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Diamond Offshore Announces Third Quarter 2015 Results

The following excerpt is from the company's SEC filing.

Reports net income of $136 million, $0.99 per share

Confirms one-year contract for semisubmersible rig

Ocean Guardian

Announces $333 million, 875-day backlog addition to semisubmersible rig

Ocean Courage

Declares regular cash dividend of $0.125 per share

HOUSTON, November 2, 2015

Diamond Offshore Drilling, Inc. (

NYSE: DO

) today reported net income of $136 million, or $0.99 per share, in the third quarter of 2015, compared to $53 million, or $0.38 per share, in the third quarter of 2014. Revenues in the third quarter of 2015 were $610 million, c ompared to revenues of $738 million in the third quarter of 2014.

I am pleased with our solid third quarter results, which demonstrate Diamond Offshores ability to execute on managing our costs and controlling downtime, said Marc Edwards, President and Chief Executive Officer. During the quarter, our three newbuild drillships delivered operational efficiency of 99.3 percent, which directly benefits our topline and improves project economics for our clients.

Diamond Offshore also confirmed the

was awarded a contract for a one-year term in the UK North Sea beginning in March of 2016 at a rate of $220,000 per day.

The Company announced that it reached agreement with Petrobras for contracts on the semisubmersible rig

Ocean Alliance

and the drillship

Ocean Clipper

to be ended as of October 30, 2015, ahead of their original end dates, in return for an additional 875 days of contract term on the semisubmersible rig

. The additional term will be at a rate of $380,000 per day, representing revenue backlog of $333 million, and will extend the contract into mid-2020. After export from Brazil, the

Ocean Alliance

will be cold-stacked and the

will be retired and scrapped. The terminated portions of the contracts represent a loss to revenue backlog of approximately $91 million.

Diamond Offshore also announced that it has declared a regular quarterly dividend of $0.125 per share, payable on December 1, 2015 to shareholders of record as of November 13, 2015.

CONFERENCE CALL

A conference call to discuss Diamond Offshores earnings results has been scheduled for 7:30 a.m. CST today. A live webcast of the call will be available online on the Companys 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 60130700. 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 contract drilling services to the energy industry around the globe with a total fleet of 33 offshore drilling rigs, including one rig under construction. Diamond Offshores fleet consists of 23 semisubmersibles, one of which is under construction, four dynamically positioned drillships, and six jack-ups. Additional information about the Company and access to the Companys SEC filings are available at www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).

FORWARD-LOOKING STATEMENTS

Contract revenue as stated above assumes 100% rig utilization. Rig utilization rates vary depending on a variety of circumstances, many of which are beyond the Companys control. Rig utilization rates generally approach 92-98% during contracted periods; however, utilization rates can be...


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