Diamond Offshore Drilling Inc. (DO) is a major contract driller, providing comprehensive offshore drilling services to the global energy industry. The company’s drilling fleet of 44 consists of 33 semi-submersibles (of which two are under construction), 6 jackups and 4 dynamically positioned drillship. The company’s rigs operate in the Gulf of Mexico (GoM), the U.K. North Sea, South America, Africa, Australia and Southeast Asia. The majority of Diamond Offshore is owned (50.4% of total shares outstanding) by Loews Corporation.
Currently, Diamond Offshore has a Zacks Rank #3 (Hold) but that could change following its third quarter 2015 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: Diamond Offshore beats on earnings. Earnings per share came in at 99 cents per share, above the Zacks Consensus Estimate of 61 cents.
Revenue: Revenues of $609.7 million came above the Zacks Consensus Estimate of $601.0 million.
Key Stats: In the third quarter, revenues from the Contract Drilling segment fell 17.7% year over year to approximately $599.0 million. Ultra-Deepwater floaters recorded an average dayrate of $479,000 during the quarter, down from $491,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $361,000 compared with $356,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $289,000, up from $265,000 in the prior-year quarter. Jackup rig dayrates averaged $97,000, down from $99,000 in the third quarter of 2014.
Rig utilization for Ultra-Deepwater floaters decreased to 71% from 77% in the year-ago quarter. Utilization of Deepwater floaters also grew to 59% from 57% a year ago. Mid-water category rig utilization was 31% as against 59% in the comparable quarter last year, while jackup rig utilization decreased significantly to 31% from 83%.
Check back later for our full write up on this Diamond Offshore earnings report later!
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