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Diamond Offshore Drilling

Diamond Offshore Drilling, Inc.
Public
Traded as NYSE: DO
S&P 500 Component
Industry Oil and Gas Drilling
Headquarters Houston, Texas, U.S.
Key people

James S. Tisch Chairman

Marc G. Edwards President/CEO
Revenue US$ 2,815 million (2014)
US$ 2,920 million (2013)[1]
US$ 573 million (2014)
US$ 802 million (2013)[1]
US$ 387 million (2014)
US$ 549 million (2013)[1]
Total assets US$ 8,021 million (2014)
US$ 8,391 million (2013)[1]
Total equity US$ 4,452 million (2014)
US$ 4,637 million (2013)[1]
Number of employees
5,200 (December 31, 2014)[2]
Parent Loews Corporation (53%)
Website www.diamondoffshore.com

Diamond Offshore Drilling, Inc. is a deepwater drilling contractor which provides drilling services to the oil and gas industry. The company's headquarters are located in Houston, Texas, but they have major offices in Australia, Brazil, Mexico, Scotland, Singapore and Norway.[3] Diamond Offshore's beginnings can be traced back to the earliest days of the offshore drilling industry. Its predecessor companies were ODECO, Zapata Corporation, and Diamond M Drilling Co.

In 1992, Diamond M Corporation purchased all of the outstanding stock of ODECO Drilling Inc. from ODECO Oil and Gas Co., a subsidiary of Murphy Oil. Shortly thereafter, Diamond M Corp. briefly changed its name to Diamond M-ODECO Drilling Inc. before becoming Diamond Offshore Drilling, Inc. in 1993. Diamond Offshore began trading on the New York Stock Exchange in October 1995 and acquired Arethusa (Offshore) Ltd. in April 1996. As of 2009, Diamond Offshore Drilling operates around 47 drilling rigs in all areas of the world.[4]

On February 10, 2015, Diamond announced it would be ending the payment of a special dividend it had paid out for the last decade as it braces for a significant number of its ultra-deepwater rigs to be idled amid low oil prices.[5] During the first six months of 2015, the company scrapped 7 of its rigs, and reported a Net Loss of US$ (165M), compared to Net Income of US$ 236M in the first 6 months of 2014.[6]

Diamond M Drilling Co.

In the early 1960s the onshore drilling company Brewster-Bartle went bankrupt. The banks that had become the owners of the company’s rigs contacted Don McMahon to take over the failed company. McMahon accepted the challenge and formed Diamond M Drilling Co. in 1964. He named the company after Diamond M Acres, his ranch near Simonton, Texas.

McMahon took his company public in 1970 and expanded into offshore waters with the building and purchase of jack-up, barge, and semi-submersible rigs. In the early 1970s, Diamond M was one of the largest owners of barge rigs in the energy industry. The company continued to drill both on land and offshore.

In the late 1970s, Western Oceanic tendered an offer to buy Diamond M. Unwilling to be purchased, Diamond sought and found a “white knight” in Kaneb Services, Inc.

ODECO

Diamond Offshore’s roots date back to May 1953, when Alden J. (Doc) Laborde founded Morgan City, Louisiana.

After noticing the stability of submersible rigs when they were only partially submerged for relocation, Laborde designed and constructed the first purpose-built semi-submersible rig, Ocean Driller, in 1964. ODECO rigs continued to rack up “firsts” in the industry in the 1970s, with Ocean Viking discovering the giant Ekofisk oil field for Phillips Petroleum Company in the North Sea and Ocean Victory discovering the Piper and Claymore fields, also in the North Sea, for Occidental Petroleum.

References

  1. ^ a b c d e "Diamond Offshore Drilling, Inc. financials". 
  2. ^ "Diamond Offshore Drilling, Inc. SEC Filing 10-K". 
  3. ^ http://www.diamondoffshore.com
  4. ^ http://www.rigzone.com
  5. ^ "After payout for ten years, Diamond Offshore ends special dividend". Petro Global News. Retrieved 18 February 2015. 
  6. ^ "Diamond Offshore Drilling, Inc. SEC Filing 10-Q, June 2015". 
  7. ^ "Diamond Offshore History". Diamond Offshore. Retrieved 30 December 2009. 
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