Diamond Offshore Reports 3Q02 Earnings



Diamond Offshore Drilling Inc. reported net income for the third quarter of 2002 of $21.7 million, or $0.16 per share on a diluted basis, compared to net income for the third quarter of the prior year of $53.4 million, or $0.38 per share on a diluted basis. Revenues for the third quarter of 2002 were $174.1 million compared to revenues of $230.6 million for the third quarter of 2001. Net income for the third quarter of 2002 includes investment gains of $14.2 million, or $0.10 per share on a diluted basis, compared to $4.4 million, or $0.03 per share on a diluted basis for the third quarter of the prior year.

For the nine months ended Sept. 30, 2002, the Company reported net income of $56.2 million, or $0.42 per share on a diluted basis, compared to net income of $134.0 million, or $0.97 per share on a diluted basis, for the same period in 2001. Revenues for the nine months ended Sept. 30, 2002 were $547.5 million compared to revenues of $663.2 million for the first nine months of 2001. Net income for the nine months ended Sept. 30, 2002 includes investment gains of $22.1 million, or $0.16 per share on a diluted basis, compared to $12.8 million, or $0.09 per share on a diluted basis, for the same period of 2001.

As of Sept. 30, 2002, there were 131.0 million common shares outstanding. During the third quarter of 2002, the Company repurchased 535,800 shares of its common stock at an aggregate cost of $10.6 million. Subsequent to Sept. 30, 2002 to date, the Company has repurchased 680,900 shares of its common stock at an aggregate cost of $12.9 million. Depending on market conditions, the Company may, from time to time, purchase shares of its outstanding common stock in the open market or otherwise.