Diamond Offshore Q1 Earnings And Revenue Beat Estimates

Diamond Offshore Drilling Inc. (NYSE:DO) is a major contract driller, providing comprehensive offshore drilling services to the global energy industry. The company’s drilling fleet of 33 consists of 23 semi-submersibles (of which one is under construction), 6 jackups and 4 dynamically positioned drillship. The majority of Diamond Offshore is owned (53% of total shares outstanding) by Loews Corporation (NYSE:L) .

Currently, Diamond Offshore has a Zacks Rank #3 (Hold) but that could change following its first quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: Diamond Offshore beats on adjusted quarterly earnings. Earnings per share came in at 64 cents per share, above the Zacks Consensus Estimate of 28 cents.

Revenue: Revenues of $470.5 million came above the Zacks Consensus Estimate of $415.0 million.

Key Stats: 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 during the quarter, 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% as against 49% in the comparable quarter last year, while jackup rig utilization decreased significantly to 18% from 66%.

Check back later for our full write up on this Diamond Offshore earnings report later!