Diamond Offshore Publicizes Third Quarter 2022 Outcomes and $429 Million Challenge Award in Brazil

• Ocean Braveness Awarded 4-Yr Challenge

• Efficiency Bonus on First Properly for Ocean BlackHawk

• $20 Million Improve in Income and $3 Million Improve in EBITDA

• Ocean GreatWhite Commences Reactivation

HOUSTON, Nov. 7, 2022 /PRNewswire/ — Diamond Offshore Drilling, Inc. (NYSE: DO) at present reported the next outcomes for the third quarter of 2022:

Diamond Offshore additionally introduced it obtained notification of award of a brand new drilling program with Petrobras in Brazil for the Ocean Braveness. The Ocean Braveness was awarded a four-year mission with an unpriced choice for a further 4 years.  The full estimated worth of the agency time period of the award is roughly $429 million, together with a mobilization price and the availability of sure further companies. The brand new contract is predicted to be signed imminently and begin late within the fourth quarter of 2023 after conclusion of the rig’s present contract and new contract preparations.

Bernie Wolford, Jr., President and Chief Govt Officer, said “This award is a testomony to the distinctive efficiency of our crews and permits Diamond to proceed serving the world’s largest operator of deepwater drilling rigs.  This program is along with the $1.6 billion of backlog we reported as of October 1, 2022.”

Third Quarter Outcomes

Contract drilling income for the third quarter totaled $190 million in comparison with $177 million within the second quarter of 2022. The rise in income was primarily pushed by the Ocean BlackHawk starting work in Senegal through the quarter, the Ocean Apex and Ocean Patriot each benefitting from a full quarter of utilization, and the Ocean Patriot working underneath phrases of a contract extension with a positive dayrate improve. These will increase in contract drilling income have been partially offset by the Ocean Onyx finishing its contract in Australia and presently being stacked in Western Australia whereas the Firm continues to pursue prospects within the area. Contract drilling expense for the third quarter elevated by 9%, reflecting the next working price construction for the Ocean BlackHawk in Senegal in addition to the graduation of reactivation actions for the Ocean GreatWhite.

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Web revenue for the quarter was $5.5 million, inclusive of a $23 million non-cash tax profit, as in comparison with a web lack of $22 million within the prior quarter.

Operational Highlights

Throughout the quarter, the Firm’s fleet continued to carry out properly, enhancing to 97.3% income effectivity. The Ocean BlackHawk earned a efficiency bonus upon completion of its first properly in Senegal. As well as, the Firm continued to make sequential enhancements in security efficiency, with no lost-time-incidents.

In October, the managed drillship Vela commenced a one-well contract within the Gulf of Mexico to be adopted by a five-well, or minimal 225-day period, contract with choices for as much as  seven wells.

Liquidity and Outlook

As of September 30, 2022, Diamond Offshore had whole liquidity of $296 million, comprised of $23 million of unrestricted money and $273 million of obtainable capability on its revolving credit score facility and delayed draw First Lien Notes.

Remarking on the outlook for the offshore drilling market, Wolford commented, “Market fundamentals proceed to enhance in our trade, driving improved dayrates and rising visibility of future demand.”

CONFERENCE CALL

A convention name to debate Diamond Offshore’s earnings outcomes has been scheduled for 8:00 a.m. Central Time on Tuesday, November 8, 2022.  A reside webcast of the decision will likely be obtainable on-line on the Firm’s web site, www.diamondoffshore.com. Contributors who need to be part of the decision by way of phone or need to take part within the question-and-answer session could register right here to obtain the dial-in numbers and distinctive PIN to entry the decision. An internet replay will even be obtainable on www.diamondoffshore.com following the decision.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a frontrunner in offshore drilling, offering innovation, thought management and contract drilling companies to unravel complicated deepwater challenges across the globe. Further data and entry to the Firm’s SEC filings can be found at http://www.diamondoffshore.com/.

