Diamond Offshore (DO) Incurs Loss in Q1, Revenues In Line

Diamond Offshore Drilling Inc. DO incurred an adjusted loss of 16 cents per share in first-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 20 cents. The company reported adjusted earnings of 17 cents per share in the year-ago quarter.

Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise

 

Diamond Offshore Drilling, Inc. Price, Consensus and EPS Surprise | Diamond Offshore Drilling, Inc. Quote

Total revenues came in at $295.5 million, which was lower than the year-ago figure of $374 million. However, the top line came in line with the Zacks Consensus Estimate.

First-quarter results were aided by higher floater utilization. However, it was partially offset by lower revenues from the Contract Drilling segment as well as lesser floater dayrates.

Operational Performance

As per its annual report, Diamond Offshore was marketing its jack-up Ocean Scepter for sale and therefore, has not included it in its fleet.

In the first quarter, revenues from the Contract Drilling segment plunged 21% year over year to approximately $288 million.

Floaters recorded an average dayrate of $351,000 compared with $366,000 in the year-earlier quarter. Rig utilization for floaters increased to 52% from 47% in the prior-year quarter.

Financials

As of Mar 31, 2018, Diamond Offshore had approximately $429.7 million in cash and cash equivalents while long-term debt totaled $1,972.6 million.

Q1 Price Performance

During the January-to-March period, Diamond Offshore’s shares have lost 21.2% compared with the industry’s 14% decline.

 

Zacks Rank & Key Picks

Diamond Offshore currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Nine Energy Service, Inc. NINE, Baytex Energy Corp. BTE and EOG Resources Inc. EOG. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company pulled off a positive earnings surprise of 6.25% in the preceding quarter.

Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. The company delivered an average positive earnings surprise of 77.3% in the trailing three quarters.

Houston, TX-based EOG Resources is a major independent oil and gas exploration, and production company. The company delivered an average positive earnings surprise of 40.94% in the trailing four quarters.

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