Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

A major contract driller Diamond Offshore Drilling Inc. (DO - Analyst Report) has engaged Korea-based Hyundai Heavy Industries Co. Ltd. to construct a new 10,000 feet dynamically positioned rig at an estimated cost of $755 million. The cost includes spares, commissioning and shipyard supervision.

The new Moss CS60E design harsh environment semisubmersible drilling rig is scheduled for delivery after Nov 2015. In conjunction with this newbuild rig order, Diamond also inked a three-year contract with a subsidiary of BP plc (BP - Analyst Report).

Per the drilling contract, BP will use the new rig for initial operations off the coast of South Australia at a dayrate of $585,000 per day. The dayrate is subject to upward adjustment for certain increased operating costs and equipment adjustments.

Diamond has been operating in Australia since 1982 and remains the only drilling contractor to have spud more than 600 wells. This vast experience of the company will help it in enhancing the exploration efforts of BP’s customers.

Diamond Offshore Drilling provides comprehensive offshore drilling services to the global energy industry. The company’s drilling fleet of 46 consists of 32 semi-submersibles, 13 jackups and a dynamically positioned drillship.

Diamond Offshore currently has three drillships on order, two of which are expected to be delivered later in the second and fourth quarters of 2013. The third drillship is expected to be delivered at the end of the second quarter of 2014. The company’s rigs operate in the Gulf of Mexico (GoM), the U.K. North Sea, South America, Africa, Australia and Southeast Asia.

Diamond carries a Zacks Rank #3 (Hold). However, there are other Zacks Ranked #1 (Strong Buy) stocks – Enerplus Corporation (ERF - Snapshot Report) and Newpark Resources Inc. (NR - Snapshot Report) – which appear more attractive as these are expected to outperform over the next few months.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%