Oil and gas drilling contractor Diamond Offshore Drilling, Inc. (DO) Thursday reported a fall in profit for the fourth quarter, as revenues declined year-over-year, despite a significant decline in tax expense.Separately, the company declared a special quarterly cash dividend.
Net income decreased to $188.49 million or $1.36 per share from $241.69 million or $1.74 per share in the prior-year period. On average, 33 analysts polled by Thomson Reuters expected earnings of $0.99 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues declined to $748.36 million from $840.97 million. Wall Street expected revenues of $738.71 million.
Contract drilling revenues dropped nearly 11 percent to $734.28 million. Revenue from Floaters declined to $692.02 million from $814.92 million with decreases across Ultra-Deepwater, Deepwater and Mid-water revenues.
Income tax expense declined to $15.06 million from $68.83 million.
The company expects the current revenue backlog at about $8.4 billion.
Larry Dickerson, CEO, said, "Our newbuild drillships, the Ocean BlackHawk and Ocean BlackHornet, have long-term contracts beginning in Q4 2013 and Q2 2014. Additionally, given the strong current environment, we think significant opportunity exists for our third newbuild drillship, the Ocean BlackRhino, as well as for deepwater units such as our recently announced Ocean Onyx."
For the year as a whole, net income grew to $962.54 million or $6.92 per share from $955.46 million or $6.87 per share. Revenues were $3.322 billion, compared to $3.323 billion for 2010. Wall Street expected earnings of $6.54 per share on revenues of $3.31 billion.
Separately, the company declared a special quarterly cash dividend of $0.75 per share of common stock and a regular quarterly cash dividend of $0.125 per share of common stock.
DO closed on Wednesday at $63.07, up from the prior close of $62.30, on 1.85 million shares.
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