Diamond Offshore Drilling Inc. (DO - Free Report) reported first-quarter 2016 adjusted earnings of 64 cents per share that comfortably surpassed the Zacks Consensus Estimate of 28 cents. The performance was boosted by the ongoing efforts to improve the cost structure.
Total revenue of $470.5 million for the first quarter came in lower than the year-ago figure of $620.1 million. However, the top line surpassed the Zacks Consensus Estimate of $415.0 million.
Diamond Offshore announced that it has appointed Kelly Youngblood as Senior Vice President and Chief Financial Officer. The new appointment will be effective from May 3.
In the first quarter, revenues from the Contract Drilling segment fell 26.0% year over year to approximately $443.5 million.
Ultra-Deepwater floaters recorded an average dayrate of $533,000, up from $497,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $334,000 compared with $486,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $263,000, down from $266,000 in the prior-year quarter. Jackup rig dayrates averaged $118,000, up from $92,000 in the first quarter of 2015.
Rig utilization for Ultra-Deepwater floaters increased to 61% from 51% in the year-ago quarter. Utilization of Deepwater floaters fell to 28% from 45% a year ago. Mid-water category rig utilization was 25% against 49% in the comparable quarter last year, while jackup rig utilization decreased significantly to 18% from 66%.
As of Mar 31, 2016, Diamond Offshore had approximately $128.9 million in cash and cash equivalents, while long-term debt was $1,980.1 million.
Diamond Offshore currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are NuStar GP Holdings, LLC , Braskem S.A. (BAK - Free Report) and PetroChina Co. Ltd. (PTR - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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