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Diamond Offshore (DO) Beats on Q3 Earnings and Revenues
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Diamond Offshore Drilling Inc (DO - Free Report) reported third-quarter 2017 adjusted earnings of 25 cents per share that surpassed the Zacks Consensus Estimate of 19 cents per share. The bottom line also increased from the year-earlier earnings of 10 cents.
Total revenues in the quarter of $366 million increased from the year-ago figure of $349.2 million and also beat the Zacks Consensus Estimate of $363 million.
The outstanding result is mainly attributable to higher utilization of ultra-deepwater floaters and higher realized dayrates from mid-water floaters. In addition, the new contracts for Ocean Apex and Ocean Patriot at favorable dayrates aided the growth. The company’s efficiency in operation was also a positive factor.
Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise
In the third quarter, revenues from the Contract Drilling segment increased 5.3% year over year to approximately $357.7 million.
Ultra-Deepwater floaters recorded an average dayrate of $407,000 during the quarter as against $452,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $195,000 compared with $303,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $322,000 as against $311,000 in the prior-year quarter. Jackups were at an average dayrate of $75,000 that remained unchanged from the preceding quarter
Rig utilization for Ultra-Deepwater floaters increased to 61% from 48% in the year-ago quarter. Utilization of Deepwater floaters fell to 33% from 34% a year ago. Mid-water category rig utilization was 27% as against 33% in the comparable quarter last year. Mid-water category rig utilization was 95% as against 86% in the preceding quarter.
Financials
As of Sep 30, Diamond Offshore had approximately $276.7 million in cash and cash equivalents, while long-term debt totaled $1,971.9 million.
Q3 Price Performance
The pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 33.9% compared with the industry’s rally of 8%.
Zacks Rank
Currently, Diamond Offshore carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Northern Oil and Gas Inc (NOG - Free Report) , Braskem SA (BAK - Free Report) and Noble Midstream Partners LP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered earnings surprise of 100.00% in the preceding quarter.
The largest petrochemical operator in Latin America, Braskem, delivered an average positive earnings surprise of 88.17% in the last four quarters.
Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Diamond Offshore (DO) Beats on Q3 Earnings and Revenues
Diamond Offshore Drilling Inc (DO - Free Report) reported third-quarter 2017 adjusted earnings of 25 cents per share that surpassed the Zacks Consensus Estimate of 19 cents per share. The bottom line also increased from the year-earlier earnings of 10 cents.
Total revenues in the quarter of $366 million increased from the year-ago figure of $349.2 million and also beat the Zacks Consensus Estimate of $363 million.
The outstanding result is mainly attributable to higher utilization of ultra-deepwater floaters and higher realized dayrates from mid-water floaters. In addition, the new contracts for Ocean Apex and Ocean Patriot at favorable dayrates aided the growth. The company’s efficiency in operation was also a positive factor.
Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise
Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise | Diamond Offshore Drilling, Inc. Quote
Operational Performance
In the third quarter, revenues from the Contract Drilling segment increased 5.3% year over year to approximately $357.7 million.
Ultra-Deepwater floaters recorded an average dayrate of $407,000 during the quarter as against $452,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $195,000 compared with $303,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $322,000 as against $311,000 in the prior-year quarter. Jackups were at an average dayrate of $75,000 that remained unchanged from the preceding quarter
Rig utilization for Ultra-Deepwater floaters increased to 61% from 48% in the year-ago quarter. Utilization of Deepwater floaters fell to 33% from 34% a year ago. Mid-water category rig utilization was 27% as against 33% in the comparable quarter last year. Mid-water category rig utilization was 95% as against 86% in the preceding quarter.
Financials
As of Sep 30, Diamond Offshore had approximately $276.7 million in cash and cash equivalents, while long-term debt totaled $1,971.9 million.
Q3 Price Performance
The pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 33.9% compared with the industry’s rally of 8%.
Zacks Rank
Currently, Diamond Offshore carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Northern Oil and Gas Inc (NOG - Free Report) , Braskem SA (BAK - Free Report) and Noble Midstream Partners LP . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered earnings surprise of 100.00% in the preceding quarter.
The largest petrochemical operator in Latin America, Braskem, delivered an average positive earnings surprise of 88.17% in the last four quarters.
Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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