FORWARD-LOOKING STATEMENTS

Statements contained on this press launch and statements made within the referenced convention name that aren’t historic information are “forward-looking statements” inside the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Alternate Act of 1934, as amended. Ahead-looking statements embrace, however should not restricted to, any assertion that will mission, point out or indicate future outcomes, occasions, efficiency or achievements, together with statements referring to future monetary outcomes; future restoration within the offshore contract drilling trade; expectations concerning the Firm’s plans, methods and alternatives; expectations concerning the Firm’s enterprise or monetary outlook; future borrowing capability and liquidity; anticipated utilization, dayrates, revenues, working bills, rig commitments and availability, money flows, contract standing, phrases and period, contract backlog, capital expenditures, insurance coverage, financing and funding; the impact, affect, potential period and different implications of the continuing COVID-19 pandemic; the offshore drilling market, together with provide and demand, buyer drilling applications, repricings, stacking of rigs, results of latest rigs in the marketplace and impact of the volatility of commodity costs; anticipated work commitments, awards and contracts; future operations; rising regulatory complexity; normal market, enterprise and trade circumstances, traits and outlook; and normal political circumstances, together with political tensions, conflicts and conflict. Ahead-looking statements are inherently unsure and topic to quite a lot of assumptions, dangers and uncertainties that would trigger precise outcomes to vary materially from these anticipated or anticipated by administration of the Firm. A dialogue of sure of the danger components and different issues that would materially affect these issues in addition to the Firm’s total enterprise and monetary efficiency might be present in Merchandise 1A “Threat Elements” within the Firm’s most up-to-date annual report on Kind 10-Ok and the Firm’s different reviews filed with the Securities and Alternate Fee, and readers of this press launch are urged to evaluation these reviews rigorously when contemplating these forward-looking statements. Copies of those reviews can be found by way of the Firm’s web site at www.diamondoffshore.com. These threat components embrace, amongst others, dangers related to worldwide demand for drilling companies, ranges of exercise within the oil and fuel trade, renewing or changing expired or terminated contracts, contract cancellations and terminations, upkeep and realization of backlog, competitors and trade fleet capability, impairments and retirements, working dangers, litigation and disputes, permits and approvals for drilling operations, the COVID-19 pandemic and associated disruptions to the worldwide financial system, provide chain and regular enterprise operations throughout sectors and international locations, adjustments in tax legal guidelines and charges, regulatory initiatives and compliance with governmental laws, casualty losses, and numerous different components, a lot of that are past the Firm’s management. Given these threat components and different issues, buyers and analysts mustn’t place undue reliance on forward-looking statements. Every forward-looking assertion speaks solely as of the date of this press launch, and the Firm expressly disclaims any obligation or enterprise to launch publicly any updates or revisions to any forward-looking assertion to replicate any change within the Firm’s expectations with regard thereto or any change in occasions, circumstances or circumstances on which any forward-looking assertion is predicated.

Non-GAAP Monetary Measures (Unaudited)

To complement the Firm’s unaudited condensed consolidated monetary statements offered on a foundation in conformity with typically accepted accounting ideas in america (GAAP), this press launch supplies buyers with adjusted earnings earlier than curiosity, taxes and depreciation and amortization (or Adjusted EBITDA), which is a non-GAAP monetary measure. Administration believes that this measure supplies significant details about the Firm’s efficiency by excluding sure objects that will not be indicative of the Firm’s ongoing working outcomes. This enables buyers and others to raised evaluate the Firm’s monetary outcomes throughout earlier and subsequent accounting durations and to these of peer corporations and to raised perceive the long-term efficiency of the Firm. Non-GAAP monetary measures needs to be thought-about a complement to, and never as an alternative to, or superior to, contract drilling income, contract drilling expense, working revenue or loss, money flows from operations or different measures of monetary efficiency ready in accordance with GAAP.

Contact:
Kevin Bordosky
Senior Director, Investor Relations
(281) 647-4035

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SOURCE Diamond Offshore Drilling, Inc.