Diamond Offshore misses Q4 estimates; revenue drops 32%

Diamond Offshore Drilling Inc. (DO) missed consensus estimates on both revenues and earnings for the fourth quarter of 2018.

Total revenues decreased 32% to $232.5 million from last year. Total contract drilling revenues were down 32% year-over-year at $226 million.

On a GAAP basis, net loss widened to $79.2 million, or $0.58 per share, from $31.9 million, or $0.23 per share, in the prior-year quarter, mainly due to a higher income tax expense. Adjusted net loss was $57.7 million or $0.42 per share.

Marc Edwards, President and CEO said, “We continued to make strong progress with another active contracting quarter resulting in approximately 33 months of additional backlog secured. Among the new fixtures is a 15-month contract for the Ocean Valiant and a one-year contract for the Ocean Onyx, which we are upgrading and reactivating for the new work. Additional awards were for the Ocean Apex and Ocean Monarch in Australia.”

Diamond Offshore posts smaller than expected Q3 loss

Operational efficiency for the total fleet was 95.4% in the fourth quarter compared to 98.8% last year. The average day rate for floaters was $315 and the utilization was 46%.

Also see: Diamond Offshore Q4 2018 Earnings Conference Call Transcript

As of January 1, 2019, Diamond’s total contracted backlog was $2 billion, not including $135 million margin commitment from one of its customers.

Over the past 52 weeks, the stock has dropped over 30% while over the past one month, it has fallen 14%. Shares were up slightly by 0.80% in premarket hours on Monday.

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