Diamond Offshore Drilling Inc., Houston, (NYSE: DO) had fourth-quarter net income of $293.5 million, or $2.11 per share on a diluted basis, compared with net income of $164.9 million, or $1.19 per share, in the same period in 2007.

Revenues during the fourth quarter also increased, from $666.7 million during 4Q 2007 to $903.2 million in 2008.

Diamond says that its fourth-quarter results were negatively affected by $51 million in pre-tax foreign currency losses and provisions for pre-tax bad debt of $31.9 million related to a North Sea semi-submersible rig contracted to a U.K. customer that has entered into administration under U.K. law.

Net income for 2008 was $1.3 billion, up from $846.5 million in 2007. Revenues for the year were also up, from $2.6 billion in 2007 to $3.5 billion in 2008.

Diamond says it has also signed an agreement to sell the Ocean Tower, a jack-up rig that was damaged by Hurricane Ike.