry Coastal Pilot - May 25th, 2024 [May 25th, 2024]
- Extending USV surveying from offshore to inland waters - Hydro International - May 25th, 2024 [May 25th, 2024]
- People on the move | Offshore - Offshore magazine - May 25th, 2024 [May 25th, 2024]
- Coastal Virginia Offshore Wind project reaches key milestone - Daily Energy Insider - May 25th, 2024 [May 25th, 2024]
- BOEM Issues Final EIS for Two Wind Projects Offshore New Jersey - Offshore Engineer - May 25th, 2024 [May 25th, 2024]
- Why least-cost auctions are 'unrealistic' for offshore wind on US west coast - Windpower Monthly - May 25th, 2024 [May 25th, 2024]
- Fifth Arctic and Offshore Patrol ship officially named HMCS Frdrick Rolette - CTV News Atlantic - May 25th, 2024 [May 25th, 2024]
- CAISO Approves Transmission Plan Integrating Offshore Wind - North American Windpower - May 25th, 2024 [May 25th, 2024]
- TotalEnergies plans to invest $600m in oilfield offshore Congo - Offshore Technology - May 25th, 2024 [May 25th, 2024]
- Two wind farms completed offshore western Taiwan - Offshore magazine - May 25th, 2024 [May 25th, 2024]
- HSM Offshore Energy doubles fabrication capacity with second location in the Netherlands - WorldOil - May 25th, 2024 [May 25th, 2024]
- Floating wind could transform offshore energy but companies need to work together and embrace innovation - Professional Engineering - May 25th, 2024 [May 25th, 2024]
- rsted ditches deal on $625M vessel for installing turbines - E&E News by POLITICO - May 25th, 2024 [May 25th, 2024]
- Biden's unnecessary regulations on offshore oil rigs threaten jobs in Gulf States - Northeast Mississippi Daily Journal - May 25th, 2024 [May 25th, 2024]
- Sonatrach awards $2.3bn contract for gas-boosting work in Algeria - Offshore Technology - May 25th, 2024 [May 25th, 2024]
- Readers sound off on offshore wind projects, Diddy's assault and Hannah Arendt - New York Daily News - May 25th, 2024 [May 25th, 2024]
- Fifth Arctic and offshore patrol vessel officially named HMCS Frederick Rolette - SaltWire Halifax powered by The Chronicle Herald - May 25th, 2024 [May 25th, 2024]
- New York Student Equity Fund Available for State of the Science Workshop on Offshore Wind Energy, Wildlife, and ... - New York City Central Labor... - May 25th, 2024 [May 25th, 2024]
- rsted-Eversource Partnership Announces Cancellation of Agreement for Charybdis (Updated) - CT Examiner - May 25th, 2024 [May 25th, 2024]
- XINSURANCE Named Title Sponsor Of Next Weeks Shootout Offshore Race - SpeedontheWater - May 25th, 2024 [May 25th, 2024]
- Equinor to invest $1.1bn in Troll gas field to boost production - Offshore Technology - May 25th, 2024 [May 25th, 2024]
- Senate passes offshore wind bill - delawarebusinessnow.com - May 25th, 2024 [May 25th, 2024]
- Equinor Makes Discovery in Svalin Field Offshore Norway - Rigzone News - May 25th, 2024 [May 25th, 2024]
- Offshore cable ops resume at Ireland-Wales interconnector after a break - Offshore Energy - May 25th, 2024 [May 25th, 2024]
- Primacy or Offshore Balancing: A Conceptual Analysis of U.S.Foreign Policy - Modern Diplomacy - May 25th, 2024 [May 25th, 2024]
- Cyan, Ocean Infinity partner for APAC offshore wind projects - Offshore Energy - May 25th, 2024 [May 25th, 2024]
- First Of The 176 Monopile Foundations Fitted At Dominion's Virginia Offshore Wind Farm - Marine Insight - May 25th, 2024 [May 25th, 2024]
