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New Contracts Drive Diamond Offshore's Profit

Posted by October 30, 2017

Diamond Offshore on Monday reported a better-than-expected quarterly profit after securing more contracts for its deep-water drilling rigs at a higher rate, sending its shares up 13 percent in pre-market trading.
 
The company was able to secure additional work for its fleet, with new contracts for its deep-water drillers Ocean Apex and Ocean Patriot at rates well above cash flow breakeven, Chief Executive Mark Edwards said in a statement.
 
Contract drilling revenue rose 5.3 percent to $357.7 million, while total revenue was up 4.8 percent at $366 million.
 
Consolidation in the offshore drilling industry has helped companies raise prices.
 
Diamond Offshore, majority owned by Loews Corp, said net income fell to $10.8 million, or 8 cents per share, for the third quarter ended Sept. 30 from $13.9 million, or 10 cents per share, a year earlier.
 
The company booked $34.4 million in costs related to debt repayment.
 

Excluding items, it reported a profit of 25 cents per share beating the average analyst estimate of 20 cents per share, according to Thomson Reuters I/B/E/S.

 

Reporting by Akshara P 

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