Diamond Offshore Drilling

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Diamond Offshore Drilling, Inc.
Public company
Traded asNYSEDO
S&P 400 component
IndustryPetroleum industry
HeadquartersHouston, Texas
Key people
James S. Tisch, Chairman
Marc G. Edwards, CEO & President
ProductsOffshore drilling
RevenueDecrease $1.485 billion (2017)
Increase $18 million (2017)
Total assetsDecrease $6.250 billion (2017)
Total equityIncrease $3.774 billion (2017)
OwnerLoews Corporation (53%)
Number of employees
2,400 (2017)
Websitewww.diamondoffshore.com
Footnotes / references
[1]

Diamond Offshore Drilling, Inc. is an offshore drilling contractor. The company is headquartered in Houston, Texas and has major offices in Australia, Brazil, Mexico, Scotland, Singapore, and Norway.[1]

The company operates 17 drilling rigs including 13 semi-submersible platforms and 4 drillships.[1]

In 2017, the company's revenues were primarily from Anadarko Petroleum (24.9%), Petrobras (18.9%), Hess Corporation (16.0%), and BP (15.8%).[1] Operations outside of the United States accounted for 58% of the company's revenues in 2016.[1]

History[edit]

In the early 1960s, Brewster-Bartle, an onshore drilling company, filed bankruptcy. In 1964, Don McMahon acquired Brewster-Bartle from its bank creditors and formed Diamond M Drilling Company, named after Diamond M Acres, his ranch near Simonton, Texas, which then expanded into offshore drilling.

In 1970, Diamond M became a public company.

In 1977, Kaneb Services acquired the company for $102 million.[2]

In 1989, Loews Corporation acquired the company for $48.5 million.[3]

In 1992, Diamond M Corporation acquired ODECO from Murphy Oil for $358 million.[3] Shortly thereafter, Diamond M Corp. briefly changed its name to Diamond M-ODECO Drilling Inc. before becoming Diamond Offshore Drilling, Inc. in 1993.[4]

In October 1995, the company once again became a public company via an initial public offering, listing on the New York Stock Exchange.[5]

In April 1996, the company acquired Arethusa for $516 million in stock. Arethusa had previously acquired Zapata Corporation (now HRG Group).[6]

In May 2012, the company ordered a $655 million drillship from Hyundai Heavy Industries.[7]

On February 8, 2016, the company discontinued payment of a quarterly cash dividend.[1] In September 2016, the company was removed from the S&P 500 Index.[8]

In July 2018, Scott Kornblau was named chief financial officer of the company.[9]

Controversies[edit]

Worker asbestos exposure[edit]

In 1989, Diamond's predecessor bought 6 drilling rigs from the predecessor of Kaneb Management. Some of Kaneb's employees continued to work for Diamond after the transaction and then sued Diamond for personal injuries they allegedly suffered from asbestos exposure while they worked for Kaneb.[10] In a 2013 filing with the SEC, Diamond acknowledged that its equipment had been used for the "manufacture and use of asbestos-containing drilling mud" but sought to be indemnified from liability.[11]

References[edit]

  1. ^ a b c d e f "Diamond Offshore Drilling, Inc. 2017 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Corporation Affairs". The New York Times. November 30, 1977.
  3. ^ a b "Loews Corp Hits A Gusher". The Washington Post. November 21, 1996. (Subscription required (help)).
  4. ^ "USA: Diamond Offshore 1Q 2011 Net Profit Down by USD 40.3 Million". Offshore Energy Today. April 21, 2011.
  5. ^ "Diamond Offshore Drilling". TechCrunch.
  6. ^ SALPUKAS, AGIS (December 9, 1995). "Diamond Offshore Is Planning Takeover of Oil-Rig Competitor". The New York Times.
  7. ^ Dittrick, Paula (December 9, 1995). "Diamond Offshore orders drillship, sells jack ups". Oil & Gas Journal.
  8. ^ Smith, Mike D. (September 30, 2016). "Diamond Offshore loses spot on S&P 500". Houston Chronicle.
  9. ^ Pulsinelli, Olivia (July 5, 2018). "Houston-based offshore drilling company names new CFO". American City Business Journals.
  10. ^ "Diamond Offshore Pulled Back Into Asbestos Liability Fight". Law360. June 11, 2013.
  11. ^ Gibb, Gordon (October 1, 2013). "Offshore Drilling Giant Says "Not Guilty" in Drilling Mud Lawsuit". Lawyers and Settlements.