Diamond Offshore

Diamond Offshore

No. 3

Industry: Energy Equipment & Services
Sales: $3.5 billion
Net Income: $1.3 billion

Houston-based Diamond Offshore (DO) has a storied history in offshore drilling. Entrepreneur Alden Laborde launched Ocean Drilling and Exploration to sell the industry's first deepwater rigs in 1953, and after several changes in ownership, Loews (L) stepped in during the oil slump of 1992 and bought the company's assets for just $372 million. Loews still controls 50% of Diamond. It benefited greatly from the oil boom: Profits leapt 55% last year, to $1.3 billion. Earnings could be crimped due to falling commodity prices, but CEO Lawrence Dickerson says he's entering the downturn with $10 billion worth of long-term contracts.