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Diamond Offshore (DO) Posts Narrower-Than-Expected Q3 Loss

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Diamond Offshore Drilling Inc. (DO - Free Report) incurred an adjusted loss of 26 cents per share in third-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 38 cents. The company had reported adjusted earnings of 25 cents in the year-ago quarter.
 
Total revenues came in at $286.3 million, which beat the Zacks Consensus Estimate of $280 million. However, the top line declined from the year-ago quarter's figure of $366 million.

The quarterly results improved on the back of higher floater utilization. This was partially offset by lower revenues in the Contract Drilling segment and lesser floater dayrates.
 

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

Per the annual report, Diamond Offshore has put Ocean Scepter for sale and not included the jack-up in its fleet.

In the third quarter, revenues in the Contract Drilling segment plunged 21.5% year over year to approximately $280.7 million.

Floaters recorded an average dayrate of $333,000 compared with $357,000 in the year-earlier quarter. Rig utilization for floaters increased to 54% from 46% in the prior-year quarter.

Financials

As of Sep 30, 2018, Diamond Offshore had approximately $201.9 million in cash and cash equivalents while long-term debt totaled $1,973.5 million.

Price Performance

During the July-to-September period, Diamond Offshore’s shares declined 4.1% compared with the industry’s 2.5% rise.

Zacks Rank & Key Picks

Diamond Offshore currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Hess Corporation (HES - Free Report) , Murphy Oil Corporation (MUR - Free Report) and Eni SpA (E - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

New York-based Hess is a global integrated energy company. It delivered an average positive earnings surprise of 230.5% in the last four quarters.

El Dorado, AR-based Murphy Oil is a global oil and gas exploration as well as production company. It pulled off an average positive earnings surprise of 96.5% in the last four quarters.

Based in Rome, Italy, Eni is among the leading integrated energy players in the world. The partnership witnessed a negative earnings surprise of 0.3% in the preceding four quarters.

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