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Diamond Offshore's (DO) Q2 Earnings & Revenues Top Estimates

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Diamond Offshore Drilling Inc. (DO - Free Report) reported second-quarter 2017 adjusted earnings of 45 cents per share that comfortably surpassed the Zacks Consensus Estimate of 24 cents. The bottom line also increased from the year-earlier earnings of 16 cents. The growth can be attributed to lower expenses and higher ultra-Deepwater and Mid-water floaters dayrate realization.

Total revenue in the quarter of $399.3 million came higher than the year-over-year number of $388.7 million. The top line outpaced the Zacks Consensus Estimate of $386.9 million.

Operational Performance

In the second quarter, revenues from the Contract Drilling segment rose 9.7% year over year to approximately $392.2 million.

Ultra-Deepwater floaters recorded an average dayrate of $436,000 during the quarter, down from $452,000 in the year-earlier quarter. Deepwater floaters realized an average dayrate of $270,000, compared with $301,000 in the year-ago quarter. Mid-water floaters recorded an average dayrate of $397,000, up from $313,000 in the prior-year quarter. Jackup rig dayrates averaged $75,000, down from $335,000 in the second quarter of 2016.

Rig utilization for Ultra-Deepwater floaters increased to 59% from 47% in the year-ago quarter. Utilization of Deepwater floaters rose to 45% from 35% a year ago. Mid-water category rig utilization was 20% as against 30% in the comparable quarter last year, while jackup rig utilization increased to 86% from 13%.

As of Jun 30, Diamond Offshore had approximately $161 million in cash and cash equivalents, while long-term debt totaled $1,981.5 million.

Zacks Rank

Currently, Diamond Offshore carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space include Enbridge Energy, LP (EEP - Free Report) , Braskem S.A. (BAK - Free Report) and TransCanada Corp (TRP - Free Report) . While Braskem and TransCanada sport a Zacks Rank #1 (Strong Buy), Enbridge Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enbridge Energy delivered a positive earnings surprise of 128.57% in the preceding quarter. The company beat estimates in three of the trailing four quarters, with an average positive earnings surprise of 38.22%.

Braskem delivered a positive earnings surprise of 107.79% in the quarter ending Sep 2016.

TransCanada delivered a negative earnings surprise of 7.58% in the preceding quarter. It surpassed estimates in two of the trailing four quarters, with an average positive earnings surprise of 1.06%.

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