Monday, August 1, 2016

Diamond Offshore Drilling, Inc. (DO) 2Q16 Loss of $589.9MM Hurt by Lower Contract Drilling Revenue

Diamond Offshore Drilling, Inc. (DO) 2Q16 net loss of $589.9MM or $4.30 per diluted share versus net income of $90.4MM or $0.66 per diluted share in 2Q15, hurt by lower contract drilling revenue and impairment charges of $612MM related to carrying value of 8 semisubmersible rigs and associated inventory.

During call, the company said, Ocean Apex recently began its 18-month program in Australia working for Woodside Energy at a contracted rate of $285,000 per day. The company also has recently secured a three-month extension on the rig at $205,000 per day and added that the rig is now contracted through Feb. 2018.

Kurt Hallead of RBC asks for an update on fleet size. CEO Marc Edwards said at this stage, the company is comfortable with where it is at. He added that $DO has got its sixth-generation assets currently fully contracted through to 2019, and the company has a good balance in its fleet.

For more updates check http://ift.tt/2asDOvs



Submitted August 01, 2016 at 01:07PM by jeffery89 http://ift.tt/2agezJe

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