Diamond Offshore Drilling has reported its fourth quarter earnings for 2014 which were down $51million from the previous year.
The company has reported a net income of $387million, compared to a net income of $549millon in 2013.
Diamond was also hit with a non-cash impairment charge related to the retirement and scrapping of six mid-water semisubmersible rigs.
Revenues for full year 2014 were $2.815 billion, compared to $2.920 billion in 2013.
Marc Edwards, chief executive of the company, said: “Since Diamond Offshore began paying a special dividend to shareholders in January of 2006, we have paid total dividends of over $41 per share, or approximately $5.7 billion.
“Paying substantial dividends, while simultaneously adding new-build capacity to our fleet, have been a key aspect of our capital allocation strategy. We have achieved these aims while maintaining a strong balance sheet and the highest credit rating among our industry peers.”
“Given the significant downturn in industry fundamentals, we believe it is prudent to retain cash so that the Company is in a stronger position to take advantage of opportunities that may materialize in a distressed market.
“In 2014, we took delivery of three new-build drillships and two deepwater semis, and in the first quarters of 2015 and 2016, respectively, we expect to take delivery of our fourth new-build drillship and a new-build harsh environment semisubmersible. All of our new-build units have attractive term contracts in place.”
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