- Mexico needs to act to stem oil and gas production declines, report claims - Offshore magazine - May 25th, 2024 [May 25th, 2024]
- California congressman urges closer consultation with tribes on offshore wind - Jackson Hole News&Guide - May 25th, 2024 [May 25th, 2024]
- EURO 2024 Young Player of the Tournament Offshore Odds, Preview, and Prediction (2024) - The Latest Sports ... - OffshoreSportsbooks.com - May 23rd, 2024 [May 23rd, 2024]
- Irish 2,000 Guineas Offshore Odds, Preview, and Prediction (2024) - The Latest Sports Betting News - OffshoreSportsbooks.com - May 23rd, 2024 [May 23rd, 2024]
- Gervonta Davis vs Frank Martin Offshore Odds, Preview, and Prediction (2024) - The Latest Sports Betting News - OffshoreSportsbooks.com - May 23rd, 2024 [May 23rd, 2024]
- Roadmap for energy skills transition secures backing from wind, oil and gas sectors - Renewable Energy Magazine - May 23rd, 2024 [May 23rd, 2024]
- Spatiotemporal distribution, evolution, and complementarity of wind and waves in China's offshore waters and its ... - ScienceDirect.com - May 23rd, 2024 [May 23rd, 2024]
- Irish 1,000 Guineas Offshore Odds, Preview, and Prediction (2024) - The Latest Sports Betting News - OffshoreSportsbooks.com - May 23rd, 2024 [May 23rd, 2024]
- DNREC and US Wind hold offshore wind meeting June 5 in Lewes - wrde.com - May 23rd, 2024 [May 23rd, 2024]
- Adele To Release New Album 2024 Offshore Odds, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - May 23rd, 2024 [May 23rd, 2024]
- Offshore Wind Public Information Session in Lewes Scheduled for June - WBOC TV 16 - May 23rd, 2024 [May 23rd, 2024]
- RWE Investigates Impact of Artificial Reefs at Baltic Sea Offshore Wind Farms - Greentech Lead - May 23rd, 2024 [May 23rd, 2024]
- Biden administration hit with one more lawsuit over LNG permitting freeze - Offshore Energy - May 23rd, 2024 [May 23rd, 2024]
- GIW to Discuss Bigger Slurry Pump Trends at Oil Sands Conference - Offshore Technology - May 23rd, 2024 [May 23rd, 2024]
- CIP Inaugurates the Changfang-Xidao Offshore Wind Farms in Taiwan - Renewable Energy Magazine - May 23rd, 2024 [May 23rd, 2024]
- Offshore Wind Turbine Installation Vessel Market will reach US$ 5.46 Billion by 2030, at a CAGR of 14.9% - openPR - May 23rd, 2024 [May 23rd, 2024]
- Norway Boost Offshore Wind Ties with East of England - Offshore Engineer - May 23rd, 2024 [May 23rd, 2024]
- First foundation installed for Dominion Energy's massive CVOW offshore windfarm - Riviera Maritime Media - May 23rd, 2024 [May 23rd, 2024]
- Perenco Unit Makes First Discovery Offshore DRC in 30 Years - Rigzone News - May 23rd, 2024 [May 23rd, 2024]
- Rovco wins survey work on 1.5GW Outer Dowsing offshore wind farm - Splash247 - Splash 247 - May 23rd, 2024 [May 23rd, 2024]
- F.lli Righini Delivers to Heerema Marine Contractors World-First Lifting and Upending Tools for the EnBW He Dreiht ... - Offshore WIND - May 23rd, 2024 [May 23rd, 2024]
- DeepOcean performs first-ever subsea dredging operations remotely from shore - Offshore Energy - May 23rd, 2024 [May 23rd, 2024]
- Windar and Polish City Strengthen Ties for New Offshore Tower Facility - Offshore WIND - May 23rd, 2024 [May 23rd, 2024]
- An up-close look at Americas first major offshore wind farm - Eyewitness News 3 - May 23rd, 2024 [May 23rd, 2024]
- MaineDOT Applies for Grant to Build Offshore Wind Port On Sears Isl. - Construction Equipment Guide - May 23rd, 2024 [May 23rd, 2024]
