Diamond Offshore Drilling Inc DO
Q2 2011 Earnings Call Transcript

Transcript Call Date 07/21/2011

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Diamond Offshore Drilling Second Quarter 2011 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Thank you. I would now like to turn the conference over to Mr. Les Van Dyke, Director of Investor Relations.

Les Van Dyke - Director of IR: Thank you. Good morning, and with me on the call today are Larry Dickerson, President and Chief Executive Officer; Gary Krenek, Senior Vice President and Chief Financial Officer, Mo Plaisance, Vice President of Marketing; and Michael Acuff, Vice President of Marketing.

Before we begin our remarks, I should remind you that statements made during this conference call may constitute forward-looking statements and are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include, but are not limited to discussions about future revenues and earnings, capital expenditures, industry conditions and competition, dates the drilling rigs will enter service as well as management’s plans and objectives for the future.

A discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements. The Company expressly disclaims any obligation to release publicly any updates to forward-looking statements to reflect any change in the Company's expectations or any changes in events, conditions or circumstances on which any forward-looking statement is based.

After we have discussed our results, we will have a question-and-answer session during which we ask that you please limit yourself to one question and one follow-up, so that we can open the floor to as many people as possible.

With that, I'll turn the meeting over to Larry.

Lawrence R. Dickerson - President and CEO: Thank you and good morning. We are pleased with our results today at the $1.92, point out that that includes in it $10 million write-off related to a deferred mobilization on the Ocean Monarch that was resolved with a customer at the point in time that we signed the commitments on two of our new drillships, so that was $10 million write-off about between $0.04 and $0.05 of earnings is included in that number.

The positives for the quarter that we would focus on was we had almost all-time low amounts of downtime within our fleet to only 24 days covering one rig where we had rig in the shipyard Ocean Yatzy in Brazil doing some cluster work whereas in the ordinary course of business there'd be multiple rigs with minimum days, in fact in all likelihood our schedule shows it will be multiple rigs in Q3 down for planned maintenance.

On the other side the thing that we do work to control, we had a near record low unanticipated equipment downtime of only 65 days here in this quarter. It was down from 72 in the quarter before which I am also pleased with. We've got a nice trend going in that direction and that obviously is something that we can control and generate more the revenue and have more of a drop to the bottom-line.

Read our Earnings Call Transcript disclaimer.
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