Diamond Offshore 4Q 2005 profits soar

Diamond Offshore Drilling posted a 4Q 2005 profit more than nine times higher than it did in 2004. High specification floater dayrates nearly doubled in same period.

Offshore staff

(US) - Diamond Offshore Drilling Inc. reported net income for 4Q 2005 of $106.9 million compared with net income of $11.3 million in the same period a year earlier.

Revenues for 4Q 2005 were $368.3 million, compared with revenues of $237.3 million for 4Q 2004.

For the year ended Dec. 31, 2005, the company reported net income of $260.3 million compared with a net loss of $7.2 million for the year 2004.

Revenues for the year 2005 were $1.2 billion, compared with $814.7 million for the year 2004.

"During 2005, our earnings registered quarterly improvement as conditions in the offshore drilling market became increasingly robust," comments Larry Dickerson, president and COO.

"By employing our capital for upgrades, new-builds and the purchase of existing rigs, we have enhanced our fleet, broadened our access to new markets, boosted our earnings potential, and positioned the company to generate significant cash flow.

"Virtually all of the fundamental market conditions that defined 2005 appear to remain in place for 2006, and we are confident in our market position and our ability to participate in any future improvements."

Dayrates (in thousands) & utilization

High specification floaters

4Q 2005 - $181 (86%)
3Q 2005 - $148 (85%)
4Q 2004 - $94 (95%)

Other semi-
submersibles

4Q 2005 - $81 (89%)
3Q 2005 - $77 (86%)
4Q 2004 - $63 (81%)

Jackups

4Q 2005 - $69 (95%)
3Q 2005 - $58 (94%)
4Q 2004 - $42 (88%)

02/09/06

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