Diamond Offshore Drilling Inc. (DO) slipped to a loss in the third quarter from a profit last year, due to a decline in the contract drilling revenue as well as higher general and administrative expenses. The bottom line was narrower than analysts’ expectations while the top line exceeded consensus estimates. Following this, the stock inched up over 5% in the premarket session.
Net loss was $51.11 million or $0.37 per share compared to a profit of $10.8 million or $0.08 per share a year ago. Adjusted loss per share was $0.26 compared to the previous year quarter’s earnings of $0.25 per share.
The adjusted results exclude restructuring and separation costs, costs for settlement of a previously pending legal claim, the loss on rig sale and last year’s loss on extinguishment of debt, as well as the related tax effects.
Revenue plunged 22% to $286.32 million. Contract drilling revenues fell by 21.5% and revenues related to reimbursable expenses dropped by 32.5%.
Diamond Offshore continues to take the necessary steps to position the company for long-term success. As such, the company entered into a new $950 million revolving credit facility maturing October 2023 and amended its existing credit facility. Combined, this provides $1.275 billion of availability and further enhances its liquidity runway.
As of October 1, 2018, the company’s total contracted backlog was $2 billion, not including a $135 million margin commitment from one of its customers.
Shares of Diamond Offshore ended Friday’s regular session up 0.35% at $14.21 on the NYSE. The stock has fallen over 13% in the past year and over 23% in the year so far.