Diamond Offshore Announces Tax Expense Adjustment to Fourth Quarter and Full Year 2016 Earnings – PR Newswire (press release)

HOUSTON, Feb. 13, 2017 /PRNewswire/ --Diamond Offshore Drilling, Inc. (NYSE: DO) today announced it has revised its previously-announced earnings for the quarter and year ended December 31, 2016.

As it was completing its year-end financial reporting process, the Company discovered that its liability for uncertain tax positions in certain foreign jurisdictions did not appropriately reflect changes in foreign exchange rates. The majority of the impact was related to the devaluation of the Egyptian Pound, primarily in the fourth quarter of 2016. After the local tax liabilities were re-valued consistent with exchange rates at December 31, 2016:

The adjustments did not affect any of the other previously-announced operating results. Copies of the fully-adjusted financial statements are enclosed in this press release.

ABOUT DIAMOND OFFSHORE

Diamond Offshore is a leader in offshore drilling, providing contract drilling services to the energy industry around the globe. Additional information and access to the Company's SEC filings are available at http://www.diamondoffshore.com. Diamond Offshore is owned 53% by Loews Corporation (NYSE: L).

DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

Three Months Ended December 31,

Twelve Months Ended December 31,

2016

2015

2016

2015

Revenues:

Contract drilling

$ 384,646

$ 544,129

$ 1,525,214

$ 2,360,184

Revenues related to reimbursable expenses

7,228

11,434

75,128

59,209

Total revenues

391,874

555,563

1,600,342

2,419,393

Operating expenses:

Contract drilling, excluding depreciation

174,342

256,393

772,173

1,227,864

Reimbursable expenses

6,775

11,146

58,058

58,050

Depreciation

86,031

114,448

381,760

493,162

General and administrative

14,786

15,574

63,560

66,462

Impairment of assets

--

499,367

678,145

860,441

Restructuring and separation costs

--

1,043

--

9,778

Bad debt recovery

(265)

--

(265)

--

Loss (gain) on disposition of assets

6,060

(2,309)

3,795

(2,290)

Total operating expenses

287,729

895,662

1,957,226

2,713,467

Operating income (loss)

104,145

(340,099)

(356,884)

(294,074)

Other income (expense):

Interest income

176

1,526

768

3,322

Interest expense

(21,230)

(23,134)

(89,934)

(93,934)

Foreign currency transaction (loss) gain

(3,689)

1,511

(11,522)

2,465

Other, net

472

171

(10,727)

873

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Diamond Offshore Announces Tax Expense Adjustment to Fourth Quarter and Full Year 2016 Earnings - PR Newswire (press release)