Diamond Offshore to relist on NYSE

Diamond Offshore is returning as a public company. Its stock will be listed on the New York Stock Exchange from March 30 under the ticker symbol of ‘DO’.

The offshore driller, which has its head office in West Houston, owns four drillships and eight semisubmersibles. The company also manages three rigs for Aquadrill, which are currently warm stacked.

Diamond exited bankruptcy in April 2021, having converted $2 billion of debt into equity. The company put itself up for sale in August 2021, but in January it announced it would remain independent after failing to attract any satisfactory takeover offers.

Diamond expects revenues in 2022 of around $700 million, with adjusted EBITDA of approximately $60 million and capital expenditures around $57 million. The company still has net debt of $212 million, so it is projecting a negative free cash flow of $75 million. Obviously, the company believes the rising oil prices will lead to increasing rig day rates.

After exiting bankruptcy, most of the previous senior management left with large severances. CEO Marc Edwards left in April 2021 with a $6 million lump-sum cash severance. CFO Scott Kornblau and COO Ron Woll followed in September 2021 with severances of $653,000 and $876,000 respectively. That was on top of the cash bonuses they received while the company was in bankruptcy.

In October 2021, Mr. Kornblau joined Great Lakes Dredge and Dock Corporation as its new CFO.

Bernie Wolford has served as the CEO since May 2021. He is the former CEO of Pacific Drilling. Dominic Savarino was promoted to CFO from Chief Accounting Officer, having been at the company since 2017.


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