Diamond Offshore (DO) Q4 Earnings Beat, Revenues Miss - Tale of the Tape
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 5 dynamically positioned drillship (of which three are under construction). 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 #4 (Sell) but that could change following its fourth quarter 2014 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 72 cents per share, above the Zacks Consensus Estimate of 66 cents.
Revenue: Revenues of $675.3 million came below the Zacks Consensus Estimate of $693 million.
Key Stats: In the fourth quarter, revenue from the Contract Drilling segment fell 4.8% year over year to approximately $674.4 million. Ultra-Deepwater floaters recorded an average dayrate of $493,000 during the quarter, up from $403,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $431,000 versus $404,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $270,000, down from $292,000 in the year-earlier quarter. Jackup rigs’ dayrates averaged $96,000, up from $89,000 in the fourth quarter of 2013.
Rig utilization for Ultra-Deepwater floaters decreased to 66% from 80% in the year-ago quarter. Utilization of Deepwater floaters dropped to 48% during the quarter from 65% in the year-ago quarter. Mid-water category rig utilization was 55% compared with 63% in the comparable quarter last year while jackup rig utilization increased to 77% from 76%.
Check back later for our full write up on this Diamond Offshore earnings report later!
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