Diamond Offshore Drilling Inc. DO reported first-quarter 2015 adjusted earnings of 50 cents per share, surpassing the Zacks Consensus Estimate of 42 cents. However, the quarter's results decreased from the year-earlier earnings of $1.05 per share.
The bottom line was affected by impairment charges for eight drilling units alongside restructuring and employee separation-related costs. After digesting all these non-cash charges, the company posted a GAAP loss per share of $1.86.
Total revenue in the quarter decreased 12.6% year over year to $620.1 million. However, this came above the Zacks Consensus Estimate of $618.0 million.
Dividend Story
Diamond Offshore declared regular quarterly dividend of 12.5 cents per share (50 cents per share annualized). The dividend will be paid on Jun 1, 2015 to shareholders of record on May 15.
Operational Performance
In the first quarter, revenues from the Contract Drilling segment fell 12.5% year over year to approximately $599.6 million.
Ultra-Deepwater floaters recorded an average dayrate of $497,000 during the quarter, up from $401,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $486,000 compared with $427,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $266,000, down from $278,000 in the year-earlier quarter. Jackup rig dayrates averaged $92,000, down from $94,000 in the first quarter of 2014.
Rig utilization for Ultra-Deepwater floaters decreased to 51% from 66% in the year-ago quarter. Utilization of Deepwater floaters dropped to 45% from 64% a year ago. Mid-water category rig utilization was 49% compared with 64% in the comparable quarter last year, while jackup rig utilization decreased to 66% from 79%.
Financials
As of Mar 31, 2015, Diamond Offshore had approximately $184.8 million in cash and cash equivalents, while long-term debt stood at $1,994.6 million.
Zacks Rank
Diamond Offshore carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the oil and gas sector are Rhino Resource Partners LP RNO, CNOOC Ltd CEO and Hallador Energy Company HNRG. Each of these stocks sport a Zacks Rank #1 (Strong Buy).
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