- Offshore wind industry targeted in latest lawsuits by NJ towns - Asbury Park Press - May 23rd, 2024 [May 23rd, 2024]
- US Competition Selects Finalists in Floating Offshore Wind Technologies - The Maritime Executive - May 23rd, 2024 [May 23rd, 2024]
- KNOT Offshore Partners not worried by growing shuttle tanker orderbook - TradeWinds - May 23rd, 2024 [May 23rd, 2024]
- GDG and ABAN Power to develop offshore wind in Asia-Pacific - Power Technology - May 23rd, 2024 [May 23rd, 2024]
- Jailton Almeida vs. Alexander Romanov UFC 302 Offshore Betting Odds, Preview, Picks - The Latest Sports Betting News - OffshoreSportsbooks.com - May 23rd, 2024 [May 23rd, 2024]
- Offshore Wind Turbine Market Valuation USD 39.2 billion | Europe Dominate by UK, Ireland, Belgium, Spain, - EIN News - May 23rd, 2024 [May 23rd, 2024]
- Guyanas economy surges on offshore success in prolific Stabroek block, EIA reports - EnerCom Inc. - May 23rd, 2024 [May 23rd, 2024]
- BASF to Buy Stake in German Offshore Wind Farms From Vattenfall -- Update - MarketWatch - April 22nd, 2024 [April 22nd, 2024]
- Denmark Launches Massive Offshore Wind Auction | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- rsted and OEG Renewables Form Offshore Wind Pact in US | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- Vestas and Maersk team up for South Korean offshore wind - Recharge - April 22nd, 2024 [April 22nd, 2024]
- Denmark's offshore wind parks currently generate 2.7 gigawatts of electricity - The Mountaineer - April 22nd, 2024 [April 22nd, 2024]
- rsted Buys Sunrise Wind Stake from Eversource - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- 'More non-turbine challenges' | GE hits back in New York round 3 offshore wind demise - Recharge - April 22nd, 2024 [April 22nd, 2024]
- 'Heart-breaking': Refugees once detained offshore by Australia warn the UK government not to push through its ... - The Albany Herald - April 22nd, 2024 [April 22nd, 2024]
- Hearing scheduled this week on bill to advance offshore wind - delawarebusinessnow.com - April 22nd, 2024 [April 22nd, 2024]
- Aker BP begins production from Hanz field offshore Norway - Offshore Technology - April 22nd, 2024 [April 22nd, 2024]
- Denmark launches its biggest offshore wind farm tender - The Caledonian-Record - April 22nd, 2024 [April 22nd, 2024]
- Vestas and Maersk to Build Offshore Wind Hub in South Korea | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- U.S. Navy To Convert Oil Rigs Into Offshore Military Bases To Counter China In The Pacific - Marine Insight - April 22nd, 2024 [April 22nd, 2024]
- BASF seals deal to buy into gigascale Vattenfall offshore wind to power chemicals complex - Recharge - April 22nd, 2024 [April 22nd, 2024]
- First Moray West 14.7MW Offshore Wind Turbine Comes Up - Offshore Engineer - April 22nd, 2024 [April 22nd, 2024]
- NYSERDA concludes New York's third offshore wind solicitation without final awards - 4C Offshore - April 22nd, 2024 [April 22nd, 2024]
- Galp Energia says Namibia offshore field could contain 10B barrels of oil - Seeking Alpha - April 22nd, 2024 [April 22nd, 2024]
- Framework Agreement signed with rsted in the US - 4C Offshore - April 22nd, 2024 [April 22nd, 2024]
- A submerged concern: offshore wind cables - Martha's Vineyard Times - April 22nd, 2024 [April 22nd, 2024]
- Possible human smuggling operation thwarted offshore in South Florida - cw34.com - April 22nd, 2024 [April 22nd, 2024]