Energy company Diamond Offshore Drilling (NYSE: DO) reported a wider net loss for the second quarter, when revenues declined year-over-year. The results also missed the Street view. The stock traded sharply lower following the announcement during Monday’s premarket session.
Total revenues declined 19% from last year to $216.7 million in the second quarter and missed Wall Street analysts’ forecast.
On an adjusted basis, the company reported a loss of $0.99 per share for the three-month period, wider than last year’s loss of $0.33 per share. Analysts had forecast a narrower loss for the most recent quarter.
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Reported net loss widened to $114 million or $0.83 per share from $69.27 million or $0.50 per share in the second quarter of 2018. Diamond Offshore’s total contracted backlog was $2 billion at the end of the quarter.
“During the quarter, the Ocean GreatWhite successfully completed its first well, delivering over 97.5% operating efficiency. We also completed the reactivation and upgrade of the Ocean Endeavor and the upgrade of the Ocean Apex. Both rigs commenced operations in May,” said CEO Marc Edwards.
The company recently announced the launch of its Stack-View service, which allows it to shift to predictive maintenance from time-based maintenance. The service is expected to streamline maintenance and mitigate subsea downtime. “This is yet another example of Diamond continually working to improve offshore drilling economics by reducing the total cost of the well,” added Edwards.
Diamond Offshore Drilling shares have declined progressively in recent months and are currently trading at an all-time low. The stock closed the last trading session lower.